Fundamentals/Checklist of financial planning :-
1. 30 % of your income must be used for monthly living expenses.
2. 30% of your income must be used for Liabilities repayments
3. 30% of your income must be SAVED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations………..
5. 6 month monthly income must be available for emergency fund {LIQUID
2. 30% of your income must be used for Liabilities repayments
3. 30% of your income must be SAVED for your future LIVING.
4. 10% of your income must be spared for entertainments, vacations………..
5. 6 month monthly income must be available for emergency fund {LIQUID
FUND}, it can be CASH or cash like investments.
6. Must save one year in debt fund vide SIP
7. Must save for medium term requirement in a 5 years debt fund sip.
8. Must have savings in 15 years PPF or EPFO
9. Mutual Fund and or Shares must be invested vide SIP for long term.
10. Home loan must be registered and apply on both husband and wife name.
6. Must save one year in debt fund vide SIP
7. Must save for medium term requirement in a 5 years debt fund sip.
8. Must have savings in 15 years PPF or EPFO
9. Mutual Fund and or Shares must be invested vide SIP for long term.
10. Home loan must be registered and apply on both husband and wife name.
{ Both can get benefits on Home loan Tax benefits }
11. Debt funds also very good investments for short term
12. Buying second house for investment is not advisable [ Survey reports - it
11. Debt funds also very good investments for short term
12. Buying second house for investment is not advisable [ Survey reports - it
will fetch you only around 3% return]
13. After age 45 years not supposed to enter into any BIG LIABILITIES
13. After age 45 years not supposed to enter into any BIG LIABILITIES
[Higher education of children and wedding of children will happen around
45 to 50 only ]
14. Joint account is compulsory at Bank savings account.
15. Property must be registered on both Husband and wife name. [As per legal
15. Property must be registered on both Husband and wife name. [As per legal
act – after husband first legal heir is wife, after wife it will go to children only]
16. Regular check on Nominations at all financial instruments
17. Only in insurance policy, Claims payable to Nominee. In other financial
16. Regular check on Nominations at all financial instruments
17. Only in insurance policy, Claims payable to Nominee. In other financial
instruments legal heirs certificate is must to get back the settlement
18. 2 moths salary must be parked on LIFE INSURANCE POLICY [it’s a
18. 2 moths salary must be parked on LIFE INSURANCE POLICY [it’s a
universal thumb rule on insurance ]
19. Don’t take any financial investment decisions by EMOTIONALLY.
20. MEDICLAIM is must [in spite of Group Mediclaim coverage given at office.
19. Don’t take any financial investment decisions by EMOTIONALLY.
20. MEDICLAIM is must [in spite of Group Mediclaim coverage given at office.
[After retirement there is no Mediclaim coverage. After 50 years its very
tough to enter into Mediclaim]
21. For your jewelry LOCKER, Only one lakh is payable by bank, if theft or fire
21. For your jewelry LOCKER, Only one lakh is payable by bank, if theft or fire
happen at bank. Provided insurance done.
22. Like same way Government guarantee only one lakh for your FD also.
22. Like same way Government guarantee only one lakh for your FD also.
[Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit
insurance]
23. Must know all tax implications. You cannot avoid paying tax. But you can
23. Must know all tax implications. You cannot avoid paying tax. But you can
minimize by way of investments.
24. All financial documents must be kept safely.
25. Financial investments must be preferably done through your personal Financial adviser.
26. Review your financial port folio once in 3 years.
24. All financial documents must be kept safely.
25. Financial investments must be preferably done through your personal Financial adviser.
26. Review your financial port folio once in 3 years.
Related Articles
This post first appeared on Save Tax Save Money With Life Health Insurance, please read the originial post: here
