Financial Guide for Women - Personal Financial Planning

Personal Financial Planning, Tips for managing your money, Money Mistakes to be avoided, Managing contingencies and emergencies

Why plan finance? 

We all have our  plans, hopes and aspirations.

• First we need to have a financial goal.
• Oops you need to first set up your learning goal.
• Sorry again, before that you need to first set up your Health goals.

Before we go further:

• Do you want to die rich or die in hope of getting rich?
• I would like to live rich.

Triple your investment in LSG - Learning, Study, Growth.

Is your money working for you?

Let your money work for you 24 hrs*365 days

Do you follow what others say on money matter? - Its just guidance, don't follow verbatim, never compare or copy. Listen to all, but make your own decision.

A good financial Planning:

• All about the future
• Figures matter: What's your goal?
• Time your plan: When do you need funds?
• Consider inflation
• Be ready for emergency and contigency
• Set monthly targets
• Know what is your risk appetite
• Understand compounding and start early

Formula to become rich:

S = I - E no

E = I - S

Tax Planning: Don't Delay:

Start in April

• Know your taxes
• Start Planning

Understand your tax statement - Form 16; anyone can make mistake. 

Spread out your investment - ELSS/Others - SIP it.

Rupee cost averaging and higher return

Explore VPF - Will qualify for 80C and provide diversity.

Invest Smart - Put your bonus to good use

• Not in the bank account please
• Park in Liquid funds
• Allocate and invest
• Systematic Transfer plan

Insurance - Do's and Dont's

• It's a cost and not an investment. 
• Always go for term plan
• ULIP is a big no.
• We all should have term insurance
• Nomination is needed for all financial transaction/investment
• Policy Documentation
• Company scheme is okay but not good enough
• Start early - always have health insurance.

Credit Cards - 

A big no, unless you can manage it well. It is a good servant, but a bad master.

• Good tool to defer the payouts and avail 50 days credit period
• It can be a serious trap if you don’t pay 100% dues on time
• Interest charge on overdue will kill your financial planning
• Negotiate for joining and annual fees – should be waived off
• Always restrict maximum 2-3 which you can manage easily
• Go for 100% auto payment on due dates

Contingencies and Emergencies:

• Medical - Action plan - let family be aware
• Death - Nomination, Information and data access ( How can I say no to this? ; If I am not responding, I am busy) (Death is the only reality of life)
• Job loss - contingency fund, liquidity. 

Where to Invest:

Mutual Fund.  ' Mutual fund Sahi hey'

Benefits of Mutual Fund:

• Liquidity
• Diversification
• Transparent
• For everyone
• Low Charges
• Tax Benefit

Choose a good one with 5 start rating, Its safe, but subject to risk.

Where do Indian's Invest?

Diversification and correct asset allocation is the key.

If you want to be wealthy, invest in equity.

Last year was outlier so last years returns cannot be taken as base. 

It's not too early, its not too late to invest. You can start anytime.  Depending on your time horizon, plans will be different. 

First invest in your learning, study and growth. 

Don't compare or copy others!

Happy Investing!

Challenge yourself to maximise your money potential # choosetochallange.