Personal Finance - Some Guidelines !!

[ashish]

*Thumb Rule 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*, if any..

3. 30% of your income must be *SAVED* and *INVESTED* for your future LIVING.

4. 10% of your income must be spared for *entertainments, vacations*

5. 6 months expenses must be available for *emergency fund* (should be
invested in LIQUID FUND, FD Etc)

6. *Home loan* must be registered and apply on both *husband and wife
name.* (Both can get benefits on Home loan Tax benefits)

7. Buying *second house for investment is not advisable* ( _Survey
reports - it will fetch you only around 3% return_)

8. After 45 years of age, *not supposed to enter into any BIG
LIABILITIES* (Higher education of children and wedding of children
will happen around 45 to 50 only, so plan now for the same.)

9. Have joint account @ Bank savings account.

10. 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)

11. Regular check on *Nominations at all financial instruments.* if
not nominated, do it now..

12. Only in insurance policy, Claims payable to Nominee. In other
financial instruments legal heirs certificate is must to get back the
settlement

13. Must have *Term Insurance* to financially secure future of your dependants..

14. *Don’t take any financial investment decisions EMOTIONALLY*,  and
also Avoid last minute tax saving investment decisions, plan well in
advance..

15. *MEDICLAIM is must* (in spite of Group mediclaim coverage given at
office) (After retirement there is no mediclaim coverage, after 50-55
years of age, it's very tough and costly to enter into mediclaim)

16. For your *jewelry LOCKER*, Only one lakh is payable by bank, if
theft or fire happen at bank. Provided insurance done.

17. Like same way *Government guaranteed only one lakh for your FD*
also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by
deposit insurance)

18. Must know all *Tax implications.* You cannot avoid paying tax. But
you can minimize by way of tax planning and investments..

19. All *financial documents must be kept safely* and keep family
members informed of the same..

20. *Financial investments* must be followed through *personal
financial advisor..*

21. *Review your portfolio at every six month..*

These are general suggestions, personal Finance and investment
decisions depends upon case to case_

*Have a Healthy and Wealthy 2017..*