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 repayment, 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 Tax benefit 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 45years 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. Having joint account @ Bank saving 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 childrens 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 getbact the settlements.
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 spit 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 is done
17. Like same way government guaranteed only one lakh for your FD also.( Fixed deposits with banks upto 1lak only are backed by deposit insurance )
18. Must know all TAX implications. You can not 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. Review your portfolio at every regular Intervals.
These are general Suggestions, Personal Finance and investment decisions depends upto case to case..
Thanking You,
-Raj
1. 30% of your income must be used for monthly living expenses.
2. 30% of your income must be used for Liabilities repayment, 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 Tax benefit 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 45years 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. Having joint account @ Bank saving 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 childrens 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 getbact the settlements.
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 spit 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 is done
17. Like same way government guaranteed only one lakh for your FD also.( Fixed deposits with banks upto 1lak only are backed by deposit insurance )
18. Must know all TAX implications. You can not 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. Review your portfolio at every regular Intervals.
These are general Suggestions, Personal Finance and investment decisions depends upto case to case..
Thanking You,
-Raj
Inspiring financial post sir.. it's eye opener to many of the people... please do continue social financial awareness posts like this ... thank you
ReplyDeleteThanks for sharing thumb rule of financial planning. It’s very important to make a right choice when it comes to consultation about money management. I recently got my retirement savings plan done from a certified financial advisor Las Vegas and hopefully will achieve my goal.
ReplyDeleteSometime i really wanna help those in a financial problems. i was wondering why some people talks about inability to get a loan from a bank/company. have you guys ever try Payoneer lending service. it cost 0 dollars to loan from their company. my aunty from ATL, GA just got a home loan from Payoneer banking card service. and they gave her a loan of 7,000,000 USD. they give out loan from 100,000 USD - 10,000,000 USD. try it yourself and testimony, am Salvas from NY. have a great day as you try. Kiss & Hug. E-mail < Payoneercardservice@gmail.com >
ReplyDeleteNice Information!!
ReplyDeleteIt is very helpful information about Income Tax.
Thanks for sharing
Tax and financial planning
Haven't you heard about cyber hacking company blank ATM card and how other people had benefited from it? I am Williams vivian by name, i want to share a blog and forums on how to get real blank ATM card,thank to cyber hacking company who helped me with an already hacked ATM CARD and i was so poor without funds that i got frustrated. One morning as i was browsing on the internet, i saw different comments of people testifying of how cyber hacking company helped him from being poor to a rich man through this already hacked ATM CARD. I was skeptical if this was true, i decided to contact him to know if he is real he proved to me beyond all doubts that its was really for real so i urgently receive my blank ATM card. Contact his email cyberhackingcompany@gmail.com and today am also testifying on how cyber hacking company helped me. I never believed in it until the card was sent to me, which am using today Contact the company now and become rich. Email: cyberhackingcompany@gmail.com ....
ReplyDelete