Wednesday, 14 August 2013

Celebrate (F)independence Day on August 15th

On the eve of Independence Day, I wish that people of India also vow for being financially independent. Let’s celebrate 15th August by not only feeling proud of being a citizen of Independent India but furthermore being a Findependent citizen. A Findependent citizen who is free of financial stress, is focused and in control of Personal Finance. Check if the measures mentioned below help.

v Earn-Plan-Spend. Do not Earn-Spend-Plan.
v Adhere to all your bill payment deadlines. Build your Financial character.
v Early start pays a lot when it comes to investing. However, it’s better late than never.
v Draw up a goal based Financial Plan on paper, put realistic figures against it and stick to it.
v If you cannot make the Plan yourself, seek help of a professional who is independent and unbiased.
v Take decisions regarding money matters. Do not procrastinate.
v Take loan within limits. Pay off early if you have surplus.
v Pay your Credit card dues diligently.
v Inflation is a menace bigger than you can visualize, do not ignore, fight it.
v Do some Tax Planning to take advantage of provisions made by law.
v Look at Gold as an investment asset class.
v Do not be shy of admitting mistakes with your money matters. Learn from it.
v Rebalancing of your investment portfolio is a sensible way to stay on track.
v Be financially savvy.
v Decide whether you are a speculator or investor.
v Know you Risk appetite and take/retain risk accordingly.
v Do not have emotional attachment with you investments.
v Take control of the behavioral aspect of investing.
v Timing the market is a futile exercise.
v Plan for your Retirement, NOW!!!
v Only Life Insurance you require is Term Life Insurance and that too if you have dependents.
v Analyze and get rid of traditional and junk insurance plans.
v Do not neglect having your own Health insurance policy although covered by employer.
v There is no alternative to Personal Accident and Disability Insurance.
v Consider Critical Illness insurance as well in case of family history of ailments.
v Read the fine print of any financial document and understand before you sign.
v Do not pay cash to your advisor/agent.
v Avoid dealing with multiple banks and multiple agents.
v Develop multiple sources of income, if possible.
v Allocate few hours in a quarter to look after your Personal Finance.


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