Read on Twitter
A thread on some of the basics of personal finance
1/ To start with, save 12Ă of your monthly expenses before starting your investments.
a) Let this money be in your Savings Account
b) Touch this only if your monthly income is interrupted or in case of emergency
a) Let this money be in your Savings Account
b) Touch this only if your monthly income is interrupted or in case of emergency
2/ Take life cover - Go (only) for a term insurance plan as early as possible.
a) Plan atleast for 25x of your annual income as your life cover
b) Take help of your investment advisor while filling up the application form. (This is very critical)
a) Plan atleast for 25x of your annual income as your life cover
b) Take help of your investment advisor while filling up the application form. (This is very critical)
3/ Take Medical Cover covering all your dependents
a) Ensure you have a sufficient medical cover
b) Its better to purchase an additional medical insurance policy (other than the one provided by your company)
a) Ensure you have a sufficient medical cover
b) Its better to purchase an additional medical insurance policy (other than the one provided by your company)
4/ Avoid debts
a) Adapting to points 1,2 & 3 has to be treated "the most important" in order to avoid debts
b) Avoid credit cards & Personal Loans (for that matter any loans).
c) If spent via credit card, settling the CC bill should be your top priority (before the due date)
a) Adapting to points 1,2 & 3 has to be treated "the most important" in order to avoid debts
b) Avoid credit cards & Personal Loans (for that matter any loans).
c) If spent via credit card, settling the CC bill should be your top priority (before the due date)
5/ Plan before you start Investing
a) Invest for a purpose.
b) Know how much your future goal would cost & invest accordingly.
c) Set a realistic target
d) Best approach is to start with SIPs.
e) Get support from a MFD to start with.
a) Invest for a purpose.
b) Know how much your future goal would cost & invest accordingly.
c) Set a realistic target
d) Best approach is to start with SIPs.
e) Get support from a MFD to start with.
6/ If you are a beginner, don& #39;t worry too much about the cost. Don& #39;t panic. Be systematic.
a) Cost of MFs (through SIPs) won& #39;t impact your portfolio returns too much atleast for the first few years
b) Market volatility is for certain. So, don& #39;t panic if your fund value drops.
a) Cost of MFs (through SIPs) won& #39;t impact your portfolio returns too much atleast for the first few years
b) Market volatility is for certain. So, don& #39;t panic if your fund value drops.
7/ Review.
a) Track your fund& #39;s performance once in a year ( https://www.morningstar.in/askmorningstar/askmorningstar.aspx">https://www.morningstar.in/askmornin... is one of the best portal)
b) Act only if its required (eg - if the the fund is rerated from 5 to 3 or less in one year)
a) Track your fund& #39;s performance once in a year ( https://www.morningstar.in/askmorningstar/askmorningstar.aspx">https://www.morningstar.in/askmornin... is one of the best portal)
b) Act only if its required (eg - if the the fund is rerated from 5 to 3 or less in one year)
8/ Understand the importance of compounding.
a) Real growth happens only through compounding
b) Being patient for long term is the most difficult part. So, practice.
c) If your fund value doubles in 2 years, it& #39;s because of your luck and not because of anyone& #39;s intelligence.
a) Real growth happens only through compounding
b) Being patient for long term is the most difficult part. So, practice.
c) If your fund value doubles in 2 years, it& #39;s because of your luck and not because of anyone& #39;s intelligence.
9/ Work on asset allocation & bring down the cost
a) Once your Portfolio reaches a sizable value, start working on proper asset allocation
b) Cost becomes one of the most important factor at this stage. Eliminate cost.
a) Once your Portfolio reaches a sizable value, start working on proper asset allocation
b) Cost becomes one of the most important factor at this stage. Eliminate cost.
10/ Pray. 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="đ" title="LĂ€chelndes Gesicht mit lĂ€chelnden Augen" aria-label="Emoji: LĂ€chelndes Gesicht mit lĂ€chelnden Augen">
This thread might help someone. Pl add your valuable comments / RT.
@Gautam__Baid @Nithin0dha @dmuthuk @FI_InvestIndia @AaratiKrishnan @pvsubramanyam @Vivek_Investor @rustapharian @shyamsek
@Gautam__Baid @Nithin0dha @dmuthuk @FI_InvestIndia @AaratiKrishnan @pvsubramanyam @Vivek_Investor @rustapharian @shyamsek
