“We were not taught financial literacy in school. It takes a lot of work and time to change your thinking and to become financially literate.” Robert Kiyosaki This is a classic case of how financially prudent decisions can change your life forever. Here is a family of 3, a couple and a young son just turned 20. Both husband and wife, in their early 50s, … Continue reading How Can Financial Illiteracy Keeps You Slave Forever? Real Life Casestudy
Life is uncertain. Death is certain. There are family members dependent on you. Your death can make them vulnerable if they are not financially secure. You have still not achieved the level of savings required for a comfortable lifestyle after retirement. In these circumstances, Life insurance is the only investment that can rescue your family from financial distress. There is a famous quote that aptly … Continue reading Why Shouldn’t You Escape From Life Insurance?
“College graduates spent 16 years gaining skills that will help them command a higher salary; yet little or no time is spent helping them save, invest and grow their money.” Vince Shorb, CEO of the National Financial Educators Council Karvy is pledging customers’ shares, PMC bank joining hands with the fraudulent borrower, DHFL lending recklessly to builders. Many such companies in the financial system thrive and defraud every now and … Continue reading Nothing is Safe, How to Minimise the Risk?
We all know putting all eggs in one basket could be dangerous if the basket goes bust. Similarly, keeping all your savings and investments in one class of assets could be either risky or would not give a reasonable mix of return. There are several classes of assets available for an individual to park their savings. Some are risky, some are safe, some are reasonably safe, and some … Continue reading Do You Know Asset Allocation is the Key to a Successful Financial Planning?
Once I was with my client at a coffee shop in the 5-star hotel. I was asked about my coffee choice. Out of the multiple options , I was not sure what to order so I left it to the client. I thought when we had only two options of coffee i.e. filter coffee, and Nescafe life was easier. With the arrival of Starbucks and … Continue reading A Short Post on Personal Finance for Quick Understanding
Do you know the precious wealth you possess? Many people are ignorant about the priceless wealth they possess. If you are also one of them, read on to know more. Do you determine your wealth only by monetary measurement? If your answer is yes, you need to quickly redefine your definition of wealth. Wealth has many dimensions. Henry David Thoreau, an American Poet, and Philosopher … Continue reading Do You Know You are Wealthy Without Your Knowledge
“Failing to plan is planning to fail.” Alan Lakein Yes, failing to plan the risk management puts you and your family at high financial risk. Risk Management is usually not considered a part of Financial Planning. It is a big mistake. Risk Management is not about the risk of investing in risky investments. It is about managing risks of untoward events in the life of any … Continue reading High Financial Risks You Need to Know for Your Family
Imagine your parents had invested rupees 1 lakh when you were born in 1993. Then they were busy in your upbringing, education, and managing own career. They forgot about the shares. Last year when you completed your studies and got the first job they found the share certificates of the investments made in 1993. Out of curiosity, they checked the share price of their holding … Continue reading 3 Things You Need to Know About The Wealth Creation From The Stock Market
Do you want to create wealth? Do you find it difficult to control your spending? Are you looking for ideas to spend less and save more? Read on this post. Here we have shared 8 ideas to spend less and save more. The wealth is created by investing what you save. What you save is the difference between what you earn and what you spend. Therefore the … Continue reading Do You Know The Art of Spending Money?
Maintaining books of accounts is not just a requirement for entrepreneurs but it is also a necessity even if you are a salaried employee. “Accounting was the course that helped me more than anything.” Julian Robertson Yes, accounting is an important part of managing your finances. The reality is accounting is mostly ignored. Maintaining personal books accounts is good practice. It is one of the key aspects … Continue reading Why is Maintaining Books of Accounts Important for Employees?
Among all the planning you do Financial Planning is perhaps the most important but mostly ignored planning exercise. Financial Planning requires you to consider planning about your life. It entails considering budgeting, savings, investments, taxes, insurance, retirements, and important life stage planning like children education, marriages, etc. It is an exhaustive process. But it is also an interesting process. It makes you think through the … Continue reading You Need to Know 4 Aspects of Personal Financial Planning
Story: Recently I saw a balance sheet of an entrepreneur whose business is doing a turnover of about US $ 15 mn and good profit. However, his personal Balance Sheet did not reflect any substantial investment other than his house. The loan of another entrepreneur known to me become NPA. He was making a reasonable profit for many years. However, he did not have any investments outside his business … Continue reading 4 Reasons Why Entrepreneurs Need to Save
NPA figure in the banking and NBFC industry is exorbitant. Banks are suffering but what about the borrowers who have suffered business loss. They are facing recovery agents, social abstinence, legal battles, the stress of managing family expectations and responsibility of turning around the business. The situation is dire. People suffering from financial distress are all around us. Financial distress is not a new thing. … Continue reading 8 Things You Need to Know to Deal With Financial Distress
We celebrate two birthdays. One as per the English Calendar and other as per the Indian calendar. But we celebrate 3 new years. One starts as per the Indian calendar, one as per the English calendar, and one financial year. We are approaching the new ears as per the English calendar year. One more new year and one more chance to reviews all our goals, … Continue reading 14 Financial Hygiene Tips You need to know
Financial literacy is about how you deal with your money. This is about simple basic things about money. Financial literacy is not necessarily your literacy about the language i.e. reading and writing. It is different. “The number one problem in today’s generation and economy is the lack of financial literacy.” Alan Greenspan It is about understanding your income, expenses, investments, credit, budgeting, planning, and knowing … Continue reading 9 Key Financial Literacy Aspects You need to Know
Financial Planning is assuming importance. With a variety of financial products, contingencies of life and awareness about the need for planning all are contributing to the necessity of financial planning. But what are the components of a good financial plan? What are the common mistakes people make? There are various aspects which need some basic understating. Here is a list of 10 common mistakes people … Continue reading Top 10 Financial Planning Mistakes to Avoid
managing risk daily. Some risk management is natural to you while some risks require deliberate efforts. There are some risks which are manageable and some are non-manageable. Even some risks are not known which means unforeseeable. You do not walk on the railway tracks but you can walk on the railway bridge and the bride can collapse. Not walking on the railway tracks is the … Continue reading Financial Planning Model To Protect & Grow Your Wealth
Do you know money also can bring happiness? Contrary to what you have heard, money can bring happiness to you and your family. The only condition is you need to be vigilant of what you are doing with the money. Here we list down 5 ways your money can bring you happiness. Know it well and harvest your happiness with your money. If You Invest … Continue reading Know How Money Can Bring Happiness for You
Money may not give happiness but money is an important lifeline for survival. While managing your personal finances you need to consider your responsibilities towards your family. The money you are earning comes with many diverse priorities. As a young earner in the family, you may not know your financial responsibilities. This post aims to guide you for this. “Family life is full of major … Continue reading 4 important Financial Responsibilities people in 20s should know
One of the important aspects of financial planning is planning for death. It may sound unkind but it is an important aspect of financial management. It is crucial to protect your family’s financial security once the earning member dies. Death of an earning member is an important event in every family. It usually comes with emotional havoc. It can also create financial stress if the earning … Continue reading 5 Point Action Plan to Protect Your Wealth Before You Die