Thumb Rule of Financial planning

30 % of your income must be used for monthly living expenses

40% of your income must be used for Liabilities repayments (Housing EMI, Loans etc.)

30% of your income must be SAVED and INVESTED for your retirement.

3-5% of your income must be spared for Social cause

6 months expenses must be available for emergency (should be invested in LIQUID FUND or any safe instruments which can be liquidate in a days time

Buying second house for investment is not advisable

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.)

Have joint account @ Bank savings account.

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)

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

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

Must have 10-15 times of coverage in form of term Insurance to financially secure future of your dependents

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

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)

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

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)

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

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

Financial investments must be followed through personal financial advisory

Review your portfolio at every six month

These are general suggestions, personal Finance and investment decisions depends upon case to case, please consult your financial planner and read disclaimer below

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