Following are few Basic points that will help KYF (Know Your Financial Status).
- ü Always try to maintain 6 months salary amount in your Savings A/c – to meet Emergency & Liquidity.
- ü Maintain 2 Savings A/c atleast with different banks with 50:50 or 70:30 Balance of your Liquid Fund. (Jus to meet any ATM withdrawal or server issues)
- ü Do not keep idle funds more than Rs.1 Lac in your Savings A/c as the ROI is only 4%
- ü Park short term funds in Fixed Deposits of upto 90,180 Days or above based on your requirement as the ROI is between 7-9%.(Online FD placement and closure is available)
- ü Start investing in Mutual Funds – (Diversified-medium risk) in Systematic Investment Plan (SIP) with as little as Rs.1000 per month with long term like 3-5 years
- ü Take adequate Term Insurance of 6-10 times of your annual earnings. Remember in Term Plan premium will be low and benefit will be for your legal heirs(only in case of risk the sum assured is given)
- ü Always go for rider option with critical illness that will ensure in case of any illness the premium need not be paid.
- ü Its better to go for Term Insurance + Mutual Funds separately rather than ULIP as we can have choice of investing.
- ü Ensure you have adequate Family /Dependant Medical Insurance coverage.
- ü Keep Your Medical Bills properly for Tax Exemption upto Rs.15,000
- ü Declare your HRA receipts and 80C investment option to avail Tax Exemptions
- ü Buy Gold ETF instead of Gold Coins – High Liquidity similar to Mutual Fund- SIP mode is available in many funds.
- ü Plan for your future expense and start investing immediately
v Do not have more than 60% of your salary with Fixed Commitment(Loans)
v Do not spend more that what u can Pay every month from your CREDIT CARD
v Do Not go for CREDIT CARD EMI conversion its as high as 1.25% pm.
v Do Not invest in BLINDLY in ULIP or any Investment Scheme as promoted by any Banks/Broker.
v Analyse / do research on the product before investing. Know the Pros and Cons of the Scheme.
v Avail 100% benefit of 80C upto 1 Lac. Do not pay Income Tax unless you do not have Funds to invest in 80C options.
v Do not redeem your PF amount from previous Employer. Always continue the existing PF with new Employer. Remember PF is exempted from any Court Order Attachment.
v Do not put any Guarantee or assurance for any unknown people and even for known people think well if u have capability to bear the loss in case of default by that person.
NOTE: Maintain an excel sheet of your Investment & regularly monitor atleast once in a Quarter.
Think twice before investing and thrice before spending. J
“Happy Investing - Prudent Spending”