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Is Financial Management necessary for me?

By vijaibabu
Is Financial Management necessary for me?
Financial Management is for every one who cares for money. It is  nothing but transformation from being needy to rich and from rich  to wealthy.
Tips on Personal Financial Planning/Management 
  • If you have EMI commitments,  bring down total loan EMI (housing, vehicle) commitment to a level of not more than 25% of the total income
  • Basic life insurance cover need not be more than 100-150 times of normal monthly expenses.
  • If your family has unearned income (interest income, dividend income, rental income etc) which is substantially more than normal family needs, you may not really require insurance.
  • Choose insurance plans with flexible options to take care of children's needs/ health care needs/ retirement in future.
  • You can take a simple term insurance policy or Health Plus Life combo policy to cover risk and healthcare.. Even floater health policies for all family members (even upto 80 years) are now available with term insurance option .
  • For pure return purposes, you can choose mutual fund products as they are in a better position to give higher return (tax free) because of lower charges.   
  • Rated NCDs of some companies offer attractive returns (upto 12%) without deduction of tax at source. Bank deposits offer attractive but taxable returns (even upto 10.75%) at present. 
  • Demat all your 'eligible investments' (Shares, Mutual funds,bonds, exchange funds, unlisted shares etc) and get a single consolidated statement in future.
  • Always calculate the return on investment - net of taxes and tax benefits
  • You should never play the stock market game with borrowed money
You can easily recognise the difference between being a spendthrift, a miser and a careful financial planner by spending 20 minutes in seeing the following film click here  (http://www.idfcmf.com/BACHAT_NIVESH_BADHAT-1.html)

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