§ Buy life cover of 6-8
times your annual income
§ Buy health cover of
at least Rs 5 lakh for full family
§ Save at least 10% of your income
for retirement
§ Keep contingency fund
to sustain 3-6 months' expenses
§ Start saving for kids' education
when they are born
§ Take personal
accident, disability cover of at least Rs 25 lakh
§ Your EMIs should not exceed 40%
of your take home income
§ Insure home and other
assets against damage and theft
§ Earmark savings for
specific financial goals
§ Increase savings in
line with rise in income
§ Establish a diversified portfolio
and asset allocation
§ Rebalance your
portfolio at least once a year
§ Don't go after extraordinary
returns
§ Match investment
horizon with asset class
§ Differentiate your
wants from your needs
§ Ensure timely and
regular repayment of loans
§ Avoid investments that offer
extraordinary returns
§ Understand features
of insurance policies before purchasing
§ Adopt safety measures
with credit cards, online transactions
§ Don't dip into
savings for discretionary expenses