When a person joins a job, its a special moment in his life and a very crucial point. Taking good care at this point will be helpful for his whole life and many years worth of mistakes will not happen which happens with millions of people.
Hence below is a very crisp checklist of what a new investor can start with.
- See how much term plan you need and take it.
- See that you buy a good health insurance policy
- See that you have started a recurring deposit or SIP in mutual funds for a minimum amount you are sure will not stop for next 5 yrs
- Keep 2 months worth of expenses on the side in a saving account which you generally do not touch
- Make sure you are meaningfully saving your taxes
- Hire a good CA or Financial advisor if you feel you need handholding
Wish you best of luck for your financial life
“30-30 rule of Retirement Planning ”.
The rule states that an average person works for 30 years and then, after retirement, lives for another 30 years.
Imagine you are 30 years old. You will work for next 30 years (till you are 60) and then you will live for another 30 years (till the age of 90). For the first 30 years, you will earn and consume the money. For the next 30 years you will not earn, but will still consume money.
You earn for next 60 yrs, not just 30 yrs
How to spend optimal money ?
Expenses are important element of your financial, if you earn a lot , its of less use if you also spend a lot , because what ever is left at the end of the month goes into creating your financial wealth in long run. Its important review your spending pattern, various categories you spend money on and talk with your spouse, parents about it and try to optimize it. Review each thing and see which of those expenses can be reduced or eliminated or shifted to some other category.
At the end of day we all earn money primarily to spend it on things, but at times things get out of control and does not fit into what we had originally planned.
Are you ready for these 4 situations ?
Situation 1 – What if you die ?
Situation 2 – If you loose the job ?
Situation 3 – If you need Rs 5 lacs suddenly ?
Situation 4 – If you were to be hospitalized ?
5 signs which proves your financial life sucks and you are screwed up
You can not leave for 3 months without a job
You would find it tough get any other job which pays you more
You are paying back EMI’s for depreciated assets
It has been five years working, but you don’t have any “Asset”
You like to spend a lot of social functions
Are you following these 6 rules of great financial life ?
6 pullers of great financial life
“Do not depend on a single income. Invest and create a second/ third source of income”
“If you buy things that you do not need, you may soon have to sell things you need”
“Do not invest what is left after spending, instead spend after you save/invest
“Never test the depth of the river with both your feet”
“Do not put all your eggs in one basket”
“Control your expectations, and control your happiness – they are same thing”