Thumb Rule of Financial Planning to have Healthy & Wealthy days

Thumb Rule of Financial Planning

In these present, every individual or employee must have to follow the thumb rules of financial planning to have the best healthy and wealthy days in future for their child and family financial settlement and growth.

Now a days, everything linked with money, by following, these necessary rules, anyone can create the best portfolio for future and can overcome any worst situation (financially) of their life, so have a look at all the rules to be followed by everyone, who want to live healthy and wealthy.

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

30% of your income must be used for Liabilities repayments, if any..

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

10% of your income must be spared for entertainments, vacations

6 months expenses must be available for emergency fund (should be invested in LIQUID FUND, FD Etc)

Thumb Rules of Financial Planning

Home loan must be registered and apply on both husband and wife name. (Both can get benefits on Home loan Tax benefits)

Buying second house for investment is not advisable ( Survey reports – it will fetch you only around 3% return)

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 Term Insurance to financially secure future of your dependants..

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 advisor..

Review your portfolio at every six month.

All the above are general suggestions, where the personal Finance and investment decisions depends upon case to case, and it is advised to take professional financial Advisor’s guidance for your specific requirements and Have a Healthy and Wealthy future days ahead.

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