Important Financial Tips for the Uninitiated Common Man ....
.......Rishi
1. Avoid buying property on large loans as it eats into your earnings. Have a clear plan for its repayment. 
It's important to monitor cash flow. Though, the house will be your asset, your liability will be high as well. 
 
2.  Now that housing is unlikely to give the capital appreciation of past inflationary and speculatory decades, one should reconsider buying houses. 
Even though demographics say youngsters are increasing and need housing  many are transitory, and require rentals, however returns on investment on rentals is 2%-3%.  If one gets 5% then it may still be worth the headache of ownership, given taxation on capital gains in future. 
 
3. Start a SIP at a very young age. Try to save atleast 15–25 % of your earnings. 
Warren Buffet says you are ever too old to start investing. 
 
4. Avoid buying a car unless you use it everyday. In the world of radio taxis, the ownership is costlier than being chauffeur driven in Uber and Merus of the day, without headaches of parking, or EMIs and driver salaries. 
 
5. Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”. Most people avoid investing in mutual funds just because of this one warning. Yes, there is a market risk, but look at the history and growth of mutual funds.
 
6. Try having a simple wedding.
 
7. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.
 
8. Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account. Fixed deposits and liquid mutual funds generally give better returns. 
 
9. If you invest in stocks, pay due attention.
Have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy
 
10. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.
 
11. Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.
 
12. Never use credit cards for lavish spending. Use credit cards intelligently and for needs not for wants.
 
13. Cancel all credit cards before you die. Or inform family about all your accounts, credit cards, loans and saving now itself.  Even a small residue will cost your family much.
 
14. Invest on yourself and then on other investments.
 
15. Always try to balance your earnings with your savings first, then only on  spending and loans. Never take unnecessary loans. Always have reserve and utilise them and unless no other go never take loan, unless you can leverage your income which generates a reasonable surplus on your loan interest repayment.
 
16. Always have a plan for future events on your career, life, spending and finance.
 
17. Always have a reserve on your savings for contingency and urgent situations, health being one of them. 
 
18. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.
 
19. Always remember death can come anytime.....so please do buy adequate term Insurance if you have dependents.
Weigh your insurance needs with what you have viz. education, business or employability of dependents. If they can live independent of you, your need for insurance decreases. 
 
20. Prepare a Will. It may avoid unnecessary fights in future. Ensure Nomination for each class of investment and preserve the records.
However, don't forget, nominee is a trustee, and no more. Without a will, the law of succession takes precedence. 
I herited property comes vested with the rights of all survivors, viz. spouse and all born children. 
That's the reason why rich put most of their wealth in trusts which they can control by directions and wills.   
 
21. Keep a diary on your investment / insurance details and contact / relationship manager's phone numbers.
Importantly live your life at all ages. Don't stress too much on what you leave behind. After all there is only one life. Live it well. Balance your needs and greed !
 
Smile, and the world will smile at you. 
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