Financial Planning

Today's young generation is completely hypnotized by the latest gadgets, new clothes and accessories to maintain their fancy lifestyle amongst their group. Thanks to the improving Indian economy which is helping the youth to fetch decent salaries which they usually spend for their status war with peers. Well, this could be the reason, the majority of today's generation is paying more EMI's as compared to their monthly savings.  In addition to the above, personal loans, home loans, car loans and consumer durable loans are adding a burden to their pockets.  Let us take an example, Mr. A & Mr. B wishes to buy dream house & opted for identical loans for their houses, but Mr. B simultaneously started with a SIP in Equity Mutual Fund.  Mr. A & Mr. B (Loan EMI) Loan Amount (Principal) Rs.30,00,000/- Tenure of the loan 30 years Monthly EMI 23,600/- Total Interest Paid 55,00,000/- ...

Janmashtami is a festival which is celebrated across India with a lot of zeal and devotion. And the most eye-catching aspect of this festival is the Dahi Handi event, which is done to enact the legend of Krishna stealing butter as a baby from a hanging pot. In this event, young men from the community form a human pyramid and attempt to reach out to a pot hanging high and break it. The pot often carries the prize money/reward for the participants. And, to be able to carry out this act successfully, the pyramid formation needs to be strong and strategic. Plenty on practice, focus and coordination go into it. Parallels can be drawn to our financial planning, and inspiration from this pyramid formation can be taken to build our path to legacy. Everyone wants to attain a state of contentment when it comes to building wealth and live a financially trouble-free life. This requires a strategic step-by-step approach replicating a pyramid. Let’s look at the layers in detail: 1. Save: A...

Raksha Bandhan is a symbol of the bonding between brothers and sisters. It is that time of the year when brothers renew the pledge of protecting their sisters. It is celebrated by the sister by tying a symbolical ‘Rakhi’ on the brother’s wrist, who in return showers her with gifts. So, why not give her some real security this Raksha Bandhan that may not only prove to be financial asset in future, but also carries the potential to multiply? It may not sound as attractive as a fancy gift neatly wrapped, but it will surely keep your sister in good stead and will also guide her to be on a smart saving/investment path. Let us take a look at five financial gifts this Raksha Bandhan that your sister will treasure for a lifetime. LIQUID FUND Apart from FD, a liquid fund is another low-risk investment product that you can gift to your sister on this Raksha Bandhan. If your sister is unsure about how she is going to use the fund or if she wants to use the money for a near-term need such ...

You should also know the risks and rewards associated with every investment class to decide if a single asset class or a mix of asset classes would help you meet your requirement. It is really about having the right asset mix in your portfolio that will not only be in alignment with your financial goals but also that caters to the various uncertainties that are looming large on the global economy. The motive of investing in different asset classes is different and they should be selected according to your financial goals and objectives. Apart from the features, you should also know the risks and rewards associated with every investment class to decide if a single asset class or a mix of asset classes would help you meet your requirement. Equity An equity investment is money that is invested in a company by purchasing shares of that company in the stock market. These shares are typically traded on a stock exchange. Equity investors purchase shares of a company with the ...

The people you hang out with the most have a huge impact on how you live your life and the choices you make. Here are a few ways they affect your career and your financial situation. It may not seem polite to consider the impact of friends on your finances and your career, but there’s definitely a connection. This connection is more important in your 20s and 30s since choices are made and attitudes are established that can determine your future success or failure. Landing your dream job ,  getting a raise , or simply saving up until you have a nice financial cushion can make interpersonal relationships tricky. If you’re not careful, even small gestures can look like you’re flaunting your new-found wealth. If you want to preserve your relationships as your financial status changes, approach your interactions with forethought and care. Consider the following problem areas and how to deal with them. 1. Venting About Money Complaining about money takes on a different ...

  In India, where cricket is a religion and the cricketers are respected, emotions run high during every match. You would be surprised to know that this age-old sport consists of rules and features which can be used as analogies to learn parallel lessons in the world of personal finance.   Drawing parallels between cricket and personal financial planning, we see that the strategies applied in cricket can help you achieve your financial goals. We bring you lessons that the cricket world cup can teach us about personal finance .     1.     Don’t step out into the field without protective gear : Not taking adequate precautions can make players vulnerable to injuries on the field. Similarly, for your financial planning before you start investing for wealth creation, secure yourself against the risks to finances, life and health. An emergency corpus, a health cover and life insurance term plan are a must to safeguard your and your fam...