Thumb Rule of Financial planning. *
1. 30 % of your income may be used for *monthly living expenses.*
2. 30% of your income may be used for *Liabilities repayments*, if any.
3. 30% of your income may be *INVESTED* towards your future goals.
4. 10% of your income may be spared for *entertainments, vacations*
5. Six months expenses must be available for *emergency fund* (May be invested in LIQUID FUND)
6. *Home loan* must be registered and apply on both *husband and wife name.* (Both can get benefits on Home loan Tax benefits)
7. Buying *second house for investment is not advisable* (Survey reports – it will fetch you only around 3% return)
8. 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)
9.After 45 years of age, *not supposed to enter into any BIG LIABILITIES* (Higher education of children and wedding of children will happen post 45 only, so do plan now for the same.)
10. Have joint account @ Bank savings account.
11. Regular check on *Nominations at all financial instruments. * If not nominated, do it now…
12. Must have *Term Insurance* to financially secure future of your dependents.
13. *Don’t take any financial investment decisions EMOTIONALLY*, Do avoid last minute tax saving investment decisions, plan well in advance.
15. *MEDICLAIM is must* (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage from office, also after 50-55 years of age, it’s very tough and costly to enter into mediclaim)
16. Must know all *Tax implications. * You cannot avoid paying tax. But you can minimize by way of tax planning and investments.
17. All *financial documents must be kept safely* and keep family members informed of the same.
18. *Financial investments* must be followed through *personal financial advisor. *
19. *Review your portfolio at every six month. *
These are general suggestions.
