Skip to main content

Financial Planning Tips

Download Tax Saving Mutual Fund Application Forms

Invest In Tax Saving Mutual Funds Online

Buy Gold Mutual Funds

Leave a missed Call on

94 8300 8300

 

1. Understand Money’s worth: First and foremost thing that young investors/beginners have to learn is understanding Money’s worth. They should learn that money is what you earn in exchange for your time in some productive pursuit. If you earn Rs 50000/- per month i.e in 25 days or in 200 hours, this means your per hour earning is Rs 250. Whenever you want to spend something somewhere, you just have to see that if that particular thing is worth the time you spent on earning the same. Respect the money, gain financial discipline. Learn How to be good with money.

 

2. Save 20% of your income: Start with saving atleast 20% of your monthly income. This is very crucial to develop the discipline. Use any instrument – Recurring deposit, Mutual funds SIP, PPF etc. but use it after understanding the pros and cons. Keep it simple but stick to it and never get lured to withdraw this savings. It would be much easy for those who are living with their parents who are taking care of household expenses, but may not be that difficult even for those who have the family expenses responsibility too.

 

3. Create Emergency fund: Out of the 20% income savings you make every month, first thing you have to do is to accumulate your 3 months income and keep it safe somewhere in liquidable form to manage emergencies like Job loss or health problems.

 

4. Buy adequate insurances: Your savings should be backed up by adequate insurance coverage. If you have financial dependents then go with Life insurance also, otherwise adequate health insurance and accident insurance is very much required even if your employer has covered you under their own sponsored insurance coverage. What is adequate, needs to be calculated, but to start with you may go ahead with 20 times of your annual income for life insurance.

 

5. Understand that tax saving is not about buying Insurance Policies: Investing for tax saving is the first place where youngsters start making the mistakes. Almost every new employee I have met feels that tax can be saved only by buying some Insurance policy. Buy insurance policy only to cover the risk and automatically some tax saving will also happen. But don’t buy policies just to save tax. There are many different instruments where you can invest to save tax which you will learn over a period of time, but stay away from Insurance policies.

 

6. Track your expenses: I can understand that though important it would not be fair on my part to put the pressure of Budgeting on the new earners. That’s why I just wanted you to start with saving just 20% of your income. But still going forward after few months or years you have to learn this concept and work on it. It’s hard to know how much you could be saving if you don’t know what you are spending. So I advise my friends to track their expenses. Whatever you spend, where ever you spend just note it down. Understand your pattern of expenses. Spend by keeping in mind point no.1 mentioned above. I am sure after some time you yourself starts understanding the importance of spending wisely.

 

7. Avoid Loans: Having regular inflow in your account will bring along so many loan offers from banks and when you are not sure about your goals and requirements, you will surely get tempted to go overboard and take loans for many not required things. Till the time you don’t get confidence in managing your finances you should not indulge into any kind of loan…be it for a bigger car or apartment. Taking loans at this stage will create long term commitments which permanently commit you to higher spending in the future and can make it harder to deal with uncertainties of life later. and when your financial life has not yet designed you should not fall into this trap. You should know the difference between Good Loans and bad Loans. It is quite understandable that buying those big things from your own income in short span will surely give u “a high” and instant gratification but sooner you learn the fine art of delaying gratification, the sooner you’ll find it easy to keep your finances in order. As I said earlier that this stage of life will design your financial mindset, so there should not be any place of loans in it. Save first and then spend even for your mobile phone or ipad

 

As they say that “the first thing assured by beginning is the end” and “Well begun is half done”, so i believe once you start following the above mentioned financial planning tips religiously you will also start feeling the same.

 

 

 

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

 

 

Leave a missed Call on 94 8300 8300

 

Leave your comment with mail ID and we will answer them

OR

You can write back to us at

PrajnaCapital [at] Gmail [dot] Com

 

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

---------------------------------------------

 

Best Performing Mutual Funds

    1. Largecap Funds             Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Franklin India Bluechip
      4. ICICI Prudential Top 100 Fund

B. Large and Midcap Funds         Invest Online

      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
      4. Birla Sun Life Front Line Equity Fund
      5. Franklin India Prima

C. Mid and SmallCap Funds          Invest Online

      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
      5. Birla Sun Life Dividend Yield Plus
      6. SBI Emerging Businesses Fund
      7. HDFC Mid-Cap Opportunities Fund
      8. ICICI Prudential Discovery Fund

D. Small and MicroCap Funds   Invest Online

      1. DSP BlackRock MicroCap Fund

2.       Franklin India Smaller Companies

E. Sector Funds          Invest Online

      1. Reliance Banking Fund
      2. Reliance Banking Fund
      3. ICICI Prudential Banking and Financial Services Fund

F. Tax Saver Mutual Funds      Invest Online

1. ICICI Prudential Tax Plan

2. HDFC Taxsaver

      1. DSP BlackRock Tax Saver Fund
      2. Reliance Tax Saver (ELSS) Fund

G. Gold Mutual Funds        Invest Online

      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund
      4. Birla Sun Life Gold

H. International funds         Invest Online

1. Birla Sun Life International Equity Plan A

2. DSP BlackRock US Flexible Equity

3. FT India Feeder Franklin US Opportunities

4. ICICI Prudential US Bluechip Equity

5. Motilal Oswal MOSt Shares NASDAQ-100 ETF

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now