10 Useful Financial Tips..!

10 Useful Financial Tips..!

1. Avoid buying property on loans as it eats most of your earnings unless you 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 much more.

2. Start a SIP at a very young age. Try to save atleast 15% to 25% of your earnings.

3. Avoid buying a car unless you use it everyday.

4. 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.

5. Try having a simple wedding.

6. Atleast 3 Month Household Expense of yours  should be in liquid Funds from your wealth. So you can utilize it when necessary.

7. Considering inflation, you are actually losing money if it is in savings bank account.

Understand the difference between saving & Investments. Do not keep huge money in savings bank account.

8. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.

9. Never invest in Insurance for returns. Insurance is not an investment option. It is a risk management tool.            

 

10. Your personal life and health are the most important investment. Stay healthy and live happily.

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