Amar Pandit, Founder, HappynessFactory.in, offers steps to help build a financially-secure future. Moneycontrol News @moneycontrolcom 1/10 DEFINE FINANCIAL GOALS| Make your goals the guiding force and never let anything supersede them. 2/10 Maintain a savings budget instead of an expense budget. This will ensure that you not only save but can also indulge. Set a savings target of 15-25% of your annual income. 3/10 CONSTRUCT WEALTH LIKE PYRAMID | Build upon a solid base of savings and liquid investments, followed by security with term and health and insurance. Next should be your investment portfolio consisting of equity and debt and finally, alternative investments including real estate. 4/10 MAKE INFORMED & DEFINITE CHOICES | Understand how introduction of new choices will affect your overall financial situation before making any decisions. 5/10 TAX PLANNING | Avoid having myopic vision while planning taxes. If your employer isn’t providing you with tax benefits, consider monthly-tax saving in ELSS as it will help you save tax and create a substantial corpus over a long period of time. 6/10 LOANS | Be smart while taking loans. Learn to make the distinction between good and bad loans. Good loans include home loans (which are long-term in nature) because the investment rate of return will always be higher than the interest you pay. Bad loans include personal and credit card loans because they tend to be very expensive due to higher interest rates. 7/10 INSURANCE | Concentrate on your health and buy the right Insurance. Listen to your body and de-stress when you feel the need to. Get a life insurance with a term cover of a sizeable amount and health insurance for family protection. 8/10 8. Don’t let your emotions be a barrier. Understand your behavioural biases to avoid costly mistakes. 9/10 9. Create a will for yourself. Protect your future generations and ensure that your estate is distributed as per your wishes. 10/10 MONEY TALK WITH CHILDREN | Financial literacy is the best gift you can give to your children. Introduce simple concepts at a young age, before allowing them to do their own bank-related work as they grow older.