• Quotes

  • NAVs

  • News

  • Messages

  • Opinions

  • Notices

  • Videos

Feedback
Make this your Home
Guide to Financial Planning Impact of Inflation Power of Compounding Magic of Compounding tool
Current Expenses Calculator
Guide to Financial Planning
Expert Articles    

Step1

 Step2

 Step3
 
Put your house (financial profile) in order

Most of us spend more than half our lives working and saving because money is important, in fact crucial. However, most of us spend almost no time planning to make that hard-earned money work more effectively for us. So, how do you plan your financial life?
Put your house (financial profile) in order
Financial planning does not begin at investing, but instead at reviewing your overall financial profile.You need to address the following issues before rushing to build an investment portfolio.
  Insure your health, life and assets
You should start your financial planning by taking steps to protect your family’s current lifestyle from events and expenses that are not in your control. You can achieve this by buying appropriate insurance policies for your medical expenses, life, car, and other important assets. You can use moneycontrol's Are You Adequately Insured? planning tool to estimate your insurance needs.
  Repay your high-cost loans
A rupee saved is a rupee earned. Paying your credit card bills on time can save you more money in interest costs than most of your investments could earn you. This is also true of borrowings that cost you more than 15% per annum (after adjusting for any tax benefits). So, invest in repaying your high-cost loans first before you start building your investment portfolio.
  Put aside money for emergencies
Deploy some money in short-term investments (you can refer to Financial Investment Options) that can be encashed on demand to help you tide over unforeseen needs and emergencies.
 Draw up a savings plan
Income - Expenditure = Savings

You don't want this equation to be left to chance, therefore moneycontrol strongly recommends you make a savings plan. Under your savings plan you should put away as much as you can, as regularly as you can, with the aim to save at least 15% of your take home annual income.Depending on your financial commitments, you may be able to save more or less. It doesn't matter, as long as you are saving something.

In step 2 of financial planning, we discuss how you should Prepare to Invest.
Print
 

Pachai Nirame
Oru Mugamo
Vaseegara
Addungada Ennai Suthi
Kaadal Onru Allava
Oru Naalo Oru
Mukundha Mukundha
more tamil songs
Stay on top of news
wherever you are
Follow news on a company or a topic
Set SMS alert
Newsletters

Daily Markets Newsletter

Sample   Subscribe Now

Daily Portfolio Update

  Subscribe Now

MF Newsletters

Sample   Subscribe Now

PF Newsletters

  Subscribe Now

Your Stocks
To SMS your queries to us Type YS < Your Query > SMS to 51818
Stocks to be discussed next:   ABG Shipyard |  Bajaj Hindustan |  Jaiprakash Asso |  JSW Steel |  Suzlon Energy |  Patni Computer |  Unitech 
  • Most Read
  • Most Watched
Chat with Experts
Ramesh Damani

Member BSE ,
(25 Nov- 16:00hrs) 

Upcoming Chat

Dec 01 | 11:00 AM
Harsh Mariwala

Dec 02 | 09:30 AM
Punita Kumar-Sinha

Dec 07 | 12:00 AM
Nilesh Shah

All Schedule  |  Previous Transcripts

What the stars foretell

Bejan Daruwalla

Ganeshaspeaks: Market prediction for Nov 25

View all astrologers