2/15
Firstly, build your own system to manage Cash Inflows & Outflows .
Find a way that's least troublesome but automatically separates the 2.
#Budgeting & #Allocation must not be a cumbersome task !
Easy bifurcation helps in Better mapping.
A bird's eye view on the same ๐
3/15
Moving onto Emergencies . This pandemic has made so many of us realise the importance of it .
Another interesting facet :
Unwillingness to take risks comes from the FEAR of not having money when needed - typically why Bank F.Ds are preferred.
Hence the EMERGENCY fund.
4/15
*It shall DIFFER from person to person.
*Understand HOW to go about it & BUILD up your fund.
*It takes 2-3 months time to figure out our expenses & 6 months - 1year atleast to build up this fund.
*So be patient ! ๐คท
Don't jump the gun .
#EmergencyFund pointers:
5/15
Moving onto #HealthInsurance .
It takes just one Hospital visit to realise the importance of a comprehensive Health cover . ๐๐คท
Sharing a few points that must not be missed prior to taking a policy .
The book explains EVERY POINT in DETAIL along with examples.
6/15
The book also talks about
* Strategies for older people who purchased insurance years ago
* On the Importance of Critical Illness & Personal Accident cover .
HIGHLY underrated !!
Despite being into investing since over 10+ yrs, I haven't done it yet ๐ ๐คฆ
#NoteToSelf
7/15
Moving onto Necessity for a #LifeInsurance Cover .
Required ? ๐ค
YES. VERY MUCH! ๐
An untimely death would make us leave many things midway , including leaving our loved ones in a financial lurch .
It's best to separate investment from insurance products .
8/15
The book then explains :
* The amount of cover required
* The time to go in for such a life cover
* Which policy to go in for
* When to terminate a life cover
All this and more in EXTREMELY simple words .
Understand it and build a base to research on the net !
9/15
* Some other pointers especially for Beginners.
( Also served as a good reminder for me , as I need to rejig my Asset Allocation )
* A short reality check on other
#DebtProducts
#Gold
#RealEstate
Gotta read the book to know more ! ๐ค๐คท
#NoSpoonFeeding
10/15
Moving onto - The most misunderstood Asset class aka #Equity !
* The book helps understand the difference between getting an Equity exposure vs Direct investment in stocks .
The following is explained extremely well in this chapter
๐
11/15
The book then explains #MutualFunds , terms associated to it & the asset classes one can purchase via MF in detail along with the sub divisions
* Debt
* Gold
* Equity
* Real Estate ( REIT)
All this in common parlance, thereby ensuring EVERYONE understands it !! ๐
12/15
Systematic Investment Plan ( #SIP)
is making periodic Investments .
* Keep SIP target first , then spend rest.
* Allows us to average out our price over a period & cushions volatility .
, as no one can time markets .
* Builds discipline
Use it correctly !
๐
13/15
Each product in our money box MUST justify its space & be chosen out of logic & not out of ignorance.
A few important pointers WRT evaluating the financial product .
Note: Since I am familiar with most concepts I haven't elaborated them .
The book explains them.
๐
14/15
#FinancialFreedom needs to be planned out well .
It is a journey wherein we need to factor in our ever evolving requirements , inflation and future uncertainty.
The sooner we begin,the better it shall be.
This needs to be rejigged at times depending on circumstances.
๐
15/15
Lastly,
Few books have been written in such a simplistic ,yet wholesome manner. ๐๐
IT'S A NO BRAINER THAT ONE HAS TO BUY THIS BOOK !
Knowledge is the best investment that one could ever make & this book is full of it !
Thanks for this,
@monikahalan !
*THE END*
