Thumb Rule of Financial Planning: Mostly applicable in India

1. 30% of your income must be used for *Monthly living expenses.*

2. 30% of your income must be used for *Liabilities repayments*, if any.

3. 30% of your income must be *SAVED* and *INVESTED* for your future LIVING.

4. 10% of your income must be spared for *entertainments, travel, hobby, vacations etc*

5. Six months expenses must be available as savings for *Emergency Fund* (should be invested in LIQUID FUND, FD etc) 

6. *Home loan* eligibility to be checked before buying property for availing Home loan Tax benefits. Getting *Encumbrance certificate and Town Survey Land Register (TSLR)  with Sketch* of property is important before finalizing any property purchase.

7. Buying *Second house for investment is not advisable* ( _Survey reports say, it will fetch you only around 3% return_) Having *one house for your own, no loans to repay, stable job and  good health* will give you peace of mind while in the *prime age group of 20 to 45.*

8. After 45 years of age, *do not enter into any BIG TICKET LIABILITIES* which will make life miserable (Higher education of children and their wedding will happen when you are around 45 to 50 age only, so plan now for the same.) 

 

9. Operate an *Either or Survivor Bank* Savings Account if you are employed. If you have small business *both spouses to operate Joint bank* accounts.

10. Property must be *registered on both Husband and wife name*. (As per Legal Act – after husband first legal heir is wife, after wife it will go to children only) 

11. Undertake regular check on *Nominations at all financial instruments.* if not nominated, do it now.. 

12. Only in Insurance policy, *claims are payable to the Nominee.* In other financial instruments legal heirs' certificate is a must to get back the settlement. A will becomes *invalid if it's not registered* in your local Registrar office even though it's signed and stamped by a practising Advocate. The best advise on will related matters come from an experienced and honest *Document Vendor.* Insist your Notary or Advocate to register the document with a *copy of the will kept in the local Registrar office* even if he has stamped and signed it.  

13. Must have *Term Insurance* to financially *secure future* of your dependants..

 *Conventional Insurance products* can serve as Debt oriented investments and provide assured returns in the present falling interest regime with Tax benefits. 

14. *Don’t take any financial investment decisions EMOTIONALLY*,  and also Avoid last minute *tax saving investment* decisions, plan well in advance.. 

15. *MEDICLAIM is must* (in spite of Group Mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into *Mediclaim*) 

16. For your *jewellery LOCKER*, Only one lakh is payable by bank, if theft or fire happen at bank. Back up with *separate locker insurance* personally it required. 

17. Similarly,  *Government guarantees only 1 lakh for your FD* also. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by *deposit insurance).* Back up with additional insurance cover.

18. You must know all *Tax implications.* You cannot avoid paying tax. But you can minimize by way of tax planning and investments.. Speak to your experienced *Chartered Accountant.*

19. All *financial documents must be kept safely* and keep family members informed of the same.. 

20. *Financial investments* must be followed through your well known and trust worthy *Personal Financial Advisor..*

21. *Review your portfolio every 6 months..*

These are general suggestions, personal Finance and investment decisions depends upon case to case_

*Have a Healthy and Wealthy new year 2018