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 15–25 % 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 20% of your wealth should be liquid so you can utilize it when necessary.
7.
Considering inflation, you are actually losing money if it is in
savings bank account. Do not keep huge money in savings bank account.
8. If you invest in stocks, pay due attention.
9.
If you invest in stocks have a separate account for delivery investment
and Intraday investment. It is easy to monitor this way and also makes
tax calculation easy
10. Do not have a belief that property and car make you rich. Its what you save and invest, that is important.
11. Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.
12. Never use credit cards for lavish spending. Use credit cards intelligently and for needs not for wants.
13.
Cancel all credit cards before you die. Or inform family about all your
accounts, credit cards, loans and saving now itself. Even a small
residue will cost your family much.
14. Invest on yourself and then on other investments.
15.
Always try to balance your earnings with your savings first, then on
spending and loans. Never take unnecessary loans. Always have reserve
and utilise them and unless no other go never take loan.
16. Always have a plan for future events on your career, life, spending and finance.
17. Always have a reserve on your savings for contingency and urgent situations.
18.
Your personal life and health are the most important investment. Do
have a regular health check and do healthy workout every day. Stay
healthy and live happily.
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