Sunday, January 18, 2009

Money Matters

These days I hear lot of people talking about fear of Job loss and its implications. I seriously feel that there is no way you can avoid being affected by slowdown but we can definitely reduce the impact by good financial planning. Often,investment for most individuals begins and ends with tax planning. Although it is important to avail tax breaks but it should not be the only criteria for saving.
As I am at beginning of my career , I do not have clear understanding of my future needs. Today I was going through news paper and there was a nice article on wealth creation for salaried individuals. It talked about investment in corpus funds,understanding exemptions and deductions.
There are some tips which I would like to share

  • Start early so that you can do an effective financial plan, along with tax savings and evaluate various investment options.
  • Some tax saving do not require you to invest, take full advantage of them.
  • Understand your long term financial goals, this is the starting point.
  • Secure your health/life ricks.
  • Understand time frame for contributions, and lock-in periods for investments.
I have always been a nasty spender but now time has come when I need to look at my expenses. First thing I want to do it to keep money inaccessible. Next, I am going to prioritize my expenses.
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2 comments:

  1. AbhayJanuary 18, 2009 at 8:06 AM

    I would like to add some other points like..
    - As single we should try to save ( in long term plann) at least 35% of our net income. Obviously the percentage can be increased based on the income..but a 35% for mediun income should be the start point.
    - We should always make our saving plan for three term , long, medium and short..
    long term -- should keep the need which we will need in 15-25 year term..
    medium term :- should keep the need of 2-4 year.
    short team can keep in mind.. 6 month -- 2 year

    I found the following site very good on tips and trick of savings..
    http://ezinearticles.com/?cat=Finance:Personal-Finance

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  2. agktJanuary 20, 2009 at 3:09 PM

    hmmm...bhaiya kya baat hai..saving pe bahut jor de rahe hain.....koi gud news :)

    In my view , its the right time to start saving rather there is never too late.
    One things that i want to say ..Always estimate a lil less than what you've to spend but keep the grace in hand...thinking that u dont 've that.
    If itz saved...Dont intermingle with next expences.. gudluck :)

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