“Money is not the most important thing in the world. Love definitely is. Fortunately, I love money.”- Jackie Mason
Honestly speaking, managing money is very easy. It is certainly not as difficult as trigonometry, calculus, chemical reactions and equations. Everyone must understand money management as income, howsoever large, is not likely to sustain your lifestyle if you are not able to manage it properly. You may have the best car but if you don’t know how to drive it is not going to take you anywhere. 

Risk is inevitable and most of the times unavoidable. Hence protection always comes ahead of prevention. Buy simple term plan and comprehensive health insurance. Keep your life simple don’t buy complicated products. Wealth preservation is as vital as wealth creation. 

Buying equity shares without understanding the underlying risks or knowledge is undesirable. Leave it to the experts. Invest systematically in a mutual fund. You don’t participate in F1 car racing just because you have a driving licence. Bank FDs are adequate only for emergency fund of upto 1-2 years. They don’t win the race against inflation. Choose debt mutual funds, they are more diversified, generate better tax efficient returns.

Avoid credit card debt like plague. Don’t buy fake assets like TVs, ACs, Smartphones by taking loans. They are liabilities. Please buy gold only for social needs, it is not worth to lock your money in Gold for long term. Real Estate is a lousy asset. One property is sufficient for your lifetime. 

Start planning for taxes from April i.e. beginning of Financial Year, March is the worst month to plan your taxes. If someone offers you unbelievable returns, it might happen that your principal also is at risk. Learn to say no to such schemes. 

Last but not the least, please bear in mind you are unique and this is your Personal Financial Plan. Your expenses, incomes, budgets, assets, liabilities, risk profile are different from your relatives, friends, neighbours and experts on TV. Always, always consult your financial advisor before taking any decision. It’s better to consult now than to repent later. 


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