Manage your Wealth Smartly

In the current busy life many of us are so much occupied with our routine work that we keep on postponing the decisions related to our own wealth and money.  The pending nomination in the demat account; the incomplete change of address request; the matured deposits that are hopefully renewing or so many investments without properly tracking them are some of the issues which are very common with many of us.

It is very common to not to take any decision fearing it could be a wrong decision. Sometime multiple choices actually result into not opting for any and we keep on postponing. So what could be some action points so as to come out of this, let’s discuss them here:

1. Keep it Simple and Straight:

We should try to limit the number of saving accounts, Demat accounts etc. Now with PAN and Aadhar linked with all accounts it does not makes sense to have so many accounts. It is better to have one or two saving accounts (one for expenses and income and one for investments etc). For Demat accounts also its better to have one until unless we need other for some specific purpose. Make sure that nominees, address, email and mobile no is always updated.

2. Optimize Not Over diversify

We should optimize our assets/investments with limited no of stocks/bonds/mutual funds. There is no need to have a long list of investments to create big wealth in fact it could be counterproductive. As if good investments aren’t sizeable they won’t make any big difference, and bad investments will keep dragging the portfolio down. Keeping hundreds of stocks in small-small quantities won’t serve any purpose and will be difficult to track and manage also.

3. Plan when we won’t be here

We don’t know what will happen tomorrow. It is better to plan the things when we are in right shape of mind and body.  We should write a will so that there won’t be disputes later on. It is not required to identify each item of our wealth and list it. We can primarily indicate who will get what (beneficiaries) and who should ensure that the distribution is made according to the will (executor). The executor will take up the tasks of probating your will, making the lists, completing the paperwork, and ensuring that everything is settled as indicated.

4. Take an Expert’s help

We cannot do everything even if we have time as we may lack the expertise. So it is always better to take some expert’s help to get full picture of our assets/investments. Now days we can get consolidated statements from NSDL which could be useful to get a full and clear picture.

These simple and easy steps can actually make our life easy and simple for managing our wealth if done properly.