पैसा...पैसा...मेरे पास कितना पैसा होना चाहिए??

जीवन के लिए पैसा बहुत महत्वपूर्ण है, इसके बिना हम जीवित नहीं रह सकते। भोजन से लेकर फेरारी तक, गाँव की झोपड़ी से लेकर विला तक, हमें इसे प्राप्त करने के लिए धन की आवश्यकता होती है। पैसे से हम सब कुछ पा सकते हैं और इसके बिना हम जीवित भी नहीं रह सकते। यही कारण है कि हम बचपन से ही यह सोचने के लिए बाध्य हैं कि पैसा ही जीवन में हर चीज का समाधान है। हम अवचेतन रूप से लक्ष्य निर्धारित किए बिना अधिक से अधिक पैसा कमाने की इस दौड़ में शामिल हो जाते हैं। ऐसा लगता है कि अधिक हमेशा बेहतर होता है।

हालाँकि, हमें पता होना चाहिए कि हालाँकि पैसा जीवन में बहुत महत्वपूर्ण है, लेकिन यह वह सब कुछ नहीं है जो हमारे पास होना चाहिए। हमें यह समझना चाहिए कि दुनिया का सारा पैसा होने पर भी हम सीमित मात्रा में पैसा खर्च कर सकते हैं, क्योंकि:

• इस दुनिया में हम सीमित मात्रा में खाना खा सकते हैं

• हम सीमित संख्या में कारें चला सकते हैं

• ऐसे घरों की संख्या सीमित है जिनमें हम रह सकते हैं

• हम सीमित संख्या में छुट्टियाँ ले सकते हैं

• और एक बेहतरीन जीवन जीने के लिए हमें सीमित संख्या में चीजों की आवश्यकता होती है

 

दलाई लामा ने एक बार कहा था, मानवता के बारे में जिस बात ने उन्हें सबसे अधिक आश्चर्यचकित किया, उन्होंने कहा:

इंसान की जिंदगी बड़ी अजीब है...

क्योंकि वह पैसा कमाने के लिए अपने स्वास्थ्य का त्याग कर देता है।

फिर वह अपने स्वास्थ्य को पाने के लिए धन खर्च करता है।

और फिर वह भविष्य के बारे में इतना चिंतित रहता है कि उसे वर्तमान का आनंद ही नहीं मिलता;

इसका परिणाम यह होता है कि वह न तो वर्तमान में रहता है और न ही भविष्य में;

वह ऐसे जीता है मानो वह कभी मरने वाला ही नहीं है, और फिर वास्तव में कभी जीए बिना ही मर जाता है।''

 

तो, हमारे जीवन में पैसे की क्या भूमिका होनी चाहिए:

बिना सोचे-समझे चूहा दौड़ में शामिल होने के बजाय, हमें यह पता लगाना चाहिए कि हमारे लिए एक आरामदायक जीवन जीने के लिए कितना पैसा पर्याप्त होगा, जिसमें परिवार, शौक, या जो कुछ भी हम करना पसंद करते हैं, उन पर खर्च करने के लिए पर्याप्त समय होगा। यह महत्वपूर्ण है क्योंकि हम पैसा कमाने के लिए जो भी समय देते हैं वह संभावित रूप से कहीं और जा सकता है, जैसे:

• अगर हम पैसों के लिए देर तक काम कर रहे हैं और देर रात घर आ रहे हैं, तो इसका मतलब है कि हम जल्दी उठकर योग/व्यायाम के लिए नहीं जा सकते।

• अगर हम अतिरिक्त कमाई के लिए त्योहारों के दौरान काम करते हैं, तो इसका मतलब है कि हम अपने परिवार के साथ त्योहार का समय नहीं बिता पाएंगे।

• यदि हम बेहतर आय अर्जित करने के लिए परिवार से दूर दूसरे शहर में काम कर रहे हैं, तो इसका मतलब है कि हमें अपने प्रियजनों के लिए पर्याप्त समय नहीं मिलेगा।

• अगर हम सिर्फ काम कर रहे हैं, लेकिन अपने परिवार के साथ छुट्टियां आदि का नहीं ले रहे हैं, तो इसका मतलब है कि हमारे पास बैंक में पैसा तो होगा, लेकिन वर्षों बाद बात करने के लिए हमारे पास कुछ नहीं होगा।

• यदि हम किसी करीबी दोस्त की शादी में शामिल नहीं हो रहे हैं, क्योंकि हम एक सप्ताह के वेतन में कटौती नहीं करना चाहते हैं, तो इसका मतलब है कि हमारे पास वह पैसा हो सकता है, लेकिन दोस्त की शादी की यादें नहीं होंगी।

तो हमें कितना पैसा चाहिए?

यह थोड़ा कठिन प्रश्न है क्योंकि प्रत्येक व्यक्ति अपनी जरूरतों/आवश्यकताओं के अनुसार अलग है। हालाँकि, एक

मोटा हिसाब कहता है कि यदि हमारे पास हमारे मासिक खर्चों का लगभग 400-500 गुना है, तो यह अगले 30-40 वर्षों के लिए पर्याप्त होना चाहिए, बशर्ते हम इसे व्यर्थ खर्च करने के बजाय जीवनशैली का वही मानक बनाए रखें। उदाहरण के लिए, यदि 50 वर्ष से अधिक उम्र के  किसी व्यक्ति का मासिक खर्च ₹ 1 लाख है तो ₹ 5 करोड़ उसके शेष जीवन के लिए पैसे के लिए काम किए बिना आनंद लेने के लिए पर्याप्त होना चाहिए।

 

पैसा वास्तव में मन की शांति और सुरक्षा की भावना लाता है। हालाँकि, हमें जीवन में पैसे की भूमिका पर एक अन्य दृष्टिकोण भी देखना चाहिए और बिना किसी लक्ष्य के दौड़ने की बजाय इसे जीवन की अन्य महत्वपूर्ण चीजों के साथ संतुलित करना चाहिए।

पैसा कमाना और पैसा मैनेज करना दो अलग चीजें हैं। अपनी जरूरतों के आधार पर वास्तविक आवश्यकता को समझने के लिए किसी विशेषज्ञ का मार्गदर्शन लेना हमेशा बेहतर होता है।

Money...Money...How Much Should I Have it ??

Money is very important for life, without it we can’t live. From food to Ferrari, a Village hut to a Villa, we need money to get it. We can get everything by money and without it, we can’t even survive. That is why we are conditioned to think from our childhood that money is the solution to everything in life. We are subconsciously in this rat race to earn more and more money without setting a target. More is always better it seems.

However, we should know that although money is very important in life, it is not everything we need to have. We should understand that we can spend a limited amount of money even if we have all the money in the world, because:

•                 There is a limited amount of food we can eat in this world

•                 There is a limited number of cars we can drive

•                 There is a limited number of houses we can live in

•                 There is a limited number of vacations we can take

•                 And there is a limited number of things we need to have a great life

 

The Dalai Lama once said, what surprised him most about humanity, he said:

Man’s life is really funny...

Because he sacrifices his health in order to make money.

Then he sacrifices money to recuperate his health.

And then he is so anxious about the future that he does not enjoy the present;

the result being that he does not live in the present or the future;

he lives as if he is never going to die, and then dies having never really lived.”

 

So, What should be the role of money in our life:

Rather than getting into a mindless rat race, we should find out how much money will be enough for us to have a comfortable life with sufficient time to spend on other things like family, passion, or anything that we like to do. This is important because whatever time we give to earn money can potentially go somewhere else, Like:

•                 If we are working later hours for money, and coming home late night, it means we can’t wake up early and do yoga/ exercise.

•                 If we work during festivals to earn extra, then it means we won’t be spending that festive time with our family.

•                 If we are working in another city away from family to earn a better income, it means we won’t get enough time for our loved ones

•                 If we are just working but not taking our family vacations etc, it means that we will have money in the bank, but won’t have something to talk about years later.

•                 If we are not attending a wedding for a close friend, because we don’t want to lose a week pay cut, it means that we may have that money, but will not have that memory of the friend’s wedding.

So how much money do we need?

Well, it is a bit difficult question as every person is unique so as his needs/requirements. However, a back-of-the-envelop calculation says that if we have around 400-500 times our monthly expenses, then it should be enough for the next 30-40 years provided we keep the same standard of lifestyle rather than splurging it out. So, for example, if a person in his 50s has monthly expenses of ₹ 1 lakh then ₹ 5 cr should be enough for his remaining life to enjoy without working for money.

 

Money indeed brings peace of mind and a sense of security. However, we should also look at another perspective on the role of money in life and balance it with the other important things of life rather than running a rat race without a finish line. Earning Money and Managing Money are two different things. It is always better to taken an expert guidance to understand the actual requirement based on our own needs.

निवेश शुरू करने से पहले लक्ष्य निर्धारित करें

हम सभी निवेश करते हैं, लेकिन कोई भी निवेश निर्णय लेने से पहले स्पष्ट वित्तीय लक्ष्य निर्धारित करना महत्वपूर्ण है। वित्तीय लक्ष्य वास्तव में हमारे उद्देश्य हैं जो हमारी आकांक्षाओं, जोखिम सहनशीलता और समय-रेखा पर आधारित होते हैं। वित्तीय लक्ष्य निर्धारित करने से स्पष्ट दिशा मिलती है, पोर्टफोलियो पर नज़र रखने में मदद मिलती है और वांछित परिणाम प्राप्त करने की संभावना बढ़ जाती है। आइए कोई भी निवेश करने से पहले वित्तीय लक्ष्य निर्धारित करने के कारणों को अधिक विस्तार से समझें।

 

1. यह स्पष्टता और फोकस देता है:

वित्तीय लक्ष्य निर्धारित करने से हमारी निवेश रणनीति में स्पष्टता आती है। यह हमें यह पहचानने में सक्षम बनाता है कि हम क्या हासिल करना चाहते हैं और क्यों। चाहे वह घर खरीदने के लिए बचत हो, बच्चों की शिक्षा के लिए निवेश हो, सेवानिवृत्ति हो या यहां तक ​​कि कोई उद्यम शुरू करना हो, विशिष्ट लक्ष्य रखने से हमें उस चीज़ पर ध्यान केंद्रित रखने में मदद मिलती है जो सबसे ज्यादा मायने रखती है।

 

2. यह व्यक्तिगत रूप से केंद्रित है:

वित्तीय लक्ष्य प्रत्येक व्यक्ति के लिए व्यक्तिगत होते हैं। वे उम्र, आय, व्यय, जोखिम सहनशीलता और समय सीमा जैसे कारकों पर निर्भर करते हैं। अपने स्वयं के विशिष्ट लक्ष्य निर्धारित करके, हम उसके अनुसार अपने निवेश दृष्टिकोण को अनुकूलित कर सकते हैं। उदाहरण के लिए, अल्पकालिक लक्ष्यों के लिए हमें मूलधन को संरक्षित करने पर अधिक ध्यान केंद्रित करना चाहिए जबकि दीर्घकालिक लक्ष्य के लिए हमें एक ऐसी रणनीति अपनाने की जरूरत है जो मुद्रास्फीति को मात दे सके।

 

3. हम प्रगति को माप सकते हैं:

वित्तीय लक्ष्य निर्धारित करने से हमें अपनी प्रगति मापने में मदद मिलती है। हम एक बेंचमार्क तय कर सकते हैं जिसके आधार पर हम अपने निवेश प्रदर्शन को ट्रैक कर सकते हैं। अपने लक्ष्यों की नियमित समीक्षा और प्रगति का मूल्यांकन करके, हम अपनी निवेश रणनीति के आधार पर इसे पुनः संतुलित भी कर सकते हैं, ताकि यह सुनिश्चित हो सके कि यह ट्रैक पर रहे और हम अपने वांछित वित्तीय लक्ष्यों को प्राप्त करने में सक्षम हो।

 

4. यह हमें प्रेरित करता है और अनुशासन में रखता है:

वित्तीय लक्ष्य निर्धारित करना एक उद्देश्य के रूप में कार्य करता है, जो हमें लगातार बचत और निवेश करने के लिए प्रेरित करता है। जब हमारे पास स्पष्ट दृष्टिकोण होता है कि हम क्या हासिल करना चाहते हैं, तो उन लक्ष्यों के अनुरूप वित्तीय निर्णय लेना आसान हो जाता है। लक्ष्य हमें अनुशासित भी बनाते हैं। लक्ष्यों के लिए निवेश करना हमें भावनात्मक रूप से निवेश करने या दूसरों की नकल करने से रोकता है जो हमारी दीर्घकालिक योजनाओं को पटरी से उतार सकता है।

 

5. जोखिम प्रबंधन में मदद करता है:

वित्तीय लक्ष्य हमें जोखिम को प्रभावी ढंग से प्रबंधित करने में मदद करते हैं। अपने लक्ष्यों को समझकर, हम उस जोखिम के स्तर का आकलन कर सकते हैं जो हम लेना चाहते हैं और एक विचारशील निवेश निर्णय ले सकते हैं। जब हमारे पास स्पष्ट वित्तीय लक्ष्य होता है तो जोखिम और रिटर्न को संतुलित करना अधिक संभव हो जाता है। उस स्थिति में हम उचित जोखिम प्रोफ़ाइल के साथ अपने निवेश विकल्पों की योजना बना सकते हैं।

 

और अंत में:

निवेश से पहले वित्तीय लक्ष्य निर्धारित करना एक सफल वित्तीय भविष्य के निर्माण की दिशा में पहला कदम है। यह हमें एक स्पष्ट दिशा, फोकस और प्रेरणा देता है और हमारी निवेश रणनीति को अनुकूलित करने के लिए मार्गदर्शन करता है। हमारी प्रगति की नियमित रूप से समीक्षा और मूल्यांकन करने से यह सुनिश्चित होता है कि हम सही रास्ते पर बने रहें और रास्ते में आवश्यक पुनर्संतुलन करते रहें। अपने निवेश को अपने वित्तीय लक्ष्यों के साथ जोड़कर, हम वांछित परिणाम प्राप्त करने की संभावना बढ़ा सकते हैं।

अपनी निवेश यात्रा शुरू करने से पहले स्पष्ट वित्तीय लक्ष्य निर्धारित करने के लिए किसी वित्तीय विशेषज्ञ से सहायता लेना बेहतर होगा। वह आपकी वित्तीय यात्रा को सुचारू और सफल बनाने के लिए आपको उचित मार्गदर्शन और योजना भी प्रदान करेगा।

Set Goals before Starting Investments

We all do investments, but before making any investment decision, it is important to set clear financial goals. Financial Goals are our objectives which are based on our aspirations, risk tolerance, and timeline. Setting financial goals leads to clear-cut direction, helps track the portfolio, and increases the chances of achieving desired results. Let’s understand the reasons for setting financial goals in more detail before making any investments.

 

1. It gives Clarity & Focus:

Setting financial goals gives clarity in our investment strategy. It enables us to recognize what we want to achieve and why. Whether it's saving for buying a home, investing for kid’s education, retirement or even starting a venture, having specific goals helps us to stay focused on what matters most.

 

2. They are Personalized:

Financial goals are unique to each person. They depend on factors such as age, income, expenditure, risk tolerance and deadline. By setting our own specific goals, we can optimize our investment approach accordingly. For example, for short-term goals, we should focus more on preserving the principal amount while for a long-term goal, we need to adopt a strategy that can beat inflation.

 

3. We can Measure the Progress:

Setting financial goals helps us to measure our progress. We can decide on a benchmark based on which we can track your investment performance. By regularly reviewing our goals and evaluating progress, we can also rebalance it based on our investment strategy, so as to ensure that it stays on track and we are able to achieve our desired financial goals.

 

4. It Motivates & keeps us in Discipline:

Setting financial goals acts as a purpose, which motivates us to constantly save and invest. When we have a clear perspective of what we want to achieve, it's easier to make financial decisions that suit those goals. Goals also create discipline. Investing in goals prevents us from investing emotionally or copying others which can derail our long-term plans.

 

5. Helps to manage Risk:

Financial goals help us to manage risk effectively. By understanding our goals, we can assess the level of risk we want to take and make a thoughtful investment decision. Balancing risks and returns becomes more attainable when we have a clear financial goal. In that situation, we can plan our investment options with a reasonable risk profile.

 

And Finally:

Setting financial goals before investing is the first step toward building a successful financial future. This gives us a clear direction, focus, and motivation and guides us to optimize our investment strategy. Reviewing and evaluating our progress regularly ensures that we remain on the right track and do necessary rebalancing along the way. By aligning our investment to our financial goals, we can increase our chances of achieving desired results.

It would be better to take assistance from a Financial Expert to set clear financial goals before starting your investment journey. He will also provide you proper guidance and planning to make your financial journey smooth and successful.

Time have changed, Have you?

How the time changes, people who were born in the 70s - 80s will be able to know this well of mine and for those who are born after that, they may not have come to believe it but it is important to believe it.

In July 1992, one of my close friend’s elder brother was hired in the bank, at that time the bank FD interest rate was close to 12%. And many financial institutions/NBFCs used to issue bonds with interest ranging from 15% to 18%.The investment in Kisan Vikas Patra (KVP) was doubled in 5 years, which was like interest rate of around 14%.

When one of his senior colleague retired in 1994, at that time he received about Rs. 5,50,000 / - on the basis of the Retirement Fund. At that time my friend’s brother’s whole month salary was probably around Rs.2000 / -. I remember very well, at that time my friend was saying that now he will never come to financial poverty, the whole life will be very easy. The reason for this was that, at that time the interest of 12% interest was Rs.5,500 / - per month, and despite the inflation rate being around 8% to 9%, there was positive rate return. And everyone believed that, now this interest rate is never going to come down and the person who retires will never get into a struggle, and the whole of life will go smoothly.

But if any employee has not done well in his lifetime, then what can happen, this thinking is very terrible.

If we talk about the retirement, I have another assessment which you need to know, at the time of my father’s many people used to get into government jobs from the age of 20 to 23, and their retirement age was 60 years. Apart from this, he used to get pension with full-fledged Dearness allowance (DA). However, in our time, the age of employment in the job had increased to about 25-30 years and the age of retirement is reduced to 50-55 years as elder people get obsolete due to changes in technologies and work culture in the current fast changing world.

It is also important to understand here, that at the time of my father, his job period was from 37 to 40 years, and at that time the nominal life expectancy was from 75 to 80 years, while in our time the job duration is reduced from 30 to 33 years, on the other hand nominal age has gone up to 80 to 85 years old.

And now, if we look at this time, due to studying for higher age, the age of joining the job has gone up from 27 to 30 years, and there is no guarantee that this job will remain till what time, and do not even think of pension. It is kind of 30:30:30 formula i.e. studying till 30, working next 30 years and then 30 years of retirement life.

So it is very important to think about what can happen if you have not planned for your old age in advance, Will you be able to live life the way your grandfather or father has lived on Pension or FD interest?

Time has changed a lot. We have moved on from single Doordarshan channel to multi channels cable TV to NETFLIX. From single land line phone to multi SIM Smart Phones. Similarly it is very important to move on with time and find new ways of investments to cater our current needs. It is always better to plan well in advance and take an expert’s advice so as not to be shocked when you face the real situation.

Letter for Investors (Hindi)

Letter for Investors

After Body and Mind, Check your Financial Fitness Also

This week Our Prime Minister announced fit India Campaign “Body fit hai toh mind hit hai (If the body is fit, the mind is fit),” said Prime Minister Narendra Modi while launching ‘Fit India Campaign’ on National Sports Day celebrated every year on the birth anniversary of hockey wizard Dhyan Chand. 

In this day and age, tracking our health stats is very important and we all put efforts to make sure that our body is healthy. But what about our financial fitness?

Let us look at major parameters to know how healthy we are financially:

1. Spending Less then Income:

To be financial healthy it is very important that on cash flow basis we are in positive numbers. Means our monthly expenses should be less than our monthly income.

2. Paying all the Bills on time:

There are many utility/household bills like electricity, gas, phone, Credit card bills. Paying all the bills on time and in full is the good indicators of financial fitness.

3. Have Emergency Fund:

There are emergencies which comes without any prior announcements like medical emergency, job loss etc. In general, the more inconsistent our income is and the more dependents we have, the larger an emergency-fund cushion required. As a thumb rule we should have 3-6 months expenses as emergency fund in liquid mutual funds/savings accounts.

4. Have Sustainable EMIs:

Debt-to-income ratio (DTI) is a figure lenders use to gauge how well we manage our debt. To calculate DTI, add up monthly debt payments and then divide the sum by gross monthly income, the lower the DTI, the better it is. It should not be more than 40% in normal case.

5. Have a Good Credit Score:

Similar to a DTI, credit score is another way lenders measure how likely we will be able to repay our loan — and a lower score usually means higher interest rates on everything from mortgage to credit cards. Normally the credit score should be above 750+ in the scale of 900 to get loans easily at decent rates.

6. Have adequate Insurance:

Covering the risk is another important aspect to be healthy. Health Insurance, Life Insurance and Accidental coverage are important insurances. Having appropriate insurance allows individuals to be resilient in the face of unexpected expenses, such as the death of a loved one or a medical emergency. Every person should have appropriate insurance based on his age, income, number of dependents and risk exposure etc.

7. Have Sufficient Retirement Savings:

In today’s world when even government employees don’t have fixed benefits plan it is all more important to have Retirement savings looking at the socio economic structure and inflation. We all need to have sufficient retirement kitty as our longevity of age is also going up.

To keep our mind fit we need to be stress free. Financial wellness is the most important factor to remain stress free hence we all need to ensure that along with our body and mind we are financially fit also.

The Best gift for our Children

We all want to give best of the world to our kids. It stars with toys and small things and goes on for their bigger items like laptops, gaming console, bike and car and so on. But as well all know that these items become redundant/ outdated shortly there market value also goes down significantly and needs to be replaced with new version of the items. So what can we give to our kids which does not get outdated and they can use it when they really need it and best of it that its value keep will still keep on growing?

Before getting into the details of that lets understand another perspective of our working life.

There are basically two type of work; either we work for our self which is called as business/ entrepreneurship or we work for others which is called as job or employment.

1. So what is the difference between a Business Person/Entrepreneur and an Employee?

The basic difference is the opportunity business person/entrepreneur can offer for the next generation.

Let us understand it more…

An employee starts his journey at a junior level and works his way up to a senior position and then retires at 55 to 60 yrs.

An Entrepreneur also start his journey from zero and with a lot of struggle and efforts grows his way up. However he has a choice whether to retire or not till health permits.  

As we can see that both of them have worked hard but the entrepreneur has created assets that will continue to generate income even in his old age and more importantly, he has created a strong base for the next generation to take over and make it bigger. The kids of the entrepreneur will not have to struggle like his father and don’t need to start from zero but from where their father left and can make it grow more.  But the next generation of an employee will have to start again from the scratch as his father did and will have to go through all the struggle before they can attain financial freedom.

2. What is the main worry for an employee?

As we can understand one of the biggest worry for an employee is retirement. While we should plan our retirement/financial freedom, we can also gift this financial freedom to our next generation as well so that they will not have to worry about retirement planning and can live life to the fullest.

That is why it is important for all of us to create assets that could generate passive income even while we are not working. Passive income is like interest income, dividends from stocks/mutual funds, rent from commercial or residential property, Royalty etc. which can then be passed on to the next generation.

3. So how can we gift the financial freedom to our kids?

Here is one simple way to do it…

For example if our monthly expense is 50-75k today and we had a corpus of Rs. 1.5 cr. in a balanced fund which can give 10-12% annual return, Then we can withdraw 50-75K per month allowing our principle of 1 cr to grow at 5-6% annually. So, it’s safe to assume that a 1.5 cr corpus today can take care of our financial needs and can get us financial freedom.

Let’s assume our child who is 10 years old now has 45-50 yrs before he/she retires. If we assume an inflation of 7-8%, considering a benchmark of 1.5 cr retirement fund today, the retirement fund needed for your child will be approx. 20 Cr.

So that’s our goal. If we can plan for this now…our children will not have to go through the worry and struggle of retirement planning. Imagine if our parents had done this for us…wouldn’t our life be a little different? And it’s not the Will, it is the knowledge and opportunity…which they didn’t have…but now we have it and we can utilise it for best of our use…

4. How to create such a huge corpus?

 
An 8.5 lakh invested with a fund which can generate a 13% annual returns… will become 20 Cr in 45 years. Now…if we don’t have 8.5 lakhs, there is another way out…Let’s start a monthly SIP of 10000 for 5 yrs and then leave that amount for 45 yrs…we will have our 20 Cr by that time.

Yes, It’s that simple….we just need to spare 10K/month for 5 yrs and it would have taken care of our child’s retirement…they will not have to worry about it in their life time. If we teach them to do the same, our future generations will remember us for a long time even after we are gone….

This could be one of the best gifts that we can give to our child.

Financial freedom actually means the freedom to do things we want to, its gives us the freedom to work for our self, travel the world, spend more time with family, do things that we love etc … It is something beyond the worries of earning and preserving money, and yes we can achieve it  easily with some smart and early planning.

Women are special so do their Financial Requirements

Generally money, finance and investments are called as man’s domain and in most of the houses the man of the house take care of these matters. However in today’s world when women are leading in every aspect of life, the involvement of women in financial decision and also to cater their specific needs is very important. Working women often juggle responsibilities in their careers and at home, together. The investment and financial needs of women are, to a degree, different from those of a man. In this article at the time of Women’s day let’s discuss what are the important aspects a women should keep in mind to plan her personal finances.

1. Plan for healthcare: It’s very important

Health care expenses can rise with longer life, which is a big concern when planning for retirement. There are many complicated disease which can eat a substantial part of our savings if we have not covered our self against them. If we have not taken a health insurance at the early stage of life then purchasing a mediclaim later on is not only costly but may not cover all the ills, So it is always better to take mediclaim at the young age.

There is also another reason to buy a health insurance as we get the income tax benefit upto Rs. 25000/- (Rs. 30,000 for Senior citizens which has been raised to Rs. 50,000/- in last budget). You can also take health insurance for the parents as they grow older they may need it more, further the tax benefits are also available for mediclaim taken for parents. While buying a health insurance, we should check the exclusions in the policies carefully. Sometimes we may get a policy at a lower premium compared to others but it may exclude certain illness so be careful.

2. Plan for Retirement: It’s crucial

As our life standard are improving, we are living longer. It means that we need to plan for a long life, and a long retirement and also have to deal with all the challenges of aging. Life expectancy for women is higher than men in any cases and changing social fabric also indicates to be self-dependent at older age.

Inflation, is a tax on capital and it slowly eats away our portfolio. Inflation causes a gradual decrease in your purchasing power because a fixed amount of assets buys less. If we take 7% inflation per year It compounds to 7.6 times in 30 years.” Which means if our monthly expenses are 25000/- today at the age of 30 then by the time we retire it will ballooned to 1.90 lakhs per month.

As the economy is growing with demand for various items rising, fixed investments such as Cash, Fixed Deposits and Bonds may not keep up in an inflationary environment.

For any financial planning and especially which are for long term; Inflation must be taken into account. If you are a single women it’s better to take the advice of an expert and if you are married it’s better to discuss the retirement plan together and chart out the priorities and investments to meet the future cost of living.

3. Plan for Kid’s future: They matter a lot

Every mother wants to give their kids the best, and yes it needs proper planning so that money should not come in a way for their bright future. In today’s world the education cost is rising very fast and for extracurricular activities also we need lot of money. If your kid wants to become a sportsman or an artist there also we need to send him/her at good training canter’s which requires lot of money. So planning for their future career needs to be done at the early days.

Now days, teenagers and young adults tend to focus on lifestyle spending and they don’t mind taking loans for fulfilment of their needs, rather than saving. As a mothers we should not just save for the kids’ future but also guide them to develop better financial habits. We should stick to predefined budgets and pocket money so as to make them realise the value of money and importance of savings.

4. Plan for unplanned: Yes that can happen too

There are many things which comes in life without any intimation, it can be some emergency requirements, a break from the work or a separation form spouse or something else. So it’s always better to have some funds in kitty for any kind of emergencies and unplanned things in the life. If you are planning for a break in your work, its better to plan for a break by first calculating the money required during that time and start investing at least 2-3 years (depending upon the duration of break) in advance for that so as to save sufficient amount to meet the expenses during that time. You should also work on a Plan B to generate some side income so as to keep yourself mentally and physically engaged.

5. Need a Loan: Ladies are preferred borrowers

Many banks offer lower interest rates on home loans if a woman is applying for it or if she is the first applicant for a joint loan. There are some banks that offer special rates for women customers for gold loan, education loan, personal loan, etc. For women entrepreneurs, banks offer loans on easy terms and lower interest rates.  The interest rate is offered at .05% to .2% lower than normal rates. Further to this interest rate benefit, there are several states in India which offer discounts on stamp duty charges to women buying homes.

Take this benefits if you are planning to buy a home or car or want to start a business. Although the difference may not be much but it still matter especially if the tenor of the loan is very long.

Finally:

There is a famous quote by Benjamin Franklin    “If you fail to plan, you are planning to fail!”  

Money is a very critical factor for living a comfortable life so the financial planning is always a very crucial factor. Avoiding any serious missteps can help to provide a better chance for a long-term financial future and eventual retirement that meets your desire. It’s always better to take a professional’s help to keep your finances in a shape based on your specific requirements.