Some
Sutra for old age financial freedom
After a long 15 days vacation spending in my native place, I have came
back to my daily routine life. My native place is Kanpur. I have also travelled
many places in hinterland and met many people. There is some good news that the
new or you can say younger generation is very serious about their financial
future. The new generation now have hunger for knowledge and growth which is
good sign for India. They understand better the difference between saver and
investor. In typical saying we Indian are good saver but not good investor but
I hope with all my positive energy this saying would change soon. India would
be country of great investor. We will deliver more and more Warren Buffet.
In today’s short blog, we will discuss some important aspects for secure
future. We often explore personal finance options at later stages of life when
we have lost out on the opportunity to make the most of "power of
compounding". Personal finance is one area which is almost ignored during
our upbringing to become adult. There are few points which we should keep
in our mind for secure future planning.
Buy Insurance at
early age: Recognize your life and
general insurance need. Keep in mind that insurance is not return generating
asset, it is only a financial protection for yourself and your dependents
against unfortunate emergencies. Be smart and get a good health insurance plan as
early as possible.
Set realistic
future goal: Apply SMART approach for
your future goal. Simple, Measurable, Accurate, Realistic and Time-bound goals
can be achieved easily. Don’t ignore inflation, interest rate movement and time
horizon.
Start saving
early. Make sure you could save upto 25% at your
early earning stage as later it is very difficult to save. When you start save
early, it make you more confident and happier. You can also gain from “power of
compounding” through early saving.
Never blindly
copy of others: You financial goals and
condition may not be similar to that of your friends. Each person have
different need, goal and risk appetite. Analyze your need, goal and risk
appetite and invest accordingly
The conclusion of this
article is that saving for future is essential part of everyone's life and all
you need to do is start today and start small.
For more detail about
any other query related investment, you can contact me through my email.
Warm regards,
Arvind Trivedi
Certified
Financial Planner
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