We as an Indian believe in
savings to secure our future. The liberalization of Indian economy in 1992 and
jump in IT services during 2000 changed the dynamics of Indian employment
sector. Most of the professionals started learning IT related Subject to get
into lucrative sector.
The growth of Indian economy
during 2001 till 2007 changed the business environment of India and resource
cost went up. As the salary of people went up and the expenses went up. The
reality sector boom during 2004 to 2010 was nothing but the changed mindset of
Indian household.
The easy money access from bank
and higher salary attracted youngsters to invest in property sector to make
quick money or to own their own house.
It resulted in lower saving rate
in India which is not the good sign. Most of us faces problem to reorganize our
finance in such as way that we should have the liquidity plus non movable
assets without stretching ourselves.
The young Indians believes in
lavish lifestyle with outgoings, dinning, vacations etc but they generally miss
to identify the impending threat of uncertain economy. When economy go down
then many of us loses our job and lands ourselves in huge financial stress.
How we should avoid such
circumstances and define our financial strategy to secure ourselves for future.
I recommend the followings:
- Whatever Salary you are getting should be bifurcated in two part, part 1 should be related to daily expenses and part 2 should be kept aside for saving.
- Part 1 kitty should have 70% of your salary. It include your EMI, Kids Education, Accommodations, Food, Outings
- Part 2 Kitty should have 30% of your salary. It include the bank deposit, Stocks or Mutual Fund, Gold, Insurance - General, Health Insurance
Today I will talk about Part 2.
- Keep 30% of your part 2 kitty in bank and that is 9% of your salary
- Invest 10% of your kitty in Gold. We as an Indian believe in Gold and in Weddings one's are forced to shell of hell of money at one go to buy gold. If your salary is small then keep saving the amount for few months and then go and buy the Gold. For ladies, one should save through society oriented kitty parties. Once you get your turn then immediately invest in gold. Dont expect the result in 6 months but post 24 months, you will be sitting on 30 to 40 grams of gold.
- Invest 20 % of your kitty in insurance. In Insurance sector please ensure that you invest in two form such as money back and long term. Please ensure that you select monthly payment model so that it donot bother you.
- Invest 15% of your kitty in fixed deposit
- 5% must go in Health Insurance. Please note that you get tax benefit on that
- 20% of your investment should be directed towards Stocks or Mutual fund. In stock market, please don't play around with Future & Option
If one do the above then your
life will be much happier in two to three years
Please consult your financial advisor
too before investing
0 comments:
Post a Comment