Rules of great financial life

Everything in life has basic ground rules, which we should never forget. You can consider these ground rules as the pillars of your decision making activity. Even our financial lives have some ground rules to follow in order to have a great and enriching life. Over the last 5 years of writing this blog and having interacted with thousands of people, I can clearly conclude that more than making right decisions in financial life, you should focus on avoiding bad decisions. I have seen so many people who have been careful, not messed up things and their financial life quality is really awesome. They have not lost wealth due to foolish mistakes and live a clean financial life overall and while they feel lag behind others, I can say they are ahead of others in many ways. Yes – They have not taken awesome decisions, but the best part is they have not made terrible mistakes either.

Lets explore more on this today

1. Rule of Earning
2. Rule of Spending
3. Rule of Savings (Saving = Income – Expenses)
4. Rule of taking Risk
5. Rule of Investing
6. Rule of Expectation

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Financial Must Do’s Before You Turn 40

As Victor Hugo said, “Forty is the old age of youth; fifty the youth of old age,” then we all are old enough to take charge of our finances. As managing our finance is getting tougher by the minute, we must start planning for our retirement at the earliest. As society expects you to be well-settled by the time you’re 40, you must follow a few steps in order to be so.

Here are 5 financial commandments before we turn 40, as listed by Personal Finance.

1. Have a PPF (Public Provident Fund) Account
2. Fill Your Contingency Fund
3. Control Your Debts
4. Have Adequate Insurance
5. Know Your Magic Number

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steps to better investment planning

Managing your investments becomes easy when you make it a habit to save, even if it’s very little money. You need to keep a meticulous account of personal income versus expenditure on a monthly basis before you start investing.

Here are some steps you can follow:

Step 1:  Create a budget and track your expenses
Step 2:  Pay off your existing credit card debts
Step 3:  Save effectively for a rainy day
Step 4:  Design a disciplined savings program
Step 5:  Invest in education, pension, and retirement insurance plans
Step 6:  Buy yourself your dream home
Step 7:  Invest in a diversified investment program or systematic investment plan

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Financial Tips For Young Adults

Unfortunately, personal finance has not yet become a required subject in high school or college, so you might be fairly clueless about how to manage your money when you’re out in the real world for the first time. If you think that understanding personal finance is way above your head, though, you’re wrong. All it takes to get started on the right path is the willingness to do a little reading – you don’t even need to be particularly good at math.

To help you get started, we’ll take a look at eight of the most important things to understand about money if you want to live a comfortable and prosperous life.

1. Learn Self Control
2. Take Control of Your Own Financial Future
3. Know Where Your Money Goes
4. Start an Emergency Fund
5. Start Saving for Retirement Now
6. Get a Grip on Taxes
7. Guard Your Health
8. Guard Your Wealth
9. A Financial Basis for Life

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