Children Education Cost in Parenting Cycle!

For all parents, the greatest rejoice is the birth of first child. And, yet the chain of expenses associated with bringing up starts with the joy of a new baby on the way. In fact, starting with maternity, food, clothing, education, hobbies and healthcares to entertainment and caretaker costs, having a child costs you a lot more than love and emotional energy.  The purpose of this article, we will stick to an average middle – to upper-class parent towards expenses to be incurred for emotional or social reasons. Some expenses have to be tailored to your wallet.  For working parents, childcare expenses are now an important part of household budget whether or not they live in joint family. Since, grandparents are big source of strength and support to supervise childcare helpers, the cost of domestic help or crèche remains high until children go to school.

Launch Yourself as CEO of your Financial Life!

Corporates create wealth, thanks to the large number of employees who manage the different aspects of their operations. While the top management charts out the growth path and strategy, the marketing section creates and develops brands. The risk management arm works out ways to deal with risks. However, if you were to be the CEO of your own financial outfit, how will you run it? You are mostly alone except for tax and financial advisors that you might engage.  Despite this apparent lack of organizational structure, you can run yourself, and your finances just as well as successful corporate do. For a moment, try to change the way you look at your financial life. It’s not just another routine job for you; it’s not just something like your 9 to 5 job, which is the most likely you have to force yourself to do it. It’s something you own.

Is Your Bank really acted as a Financial Advisor?

Next time, while visiting your bank branch even if you go there to simply deposit a cheque, chances are you may be approached by your a persuasive bank  relationship manager you to buy  a mutual funds or insurance products. They may offer incentives such as lower-fee transactions or free checking if you are an investment or demat account at their bank.  

 

Many banks are offering investments services to their customers. These services are generally targeted to very specific customers who have large amounts of money at the bank like NRIs and HNIs etc. If you are just beginning to invest, your bank may not contact you to offer these services, but they may be available to you. These services offered are similar to the role of a financial planner or advisor.

Define Purposes before Set your Goals!

Most people have not really thought through the purpose of money in their lives. They are too busy in making, spending and worrying about it. While asking these people in the affluent middle-class, the so-called mass affluent, what is the specific about the purpose of their money in their life? They tend to talk about things. They usually come back with such comments as to buy a dream car or house, pay for the children’s college, have an Rs2 crore net worth at retirement or travel the world etc.

Financial Planners are not Magicians!

People are often sought for financial advice of Financial Planners and must have many reasons, but one of the most common reasons for hiring a financial planners that it is the solely duty of the Financial Planner to plan for all their financial goals and fulfil them like an Alladin’s Chiraag. Most of the people have tactical goals to buy or upgrade a big car like Honda City or a 2-3 BHK flat, even if they could afford only an Alto, and a 1 BHK flat because they have suffered from misconception that since they have hired a financial planner, they are entitled to have a wish list of unrealistic financial goals and expected that a financial planner would act like a ‘magician’.

What will happen to your Wealth? After you!

Before reading this article, find a place, where you can be alone and uninterrupted. Clear your mind of everything except what you will read in this article and I will invite you to do. Don’t worry about your schedule, your business or job, your family, or your friends. Just focus with me and really open your mind.

Financial Planning: I have already done it!

Misconception Demystify

Most of the people believe that once they have invested their savings in variety of financial products like FDs, insurance, mutual funds, equity, real estate etc. for future, their task is over. In addition some pre-conceived notions that the company where they work would take care of their family in uncertain times and pay medical and hospitalization expenses, so they need not to keep reserve. It also combines with the notion that their various life insurance policies would protect in case of their death, disability and accidents. To further compliment this notion that their expected inheritance wealth or property would be enough to get financial stability in life. Nowadays youths think that their retirement is far away and they could easily plan for it just a few years in advance.

How to get prepared for Emergency Fund?

In your daily financial life, you never expect the unexpected emergency situations. Emergency situations – When something unexpected event comes up in the form of job loss, significant medical expenses, home or auto repairs etc. Suddenly there can also be some trip, some eating out, some expenses related to the kids school or something you’ve never dreamed of. You were not mentally and financially prepared yourself for these unexpected events and every time they happen, it’s like a pinch on your shoe! You didn’t think about it and now it’s in your life.

Investment is not Financial Planning!

The first step not making investments but planning for everything and then executing it.

People concentrate too much on Buying the Excellent Mutual Fund? May be people do not understand meaning of “Best Mutual Fund”. So let me declare what is meant by best Mutual fund: The best mutual fund for you is the Fund which suits your requirement and has ability to help you to achieve your Financial Goals without risking your money.

Investment in Financial Literacy!

Most people fail to realize that in life, it's not how much money you make, its how much money you keep. We have all heard stories of lottery winners who are poor, then suddenly rich, then poor again. They win millions and are soon backing to where they started.  Because, they tend to focus on the word “literacy” and not “financial literacy.”

My parents never did financial planning, why do I?

Ancient Times

Our grandfathers, fathers and Uncles have come from a very different time when there were no choices other than LIC polices and FD’s. The education was cheap, no competition got exists, every one’s desires were limited and people were happy with their limited environment.  They were lived in joint families and every member of family was ready to get financial help for his family. There was no major impact on their lives from inflation and taxes. In those times, Fathers generally did not handle money in right way because of lack of knowledge and a different attitude. Hence, they had absolutely no clue about financial planning.

Onus of Investor

Do you know that majority of problems in your financial life are purely because of psychological reasons? We are all human beings and are prone to think irrationally at times thereby taking wrong personal financial decisions. Behavioral Finance is the area of finance that combines psychology and finance together and gives you an insight on why a common investor makes mistakes in his decisions.

Funda of Savings?

I am sure most of us would have seen the movie “Delhi6”, a dialogue in the movie stays that “Hindustani bahut jasbadi hoten hain”(Indians’ are very emotional people), why not ,we are Emotional people as this is the only country in the world where one hand feeds many mouths. From ages our forefathers have asked to us to “Save” and I feel that is what had saved us from the global crisis (You might debate here, but it’s a thought), but I were to add its better that if rather than savings if we channelize the funds towards “Investment” it will really help us grow and emerge as strong nation.

Trust your Financial Planner as you do your doctor!

Trust is important while you approach a planner.

Imagine a scenario...

You go to doctor; who examines you and comes up with a diagnosis of what the ailment is and what medicines you need and for how long. Would you turnaround and tell the doctor that the ailment actually is something else, the medicines suggested are, therefore not suitable and that you want a different set of medicines. Could he kindly prescribe those?

Get-Set Returns for your Goals!

Most people invest for getting great returns and some try to get that thorough insurance policies. People ask me which stocks will rise in the next week, which mutual fund scheme is providing the highest return etc.? Is it time now to invest in Gold or whether the stock market will move up or down? Are there any schemes which double our money in the next two-three years, etc., etc?

Need a Financial Planner or Do it yourself?

Do you require a Financial Planner to do your financial planning or do it Yourself? Through this article, I would like to give an opportunity to make a choice for you to manage your money yourselves or hire a financial planner who makes your Financial Life better. I feel every individual should be given a fair chance by financial planners, media and the regulators to manage their money themselves but alternatively to hire financial planner.