Retirement Planning for the Self Employed

 your retirement date is not the end-point for your financial planning. With 

increased life expectancy, Indians are expected to live an average of 20 

years beyond retirement.

For self-employed individuals, the biggest challenge that comes to hinder retirement planning is the inconsistent income flow. As the income is not constant, it is more difficult for a self-employed individual to find out how much can he/ she should contribute to the retirement plan on a regular basis. The way out here is to invest either as a lump sum or invest in those plans that give you more flexibility as compared to others.

Tool to Financial Success- Record Keeping

Case Study :

Ram's’s bike, which was parked on the road, was hit accidentally by a tanker. It got damaged and Ram  found that repairing it would cost a lot of money. So he thought of claiming insurance to lessen his financial burden in repairing the damaged bike. He had bought the vehicle three years back. He then got so busy with his job that he just forgot where the insurance policy papers were. Then one weekend, he searched his entire room and finally discovered the insurance papers, only to find that the insurance policy has lapsed as he had not paid the premium on last year. A simple negligence, cost Ram  his half month’s pay.

Financial Planning Process

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Tool to Financial Success- Record Keeping

Money Management Process

Tool to Financial Success- Record Keeping

Common Money Mistakes

Smart Ways to Reduce Smart Phone Cost

Unknown Great Money Saving Tips

Golden Rules of Money Management

Save your Money from Ponzi Schemes

“People often compare a Ponzi scheme to building a house of cards. It must collapse eventually. “

 Charles Ponzi was an early 20th century Italian immigrant to the United States. Ponzi invited people to invest in International Postal Reply Coupons. He promised extremely high returns. All he really did was take investors' money and deal out small payments to earlier investors. All told, Ponzi cheated his victims of $10 million

Money Management Process

The Savings Mantra - Start NOW! Save First! Save Regularly!

Start saving NOW: There is no better time to start saving (if you are not already saving) than NOW. ‘Time is Money’ and certainly so. The earlier you start saving and get into the habit of saving, the stronger your chances are to face uncertainties and the changing demands of life.

Save First: The surest way to save is to make ‘saving’ your first and most important expense. Set aside a portion of your income as soon as you get your paycheck.

Save Regularly: The commitment of saving regularly, month after month, would enable building a healthy savings from smaller incomes as well.

An up to date record keeping will enable you to:

1.   Track your money— income (where it comes from) and expenses (where it goes)

2.   Provide you an easy reference of your wealth—assets (savings, investment, insurance etc) and liabilities (credit card debt, home loan, educational/ vehicle loan).

3.   Organize financial activities like budgeting, saving/investment, tax-paying.

4.   Provide an evidence of a financial transaction—repayment of loan, depositing money in bank account, purchase of an asset, etc. This is especially important in case any discrepancy arises over it.

5.   Simplify the claim process in case of an emergency (insurance) or damaged good (warranty card).

6.  Provide evidence for your entitlement to an after-sales service or other benefits.

7.   Keep some faithful person informed about your financial transactions

Do not forget to do Wealth Succession Planning – Have a Will

“If you want to provide your best for your loved ones after you pass away, a will is a most necessary document.  if you need insurance, you also need a will.” Your Laziness should not cause  inconvenience to your loved ones.

we are too busy slogging and switching jobs for fatter pay cheques. We spend all of our time planning real estate purchases and creating wealth through stocks and gold. Isn't all of these efforts partly aimed at leaving behind a rich legacy for our loved ones ?

What is Will :

Power of Attorney - Safeguard your Money

'' Inasmuch as human being becomes busier, it becomes more necessary for him to depend on others for getting his things done. Owing to this reason, the power of attorney is now playing vital role.”

In the hands of someone trustworthy, a power of attorney can be an important tool to manage the finances of an elder who has become permanently or temporarily unable to handle financial affairs. But, in the hands of a financial predator or a greedy family member, a power of attorney can be used to secretly steal money and assets, readily bypassing the normal safeguards that are employed by financial institutions.

Common Money Mistakes

People are not SENSITIVE about the money they earn. They work for money but they don’t let the money work for them.

Mistake in Saving Bank Account

I was surprised to see that the people don’t care about the money. They work hard to earn it but they don’t work at all  (forget about hard work) to invest it.

I had seen the saving account of so many people,  they keep lakhs of rupees in their saving bank account !

They don’t know that the Saving bank give them only 4% rate of interest. If they do the Fixed deposit of the same amount in the same bank they will earn @ 8 to 9% rate of Interest. Even if we assume that the person has to give income tax (Assume maximum @ 30%) even then the Net earning will be 5.6 to 6.3 %  which is more than they are earning from their saving bank accounts.

Unknown Tips before Investment in Shares

Investing is serious business. You should take it seriously. After all market favour the intelligent.

Do’s

Invest in Knowledge:

Checklist Before Taking Home Loan

Loan Eligibility : If you are below 40 years just multiply your (and your spouse’s) yearly gross income by four and that should be a rough and ready amount of loan that you should be able to get. If you have some existing loans or some special requirements you can use the facilities of advanced calculators at various websites (www.apnapaisa.com) has one