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🪔 3 Personal Finance Resolutions For Diwali
Let us incorporate these Personal Finance Rules For.
👋🏻 Hey there,
🪔 Wishing you a very happy and prosperous Diwali :)
🎇 Diwali is followed by 💰Dhanteras and is a festival of celebrating the victory of good over evil
Let’s incorporate certain Personal Finance resolutions for a prosperous 🎆 Samvat 2079
1. Understand How Much You Need For Your Future Goals
Most of my clients who come to me for financial planning are in their late 40s or 50s
It is then when they realise that they don’t have money for retirement
Understand what your financial goals are
What is your monthly expense and how much would you need during retirement to meet these expenses?
Factor inflation, always!
Once you are done determining the corpus, our FREE calculator will help you in deciding how much to invest
You can download this sheet from our website for free 👇🏻
2. Protecting My Family Against Unforeseen Circumstances
I don’t know how much this thing needs more emphasis but you either don’t have sufficient cover or don’t have it all
Yes, I am talking about Health Insurance and Term Life Insurance
My grandfather’s Covid Bill would’ve cost us INR 20,00,000 + Medicines etc. but it didn’t cost us a penny
Why? Because my Grandfather had a Life Insurance policy having a cover of INR 20 Lakhs itself
Think about it! How many of us can afford an expenditure like that without majorly affecting our finances?
Unfortunately, he isn’t with us anymore! But he left us all with a beautiful lesson
Another distant relative died in the second wave of covid leaving 2 kids in school and a homemaker wife
And with ~INR 1,00,00,000 in Home Loan
Which is probably going to get auctioned by the bank soon.
Not only this, his kids probably won’t be able to afford best quality colleges now
Think about your family’s future needs and obligations as if you are not there and get a term life cover for that
P.S. I am already done with this :)
3. Valuing Your Time Over Money
I recently decided to get a partnership firm made.
The first step is to make a deed and then apply for a PAN.
I delegated that work to a practicing CA.
When I told my friends, they started making fun of me because I am myself a CA and this is a very generic work
I could have very well done it in 3-4 hours and saved INR 3,000 in implementation fee
But I decided to pay it because I want to focus more on sharpening my skills which help me in making money
I definitely value my time more than INR 1,000 per hour
This will help me in being more consistent and efficient with my core job and probably make more money than INR 1,000 per hour
Now, I have entered into an engagement with a CA to do the GST filing work for this partnership
Monthly returns, Annual Return and GST Audit will cost me around INR 1,00,000 per annum
Can I save that money? Yes
Will I still delegate? Yes
Why? Because I will probably make more money by sharpening my skills than by learning about GST filing and doing it all by myself
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Wishing you a very Happy Diwali and all the very best for your future. Stay tuned for more such blogs :)