Passion - Plan your investment appetite

Plan your investment appetite

14th Feb, 2015 By TeamLiveLife

Saving and investing both involve a risk, you must have a clear idea of the risk you are ready to take with your money and how you would handle your expenses in case of a loss. Risk appetite is the level of risk you can afford to take; it may help you keep yourself prepared for an urgent situation too. You must take measurable risks to keep yourself secure, spread your money over a range of different investment types and minimize the risk.

Goals

16th Feb2015

Go in for relevant insurance

Choose money back policies but make sure you do not go in for bulk premiums. You must analyze the market thoroughly and think carefully whether you would be able to pay the premiums on regular basis or not, drop the option if you have other responsibilities on your priority list.

Tasks

For young investors, money back schemes are ideal

Adjudge your premium paying capacity after framing EMI and budget needs

Do not go in for bulk premiums

Take up 3-4 policies that help you save taxes

Go in for money back policies

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Plan a monthly budget

You save a fixed amount only when you are able to bear your regular expenses along with it. Make a list of your monthly expenses, keep your everyday expenditure in control and avoid using luxurious stuff so that you are able to balance things up, make sure you pay your installments on regular basis.

Tasks

Ensure all basic expenditure are put on top priority

Keep a small sum for travel and eat outs

Try to not use the luxury budget each month

Try saving at least a couple of grands from monthly budget

Ensure your insurance investments are channelized each month

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Find ways to stick to monthly expenditure

Do not waste money to acquire things that have a less or no use in your regular life, keep your monthly expenses in control. Try to go for less expensive replacements of things you require, as you usually need to spend more on the maintenance of luxurious stuff.

Tasks

Lock extra funds in high yield bonds

Channelize savings into locked deposits

Keep minimum funds to meet your must have expenditures cleared

Do not keep too much cash in hand

Avoid carrying more than 2 credit cards

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Create a contingency money pool

Do not make hasty decisions without considering your financial needs that come along with it. Make sure you are able to live up to the expectations before you decide to make important decisions of your life like getting married, starting a family or saving for old age.

Tasks

Balance your personal needs first

Have ample money before you plan marriage

Take time to balance your financial responsibility towards your child

Save for your family's future

Create a steady savings monthly that will go onto your superannuation needs

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Prioritize your money spends

Set your priorities straight, plan your monthly budget and pay your installments on regular basis. Those who plan for future always stay ahead in life since it is important that you save for a rainy day and make efforts to provide a secured future to your loved ones.

Tasks

Decide on the financial expectations from yourself

Avoid taking your finances for granted

Do not allow savings to idle away

Take time to plan your financial goals over 5 years

Spend on necessities first and see of that leaves scope for newer additions to budget

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Develop a healthy credit score

Break free from the habit of borrowing money from all others around you, plan your budget carefully and save for a rainy day too. Get serious in life, pay all your bills on time and if possible try to save money on your regular expenses.

Tasks

Stop over borrowing

Try not to default on loans

Ask for credit recommendation

Take time to see the comfortable margin on investments

Do not skip bill payment at all

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Set a cash limit on yourself

Your monthly expenses must not exceed your monthly income, make a budget and follow it strictly. Do not borrow from your family and friends since it usually backfires at the end of the day, think twice every time you plan to buy something expensive that is an extra burden on your monthly budget.

Tasks

Judge your fiscal capacity

Do not take frequent overdrafts

Avoid taking too many advances on salary or payments

Avoid allowing your lifestyle to come into asking for frequent loans

Avoid allowing your lifestyle to come into asking for frequent loans

Avoid borrowing from family or friends much

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Monitor your financial habits

Buy products that are long lasting and do not need a lot of maintenance. Always think twice whenever you buy a new product and see if you could manage without it. One must prefer to buy things that have a long-term financial value so that you can use them in future as well.

Tasks

Keep trying to minimize your spends

Do not flush money away for stuff like shopping

Ensure that you buy stuff that goes long term

Try buying jewellery that has financial weightage

Do not expect the same income flow to continue relentlessly

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Do not make credit cards your habit

Those who do not use their credit cards carefully always end up in the middle of nowhere. Use your debit cards for your regular expenses instead of credit cards and keep a track of all the payments you make, it helps you plan your monthly expenses accordingly.

Tasks

Use debits cards more frequently

Avoid using credit cards for daily needs

Spend credit limit on bigger purchases

Do not let interest accumulate on card frequently

Keep track of your spends on a weekly basis

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Research the market trends in terms of personal finance

It is always good to keep yourself aware of the ongoing interest rates so that you invest your hard-earned money without any risk. Make sure you know the changes made in terms and conditions, one must not rely only upon his/her banker to get the relevant information.

Tasks

Make sure you now the latest rates in the fiscal markets

Do not ignore latest developments in credit rations and lending rates

Keep track of changing rules of taxation

Check for financial modifications in lieu of credit cards

Do not avoid asking your banker after you read up changes in any fiscal instrument you own

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Make sure you understand your needs from wants before spending money

One has to spend carefully if he/she wants to save for future and wants to realize his/her dreams. You cannot afford to waste money over luxurious stuff that does not serve any purpose. Do not buy anything simply to follow the trend, make a list of things you need and think twice before you actually make a decision.

Tasks

Skim away the luxuries from your must have list

Reprioritize expenses year to year

Curtail expenditure that does not yield ample returns

Stop putting your savings into too many corners

Avoid spending a fortune on eat outs and entertainment

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Judge your financial appetite

Do not invest all your money in stock market and mutual funds, use help of your financial advisor to make important decisions. You must invest only a share rather than taking a risk with all what you have.

Tasks

Decide if you are a low risk investor

Plan your investments along safe lines

Go in for centralized investment instruments

Avoid risky areas of investment such as stocks and mutual fund

Invest in the form of SIPs

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