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Financial Planning 7: Emergency Fund planning.

Author: on December 10, 2017

Emergency Fund planning. One of the Key area that’s missed by many is emergency Fund planning. We have found that 90% of those who plan finances do not have this vital component. An emergency would mean that the event was not expected and it required immediate attention resulting in flow of money outward. Your rainy […]

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Financial Planning 6: Analysis of expenses and boosting savings.

Author: on November 28, 2017

Too much has been already said in various blogs about analysing expenses and boosting savings. It only proves the importance of this topic in personal finance. The most important factor that stands in the way of saving is expenses – we spend a lot on various things without thinking too much about the impact it […]

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Financial planning 5. Having Health insurance plans

Author: on November 22, 2017

Another key ingredient of your financial plan would be to have adequate health cover in place for yourself and your family. Not having adequate health protection can tumble your family budget in case anyone in your family suffers a major illness. Today we can get all the advanced treatment in multi-speciality hospitals. But, to bear […]

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How do you compute long term returns from investments?

Author: on October 28, 2017

Ideally, Long term returns from investments have to be computed using compound interest formula. That’s because of the longer time frame involved in these investments. Basics: The formula for compound return is as follows: FV = P ( 1+ r) n Where , FV is the future value P is the money invested r is the […]

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How do you compute short term return from investments?

Author: on October 27, 2017

Before learning to do that,  we need to understand how percentage works in finance. Let’s catch up with it: Percentage points: A percentage point = 1% Example: You go to a bank to open a fixed deposit account. The bank says, interest rates have gone up from 8% to 10%. How much is the increase? […]

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Given the return %, how long should you wait for your money to double?

Author: on October 15, 2017

The answer to the above question can be calculated using normal mathematical route or using  an approximately 500 year old short cut  – Rule 72. For those who love math and accountancy, the rule 72 may not be new. Luca Pacioli (1445–1514) , in his book ‘summa de arithematica’ discusses the rule when he talks […]

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Financial Planning 4 : Analysis of Life protection plans

Author: on October 8, 2017

One of the key ingredients of your financial life is to have adequate life protection plan. A life protection plan protects the income of your family in your absence.  These are also called ‘term plans’ or ‘pure life insurance’ since it’s the most simplest and the most basic form of insurance.The premiums are less and […]

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Financial Planning 3: Cleaning up credit defaults

Author: on September 24, 2017

If you have a history of loan defaults, that’s going to do a lot of damage to your financial life. At some point of time, you may require financial assistance from the bank – say, a home loan or car loan and if your credit history is not good, your application can get rejected.  A […]

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Financial Planning 2: Cleaning up the financial mess.

Author: on September 21, 2017

The clean-up process: Having made the list of what you own and what you owe, the first step is to clean up the present problems in finance. High interest bearing debts: Reduce spending and try to accumulate money to pay off credit card balances and other high interest bearing loans. You can think of taking […]

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