Personal Finance Tips for 2010 – Part 3
- 8 Comment
Introduction
It is the continuous of Personal Finance Tips for 2010. If you have not our previous articles, please read Part 1 and Part 2. In this series I am writing important points which needs to be focused more on 2010. If you have any thoughts please post it in the comments section. After this series I will be writing another series of articles explaining about the Section 80C for the tax savings. If you are interested, please register for the free email newsletters.
1. Insurance is must
If you have not taken the insurance policy, please take one for you. Please note that you have to take the term insurance policy with maximum sum assured. That provides enough financial security for your family.
2. Be aware of tax deductions
Spend time on your pay slip and note down how much tax is deducted. Also do a small math for finding whether you can save some tax by increasing the investment. If you are not sure about the topic, please discuss with your friends or send us a mail explaining your doubts. We are happy to answer your queries as early as possible.
3. Maintain a calendar
It is one of the important habit to be followed by every one. It is human nature to forget important events because of other daily events. It is good idea to maintain a calendar with important financial events like insurance premium, credit card due date, etc.
Summary
I hope this article added few more tips in the list. I will be coming up with other ideas like effective way to maintaining a calendar and many other interesting topics in the next part. If you would like to receive the next part in mail, please register now. If you have any doubts, post it in the comments section.
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8 Comments on this post
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Hari said:
Hi Readers,
I want to add one more point under “3. Maintain a calendar” section.It is very difficult to remember the important dates as we are busy with day to day activities.(premium payment dates etc).
But i overcomed this problem with google calender and google docs.
Google calerder:- Enter all important events like premium payment dates. Configure your mobile number in google. You will get SMS on that particular date
Google DOCS:- Enter all important information like insurence number, bank a/c details etc. Even if you loose your documents you can retrieve minimum details from single location. This will also bring the flexibility to access anywhere in the world.
January 14th, 2010 at 10:25 pm -
krishnas said:
Hello Hari,
It is exciting to see the point. Because, I have already draft in place explaining the google calendar to effectively manage the events. Thank you for the comments.
Thanks,
KrishnaJanuary 15th, 2010 at 4:52 am -
Amber said:
hello sir,
I am middle class man, hardly saving rs.25000/-yearly. Can you suggest me some good investment plans.
thanks for informative ideas.
January 19th, 2010 at 3:03 am -
krishnas said:
Hello Amber,
What is your age?
Thanks,
KrishnaJanuary 22nd, 2010 at 9:17 am -
Hari said:
Hi Krishnan,
Thanks for your compliments.
I am a regular reader of your website. First of all I want to thank you for educating me with your valuable posts. I am having one question on gold investment which is not related in this posting. Sorry for posting it here.
I have 2yrs old daughter. I planned to invest 1gm gold for my daughter’s marriage every month. I have following options to invest,
(If i missed out any other option please let me know)a) Physical gold buying(Gold coins- 2gm, 5gm, 10gm)
b) GOLD ETF (GoldBEES, Reliance gold ETF, etc)
c) Gold mutual fund(Tata AIM World gold fund; DSP BR World gold fund)Due to the making charges and safety deposit of gold i discarded physical gold option.
Now i need to decide one option among GOLD ETF or GOLD mutul fund. Can you please suggest in this regard. I have some thoughts or points. I am listing them here to help you to give me good suggestion.
a) I am going to invest on gold per month 1gm regularly. I am going to invest next 20yrs. So it should be secure.
b) Mutual funds gave very good returns than ETF. Approx.(10% more than ETF). So mutual fund is good option over ETF?
c) I trust Mutual fund maintaince cost is more than ETF. If gold doesn’t give good returns then does gold mutual funds give less returns than gold ETF?
d) Since i am planning to continue investment next 20yrs, what happens if AMC want to close the mutual fund? How to handle this situation?
Please give me your valuable suggestion at the earliest.
Thanks
HariJanuary 23rd, 2010 at 8:15 am -
krishnas said:
Hello Hari,
Thank you for your valuable post. It is good idea to invest in the gold. I am glad to share with you that I too have new born baby girl, I have to start invest for her.
Your main question is whether Gold ETF or Gold mutual fund. It all depends on the need and your risk taking capacity.
If you are looking for the high returns and more risk, then invest in the gold mutual fund.
If you are looking for the good (not very high) returns with less risk, then invest in the gold ETF.
My suggestion would be to go for the Gold ETF. Also for the long term investment, there won’t be much risk involved in that.
Please let me know about your opinion.
Thanks,
KrishnaJanuary 23rd, 2010 at 9:11 am -
amber said:
i am 30yrs old.
January 27th, 2010 at 12:28 am -
Hari said:
Krishna,
Congratulations. So you are enjoying the happiest moments in the life. Good to know.
Regarding gold investment, thanks for your suggestion. I am also thinking for long term ETF are best choice.
But there is catch. We can buy ETF only through trading and demat account. If the invester don’t do trading other than Gold ETF then the returns may come down. Because he has to pay some money (approx 400/- per year) for maintaining the trading and demat account. Where as mutual fund doesn’t required trading account to buy.Thanks
HariJanuary 27th, 2010 at 5:43 am
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