Financial Planning Revisited Part-2

In last week's blog, we discussed how we plan normally.

It's good planning but after corona a global pandemic, all of sudden, everything gone standstill.

Even without getting a chance to do the necessary.

But as we are moving fast towards normalcy, a new beginning has to be done.

Here in planning, we have to add a few new things which we had not given due importance.

1. Inactive income we have to add recurring income which should be passive in nature.

2. We have fixed time to do all our family & professional work means we have to give some time routinely like monthly / quarterly recheck portfolio.

3. In financial parlance it is said that we should keep separate 25% of active income in investment & savings.
   But it is actually less than 10%.

4. Inflation is good for our financial health. Monitor it.

5. The total incremental income should be proportionately kept aside for investments & savings.

6. Keeping one or two types of investment is not a good idea.

7. Every product has its own feature & benefit tracking & evaluating it, which does not only give the true picture. Every instrument needs to be checked as per its benchmark.
 (Ask your financial advisor)

8. Passive income should be given equal importance as active income.

9. Passive income should start as easily as possible.

10. Last not least course correction is needed after every 3 years. Make habit of it.
Location: India

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