Financial Planning cannot work without financial literacy. Financial literacy is not merely the knowledge of financial services and products; it is about your financial attitude and behavior so that you could have ability to make self-informed financial decisions regarding planning, saving, investing, protecting, borrowing and much more. Financial literacy is not rocket science and it does not even require you to understand complex financial concepts or make financial calculations. It just requires some alertness on your part and taking the initiative. These are simple strategies which you need to learn for any financial planning process. You would have to just understand the simple and basic financial concepts such as the power of compounding, the decision to start saving and invest early, spend less on transaction fees, getting rid of bigger debts etc. For instance, most cases people are leaving their savings account itself or converting it into fixed deposit and putting it back into the banks account. The issue is not of merely saving, the issue is of what your bank fixed deposit is doing for you. They do not understand that financial ignorance in terms of inflation element and post-tax yield.
Here we are talking about creative financial strategies, how simple habits, taking advantage of existing rules and regulations, using the facilities offered by manufactures of financial products and services and the financial ecosystem, you can do it yourself some significant savings and create investible surplus. Meanwhile the potential benefits of financial literacy are manifold. People with strong financial skills do a better job planning and saving for retirement. Financial savvy investors are more likely to diversify risk by spreading funds across several ventures.
There are many easy solutions to organize and simplify our financial life, but we tend to choose complexity. We often tell ourselves we want to simplify, simplify, simplify but on the flip side, we tell ourselves that the solution to an important problem has to be complex. We just need to follow certain basic tenets to make our simplify our financial life that we endeavour to cover into this cobra post.
Today SIPs is not new phenomena as it has been become so popular and powerful investment tool to invest in equity.The beauty and appeal of SIPs has also been reached to those gullible people who are averted to invest in equity as they are not supposed to want to invest in equity but keen to invest in SIP. Share this SIP secret with some of your friends and they can also join you on the ride of Goal-based SIP. The more the merrier.
Many investors are getting worried about their low mutual fund return as they are prone to compare the returns of own fund directly with Nifty and Sensex.They do not recognize the fact that such comparisons are often getting misinformed and do not reveal any useful insight because you may be comparing apples with oranges.
There are many easy solutions to organize and simplify our financial life, but we tend to choose complexity. We often tell ourselves we want to simplify, simplify, simplify but on the flip side, we tell ourselves that the solution to an important problem has to be complex. We just need to follow certain basic tenets to make our simplify our financial life that we endeavour to cover into this cobra post.
Today SIPs is not new phenomena as it has been become so popular and powerful investment tool to invest in equity.The beauty and appeal of SIPs has also been reached to those gullible people who are averted to invest in equity as they are not supposed to want to invest in equity but keen to invest in SIP. Share this SIP secret with some of your friends and they can also join you on the ride of Goal-based SIP. The more the merrier.
Many investors are getting worried about their low mutual fund return as they are prone to compare the returns of own fund directly with Nifty and Sensex.They do not recognize the fact that such comparisons are often getting misinformed and do not reveal any useful insight because you may be comparing apples with oranges.