- Know where you want to go and where you are.
Try to plan how much money you need for your future needs. There are online calculators available that can help you in calculating the required amount.
Post that start with quarterly reviewing the amount of your portfolio. Include liquid funds, borrowings, investments and leave the house that you live in.
2. Protect the money that you have earned till know by adding nominees in all your accounts
Bank accounts, Brokerage accounts, PPF accounts
3. Follow Income allocation rule : 50 : 30 : 20
50 percent of income should be used for savings
30 percent of income should be used to meet your needs
20 percent of income should be used for wants.
Use the formula : Income — Savings=Expenditure
4. Build an emergency corpus for unseen expenses like medical needs. Should be approximately 6–12 months of your expenses.
5. Be cautious while doing major investments like house, lifestyle products that depreciate like cars, expensive mobile phones etc. Do not purchase items that require huge investments without having enough corpus.
6. Purchase proper insurance for Health, Life, Accidents, Critical Illness, House, Car
Add riders to your insurance wherever possible. Don’t under-insure.
7. Achieve good portfolio diversification
Don’t invest entire money in a single stock.
Equity
Debt
Liquid Funds
Also, do not over diversify.
8. Measure and understand your risk taking appetite. Invest as per you risk taking capacity
Conservative investor-debt
Aggressive investor-equity
Moderate investor- equity and debt
9. Invest in growing your financial knowledge
10. Remember to follow all the 9 points that have been discussed above
