The 10 Basics of Financial Good Health

A few days ago i was talking to a friend of mine and we were discussing on what are the good practices that should be followed when talking about financial health. I thought i would just share a jist of the discussion we had using a point system -- Here they are--



1. Dont Spend more than you Earn
2. Have a financial Plan-- Create one yourself or reach out to a financial planner
3. Execute your Financial Plan and Review your Financial Plan regularly-- at least every three months.
4. Ensure you have your emergency fund created.
5. Be careful with Credit. Your Debt ratio ( debt/ Income) should not be more than 0.5 in any situation. Debt will include EMI for home, Car, personal loans and Credit card debt
6. Have a mechanism where you keep your papers in place-- IT returns, Investments, Credit card bills, etc. It may make sense to speak to a CA to help get some sanity in place.
7. Get a medical health plan for yourself and your family.
8. Read financial magazines- Some of my favourite newsbacks are Outlook money, moneytoday(http://www.moneytoday.in/) , Dalal Street, economictimes ( http://www.economictimes.com/), Business standard (http://www.businessstandard.com/) and http://www.moneycontrol.com/
9. Meet people who are sucessful investors- those who use the basics of investing for their families.
10. Ensure you do what it takes to do well in your job
Au Revoir till we meet again.