Readandinvest

Ever heard of the 70:30 Rule? It is considered one of the basic personal financial rules to follow.Put simply, this rule states that 30% of monthly income should be saved & invested, while the 70% can be used for expenses. While it may sound bit daunting at first, it is possible when we follow a consistent & focussed monthly budgeting & investment plan.Following this rule religiously can even help us to achieve our life's financial targets like retirement, fund for children's education early. However there are some who break this cardinal rule by actually saving and investing more. An investoholic/ Addictive investor may even try to save up to 50% of monthly income which is great!..The underlying principle here is that when you aim really high level of savings (say, 50%), you end up breaching the initial savings target of 30% of monthly income.This will lead to a positive cycle set in motion resulting in higher savings and early achievement of investment targets.A h...

As the awareness about the importance of financial planning rises, so does the number of sources providing latest information, updates and advice on investment options & financial planning.While many of them are genuine, it is best to remember that the basic rules of financial planning are sometimes the only thing that an investor may need in this era of information overload.While complicated investment products may look alluring at first glance, they may end up not serving the purpose of their existence. So what should an investor do: it's pretty simple- keep it simple! Start with the basics: Insure your life to the optimal level (coverage should be atleast 10 times your annual income), have decent health insurance coverage, clear your debts & try to become debt free, live within your means, Build an emergency fund(should cover atleast four months of recurring monthly expenses), save and invest atleast 20 percent of monthly income, start goal based diversified investments ...

One of the key issues any investor who has just begun his Investment journey faces is the risks arising due to market downturn.The equity/stock market will always be a rollercoaster ride.The ups and downs in the share value will naturally impact any direct stock Investment as well as mutual fund Investments.So what can an investor do to mitigate this risk and protect his overall Investment value.The best course of action is to diversify his Investments across various Investment avenues such as equity, debt market, gold etc...For a newbie investor who is just starting his Investment journey, equity Mutual funds can fulfill the need for equity component of his Investment portfolio while EPF/PPF/VPF, bank FD's, liquid mutual funds, corporate fixed deposits can fulfill the debt component.Some investors even prefer including investments in gold to provide an extra degree of diversification to their investments.So the key is to spread out the Investment risks and protect oneself against...

For the past few months, sensex has been going through its ups and downs(mostly downs!) resulting in erosion of investors wealth.The economic growth indicators are showing signs of a slowdown and in some cases ,steep drop in growth rate or even negative growth.The best example will be automotive sector.Most of the mutual fund investors are seeing that their holdings are losing value or showing negative returns.So what should an investor do now? Should he exit all his equity investments?.. Should he redeem all his mutual fund units?.. Should he stop/pause his investments?..A simple answer to all these questions will be 'No'.Every growing economy goes through growth & recession phases.No economy can keep on growing on full steam without a break.What happens to a car engine if it runs in full speed without a break.It results in a breakdown or overheating eventually!.. Similar is a country's economy.The bottom line is having trust in a country's potential & economic...

In today's world where anything and everything is available online, many of us have become shopaholics without even realizing it.The ease of financial transactions, with freely available credit cards, is partly responsible for this addiction. We purchase many things without thinking about the actual requirements. Many of these online purchases will be lying idle at our homes with absolutely no use or value to anyone.We got to remember it's our hard earned money.How to come out of this addictive habit?..There is a solution.Human psyche is such that once we do something repeatedly, it becomes a habit over a period of time.So instead of indulging in compulsive shopping, why don't we indulge in compulsive investing?!...The benefits of becoming an investoholic (a cumpulsive investor) is manifold.first,Its a productive use of our money. Second,It will slowly become a habit that actually ensures our financial security and makes our future secure.Third, It will make us happy and s...

When we hear or see the three letters 'EMI' normally the first thing that comes to our mind is "Equated Monthly Installments"..But there is one more new EMI that is way better than the old one..This new EMI is "Equated Monthly Investments"! Try the new EMI to feel the happiness of having regular savings and investments.The best avenue to pay this new EMI is the 'Systematic Investment plans'(SIP) of mutual funds. While the old EMI goes to banks or other lending institutions, the new EMI goes towards securing your future and hence is way better!

While most of us feel the need to have an emergency fund,very few of us actually have one.This article aims to change that. Why emergency fund is required? Let's start with the most basic question: Why?The following scenarios give some reasons: 1.Loss of job/loss in business-This is one nightmare most of us dread about.If you are a salary earner,job loss can be a cripling blow.Similarly, if you run your own business, a heavy loss can result in financial distress. 2. Sudden unforeseen expenses - unexpected medical expenses, spurt in school fees of kids, unforseen home expenses like repair of AC,Refrigerator etc..(This month my AC went bust and I had to shell out nearly INR 7000 to make it work again!) 3.The sole bread winner of the family (You!) meets with an accident resulting in temporary disability to earn money These are some of the instances wherein an emergency fund will help.It acts as a cushion against contingencies. How to determine the amount of emergency fund?...

1. Mutual fund investment in ELSS-Equity Linked savings schemes 2. PPF-Public Provident Fund 3. NPS-National Pension Scheme

Let's start with the simplest rule to follow in life if you want to save more.It is so simple that many of you may think why you didn't think of it before.That simple Rule is: "Income minus Savings should be your expenses" I Know it sounds too simple.In fact it is.If you follow this Cardinal rule from today, you will see the immediate increase in your savings rate.Try it!.. Today!