1. Avoid buying property on loans as it eats most of your earnings unless you have a clear plan for its repayment. It’s important to monitor cash flow. Though, the house will be your asset, your liability will be much more.
2. Start a SIP at a very young age. *Try to save atleast 15–25 % of your earnings.*
3. Avoid buying a car *unless you use it everyday.*
4. *Do not let this sentence scare you. “Mutual fund investment are subject to market risk. Please read the offer documents carefully before investing”.* Most people avoid investing in mutual funds just because of this one warning. *Yes, there is a market risk, but look at the history and growth of mutual funds.*
5. Try having a simple wedding.
6. Atleast 20% of your wealth should be liquid so you can utilize it when necessary.
7. *Considering inflation, you are actually losing money if it is in savings bank account. Do not keep huge money in savings bank account.*
8. *If you invest in stocks, pay due attention.*
9. If you invest in stocks have a separate account for delivery investment and Intraday investment. It is easy to monitor this way and also makes tax calculation easy
10. *Do not have a belief that property and car make you rich. Its what you save and invest, that is important.*
11. *Never invest in insurance for returns. Insurance is not an investment option. It is a risk management tool.*
12. Never use credit cards for lavish spending. *Use credit cards intelligently and for needs not for wants.*
13. *Cancel all credit cards before you die.* Or inform family about all your accounts, credit cards, loans and saving now itself. Even a small residue will cost your family much.
14. Invest on yourself and then on other investments.
15. *Always try to balance your earnings with your savings first, then on spending and loans.* Never take unnecessary loans. Always have reserve and utilise them and unless no other go never take loan.
16. Always have a plan for future events on your career, life, spending and finance.
17. *Always have a reserve on your savings for contingency and urgent situations.*
18. Your personal life and health are the most important investment. Do have a regular health check and do healthy workout every day. Stay healthy and live happily.
19. Always remember death can come anytime…..so please *do buy adequate term Insurance if you have dependents.*
20. Prepare a Will. It may avoid unnecessary fights after you die.