As the reader already knows, healthy finances contribute to your mental and physical health. However, how to go about having healthy finances in the first place? In this piece, let’s answer this question.
Having clear, achievable goals help you stay committed to your investments through thick and thin. The first step is to list out all that you want to achieve through your investments. For example, to secure your retirement years, to purchase a home, or to buy a car every 5 years. Listing these goals will help you give shape to your investment portfolio.
It’s also important to add or remove financial goals periodically in accordance with life events and adjust your investments accordingly.
Diversification for protection!
Diversifying your financial portfolio safeguards your money from unforeseeable events; for example, the COVID-19 pandemic. Your portfolio should ideally contain a combination of Equity and Debt funds.
A good rule of thumb for the ratio of Equity/Debt instruments in your financial portfolio can be the 100 minus Current Age Rule. If you’re 35 years of age, your Equity instruments should make up 65% of your portfolio (100 minus 35 = 65).
Don’t be a hero, get insured
Unforeseen medical emergencies have the potential to wipe out your entire life savings. Be smart; invest in a safety net that gives you protection against huge bills for a fraction of the sum.
OneInsure stands ready to assist you with health insurance plans, life insurance plans, motor insurance plans and everything in between.
Contact us at firstname.lastname@example.org or call 86559-86559.
Did You Know??
In the First Wave of the COVID-19 pandemic in India (Mar to Dec 2020), about 3.2 crore Indians were driven into poverty, according to Pew Research Centre. Most of these 3.2 crores were from the middle class.
Take stock of your investments periodically
Reviewing your portfolio every year or twice a year is good practise. The objectives of this review are:
- Are you on track with your overall financial goals?
- Does your portfolio need to be rebalanced in light of market performance?
- Do some tweaks need to be made to make it more tax efficient?
Develop healthy investment habits
- Don’t break investments unless it’s a life and death emergency
- Have patience and allow your investments to vest
- Refrain from checking your portfolio all the time