Beginner’s Guide to Personal Finance: A free e-book by Vinay Rai

This is a free e-book for absolute beginners and newbies to personal finance by Vinay Rai. Young earners and those who wish to organise their personal finances can use this book as a "starter kit" and begin 2020 with confidence

Published: December 12, 2019 at 11:26 am

Last Updated on

Vinay Rai, a health care automation analyst and personal finance enthusiast has created a free e-book for absolute beginners to money management. Young earners and those who wish to organise their personal finances can use this book as a “starter kit” and begin 2020 with confidence. The book is available for personal use at the end of this article.

About the author: Vinay Kumar Rai, a Mumbai resident, is a senior automation analyst at CitiusTech catering to Healthcare clients. Vinay loves to travel and read books on personal finance. He is a financial freedom seeker and wants to spread financial literacy. His personal money journey was earlier published here: How I turned my life around & charted my own money course

Readers can provide feedback on Vinay’s work using the contact details provided in the book. This can be treated as a companion source or a memorandum to the Re-assemble e-book previously published here.

Beginner’s Guide to Personal Finance: Contents

Listed below are the contents of the e-book. The numbers indicate the page count.

Investing: A Journey 4
1. Financial Fortitude 4

What is Financial Freedom? 4

2. Life Insurance 5

 Why people don’t buy a Term Plan? 5
Things to do before buying term insurance: 5
Things to do after buying a Term policy: 6
Permanent Exclusions: 6
Procedure to claim life insurance if someone dies 6

3. Health Insurance 7

Why individuals don’t get personal health Policy? 7
Things to do before buying the health insurance policy: 8
How to Buy a health plan 9
Things to do after buying Health policy 11
Exclusions 11

4. Property Insurance 12

FAQs of Home Insurance: 14
Questions to ask before buying a Home Insurance: 15

5. How to Withdraw EPF & PPF 16

EPF: 16
PPF 16

6. Emergency fund 17

Why Emergency Fund is required? 17
How much to set aside? 17
How long one should maintain emergency fund 17

7. Personal Financial Checklist 18

Act I: Preparation 18
Act II: Action 19
Act III: Review 19

8. Investments Basics 20

Financial Planning: 20
Word of Wisdom: 20
Managing risk 20
Good Money Habits: 20
Investment basics: 21
Investment process 22
Investing mistakes: 23
*Products to stay away from 24
90% of the time all an investor need: 24
How to plan for your goals: 24
Why Equity? 24
Paisa Vaisa podcasts by Pattu sir on financial freedom: 25
Before starting an investment, one should learn the process? 25
How to construct a Portfolio for each goal: 26
Review Portfolio: 26
De-risk strategies – De-risking refers to a process of containing losses: 27
Rebalancing methods: 27
Review Mutual Fund: 27
Exit Strategies 28
Important links for Investors: 28
Myths about Investing 29
Qualities of Successful Investor 29
Lessons from Mutual fund investing 30
Things to do after investing in mutual funds? 30
How to ride out an economic slowdown? 30
Questions to ask before buying a Home? 31
5 Questions to ask before getting Married? 31
5 Questions to ask before having a child? 32
Questions to ask before Retirement? 32
Retirement Planning: Avoid these common mistakes! 33
Fund Manager Exit – What investor should do? 33

10. Mutual fund selection process 34

Investment Template: 34
Few Points before selecting mutual fund 34
Equity Mutual Fund 35
Debt Mutual Fund 35
Things to do after investing in mutual funds? 36

11. How to select an equity/debt mutual fund 37

What to look for in a fund offer document/Scheme investment document? 37
My Equity Hybrid Fund selection strategy using VR & Morningstar 37
My Debt Fund selection strategy using VR & Fund SID 41

12. Preferred Product Categories for specific time periods 43

1. For goals less than 5 years – No equity. 43
2. For Goals between 5 – 7 years 43
3. For Goals between 7 – 10 years 43
4. For Goals between 10 – 15 years 43
5. For goals more than 15 years 43
*Equity Categories to avoid: 43
*Debt Categories to Avoid: 43

13. Some personal thoughts 44

As one can see, it is fairly comprehensive covering all major topics that a newbie should know about money management.

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Cover Image of Beginners Guide to Personal Finance by Vinay Rai
Cover Image of Beginners Guide to Personal Finance by Vinay Rai

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About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management. He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association. For speaking engagements write to pattu [at] freefincal [dot] com
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