A young reader recently asked us, “How much equity should I invest in for a long term goal?” This is a tricky question to answer! On one corner is a technical answer: Using reasonable return expectations for equity and debt (after tax!) and considering the inflation for my goal, I can arrive at an approximate…

Nine years ago, I resigned from my job at a private bank to pursue my MBA. During this time, I came across an online content and community forum called Women’s Web. I started writing content for them to make some pocket money during those two years.  About the author: Ayushi Mona Singh is a marketing leader…

A reader asks, “Does investing Rs. 1.5 Lakhs in PPF before April 5th make sense anymore since I will be choosing the new tax regime?” – a discussion. The short answer is that dropping everything and investing Rs. 1.5 Lakh before the 5th of April every financial year never made sense.  Now that most taxpayers…

Most personal finance content implicitly assumes the reader is salaried and can access monthly fresh cash flow. We all know that the number of entrepreneurs and small business owners has significantly increased over the last few years. So have freelancers or jig economy participants. Here are essential personal finance tips for such folk. 1 Cash…

Investors often add 10% of this and 10% of that and claim they do it for “portfolio diversification”. This and that refer to asset classes or products that have recently done well. My favourite response is, now that you have added this/that, how do you know if your portfolio is diversified? What is the impact of…

There are many households (including mine) where the other partner knows nothing about investing, paying bills, taxes, etc and is not interested in learning. How can we set up instructions so they can manage our money in case we become too busy with work (or go abroad) or, worse, die? Instruction Sheet: Considerations It should…

A reader wants to know, “How do you prepare for parenthood financially?” — a  discussion. I admire this line of thinking. I would recommend every wannabe parent to ask themselves this question. Previous generations considered childbirth a gift and believed it should not be hampered by too much planning. Perhaps they are right, but there…

Consider this. My friend’s daughter wanted to study B. Tech Electrical Engineering (EE) in a specific college (say, college A). However, the college informed them that they could only offer another course for now, but she will be waitlisted to EE if there are vacancies. Meanwhile, she got a B. Tech EE in another college…

I hate to say this, but it has to be said. To get rich, we must stop behaving like the typical retail investor. We must stop calling ourselves the Aam Aadmi or the middle class. Btw no one reading this belongs to the Indian middle class. They may have a middle-class mindset, but that does…

When it comes to human relationships, I am fairly naive. It took me several years to understand that many people around us (friends, relatives, co-workers, neighbours, etc) respect us depending on our net worth. This accounts for how my relative’s behaviour towards me changed over the years. This guy was neither a close nor distant…

We have encountered these questions countless times over the past decade. “I have some surplus cash. Where should I park it?”; “Can I park my surplus cash in my SBI Max Gain account?”; “Is this market dip a good time to deploy my surplus cash?”. Almost always, digging deeper reveals it to be a case…

Often, readers email us saying, “I do not have enough to invest for my long-term goals. What should I do?” This is a fairly common situation; most of us start our investment journey this way. There is nothing to despair about. Here are some options to consider. 1. Consider clubbing all long-term goals together (greater…

“We do not know what to do with our salary minus expenses, so we just open FD after FD”. This is a common refrain from many employees I have met during my commonsense approach to money management corporate talks. I notice that many women in double-income households are guilty of letting unutilized salaries pile up in…

This is a compilation of frequently asked questions about the freefincal robo advisor tool. It allows you to plan from start to finish for retirement (early, normal, before and after), non-recurring financial goals (child education) and recurring financial goals (holidays, appliances, etc.). The tool would help anyone aged 18 to 80 plan for their retirement,…

This article explains how a simple cash flow projection can significantly impact our goal-based financial planning. When I started creating Excel sheets in 2010-11, I slowly realised that all goal-planning must culminate into a cash flow projection. The freefincal robo advisor tool automatically creates a cash flow projection with goal-planning results. If the user chooses…