Step-by-step guide to plan for your child’s education and marriage

Here is a step-by-step guide for planning your child’s education and marriage.

1. When to start planning. The moment the pregnancy is confirmed!

2. What do to first? Evaluate your insurance cover and buy more if required.

3. How to evaluate insurance cover?  Let us consider a couple with a two-year-old child. The male is the sole breadwinner. What would happen if he were to die today?

The wife will have to read more

Please Read This Before Buying a LIC Policy!

Are you considering the purchase of an endowment policy? Perhaps a cash back policy? Perhaps your friendly agent told you about a policy or a “magic plan” that would offer constant pension guaranteed by the government? Please read the following before buying an LIC policy or any insurance policy that has an investment component associated with it.

A request to readers who understand the pros and cons of mixing insurance and investment: Please consider sharing this post with your friends or relatives with the sharing buttons the on the left. read more

Why we need to start investing early for our children’s future

“Why should I invest for my child’s future needs like education or marriage?”, asked a reader. “Why can’t I simply get them an education loan?”, “why can’t they foot their own marriage bill?”.

Well, we need to invest what we can for the simple reason that life does not pan out the way we plan. Especially when their school graduation is years away. While retirement is the number one financial goal, anyone who says they will not be spending a dime for their children’s college education/marriage are either not yet parents or just not being practical. read more

Growing Wealth: An engineering approach

This is a guest post by S R Srinivasan, who is one of the most erudite users of freefincal. I had the pleasure of interacting with him twice at the Bangalore investor workshops. He talks about money management and growing wealth to new employees in his company and he kindly agreed to describe his approach and share his slide deck with us. Over to him.

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In this write-up, I discuss an  engineering (methodical) approach to personal finance. I introduce the concept as growing wealthy using an engineering approach. I then describe the parts of the approach in some detail. A full presentation that follows this approach can be found below. read more

How to track financial goals?

Investing requires a target. The future needs of our family or financial goals serve as natural targets. Goal-based investing is a process in which invest according to the needs of the goals. The amount to be invested and where it will be invested will depend on the nature of the goal.

Once the goal based investing journey starts, the next step is to learn: how to track financial goals.

As always, what follows is based on “what I would do”. You are free to critique it.  My view towards money management and personal finance is: do what you are comfortable with and ensure minimal maintenance and stress. read more