Diwali Muhurat Planning

A very happy Diwali to all readers. While you are reading this NSE and BSE would be conducting its annual Diwali Muhurat Trading session. Traditionally trading or investing during Diwali Muhurat is seen as a start of good things to come.

There is more to money management than investing. Why not begin work on fortifying our financial castle this Diwali Muhurat?

Here are a few suggestions for Diwali Muhurat planning:

  1. Use a life insurance calculator: this one if unmarried Insurance Calculator for the Young or this one if you have children: Comprehensive Child Planner and determine the sum insured your dependents would need in your absence.
  2. Get a term insurance cover for a sum close to the above from any insurer. Remember that claim settlement ratio does not matter if your life insurance policy is at least 3-years old!
  3. Get a separate health insurance cover for your family. Individual cover for your parents and in-laws and if possible an individual cover for your family (else floater).
  4. Mobilize a sum equal to about six months expenses in a separate SB account. Each month add about 5 to 10% of your post-tax income to this account. This is to handle emergencies.
  5. Get yourself an accident insurance policy (more on this in a detailed post)
  6. Use a spreadsheet or a piece of paper and list all your income sources. Subtract from this your monthly expenses, liabilities, and amount needed to meet recurring financial goals and short-term financial goals (less than 5 year)
  7. Hopefully, the subtraction would not result in a negative number! This result is your investible surplus.
  8. Check if your entire investible surplus (barring a 5-10% buffer which is directed to toward the emergency SB account) is being investing in a portfolio that would give your the return desired (after tax). This might help in identifying the desired return: Visual Goal Planner
  9. When all these are done, you can consider using the financial planning template to find out how much you should be investing?. How does this fare when compared to how much you can invest? (=investible surplus)
  10. With some systematic investing and some luck, within a few years, we maybe investing more than what we need to.

This post is a shortened version of previous posts on the subject:

Personal Finance Essentials For Young Earners

DIY Personal Finance: How long does it take anyway?

Happy Diwali. Let us hope for good days ahead.

Subscribe and join the freefincal Youtube community!

 Don't like ads but want to support the site? Subscribe to the ad-free newsletter! 
You will get the full post-ad-free delivered to your inbox for Rs. 3000 a year. Follow this link to read the terms and sign up! 
Want to conduct a sales-free "basics of money management" session in your office?
I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

Connect with us on social media


Do check out my books


You Can Be Rich Too with Goal-Based InvestingYou can be rich too with goal based investing

My first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create customg solutions for your lifestye!Get it now.  It is also available in Kindle format.

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you want My second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a youngearner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

Create a "from start to finish" financial plan with this free robo advisory software template


Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

About Freefincal

Freefincal has open-source, comprehensive Excel spreadsheets, tools, analysis and unbiased, conflict of interest-free commentary on different aspects of personal finance and investing. If you find the content useful, please consider supporting us by (1) sharing our articles and (2) disabling ad-blockers for our site if you are using one. We do not accept sponsored posts, links or guest posts request from content writers and agencies.

Blog Comment Policy

Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.
Updated: December 30, 2015 — 5:50 pm

The Author

M. Pattabiraman

This article is authored by M. Pattabiraman. He is the co-author of two books: You can be rich too with goal based investing and Gamechanger. He is a patron and co-founder of "Fee-only India" an organisation to promote unbiased, commission-free investment advice “Pattu” as he is popularly known, publishes research, analysis and holistic money management advice at freefincal.com which serves more than one million readers a year. Frefincal.com has more than a 100 free calculators on different aspects of insurance and investment analysis, including a robo advisory template for use by beginners.

1 Comment

  1. just wish deepavali instead of diwali

Comments are closed.