I thought people here were nuts about cars..
Going these posts (all posted within the last six hours) disproves the very reason why I signed up
My 2 cents -
There is no 'ONE SIZE FITS ALL' in financial planning / saving.
Some members have given very good options / cues, but I would suggest each one to take a day off, sit alone and do your math. Jumping in and burning your fingers as well as getting off to a roaring start and dying with a whimper is not going help anyone.
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Originally Posted by praful At present I'm not doing much apart from just investing LIC policies and ELSS. Plan to start investing a little towards stocks too.
An investment advisor once told me, that I should have atleast 75% of CTC as liquid savings. My expression was just a state of shock, as of today I'm not even at 20%. |
Praful, that is a good way to start saving. It helps you build some discipline. If you opt for payment through your salary / direct debit, then you don't even have the hassle of keeping a track of the due date. Don't worry about being liquid - there are more ways of raising money than you know!!
A tip here - the amount of life cover should be more than your liabilities. It is always better to have a 'pure life' cover. Money back policies are not helpful in the long run.
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Originally Posted by Blue_V Whats happening with the insurance ULIP controversy? Can someone explain in simpler terms? Is it to do with the market linked Life insurance?
ULIP is diffferent from SIP?
All i could understand is:
1. 20% of the amt invested would go towards the commission
2. There is no clear management and clarity where the amt is invested |
SEBI has jumped into the fray by stating that Insurance Companies were selling mutual fund type plans dressed up as insurance policies, and being the market regulator the insurance companies have to obtain their approval.
IRDA does seem willing to taken on SEBI. Today, FM has given the go ahead to insurance companies to continue with the premium collections.
In a regular insurance policy, the company decides on how to invest the premium. And what you get is a life cover plus the bonus declared by the company from time to time.
In respect of Unit Linked Insurance, the premium is invested in a certain defined manner. Some plans have a flexibility to switch between the various investment options. Here, a portion of the premium is paid towards life cover, and a certain amount is towards administrative expenses (from where the agents get their commission - which is where the trouble has started)
SIP = System(at)ic Investment Plan. Here you plan to investm some amount at a certain frequency - monthly, quarterly, half-yearly etc. Here the benefit is (a) you need not put up lump sum amount & (b) you can even out the up / down cycle in investments.
I am sorry, Blue_V, I don't know what is market linked Life Insurance.
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Originally Posted by clevermax I started saving from Day 1 of my career, which was more than 10 years back. This is one good habit I inherited from my dad. Having said that, I never compromised on my living standard. As many folks wrote already, it's all about training yourself to have that financial discipline. Just add up all that interest one's paying! My approach is, accumulate as much wealth as you can, and then spend for your bigger financial needs like a house or car for example. As far as possible, stay away from loans. I won't even buy the tax saving argument if you have a home loan.
If you have EMIs to pay, you're bound to your job for the monthly income - unless you have strong financial support from someone. |
clevermax, you are clever with your words and finance as with the camera!!
Yes, you have hit the nail on the head - learn from others and start early.
Don't do the same mistakes which others have done.
I have a small deviation on the interest part - if you pay interest for consumption (like credit card bill dues, some fancy electronic gizmo which you can do without etc.) - then you loose a lot.
But, when it comes to creating an asset - like investing in a house - then there is no harm in paying interest. But make sure that the appreciation in future will take care of the interest you have paid, and the loan repayment is comfortably within your budget.
As regards buying a car - with or without loan - that topic is taboo :-). Better we start a separate thread.