Before making investment plans,one
shall make sure that the following 7
essentials have taken care.
.
1)Adequate life insurance cover: 15*annual
expenditure(annual income)+net liabilities
One shall
protect his family against the twists and turns by taking a basic life cover
that is equal to15times of one’s annual expenditure+net liabilities
2)Medical cover: Adequate
cover according to age & health.
One shall be prepared for any exigencies by taking adequate
medical insurance cover,keeping in mind health &age
3)Adequate cash at home: 1month
expense
Inevitable
expenses always walk in uninvited! One shall tide over these hurdles by always
keeping hard cash equal to one month’s home expenses
4)Adequate balance in savings account: 1months expense
One shall work through this difficult month
by always maintaining one months expense balance in savings account
5)Widley accpected credit card: Anytime
365*24*7
One shall
be prepared for unforeseen situations by having a credit card in hand.
6)Emergency reserve:6-12months expenses
One shall be
prepared for any eventuality by putting away 6-12months expenses in bank
account or openended mutual funds.
7)Will: One
shall ready with it
Lack of a will
could cause confusion for one’s
Family.One shall be smart by drawing up a will.
