ArthaPragna

Here is an attempt to present a complex subject (Personal Finance Management in simplest way without compromising on the core of the subject matter. Vast subject condensed to 4 Steps and further represented in one-page picture. Step-1: Create Emergency Fund  and Get Insurance Covers Creating an Emergency Reserve Fund of at least your 3 months Salary / Income is your First Objective, as soon you start earning. Thereafter, it needs to maintained at that level in line with increase in your income. It needs to be recouped as soon as possible, when it gets used up. The reason why you should ever touch this money for spending is strictly  an Emergency Situation (Ex: Medical Emergency, Loss of Job etc). This emergency Fund may be parked in a instrument that is quickly liquidatable; Investing in Bank Fixed Deposits and Mutu Fund Liquid Funds is most appropriate. Insurance is a next sub-step; A well rounded Insurance covers against untimely death (Term Insurance), Accidental Disability (Persona

Step-1 : Become serious about your finances. Get answers to your basic questions on the internet. Get a very basic info about financial planning and investment options available. 'Discuss' with your elders, seniors and friends (beware: don't take 'ADVICE' from them, just have a discussion to start to get the feeling and views of managing finances. Your father or brother indeed is your well wisher, but may not be a subject matter expert. Everyone can sing a song but not every one is a professional singer, just like not every person who can hit the cricket ball in the street cricket is a professional cricketer). Also ask them if they have some financial advisors. Discuss with financial advisor/s you come across and decide who you feel you most helpful and knowledgeable. Take the next steps in consultation of that advisor. Step-2 : Creating an Emergency Reserve Fund of at least your 3 months Salary is your First Objective, as soon you start earning. This should take no