Thread by @VidyaG88

1/15
#LetsTalkMoney by @monikahalan is all about US understanding OUR Needs & Wants, & constructing OUR Money Box.

It helps BUILD a system in place , rather than focusing on a (non existent ) single shot solution.

MUST READ FOR ALL !

#BookRecommendation

A 🧵 on it .
👇

2/15
Firstly, build your own system to manage Cash Inflows & Outflows .
Find a way that's least troublesome but automatically separates the 2.

#Budgeting & #Allocation must not be a cumbersome task !

Easy bifurcation helps in Better mapping.

A bird's eye view on the same 👇

3/15
Moving onto Emergencies . This pandemic has made so many of us realise the importance of it .

Another interesting facet :
Unwillingness to take risks comes from the FEAR of not having money when needed - typically why Bank F.Ds are preferred.

Hence the EMERGENCY fund.

4/15
*It shall DIFFER from person to person.
*Understand HOW to go about it & BUILD up your fund.
*It takes 2-3 months time to figure out our expenses & 6 months - 1year atleast to build up this fund.
*So be patient ! 🤷
Don't jump the gun .

#EmergencyFund pointers:

5/15
Moving onto #HealthInsurance .

It takes just one Hospital visit to realise the importance of a comprehensive Health cover . 🙄🤷

Sharing a few points that must not be missed prior to taking a policy .

The book explains EVERY POINT in DETAIL along with examples.

6/15
The book also talks about
* Strategies for older people who purchased insurance years ago

* On the Importance of Critical Illness & Personal Accident cover .
HIGHLY underrated !!

Despite being into investing since over 10+ yrs, I haven't done it yet 😐 🤦
#NoteToSelf

7/15
Moving onto Necessity for a #LifeInsurance Cover .
Required ? 🤔

YES. VERY MUCH! 🙄

An untimely death would make us leave many things midway , including leaving our loved ones in a financial lurch .

It's best to separate investment from insurance products .

8/15
The book then explains :
* The amount of cover required
* The time to go in for such a life cover
* Which policy to go in for
* When to terminate a life cover

All this and more in EXTREMELY simple words .

Understand it and build a base to research on the net !

9/15
* Some other pointers especially for Beginners.
( Also served as a good reminder for me , as I need to rejig my Asset Allocation )

* A short reality check on other
#DebtProducts
#Gold
#RealEstate

Gotta read the book to know more ! 🤓🤷
#NoSpoonFeeding

10/15
Moving onto - The most misunderstood Asset class aka #Equity !

* The book helps understand the difference between getting an Equity exposure vs Direct investment in stocks .

The following is explained extremely well in this chapter
👇

11/15
The book then explains #MutualFunds , terms associated to it & the asset classes one can purchase via MF in detail along with the sub divisions

* Debt
* Gold
* Equity
* Real Estate ( REIT)

All this in common parlance, thereby ensuring EVERYONE understands it !! 😎

12/15
Systematic Investment Plan ( #SIP)
is making periodic Investments .

* Keep SIP target first , then spend rest.
* Allows us to average out our price over a period & cushions volatility .
, as no one can time markets .
* Builds discipline

Use it correctly !
👇

13/15
Each product in our money box MUST justify its space & be chosen out of logic & not out of ignorance.

A few important pointers WRT evaluating the financial product .
Note: Since I am familiar with most concepts I haven't elaborated them .
The book explains them.
👇

14/15
#FinancialFreedom needs to be planned out well .
It is a journey wherein we need to factor in our ever evolving requirements , inflation and future uncertainty.
The sooner we begin,the better it shall be.
This needs to be rejigged at times depending on circumstances.
👇

15/15

Lastly,

Few books have been written in such a simplistic ,yet wholesome manner. 👏👏

IT'S A NO BRAINER THAT ONE HAS TO BUY THIS BOOK !
Knowledge is the best investment that one could ever make & this book is full of it !

Thanks for this, @monikahalan !

*THE END*