1.1 Budgeting
What is Budgeting?
- Budgeting is simply balancing your expenses with your income.
- It’s a plan to spend your money 💰
Financial Planning | 02-Learn rules of compounding
Create higher returns and beat inflation
2.1 Inflation
- Inflation is the decline of purchasing power of a given currency over time
- Means purchasing power of same amount fo money 💰 decreases over time
What is Inflation? How does the printing of money 💰 affect Inflation?
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- With high liquidity in the market the spending power of person increases
- That leads to the high demand for goods but supply remains the same.
- With high demand price of goods increases
Financial Planning | 03-Avoid tax but don't Evade tax
Make proper tax planning and reduce taxable income
3.1 Taxation Planning
- We should try to reduce the effective taxation amount by making proper Tax planning
- Try to
avoid tax but don't evade tax Taxable Income = Salary - Exemption - Deduction
Financial Planning | 04-Various types of insurance
Safeguard to your family
4.1 Insurance
- The life and property of an individual are surrounded by the risk of death, disability, or destruction.
- These risks may result in financial losses. Insurance is a prudent way to transfer such risks to an insurance company.
- Important point to know before buying insurance
- Add Rider
- Accidental disability
- Critical illness
- Check these ratios before buying an Insurance
- Add Rider