We have all worked very hard throughout yet another year, and for what? For the love of our jobs, for the love of our ambitions, for the love of our near and dear ones, to fulfil our dreams to travel the world and the list goes on. However, don’t you think it may be also wise to just pause and check if we have done all the necessary provisions and arrangements to take care of our future and the future of our loved ones.....Financially!

Here are some Cardinal Rules for a Happy Financial Life which you may find handy!

• Nomination! As morbid as it sounds, it is one of the wisest little things that one can do to make things simple and hassle free for our loved ones in our absence. Ensure that you have a nominee mentioned for all investments - be it in the bank, FDs, Post Office, PPF, MF, Life Insurance, Locker, Health Insurance, etc. Any place including any government agency related (electricity), society where you stay.
• Have a large Term Insurance Policy with CI (Critical Illness)riders. Policy should at minimum be equal to your liabilities plus should sustain the lifestyle for your near and dear ones.
• Have a good Family Cover Health Care Insurance even if you have some cover from your employer. Get it when you are younger as you save on the premium amount instead doing this when you are close to you retirement.
• Invest for your short, medium and long term goals through Mutual Fund. Invest across asset classes Liquid Funds for emergency money needs (3-6 months), Fixed Income Funds for 1-3 years, Hybrid Funds (3-5 years), Equity Funds (5year plus).
• We often pay a lot of attention in building a corpus for our car buying, home buying, child’s education when we are young. Save regularly for your Retirement Corpus also as seriously as you are doing the rest.
• Purchase Gold etc through the ETF route which is far cheaper than buying physical gold
• Ensure that Bank Accounts are linked with all investments and a schedule is kept for when the payments (premium payment or SIP payment) is to be done. Also check if you have any unnecessary and unused bank accounts and demat accounts and close them
• Ensure you take a Home Insurance against fire & theft.
• Keep an updated Will.

As we come close to the end of 2018, we often say "Ring out the Old and Ring in the New!!" Well, it may also make sense to say in the same breath ..." take good care of whatever you already have"! All of the above rules are what makes you financially happy, secure and help you lead a contended life.

Season’s Greetings from the entire team of L&T Mutual Fund to you!

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