Wake up and take charge!

Do you sufficintly respect the money you earn? Do you understand your pay slip? Do you know how much tax you pay? Do you know what yu have been doing for tax exemptions?

If these questions were thrown to a group of ladies( in my circle), I can tell without so much as a blink that the majority would NOT answer in affirmative.

The sad but seemingly true fact with the majority is that, its "her" dad who handles her planning. The dad figure is replaced by the husband figure later.. And may be the sons when the lady is much older..

And I have been no exception until recently.

Without getting into the "whys" or reasoning the behavioral pattern, herez what I did to get into the bracket of the seemingly elite who unedrstand their monitory planning.

The ans was very simple and simply in Understanding the market and the various products available. Based on the way I chose and found effective, here are some tips---
Bottom Line: Just Do it! First take the leap (small one)-- then think!

a. Shares:
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1. Start investing small time ( start from as small as Rs 500.00 per month) in equity market ( icicidirect.com is quiet handy)
2. Once you have your money in it, you would start following the news/happenings that impacts your money
3. And once you get into the groove, there is no stopping you.
4. No amount of reading without getting your hands in the mud helps.

Remember: Dont treat the first couple of Rs 500 as too dear. Imagine it to be the money you spent on auto-rickshaws that month!

b. Mutual Funds:
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The chance that you still havent got into the MF Ship, is very rare.. atleast in the current situation...if you have been trying to do something to lessen your tax-payable.
If you havent yet got into the ship, SIP is a good option-- Rs 1000/month into MFs meant for tax exumption under 80C to start with is again a pretty neat thing. If you want to know which ones to invest in, visit moneycontrol.com or any icici branch and have a chat with a MF advisor. He would give you a list of MFs and some sites that you can study to understand the suggested MFs history.


Remember: Again, once you have your money in the market, you would start using sites/portfolio managers like moneycontrol and that triggers the process of you watching your money. Once you start watching your money, you start following the trend and then, unconsciously, you start getting up-to-date and start understanding some investment options and then start venturing into a few.
Overall, you become more conscious of your money and the market situation at the expense of Rs 1000 each month. And this money also helps you do you tax planning.Pretty neat deal ha?

c. FMP: A less adverstised ,low-risk option
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FMPs are open only for a small window( 4-5 days); This works similar to an FD. More info below..

A few questions you might have...

Q1. Due to lack of info or want to take risks, have you invested in FDs?
A1: If yes, there is a better option: Fixed Maturity Plan(FMP). FMPs are especially attractive because they have better post tax benefits that FDs.
I will not elaborate more on what the post tax benefits are here and spoon feed you... go, and read it yourself...:)
Things you want to understand before going for FMP:
1. Are you chosing Growth/ Dividend option? Dividend is better for short term investments.
2. If Growth( i.e. fro long term investment), are you going for with/ without indexation?

Q2: Have you invested in NSC? Do you know it is an option that earns you the least interest?
A2: FMP is a much much better option.

Q3: Have you invested in ULIP? Do you have a lapsed ICICI policy? Wondering if it is worth renewing? Are you getting different solution options that are contradicting/ confusing?

A3: ULIP is one of the good options available in the 80C products basket.
Here was my situation:
1. I had purchased an ICICI Prudential Life Time Pension Policy in 2004; I paid the first premium; The product had a 3 years lock-in and mandatory payment of first 3 premiums.I travelled onsite; I hadnt chose ECS and hence defaulted on teh mandatory premium payments.
I got different/ contradictory/ peace meal solution options from ICICI contacts. I was totally pissed off. I was suggested I forget the firs premium and ditch the policy.

After months of research, Herez what i gathered. And the good news is I am renewing the policy without any ICICI nit-wit officer giving me incorrect pointers.
1. Register yor policy on iciciprulife.com
2. You can make payments, switches etc online-- all on your own.
3. You can chat with an Advisor can get clarifications in writing.

Solution to my case:
1. Pay the due premiums ( between 8.00am and 3.00pm online- this constrainst is policies that are lapsed fro more than 6 months)
2. I can close my policy anytime after it is in-force. ( Ofcourse i will take this decision based on the fund value)

Overall, Collect info from as many sources..But, ultimately let it be you who should be taking the decision and responsible for it.

(Would like to express my opinion on why Women should plan their finances more rigorously... some other time.. tired of typing for now..)