This is a small note on what you need to know about personal financial planning.

Let us get the basics right:

1. Personal financial planning is SIMPLE. It means it can be done.

2. You can and must do it yourself.

You just need the following steps:

1. Earn well, and for heaven’s sake spend less than you earn.

2. Insure against known ‘should not happen, but can happen’ events. Term insurance, medical insurance are a MUST.

3. Do start a SIP – in a good ELSS fund and in PPF.

4. Pay off all your credit card dues on time.

5. Savings bank accounts are like a working desk, not a storage bin. Use for transactions, not storing.

6. Build an emergency fund, quickly. Keep it in a liquid fund.

7. Understand your gross salary, net, taxation – get smart and act smart.

8. Learn to save and invest for goals instead of borrowing. Save/invest for all your purchases, NEVER borrow.

9. Be aware of why you are earning, spending, and Investing. This will help you select right products and avoid toxic products

10. Understand yourself. Market is sensible, make sure that you are sensible too.