How To Be Your Own Finance Planner in 10 Steps

224 Pages·03.715 MB·English

by  Manish Chauhan

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Acknowledgement
This book is created out of my experience with all the blog readers and
clients I have worked with. While I wrote this book, I received immense help
and support from various people to design and create this book.
I would like to start with a big thanks to thousands of our blog readers and
hundreds of our clients who have given me insights on the issues they face in
real life and the potential areas any investor would like to improve and solve
in their financial life.
I would like to thank my business partner and a great friend, Nandish Desai
who brainstormed with me and helped in shaping to this book. He helped me
with amazing insights on how the book can be of most value to the reader and
how it can become a stronger book.
I would like to thank my parents and wife who supported me in writing this
book and gave me enough space and time to do my job in the best possible
manner. I would like to thank Mahavir Chopra, Namrata and Narendra Ahuja
who looked at my work and suggested me improvements at some places in
the book.
Finally, I would like to thank Network 18 who published this book and my
editor who helped to give a polished look and language to my writing.
Without the support of everyone, this book would not be created the way it is
today.
Thanks to all.
Manish Chauhan
CONTENTS
Wake Up Call
Step 1: Optimize Life Insurance Policies
Step 2: Optimize and Clean up Other Investments
Step 3: Health Insurance
Step 4: Emergency Fund Planning
Step 5: Short/Long term Goal Planning
Step 6: Start your Retirement Planning
Step 7: Estate Planning
Step 8: Be ready with a Great Credit Report and Score
Step 9: Debt Repayment
Step 10: Organise your Financial Life
Bonus Step - How to be ready for the future

I want to start this book with this small introductory chapter that I
call a “wake up call”. I have worked with hundreds of clients and
dealt with thousands of my readers replying to each of them
personally on email. I get close to 100+ emails each week with
different kinds of financial problems people face in their life and I
spend countless number of hours solving their queries. Based on
that experience I want to tell you two stories today. Read on.
JATIN
Story 1__
Jatin has lost his job due to recession with a multinational company. Jatin has
always been an amazing performer in his team and he was 100% sure that
nothing can happen to his job ever, but that has been proved wrong. He lived
his life from pay check to pay check and he never thought that he would ever
have any emergency in his life. He faces these issues right now:
1. He is paying EMI for his home loan from last 3 years, but due to the job
loss, he is finding it tough to service his EMI now, as he is not getting a new
job anytime soon. Some of his investments are locked in ULIPs and
insurance products, which he had bought, but those products are not coming
to his rescue in this bad phase of life. He had never saved any extra money
for these kinds of bad situations.
2. It’s time to pay his life insurance premium money, his home bills, house
loan EMI, but it’s literally impossible for him to pay all of them on time. He
fears what he can do in this situation. He applied for a personal loan too, but
it was denied by the bank because they say that he has not paid his credit card
bills on time from last many months on time and they don’t think he is the
right person to lend any money at this moment.
3. He is worried about his situation, because if something happens to his
health or his aging parents, at this moment, he doesn’t know what he’ll do.
His parents are very dependent on him for their survival. While Jatin loves
his parents and wants to do the best for them, he fears now with this eye-
opening incident on how his own financial life is turning out to be in next 10-
30 years. He fears if he has done enough to fund his financial goals in his life
and if he will be so dependent on his children for his retirement needs.
Jatin wants to really change his situation now.
SAKSHI
Story 2__
Sakshi & Shailesh were married just a year back; they were working in
Bangalore in an IT company and earning really well. The amount of money
they were earning seemed as if they would never have any issue in life to
reach their financial goals. The present looked so promising that they just
could not worry about the future.
Shailesh knew that he had to save a lot of money, so each month he kept
making new fixed deposits with the money he got out of his salary. The
money Sakshi earned went into different kind of financial products, but all on
Shailesh’s name only, never on Sakshi’s name. This never came to their
mind. Their life was moving without any issue and the future looked
extremely beautiful. Shailesh was killed in an accident one morning while
travelling to office.
Suddenly the ugly situation that was underneath the beautiful life cropped up
and showed its face to Sakshi. She never imagined how life could take a huge
turn. Here were some of the issues:
1. Shailesh had never covered his life properly against such mishaps and now
Sakshi was very dependent on her own income and she was wondering how