Let's Talk Money: You've Worked Hard for It, Now Make It Work for You

by Monika Halan

Once your salary hits your Income Account, within thirty minutes (OK, take a day – but do it) move out your monthly expenditure to your Spend-it Account. And whatever is left, move it to your Invest-it Account.

Do it

Why does the bank want higher deposits? Because your money is lent out to others – loans earn the bank anywhere between 10 per cent to 18 per cent, while you get a 4 per cent interest on your savings deposit. The difference between what you get and what the bank earns, minus costs, is the bank’s profit.

The day you realize that it is in your best interest to separate your investment and insurance products, is the day you move solidly towards building your financial security.

Yess. Insurances Are scam.

Debt products are good for stability but not for growth.

Apart from my one house in which I live, and my PF, all my money is in mutual funds. So, what is a mutual fund and why do I like them so much?

The thumb rule for equity is 100 minus your age. If you are thirty years old, you should have 70 per cent of your money in equity. If you are sixty years old, you should have 40 per cent of your money in equity. Yes, you need equity even when you retire.

saving becomes a habit when you remove what you want to save from your spending money. Cash in the bank gets spent. And spending adjusts to what is available. Separate out what you intend to save from your salary or money inflow account. Now you see why we got our cash flows

I am doing