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"Basics of Personal Finance "


Practice Budgeting

Divide your salary according to your needs and wants. Follow the 50-30-20 rule which states that 50% of your income should be diverted for your needs and 30% towards your wants and the remaining 20% should be saved or invested.

Create Emergency Funds

Take measured risks in life and create emergency funds to have enough funds to suffice for 6-12 months of expenses. It is recommended to park the emergency fund in a debt mutual fund that beats inflation and not in a bank FD because the rate of return there is usually less than real inflation.


Learn Debt Management

Avoid impulsive purchases and be mindful of our expenses. It is said that one should only buy expensive items when you have twice the amount saved in your bank account, then only it is considered a smart decision to take debt.


Invest For Future

You can invest in the Stock Market to create wealth. But assess your risk appetite first and then make informed decisions and practice the principle of not putting all your eggs in one single basket” which is applicable in investments too. Stay informed about the stock market and continuously monitor and analyze relevant financial news, company reports, and market trends.


Think about Retirement Planning

Retirement planning is the process of setting financial goals and saving/investing to ensure a secure and comfortable retirement. It involves estimating future expenses, determining how much to save, and selecting appropriate retirement accounts and investments to achieve those goals.


Well Being Shiksha Message

It is important to keep yourself updated with the latest news so that necessary steps are taken to reduce the risk in your portfolio. Remember, learning about finances is a lifelong journey, and the more you know, the more control you have over your financial future.


Feel free to ask questions, and share your experiences. Together, we can all become financially savvy and prosperous individuals. Happy learning! 🚀💰











Author: Abhay Sharma

Avid Investor at a young age


Editor : Dr. Neelam Tandon

Well Being Shiksha Foundation

Founder and Managing Director

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