Financial Planning Fundamentals

Do risk management before you start investing! Imagine doing a 10k of SIP every month for the next 5 years and accumulating x in your investment account. Unfortunately, some medical emergency occurred and someone in the family was hospitalised. Not only will your investment account become zero but you might have to take a loan to make good for the expenses. There is no point starting with investments till you have your risk management in place. - Have a term insurance - Have a family floater medical cover over and above the corporate insurance you might have Remember, in India, most of us are 1 hospitalisation away from bankruptcy.

Women & Finance: a relationship NOT approved by many! I recently observed that whenever my brother and I receive a cash gift from our relatives or parents, this is how it goes: ⟶ My brother is more than happy to spend the entire amount on himself even in one go without any hesitation or doubt. ⟶ On the other hand, I would save 40% of the amount without fail. I’ll spend the rest 60%  after a lot of contemplation within some months - but NEVER at once. Another common observation is that young women are often raised to believe that financial matters are best left to the men in their families - their fathers, brothers, or husbands. But why? Such instances make me question -  🚨 Why do women shy away from spending/managing their own money? After introspecting deeply, I realized that the answer does lie in our specific upbringing patterns for different genders. Have a look at some of the common stereotypes surfacing in the society – 👉 Women are too naive to handle money. 👉 Women are too risk-averse, they always tend to play safe while investing. 👉 Women are not assertive or strict enough to negotiate financial matters. And what not! Surprisingly, there are so many of these baseless arguments that are widely believed by women as well. It’s high time we understand true financial independence is not only earning your own money - it’s also managing it. The only way out of this is to be UNSTOPPABLE! ☑ Rewire the beliefs you grew up with by taking inspiration from successful women around you. Never let societal beliefs impact your growth negatively. ☑ Empower yourself by investing in your financial education: learn personal finance, investing, and saving. Resources are available online, in libraries, and through community programs. ☑ Track your expenses. ☑ Automate your savings to make it effortless. ☑ Build an emergency fund for peace of mind in uncertain times. ☑ Negotiate for higher pay and know your worth. ☑ Diversify your income streams for financial resilience. ☑ Set clear financial goals: buying a home, saving for retirement, or simply having more peace of mind. Create a roadmap to push you in that direction and keep you on track. ☑ Seek out mentorship from professionals or family members and build a supportive network out of it for guidance. ☑ Regularly review and adjust your financial plan as life evolves. After all, a woman’s best protection is a little money of her own (quoted by Clare Boothe Luce). Are you, as a WOMAN, in charge of your own finances? Are you, as a MAN, encouraging the women in your life to take care of their money? I am open to knowing what you guys think about it? 👇 #drishtiispeaks #finance #education #women #money #management

75% of Indians are not covered by any insurance, as per IRDA. 82% of India’s workforce is employed in the informal sector. That means a large population lives in constant fear of financial setbacks. So, do you need financial protection? Yes, if you have dependents, then you need life insurance. Here are some key things to check before buying the insurance 1. Figure out how much insurance you need: Think about how much money your family would need if something happened to you. Consider bills, loans, and how much it costs to take care of your family. 2. Learn about the types of insurance: There are different kinds of insurance, like ones that last for a certain time or ones that last your whole life. Each type has different benefits and costs. 3. Find a good company: Look for an insurance company that's trusted and has enough money to pay out if you need it. You can check how good they are by seeing how many claims they've paid out compared to how many they've gotten. 4. Check how many claims they pay out: Make sure the insurance company is good at paying out claims. You want one that pays out most of the time. 5. Understand how you'll get the insurance: Learn how you'll get approved for the insurance. You might need to answer questions about your health and life. 6. Know what's not covered: Find out what things won't be paid for by the insurance. Some things might not be covered, so it's important to know. 7. Think about how long you'll need the insurance: Decide how many years you want the insurance to last. 8. See how the company helps you: Make sure the insurance company is easy to talk to and helps you quickly if you need to make a claim. Understanding these things lets you choose the right insurance for you and your family. Follow Nidhi Nagar for more such insights #linkedinforcreators #nidhinagar #insurance #finance

When it comes to decent income, the odds are stacked against women. Not only do women have lower access to formal credit, property ownership, than men, but research shows that women also have lower levels of financial literacy—a key indicator of financial inclusion. And that’s not just a statistic—it’s a systemic barrier that keeps women financially dependent and limits their ability to build wealth. 💰 Think about this: 1.Women earn only 77 cents for every $1 a man earns globally. 2.Women-owned businesses receive only 2% of venture capital funding. 3.Women are 80% more likely than men to face poverty in retirement. This isn’t because women are less capable. It’s because financial systems weren’t designed with women in mind. Why does financial independence matter? Because money isn’t just about numbers—it’s about choices, security, and freedom. 📍 A woman with financial independence can leave a toxic relationship without fear of survival. 📍 She can walk away from an unfair job because she has a safety net. 📍 She can invest in her dreams, her children’s future, and her own well-being. Yet, many women are still raised to "save money" but not to grow it. To "budget" but not to invest. To "depend" rather than own. 🚀 It’s time to change this. ✔️ Teach young girls about money, investments, and wealth-building. ✔️ Encourage women to take charge of their own financial decisions. ✔️ Support policies that ensure equal pay and access to financial resources. 💡 Financial independence isn’t just an economic issue—it’s a human rights issue. This International Women’s Day, let’s move beyond words and take action. 💜 Encourage. Educate. Empower. LinkedIn LinkedIn News India LinkedIn Guide to Creating #InternationalWomensDay #FinancialFreedom #FinancialLiteracy

𝗧𝗵𝗶𝗻𝗸 𝗼𝗳 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝗰𝗮𝗽𝗮𝗯𝗹𝗲 𝗼𝗳 𝗹𝗼𝗼𝗸𝗶𝗻𝗴 𝗮𝗳𝘁𝗲𝗿 𝘆𝗼𝘂𝗿 𝗳𝗮𝗺𝗶𝗹𝘆 𝗮𝘀 𝗱𝗶𝗹𝗶𝗴𝗲𝗻𝘁𝗹𝘆 𝗮𝘀 𝘆𝗼𝘂 𝗱𝗼. I know you counted your siblings, parents or your best friends as few of the people who can take care of your family but unfortunately things don’t work like this, they too have their families and they too have responsibilities. So, the simple answer is that there is no one who can take care of your family in the same way as you do. Life is unpredictable, and the responsibility of ensuring your loved ones are well-cared for doesn't end with your presence. It extends into the future, safeguarding their financial well-being even when you're not around. Term insurance is a powerful financial tool designed to be the cornerstone of your family's security. Beyond its role in covering unforeseen events, term insurance serves a unique purpose: replacing your monthly income. Imagine it as a safety net that gracefully unfurls to catch your family, ensuring they don't face financial strain in your absence. Your income is the backbone of your family's lifestyle, education, and dreams. From mortgage payments to school fees, everyday expenses to future aspirations, your earnings play a pivotal role. Term insurance steps in as a dependable ally, providing a steady income stream to sustain your family's way of life. By choosing term insurance wisely, you empower your loved ones to not just cope but thrive, even in challenging times. It's a gesture of profound love and foresight, an investment in your family's resilience. And let's face it, while we can't predict the future, we can certainly plan for it. So, let's take a moment to reflect on our roles as providers and protectors. Let's not just dream of a brighter future for our families but actively safeguard it. Explore term insurance options today; because securing our family's tomorrow is not just a choice, it's a commitment. #financialsecurity #TermInsurance #familyfirst

Financial literacy wasn't taught to me. As a girl from a small town, money conversations happened behind closed doors. "Girls don't need to understand finances," they said. This happens even today. But the fact is, founders who don't understand how money flows, likely to fail. I learnt the hard way. The founder who understands how money flows can build any business, survive any crisis, and grow business faster. Because it’s never about the product alone. It’s about cash flow. It’s about timing inflows and outflows. It’s about discipline with money — not just passion with ideas. Lessons I learnt- - Lesson 1: Cash flow is oxygen, profit is food I learned this the hard way in our early days. We were profitable on paper but couldn’t pay salaries on time. Revenue means nothing if it’s stuck in receivables. - Lesson 2: Your personal credit score affects business funding Banks judge female entrepreneurs differently. They’ll ask about your husband’s income, family plans, even your “commitment.” Build your personal financial credibility like your life depends on it. - Lesson 3: Understand your numbers deeply, don’t just delegate You can’t lead what you can’t measure. Know your unit economics, burn rate, runway, and CAC. Don’t just nod when your CFO talks—ask until you fully understand. - Lesson 4: Emergency fund isn’t optional, it’s survival Maintain 6–12 months of operating expenses. COVID taught us business can stop overnight. This cushion saved us and helped support our team when others were laying off. - Lesson 5: The right investors bring more than money Networks, mentorship, and credibility matter. Cheap money from the wrong partner is expensive. Choose investors who add value beyond capital. The reality? Financial literacy as a female entrepreneur means fighting biases, questioning assumptions, and protecting your business like a lioness protects her cubs. We're not just building businesses - we're building generational wealth and breaking cycles. To every woman reading this: Your money, your rules, your empire. Learn the language of money. Speak it fluently. Use it strategically. Because financial independence isn't just personal freedom - it's the foundation of everything else you want to build. What's one financial lesson you wish you'd learned earlier? #finance #moneymatters #business #growth

Vibha Padalkar, the MD of HDFC Life, has shared some interesting insights on life insurance trends. She says:   One: people are no longer buying life insurance for tax-savings. This makes sense. The new tax regime offers very few deductions. This is our finding in the BankBazaar Aspiration Index as well. People who buy life insurance are now buying for the right reason: protection.   Two: the tax benefits influence short-term behaviour, but over the long-term, Vibha says, people will continue to save one way or another. In their 30s, they become more mindful of their financial needs. And those in their 40s will save anyway, as is ingrained in them.   Three, and this is very interesting: stock market shake-ups, like the one we’re experiencing now, tend to push people back into traditional insurance policies. These policies combine long-term investing with safety. Vibha says they see an inverse correlation between equity markets and traditional insurance products. “This cycle keeps repeating because people often fail to learn proper asset allocation,” she says. Four, and this is worth discussing: Vibha believes ULIPs and TULIPs have a role to play in financial planning because people tend not to dip into long-term savings for short-term needs. What do you think?

Reflecting on PHOENIXUS’ latest Building Our Financial Futures session, led by the insightful Schutz Lee, it’s clear that the lessons on portfolio diversification, asset allocation & rebalancing are essential tools for women, especially as we prepare for the realities of longer life expectancies, wealth transfers & changing market conditions. Schutz’s guidance helped us navigate these complex concepts, highlighting that portfolio diversification—spreading investments across various asset classes—is the foundation of a resilient financial strategy. By doing so, we mitigate risk & ensure that our portfolios are not overly reliant on any one market or sector. This approach becomes even more crucial for women, who often outlive men & find themselves managing wealth not only for themselves but for our families. In exploring asset allocation, which is all about determining the right mix of investments to align with our individual financial goals & risk tolerance, whether it’s equities, bonds, or alternative investments, understanding where & how to allocate assets ensures that our portfolios grow sustainably over time, allowing us to adjust as life stages change or new opportunities emerge. Finally, the importance of rebalancing is emphasised - the process of realigning the weightings of our portfolio. As market conditions shift & with events like the impending interest rate adjustments, regularly rebalancing ensures that we maintain the desired risk profile & continue to meet our financial objectives. This session also touched on broader financial trends affecting women in particular. With intergenerational wealth transfer becoming more prevalent, especially as older generations pass on their wealth, women must be prepared to manage this transition. The idea of horizontal wealth transfer, where assets move between spouses, reinforces the need for women to be financially literate & proactive in managing our family’s wealth as they often inherit financial responsibilities. Understanding how to diversify, allocate & rebalance portfolios isn’t just a strategy for today—it’s a long-term commitment to financial security and independence. By taking these steps, women are not only securing our own futures but also positioning ourselves as stewards of wealth for future generations. The time to act is now. Don’t wait for the market or life events to dictate your financial journey. Take control, implement these strategies, and move confidently toward the future you deserve. #FinancialEmpowerment #WomenInLeadership #PortfolioManagement #Diversification #WealthTransfer #Phoenixus #FinancialIndependence #InvestmentOpportunities #TakeAction

Is the Insurance provided by your Employer enough? In the world of business and personal finance, myths can often lead us astray. One such myth is the belief that having corporate health insurance eliminates the need for personal insurance. Bhargav Bhai recently shared a compelling case study that challenges this notion, highlighting the critical importance of individual insurance planning. The Case Study Consider the story of a client who worked for a corporate organization and relied solely on the health insurance provided by his employer. Confident in his coverage, he decided against purchasing personal health insurance. However, after leaving his corporate job to start his own business, he faced a life-altering challenge: he was diagnosed with high blood sugar. This situation brought to light a harsh reality—without personal insurance, he found himself in a precarious position. Because of his pre-existing condition, he faced significantly higher premiums and a lengthy waiting period for coverage. This experience served as a wake-up call, emphasizing that corporate insurance is not a comprehensive safety net. Key Takeaways 1. Corporate Insurance Isn't Enough: While employer-provided health insurance is beneficial, it often comes with limitations. It’s crucial to have a personal insurance plan to cover gaps in corporate policies. 2. Plan Ahead: Insurance is a proactive measure. The earlier you secure your personal health insurance, the better your coverage options and premiums will be. Waiting until a health issue arises can lead to complications and increased costs. 3. Understanding Pre-Existing Conditions: Health conditions can impact your insurance eligibility and premium rates. Being aware of these factors is essential for effective planning. 4. Flexibility for Life Changes: As careers evolve, so do health needs. Transitioning from employee to entrepreneur, as in this case, can lead to unexpected health challenges. Personal insurance provides the flexibility needed to adapt to such changes. Conclusion The importance of personal insurance cannot be overstated. It serves as a safeguard against the uncertainties of life and ensures that we are prepared for any eventuality. As professionals, we must prioritize our financial well-being by planning for our health coverage independently of our corporate benefits. Let’s debunk the myth that corporate insurance is sufficient. Take control of your health insurance journey today to secure a safer tomorrow. #InsurancePlanning #HealthCoverage #FinancialWellness #MythBusting #ProfessionalInsights Feel free to share your thoughts or experiences regarding personal insurance in the comments!

𝐓𝐡𝐞 𝐇𝐢𝐝𝐝𝐞𝐧 𝐂𝐨𝐬𝐭 𝐨𝐟 𝐇𝐚𝐯𝐢𝐧𝐠 𝐓𝐨𝐨 𝐌𝐚𝐧𝐲 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬. "Jas, I have insurance policies already. I don't think I need more." There are occasions which I hear this feedback (as a form of subtle rejection). 🚨 "Mr. X, I can know and can totally imagine. In fact, it would be weird if you do not own any policies based on what you have achieved today and at your current milestone. Question is do you know what you are paying? Are these truly what you need?" More insurance isn’t always better. I know this sounds counterintuitive. After-all, we as "Insurance Agent" love to open our ipads and start selling plans. But at the top realm of financial consultancy, we should be your Problem Solver, the financial strategist behind the scene. What do I mean by the above? Well, you see when our life changes, so do our financial needs. What once made sense may no longer serve you. The worst case? Clients who bought plans just to SUPPORT their friends or family members at the beginning of their insurance careers. 90% of them suddenly find themselves stranded (become orphan clients) when the person who sold them quits the industry. As the Asia Insurance Agent of the Year (2024), I've seen it too many times. Our job as your Financial Consultant is to help you make the wisest financial decisions. After evaluating the pros and cons for you. Then create the greatest value for you in the long term. 𝐖𝐡𝐞𝐧 𝐃𝐨𝐞𝐬 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐒𝐭𝐨𝐩 𝐌𝐚𝐤𝐢𝐧𝐠 𝐒𝐞𝐧𝐬𝐞? 🔹 You have overlapping policies covering the same risks 🔹 You are paying high premiums but unsure of actual benefits 🔹 You have coverage that no longer fits your lifestyle or goals Over time, these extra policies don’t add security. Instead they create economic inefficiencies. 𝐓𝐡𝐞 𝐂𝐨𝐬𝐭 𝐎𝐟 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐈𝐧𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲 💸 Wasted resources that could be invested for growth 💸 Limited cash flow reduces your financial flexibility 💸 Overlooked wealth-building opportunities 𝐇𝐨𝐰 𝐭𝐨 𝐅𝐢𝐧𝐝 𝐭𝐡𝐞 𝐁𝐚𝐥𝐚𝐧𝐜𝐞 ✅ Review your policies regularly. Making sure premium commensurates with value. ✅ Align your coverage with your current financial goals ✅ Work with a trusted and well-established Financial Consultant who is competent to consolidate and optimise your current financial resources. 𝐓𝐡𝐞 𝐠𝐨𝐚𝐥 𝐢𝐬𝐧’𝐭 𝐣𝐮𝐬𝐭 𝐭𝐨 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐲𝐨𝐮𝐫 𝐰𝐞𝐚𝐥𝐭𝐡 - 𝐢𝐭’𝐬 𝐭𝐨 𝐠𝐫𝐨𝐰 𝐢𝐭. Your financial plan should evolve with your life. Start taking control and strike the optimal balance between protection and wealth accumulation. Are you confident that your insurance strategy is working for you, not against you? #WealthManagement #FinancialPlanning #SmartMoneyMoves #InsuranceStrategy #CEOs #CFOs #CSuiteFinancialConsultant #TopofMind #FinancialConsultant #InsuranceAgentoftheYear2024