Who would not want to be treated to a lavish five-course meal!
Eating and eating right is one of the primary reasons for human existence. A major portion of our earnings go into eating and eating can teach us lessons in investing and improving personal financial planning.
A typical five-course meal can be correlated to various kinds of investment modes available to us.
Soup in Investing
The wealth of ingredients in a bowl of soup provides a good balance of carbohydrates, protein, and fats as well as the vitamins and minerals required to create energy and keep us firing on all cylinders.
A soup in investing is equivalent to keeping a defined set of funds in safer sources for a rainy day. The avenues one can consider equivalent to a soup in meals are Public Provident Fund and most certainly a Savings Account.
PPF offers you an assured return whereas the Savings Account offers a great return with hot competition amongst the new category of banks (SFBs and PBs). PPF assures you a sum at a future date and Savings Account gives you the confidence of maximum liquidity.
Appetizer in Investing
Great appetizers get you in the mood, they get you excited about what else lays in store for you.
Invest small and invest in something that you like so that you keep creating a corpus slowly and steadily. Carefully selected investment in multiple Mutual Fund SIPs through a blend of equity, debt or hybrid will assure you a good return. Investing in SIPs can surely help you narrate stories of funding holidays, gadgets, bikes etc. through the corpus of MF investment.
Salad in Investing
Starting your meals with a bowl of salad will help you attain weight loss. Salads help you remain healthy and cut weight, similarly, an appropriate value of health insurance can help you with tax benefits and plan for that unplanned loss of funds due to hospitalization. It is massively important to have the right amount of health insurance plan for self and dependents.
Please check the fine print and go for the right plan.
Main Course in Investing
You can choose a variety of food items rich in various nutrients and suit your taste buds.
This is your chance to mix it up and go for what suits your risk appetite. If you are not risk-averse a good % of your earning/saving can go straight into the stock market. This slice of the pie can be partly invested with your own research (as that will give you a kick) and a part can be left to sound investment advice. Traditional modes of investment in gold can win you brownie points at home. The new breed of banks can come to help again with investments in Fixed Deposits.
So, the key here is to choose what you like and decorate the plate accordingly. But make sure you fill the plate with eatables you can digest.
Dessert in Investing
That sweet ending to a super meal which leaves you with a sweet after-taste. Now that you are towards the end of the meal, lace it up with a low-value high importance investment. Term plan is the best and a MUST HAVE option for everyone. Earlier the better. One should surely have a chunky term plan to enjoy the tax benefits and a significant cover for your dependents after you are gone. On a lighter note, Desserts can also lead to diabetes you see!
You have a huge menu served! it is now up to YOU to have the full-course meal!
Disclaimer: The opinions expressed in this blog are the author’s own and do not reflect the views of Paisabazaar.com. Paisabazaar.com does not assume any responsibility or liability for the same.