*Thumb Rule of Financial planning.*

1. 30 % of your income must be used for *monthly living expenses.*

2. 30% of your income must be used for *Liabilities repayments*, if any, otherwise for *Savings & Investments*

3. 30% of your income must be *SAVED* and *INVESTED* for your future LIVING.

4. 10% of your income must be spared for *entertainments, vacations*

5. 6 months expenses must be available for *emergency fund* (should be invested in LIQUID FUND, FD Etc)

6. *Home loan* must be registered and apply on both *husband and wife name.* (Both can get benefits on Home loan Tax benefits in the ratio of joint share)

7. Buying *second house for investment is not advisable* ( _Survey reports - it will fetch you only around 3% return_)

8. After 45 years of age, *not supposed to enter into any BIG LIABILITIES* (Higher education of children and wedding of children will happen around 45 to 50 only, so plan now for the same.)

9. Have joint account @ Bank savings account.

10. Property must be preferrably *registered on both Husband and wife name*.

11. Regular check on *Nominations at all financial instruments.* if not nominated, do it now..

12. Must have *Term Insurance* to financially secure future of your dependants..

13. *Don’t take any financial investment decisions EMOTIONALLY*, and also Avoid last minute tax saving investment decisions, plan well in advance..

14. *MEDICLAIM is must* (in spite of Group mediclaim coverage given at office) (After retirement there is no mediclaim coverage, after 50-55 years of age, it's very tough and costly to enter into mediclaim)

15. For your *jewelry LOCKER*, Get insurance done.

16. *Government guarantees only one lakh for your Bank FD*. (Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance)

17. Must know all *Tax implications.* You cannot avoid paying tax. But you can minimize by way of tax planning and investments..

18. All *financial documents must be kept safely* and keep family members informed of the same..

19. *Financial investments* must be followed through *personal financial advisor..*

20. *Review your portfolio at every six month..*

These are general suggestions, personal Finance and investment decisions depends upon case to case