Future Perfect
Cutting down on expenses, planning for contingency and investing for future goals are the way to go for Harish Chandra and his family, says Chief Financial Planner - Pankaaj Maalde
- Jun 10, 2017,
- Updated Jul 12, 2017 12:45 PM IST
Harish Chandra, 44, stays in Delhi with his wife Jyoti Uniyal, aged 42, and two children - 11-year-old Ujjwal and nine-year-old Udita. Harish runs an electronics manufacturing unit and jointly operates an events advertising agency with his wife. Jyoti also works as a freelance content writer. The Delhi-based couple is looking to plan their finances to make sure they are on the right track. The family wants to vacation in Europe in the near future and buy a luxury car by 2018.
Financial planning starts with a review of their overall financial profile. Cutting down on expenses and maintaining a contingency fund are a few good moves that the couple has adopted. However, paying high interest on loan and not investing to fulfil future goals are bad decisions (see Table: Current Assets). Harish should keep three months' surplus for contingency and then start investing to meet future goals. He should also increase the family's health cover as the existing cover is too low for a family of four. Also, it is always wise to keep insurance and investment separate for better results. Here is what the family should do.
Harish Chandra, 44, stays in Delhi with his wife Jyoti Uniyal, aged 42, and two children - 11-year-old Ujjwal and nine-year-old Udita. Harish runs an electronics manufacturing unit and jointly operates an events advertising agency with his wife. Jyoti also works as a freelance content writer. The Delhi-based couple is looking to plan their finances to make sure they are on the right track. The family wants to vacation in Europe in the near future and buy a luxury car by 2018.
Financial planning starts with a review of their overall financial profile. Cutting down on expenses and maintaining a contingency fund are a few good moves that the couple has adopted. However, paying high interest on loan and not investing to fulfil future goals are bad decisions (see Table: Current Assets). Harish should keep three months' surplus for contingency and then start investing to meet future goals. He should also increase the family's health cover as the existing cover is too low for a family of four. Also, it is always wise to keep insurance and investment separate for better results. Here is what the family should do.