SOME FINANCIAL BASICS – Thumb Rules worth considering

*SOME FINANCIAL BASICS – Thumb Rules worth considering :
1) Have an emergency fund of not less than 3 months of your expenses.
2) Insure: Life,  Medical, Personal Accident for you and your family and fire insurance for your house.
3) Don’t use revolving credit on your credit cards.
4)Simplify: have two bank accounts, one for normal expenses and one for investments a/c.
5) Write a will.
6) Don’t borrow except for buying a house and Car.
7) Ensure the value of the house is not more than 5 times your annual income.
8) Create a corpus of not less than 30 times your annual expenses before considering retirement.
9) Spend less than you earn.
10) Try to save at least 30% of your salary.
11) Invest regularly.
12) Invest for long term; not less than 10 years, preferably 20 years or more.
13) Never stop  or surrender infact continue your investments, especially in bear markets.
14) Never forget that all asset classes would always be cyclical.
15) Equity
(Direct or Equity Mutual fund) would provide the best return over long run than all other asset classes. So give due portion in Asset Allocation.
16) Follow portfolio diversification.
17) Follow asset allocation.
18) Have an advisor. The reward is worth the cost.
19) Check and review your portfolio only once a year.
20) More than your knowledge, it’s your behaviour which matters most for success in markets.
Enjoy the Life.