This is a cheat sheet on what you need to know about personal financial planning. I cannot blame you if you are already feeling overwhelmed about the kind of financial stuff being thrown at you! Let us get the basics right:

1. Personal financial planning is SIMPLE. This does not mean it gets done, but it means it can be done.

2. Statement 1 leads to statement 2: You can and must do it yourself.

3. There is just too much of writing on personal finance.

You just need the following 10 steps:

1. Earn well, and for heaven’s sake spend less than you earn. Sounds simple? you will be surprised by the number of people who cannot do it!

2. Insure against known ‘should not happen, but can happen’ events. Term insurance, medical insurance are a MUST.

3. Do start a SIP – in a good ELSS fund and in PPF.

4. Pay off all your credit card dues on time.

5. Do not be proud of a big balance in the savings bank account – your banker is also celebrating that.

6. Build an emergency fund, quickly. Keep it in a liquid fund instead of keeping it in a bank account.

7. Understand your gross salary, net, taxation – get smart and act smart.

8. Learn to save and invest for goals instead of borrowing…

9. Be aware of why you are earning, spending, and Investing. This will help you select right products and avoid toxic products

10. This was just a ploy to get you here….each line is a chapter, this is an index, not the full book!!

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