This document talks about how to manage money,do budgeting,tracking expenses and creating investment portfolio.

1. krishna.khandelwal2010@yahoo.com
Personal Finance
1: 4 Pillars of Personal Finance
Income, Expenses, Asset and Liabilities.
Income: Secure your source of income .No one, not even your near and dear ones, will be ready to spend on your needs.
Expenses: Manage expenses such as Rent, EMI, Insurance Premium, medical expenses.
Asset: It matter immensely. Assets are useful for their value and the income they generate. They are cushions for future
income.
Liabilities: Keep in control (EMI and credit cards). The repayment of any loan hits 3 other pillars as reduces income,
increases expenses and impairs the ability to build assets.
Personal Finance is all about managing these 4 pillars.
2: Split Outflow Budget in 3 bucket
Saving and Investment: investing in PPF, mutual funds, NCD’s, RD, and FD’s.
Expenses: Mostly common monthly expenses such as electricity bill, telephone bill, Wi-Fi Bill, DTH bill. These bills are
easy to track. Groceries bill, Eating out, Going Out for Movies are discretionary expenses. Annual Expenses is travelling
.Apart from all these make provisions for random expenses.
Repayment: Considering EMI of Home loan, Personal loan, Education loan , Credit Cards repayment.
3: 4 Laws of Money
1. Don’t spend more than you make.
2. Avoid buying depreciating asset.
3. Don’t go into debt to impress others.
4. Actively invest and track your net worth.
4: 3 Component of Healthy Portfolio
Financial strength and last a long time: includes Property, PPF, bank deposit, PF and gold.
Grow in Value: includes Equity, Mutual Funds, and Bonds.
Opportunistic and Speculative: includes IPO, Penny stocks, and commodities.
Note: kindly go through the risk profile of each asset classes also.