The key to prosperity

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Kartik Jhaveri: Nov 19 2012, 03:08 IST

here viz., certain rules and certain calculations. In addition you must commit some time for your own good or the years will just pass by and you will either see lots of money in the bank doing nothing or that you have a plethora of bad financial decisions in the form of products that are unlikely to help you much.

The rules

* Solid control over your finances and no compromise on lifestyle, ever

* Organise financial matters and never get into a mess

* Correct the wrong decisions and never take wrong decisions again

* My money should be invested in the best asset class

* I want to keep my expenses at 25 per cent of my income

* I want to be able to save at least 40 per cent of my income

* I want my home expenses to be on auto pilot i.e. I want my investments to fund all expenses and then it does not matter whether I work or not

The calculations

It is easy to get hold of calculators or if you can do a bit of excel you can see for yourself what you need to invest now and on an ongoing basis. The best thing to do is to use something that is some sort of a comprehensive calculator or say a financial plan. There are online financial planning websites that can also help you with such calculations.

Thereafter study all asset classes or product categories and make a list of which one has delivered maximum returns over

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