Financial Planning

EMERGENCY FUND : - A very commonly given financial advice, but not so commonly implemented across. What is Emergency Fund? Easily accessible chunk of money for use, in case of any kind of emergency. It should not be used to buy a car/house/laptop/ or any other thing. How much Fund is enough for Emergency Fund? enerally, 6 to 8 months monthly total expenses/spending(total expense include all expenses including loans and credit cards payments, household bills etc.,) Why 6-8 months total expenses? If any emergency happens, one will be able to live the same life style for at least 6-8 months without taking any further stress. Why to have an emergency fund? If any unexpected expenses come up, you can use this fund as it will not affect your future cash flows. One can use the fund in case of some critical situation like Job loss or unexpected medical bills or any critical illness. How to plan for such a big fund of 6-8 months expenses? S

PPF (PUBLIC PROVIDENT FUND) •       Eligibility- Individuals, individuals on behalf of minor •       Min- Rs 500 per annum in multiples of 5 •       Max- Rs 1,50,000- per annum •       Duration- 15 years, can be extended for one or more blocks of 5 years. •       Account can be discontinued but the repayment of subscription and interest will    happen only after 15 years. •      Rate of Interest – 8.70% pa, credited in the account on the 31st of march and calculated on the minimum balance between 5th Day and the end of the month. •       Loans – During the third to sixth year the account holder can avail the facility of loan of an amount not exceeding 25% of the balance standing to his credit at the end of the second financial year immediately preceding the year of loan application. The principal amount of loan under the PPF scheme is required to be paid either in lump sum or in monthly installments within a period of 36 months. After th