This World Book Day get financially enlightened!

Earning is not the end, it is actually the beginning for savings, followed by calculating your risk appetite and eventually investing.

Apr 23, 2019 03:04 IST India Infoline News Service

As Stephen King rightly said “Books are a uniquely portable magic”, let us celebrate the essence of ‘World Book Day’ by learning some magical financial mantras from IIFL. In its endeavour to provide financial literacy to the masses, IIFL has compiled a book ‘108 Mantra for Financial Success’. This book is an initiative by IIFL Group to spread financial literacy and empower people. Being financially educated opens many doors for making the most of your hard earned money. Earning is not the end, it is actually the beginning for savings, followed by calculating your risk appetite and eventually investing.

Be it insurance, stock markets, equities, mutual funds, SIPs, gold, credit cards, financial planning, portfolio management and taxes among others, this book encompasses everything in the financial domain. Read this book, which has lovely illustrations & images, brief yet explanatory text and simple language to gain knowledge about the process, potential and prospects of being financially enlightened. The route to financial prosperity is finally here!

Mantra: Save for the rainy day

Life is uncertain, so save money for exigencies and unforeseen contingencies. Ensure that you save a reasonable share of your earnings and plan your finances carefully. This will help avoid need for desperate favours, borrowings or helplessness in times of crisis.

Mantra: Assess your risk appetite

Understand that people's risk-taking ability differs with their financial status, family background, income level, career prospects, health, age, etc. Plan your investments based on your risk-appetite. You may not opt for the highest potential return, if the associated risk is beyond your capacity.

Mantra: Invest with a long-term perspective

Time in the market is more important than timing the market. Over the short term, stock markets are very volatile, and hence there is high-probability of losing money. Investing with a long-term perspective is one of the safest ways to succeed in the stock markets.

Mantra: For major expenses, plan in advance

Plan your investments and liquidity for major expenses such as marriage, child's education, property purchases, etc. Asset classes such as private equity and real estate funds with lock-in periods of 3 to 5 years are attractive, but have lower liquidity, forcing you to borrow at high rates when you need money.

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