Rules to follow in family financial Planning

Budget:
Have a budget. Plan your budget with care and make sure you adhere to your financial goals.

Savings:
Pay yourself first! Every month, set aside at least 10% of your income as savings. Place these savings in a separate bank account and choose not to have the ATM card facility.

Make savings a way of life: Begin saving TODAY. Know the concept of compound interest.

Make savings a way of life: Provide an emergency fund, ideally at 6 times of monthly expenses.

Make savings a way of life: Allocate your savings for retirement fund, but most importantly - Live Within Your Means.

Loans & Credits:
Loans & Credits: Know the purpose of your loan and repayment capabilities; and, be aware of the terms and conditions of the loans.

Loans & Credits: Know the effective interest rate on your loans; and, keep payments within 40% of gross monthly salary.

Loans & Credits: Always be a good paymaster so you have a positive credit report; and, NEVER borrow from unlicensed money lenders.

Signs that you need financial advice:
You only pay the minimum amount every month for your credit card.

You take frequent cash advances.

You have little or no savings.

You depend on overtime or bonuses to pay your living expenses.

You consistently pay your bills late.

You borrow money from family or friends to pay your debts.

Financial Basics:
Make and stick to a budget.

Save at least 10% of your monthly salary.

Track your expenses and cash flow.

Live within your means.

Spend wisely, learn to differentiate between needs and wants.

Delay gratification.

Have an emergency buffer fund of 6 months of your total expenses.

Managing debt better:

Borrow or take loans only for productive purposes.

Ensure that you can pay the installments comfortably.

As a guide, your monthly loan repayments should not exceed 40% of your gross monthly income.

Adhere to the repayment schedule to avoid unnecessary charges.

Use surplus fund or extra income to reduce your total debts.

Building Wealth:
In order to build wealth, start saving early.

You need to ensure you have a positive net worth (asset - liabilities).

Diversify your investments in order to spread your risks.

The higher the return you get from an, investment, the greater the risk.

Be wary of get-rich-quick schemes.

Tips on using credit cards:

Limit the number of credit cards you have to just two.

Do not use a credit card if you cannot make the monthly payments.

Avoid using credit card to get cash advances.

Always check your credit card monthly statement to ensure there are no irregularities.