Learning about money and personal finance is quite a long process, there are so many areas like saving, budgeting, investing, investment products, debts, returns and so on. Also, learning about money is also about learning to control emotions and to learn about right mindset as an investor.  Agree?

Hence, following are quick but  important 18 key financial tips to keep in mind before, during and after investing:

1. Before embarking on any investment, it is important to make sure you have enough money in your – health cover, term cover and emergency fund. This is the basic of personal finance and first step before exploring the wonderland of investment.
2. Save more, spend less. Saving and investing helps you to achieve to create wealth and attain financial independence.
3. Budgeting is the best strategy for money saving. Making and sticking to a budget could be boring or might seem impossible but with the time it gets easier.
4. Simply follow this rule of investing- Understand the product before investing. If you do not understand the product, avoid it or learn about the product and then start investing.
5. People sometimes invest without taking all the information related to the investment. It is important to research your investment, do your homework, understand all the information related to any investment product, its lock-in period, withdrawal rules, taxation etc.
6. Use your common sense and intellect when investing. Don’t invest based on friends ‘or colleagues’ recommendations or just because others have made a profit from it.
7. Don’t mix insurance into investments. Stay away from products that offer investment plans with insurance.
8. Avoid investing through agents, salespersons or bank RM. Seek the help of a good financial advisor who can guide you, help you and save you from making mistakes in your investment journey. Check their qualifications, experience, reviews etc. A good financial planner always focuses on the ‘investors and their needs’ while the seller focuses on the ‘product’.
9. Don’t invest in your child’s name. You can invest money on your name for your child’s future or educational goal.
10. If you and your spouse, both, are working; try to keep your bank accounts and investments separate. This helps to reduce the complication while paying taxes.
11. Make sure  you have nominated /nominee in all your investments, bank accounts, insurance etc. 
12. Make sure you have a ‘Will‘. It not only helps to reduce family conflicts but also the distribution of property / assets.
13. If any plan or its return seems ‘too good / attractive’, ‘hard to believe’, then beware, they are traps or deceptions. It is better to avoid such traps.
14. Understand the ‘actual rate of return’. Inflation can eat major part of your income. Therefore, make sure that you consider the rate of inflation while investing and when calculating the returns on your investment.
15. Have patience in investing, they need time to grow and give positive returns. Investing is not a magic wand, to double  your money in seconds.
16. Don’t DIY into investing if you have no knowledge of personal finance and investing. Yes, you can save fees by DIY investing. But then lost opportunities, lack of financial knowledge and mistakes can cost you more.
17. Avoid using credit cards for large / massive payments. Control and manage your debt / credit card smartly.
18. Last but not least, improve your financial literacy & awareness. It can save you from making mistakes, avoiding traps and getting ahead financially.

Hope the above ‘tips’ will help you make an informed decision. Contact us if you need any help with financial planning or money management.