STEP 1 : Personal Finance Management
Hello you,
Greetings of the day. Hope everyone is safe in the times of pandemic which will get over soon if we act responsibly. Vaccines are definitely a hope of ray but it is long process so let's buckle up, we will fight it over.
However, in these hard and unexpected events we all realized how important personal finance is. Now we often think personal finance is all about saving your money through adopting different strategies and investing it properly, whether be it in Fixed Deposits, Real Estates, Bonds, Stock Market, Forex etc.
We make it so personal to secure it that we never share the details with anyone - WHICH IS ABOLUTELY CORRECT!!!!! But god forbidden if we or our spouse losses their life in any unexpected tragedy then all of it is gone. And this reality has hit us hard in the name of corona with millions of people losing their life unexpectedly. They did not know that they shall not be there the next evening of getting a cold like symptoms. But if they knew, probably they would just want to spend their last times with their loved ones and make sure their life stays secured even after his/her absence. So, why not you do it when you are in your 100% health.
Basic and the most important steps:
1. The Password of Accounts
- Whether be it Savings Account, Demat Account, PPF Account you should maintain an Excel Sheet with passwords of the accounts
- Do not share this sheet on your phone, there is always a possibility of going in wrong hands
- Keep it in your computer or an USB(particularly for this or very important stuffs) and make sure to keep it password protected
- Many times you change your passwords or banks make you do it. So always update that in your maintained excel sheet
2. Account Nominations
- Be it any sort of account, if there is provision for nominee - you should always have one
- Anything happens to you then everything will be passed on to the nominee you selected hassle free
- Nominee should be selected very carefully, not just anyone random. One with whom you can trust your life
3. Account Operation
- There are mainly two types: Joint Operation & EOS-Either Or Survivor
- Joint Operation: For any sort of operation signatures of both the persons are required
- EOS: Any one person's signature will do
- EOS is the most practical if any unwanted emergency comes up
Wrapping it up, it's very important to keep in mind the person you select to share all these responsibilities with should be a permanent member in your life (in terms of trust). Not for example any temporary boyfriend you are in love madly which goes into vain in a short span of time. When you are matured enough you know who is the trustworthy person.
I started to monitor finances more closely during the pandemic
I see your point, it's the right decision. I started watching my money and investing in quarantine, too. I learned the basics with askyourfinanceguy.com. It also seemed right to me to teach children about investing. Many of today's adults were not taught the basics of financial literacy in school. So you can learn them with your children - there are now a lot of exciting resources for this. For example, you can participate in online games or play financial board games such as Monopoly.