Financial Planning

Financial Planning By Jawans/Noks Of Deceased Personnel

Every serving personnel should be aware about various investment schemes introduced by Central/State Governments/Banks/Post Office/ Insurance Companies etc and they may invest the earnings in various schemes in proper manner to secure their future. Welfare Officers of Group Centres/Units have already been directed to update themselves about various investment schemes introduced by Central/State Governments/Banks/Post Offices/Insurance Companies etc., and they should advise personnel for proper financial planning. However following few guidelines are issued for financial planning by personnel:

• It is very essential to draw up a budget based on income/salary of person and budget will help to spend less than salary. Once the budget is ready, we will have on hand a ready reckoner which will give us a detailed record of income and expenditure. We will have complete picture of where every paisa has gone.
• Every personnel should maintain a separate file or folder for all financial matters like accounts and taxes, if they want to enjoy sound financial health.
• Whatever income of a personnel, just set by a little amount every month as compulsory savings. "Little drops of water make the mighty ocean".
• Set clear financial goals. If we want to save enough to buy a home, afford at least one holiday or buy own vehicle, the beginning of career is best starting point.
• Beware of credit card and other debts. Remember that interest rates on loans are exorbitant and we will end up paying huge amounts if we are not careful. Pay up debts and never let them accumulate. We have to be especially careful about credit cards which will tempt to spend and lead to definite disaster.
• There is one sphere that we have to be really wary about as it can send all our careful budgeting for a big toss. We are talking here of impulse spending where we end up buying something that attracted that moment but was not what we really needed.
• Always be careful about what we put our signature to. Read every thing fully before sign, be it an agreement or contract. We never know what lies between the lines. Ignore this and we will be in trouble.
• Try to avoid doing things that might become addictive and which may lead to ruin. We are talking here of gambling, addiction to drugs or smoking all of which are highly dangerous and a drain on our finances.
• Never let your money sit idle when it can multiply and earn more. Discuss with agents and work out the investment model which suits to personnel best. This way our money will be active and not sit wasted in some basic savings account.
• Never trust an unknown agent who might call and make tall promises about doubling money in record time. While they might end up with fat commissions for investing our money in dud financial instruments, we will end up with nothing.
• Never jump into something without doing proper and thorough home work. Study the market well if you want to enter it.
• Try to avoid speculation and gambling. Whenever we receive or hear of super hot tips, we might be tempted to speculate, but it would do good to remember that when that stock crashes, all our money goes with it.
• Once we are adept at studying market trends, use our common sense to identify solid instruments whose prices keep climbing. Some instruments might have a phenomenal climb, but always remember that the market corrects itself and what goes unnaturally high must also come down. Learn to divest of the instruments at the right moment and have no regrets.
• Always consult professional if we are in any doubt.
• Be aware of all the money transactions and take note of how much are the outgoings by way of fees for all the trading. This will prevent from taking expensive decision that may backfire on us.

In addition to above, Welfare Officers of GCs/Units should advise NOKs/Dependents of deceased personnel to invest the dues/amount received by them in various investment schemes in proper manner to settle their liabilities and to secure future of their growing children.

Welfare Officers of Group Centres and Units should update themselves about various investment schemes introduced by Central/State Governments/Banks/Post Offices/Insurance Companies etc., and they may keep ready reckoner for advising serving personnel as well as NOKs of deceased personnel for proper financial planning to secure their future.