Another New Year, but 2012 is special as the year will be the dawn of a new era. To celebrate this special new year, we bring you a checklist of 12 items that helps you with complete management of your money. Let's call it the "RupeeManager Checklist"

The check list is divided into three parts. The first part is about "Getting Started". Next, we move on to use the right resources, tools or software. Part three is about taking "Action Steps".

Financial Planning is about multiple components. So, when you say that you need to do financial planning, it means working on multiple components like investment planning, mutual fund investments analysis, insurance planning, debt management, credit management, tax planning, cash flow analysis, etc.

Further, financial planning is a dynamic exercise. The scenarios change from time to time. Your asset allocation should depend on your life cycle stage. Your gold/equity/debt investments can do well one year and can be disastrous the next. (2011 was a disaster for stocks!). So we need to be continuously updated.  Subscribe to our feed or/and get updates in your email inbox because you need to learn on what are the best investments and insurance products and how to invest in them.

So here's the 12 checklist for your complete personal financial management.

A.  Getting Started

1. Have you understood the basic concepts of Asset Allocation, Compounding, Time Value of Money and Rupee Cost Averaging?

2. Have you started searching for the right financial advisor?

3. Have you created an emergency fund?

B.  Using Calculators, Tools & Technology

4. Have you started tracking your income and expenses? (Atleast for one month, please - Editor)

5. Have you started tracking your portfolio of investments?

6. Have you brainstormed on your financial goals? For retirement, for children, etc.

7. Have you analyzed your risk profile?

C.  Action Steps

8. Take adequate life insurance. Online term insurance recommended. Take adequate health insurance cover and also cover for home.

9. Plan you taxes and decide on the tax investments

10. Decide on the Financial Advisor (In check list no.2, we said search, not decide!)

11. Set up your investments.

12. Review your investments from time to time.

That's it. This RupeeManager checklist would help you optimize your finances in 2012.

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