Smartmoney

There are also people who assume that some goals, like a music system that costs a lakh, are out of reach. Not true, again. You’d be surprised at how much you can save just by putting away a small amount and cutting down on one expense, like eating out. Another financial planning myth: there’s plenty of time. Well, the earlier you start to save, the more you’ll have over time.

It’s also widely believed that with Provident Fund contributions, tax planning and investments in bonds and mutual funds, a financial plan is already in place. Most don’t realise that expenses like college fees, a wedding, a house or a car also need planning. Which is why you need to draw up a comprehensive financial plan that’s not just the sum of tax- or investment planning. It’s all about making goal-based investments and changing your asset mix with your changing risk profile over time.

• Don’t be so obsessed with the big picture that you ignore the finer details.
• Don’t jump the gun without weighing all your options. It’s a must that you do your homework.
• Don’t burn up money in a new venture. That’s the easiest was to land yourself in debt if anything goes wrong.
• Quit when you’re ahead, while your venture is still paying off monetarily. Or, at the very least, isn’t losing money in a big way.

The smart way, of course, to shop: get a fix on what you get for what you pay. Get acquainted with all the important components of a laptop (processor, RAM, hard disk and so on), what they mean, and the difference they make to your computing life. Then mix-and-match with your requirements!

For more details on these articles, read Intelligent Investor or log on to www.iinvestor.com and also get personalised information and analysis from our experts who answer queries on small savings, insurance, loans, taxation, mutual funds and shares.