If you’ve recently gotten serious about investing and financial wellness, here’s how to get started.
STEP 1: Pick up the fundamentals
This involves acquiring a clear understanding how various asset classes behave, fundamentals of income and taxation, and knowing of the basic workings of the financial system. Without good education, it’s easy to become a victim of self-serving advise from salesmen, financial advisors and bankers.
You could pick up this basic education by:
Reading a good book
Though you are free to pick up any book, most books aren’t written with a layman in mind. ‘Grownups Are Just Kids With Money’ is one of the most comprehensive books in the market. There’s a reason why it has such great reviews on Amazon and Goodreads. It helps you get a ten year head start on your financial knowledge, for the price of a pizza meal.
Attending an unbiased/impartial financial wellness program
Though you will be amazed at how much the book manages to teach you. From a pure learning perspective however, the human brain is capable of remembering only 20% of what is read. But learning received through mixed-mode trainings however has more than a 70% recall.
Search for an impartial/unbiased training and attend one in your city. A good litmus test of what makes for an impartial/unbiased financial wellness program is its emphasis on education of fundamentals, and more importantly, commission-free products.
The Moneyplanting Program is one such initiative.
STEP 3: Take your first steps using the book’s How-To Section
The book’s ‘Step-by-step’ recipes section gives clear directions on taking the first steps; whether it’s buying your first mutual fund, set up an SIP, or to pick up an insurance.
STEP 4: Subscribe to this blog and follow other resources
Besides what’s already in the current edition of the book, the blog helps you get the latest content without having to wait for an updated edition of the book. The language used, is just as simple as that used in the book.
You can additionally follow any of the resources listed on this page.