What is I and Finance?

I and Finance is an endeavour to simplify finance for everyone.

Money should not be your primary or most important goal. Money cannot buy you all the happiness, but if used wisely it will surely work as a medium for a happy life for you and your dear ones.

Unfortunately the foundation of our education – schools – don’t teach much about personal finance unless of course you opt for a Finance course as a career choice. This blog emphasizes an educational approach to personal financial management in very simple, easy-to-understand way for non-finance people.

Let us start our journey by busting some myths about personal finance.

Personal finance management is required only for the uber-rich

It is required for everyone irrespective of monthly income. In fact it is more important if one’s income is less. Such people need to manage their funds more smartly as their risk-taking capacity is comparatively lower than that of higher-net-income people.

You need a certified financial planner for financial planning

You really do not want to let someone else manage and in a way control all your hard-earned wealth, do you? Personal financial planning is not rocket-science. It is just like driving a bike or car; you do not really require to know everything about the its internals, but all you need to know is how to drive it and have good knowledge of traffic rules. For financial planning too, you are not required to understand all the fancy jargon of finance world but you should know how to build a good portfolio and what are the best practices that need to be followed. A paid financial adviser will help you with servicing of your financial engine, but how to build your finance prowess ultimately lies in your hands.

An increase in salary will make a person financially stable

Wealth generation in not only depends on your salary but it also depends on your financial habits, that is, how you manage your wealth, what are your liabilities, your lifestyle, spending habits etc.

Personal finance management is a time-consuming process

No, it does not take too much time. The only requirement for good personal finance management is a systematic approach, a periodic review of your financial goals and taking corrective action, whenever required. Do not become too greedy about your finance. Do not try to remember every penny you are spending, but keep track of significant spending details. Also, simply watching your financial details everyday does not take you anywhere.

On a home loan front, the bank only deducts interest component in the initial period

When someone is paying an EMI (Equated Monthly Installment) on a home loan, he is paying both, the principal as well as the interest component. In the initial period, the outstanding loan amount is high, so the interest proportion is higher based on the outstanding loan amount. We developed some easy to use and visually rich personal finance calculators to help you quickly calculate interest and principle components for your EMI.

Taking an insurance for saving income tax

Insurance is mainly bought for securing you and your family’s future against some unexpected event. Generally life insurance and medical insurance products offer tax saving. Remember tax saving is a secondary benefit of these insurance products. Do not take any insurance product just because it will save you some tax. Ask yourself – why you need to buy a particular insurance product?

Throughout its journey, I & Finance aims to give you detailed insight into various aspects of personal finance and help you take better and calculated financial decisions.