[My Notes] Preparing for Financial Emergencies in Remote Environment

Pretty good starter webinar from Remote Indian community, check it out.

This was the webinar that I attended as mentioned in step 3 of my financial independence blog. I loved how no prerequisite is this and almost anyone can get started with their personal finance. Whether they are working full-time in an office, working remotely, working freelance or consultant or just starting work like students who are financially aware. Nonetheless, here are the quick notes that I punched out. Hope this helps out. If you have any questions or clarification you need, holler at me down in the comments!


Invest Early, invest often

  • This leads to compound growth in your investment through the years.
  • Start investing in anyway possible
  • What kind of investments would you recommend? Stocks would be a risky one, while Gold bonds seems like a stable investment with Good returns (personal preference)

Having a emergency fund

  • Money that needs to be saved up – (Estimate Monthly Fixed Expenses (Your budget) + EMI (or anything else you have) * 6 (For 6 months) That’s the list amount of money that you should save up.
  • Shore up the fund in an FD which has a better rate of interest than Savings Accounts.
  • If the Economic situation was better, we can go for a mutual fund.

Having Social Security

  • Support Network (local colleagues)
  • Health Insurance (Employer Coverage for self and fam)
  • Cash Flow Consistency (Monthly Salary)
  • Retirement Income (Provident Fund)

Credit Card

  • Pay off your balance every month
  • Use card for needs, not wants
  • Never skip a payment
  • Use credit card as budgeting tool
  • Track your billing cycles

Recommended – Get a low limit credit card, limit your expenses, pay the dues/complete balance regularly, and track your expenses effectively.

Maintain a healthy Credit Score.

EMI

  • Easy 0% interest EMI might have hidden charges and processing fees?
  • Services like Paylater, have high late fees.
  • If you are taking loan, make sure that the EMI that you are going to pay needs to be lower than 40% to 45% of your monthly salary. Just to be on the safer side of things.

Be careful on checking out loans.

  • Check out processing charges, hidden fees, and repayment timelines
  • You are able to negotiate everything we that.
  • Your everything that you pay shouldn’t exceed, more than you 80% takehome. Other no savings (Pretty logical)
  • Do your OWN research in any path that you choose forward. Check the gain the other person is getting from selling you X scheme.

Insurance

  • Term
  • Life
  • Health
  • Liability

Research about

  • Inflation
  • Demat account, Stock Trading account needed for Equity Investments (Check out annual fee + bokerage to these platforms)
  • EMI Monatorium

A kind of an unorthodox blog post from my side, considering everything I do post has a lot of structure. But, I thought having this information out there would do more good than me keeping it locked up.

Check out the remoteindian.com community! and as always live in the mix, folks!

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