Saturday, 3 July 2010

A step-by-step guide to your first financial plan - PART I


If you're in your early or mid-twenties, have begun your professional career and have a regular source of income, you need a financial plan.

Most young people use their earnings splurging on themselves, their friends and family. However, once the initial euphoria of being financial indendent wears off, you need to sit down and decide how you can manage your finances in a way that keeps you financially secure through your career and into retirement.

Now this might seem like an overwhelming task. So to help you set up a plan that will help you continue to enjoy your financial freedom, we present this guide to your first financial plan.

Get a PAN card
This should be the first step for any working professional. A PAN card is an identity card issued by the income tax department. This card is used when filing your income tax returns. Apart from this, the PAN card is also used when opening a bank account, demat account, investing in mutual funds and other financial transactions. The required documents for getting a PAN card is a passport size photo, address proof and identification proof. You need to apply at either UTI or NSDL, which are the two agencies approved by the income tax department for issuing PAN cards.

1 comment:

  1. As a person with limited net worth I trust fee-only, certified financial planners because their interest is fully aligned with my interest. The problem I faced is finding a planner I can afford. After searching the web I discovered www.peoplesfinancialadvisor.com. If my story sounds familiar - go there! These guys offered a free assessment of my financial situation and full plan for $99 including advice on specific investments I should make and some interesting ideas how to work better with Uncle Sam to increase my limited net worth.

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