Your Investment portfolio- The Baby Steps To Begin With


We always aim at creating huge money.  But when the planning is not proper it is quite difficult to allocate the required amount towards investment as per our aims.  Use the below checklist guide so that you can plan how much to allocate in which option.  This list must be prepared month wise for the next 6 or 12 months:


  1. Source: The first step is to decide the various sources from which you would be getting income.  As of now, you may not be having any clear-cut financial plans.  But now that you are considering planning your investment, first list out how much income you would be getting each month.  If you are salaried you would be knowing the amount precisely.  In the case of business income just assume an approximate estimate.  Apart from the regular income, note down your supplementary incomes.  Say if you would be getting an annual bonus in June note that down against June’s income.  Similarly check and list down other options like insurance returns, bank deposit maturities, dividends etc. you would be getting throughout the year.


  1. Financial skills: Analyze your existing level of skill and knowledge on the latest investment opportunities like crypto.  If you are an all-rounder who can use apps like bitcoin loophole, then no problem.  Otherwise, list down three top investment options which you will learn and specialize within a month.


  1. Expenses: List down approximate expenses per month.   In case of certain expenses like rent, you would be exactly knowing the amount.  Few expenses are recurring in nature like fuel bills, phone bills, power consumption etc.  These you may be knowing approximately based on your experience.


Note that the total expenses on the above should not exceed 50% of your net monthly income.


There may be certain one-time expenses which are lump sum in nature- For example, school fee of kids, annual insurance premium, car maintenance etc.  Also note down birthdays, anniversaries and festivals separately.   Try to match these with supplementary income mentioned in point 1.  To put it in simple words, if your FD matures in August when you must pay your kid’s school fee- You can simply use the FD proceeds.


For a few items, you may not have any matching supplementary income.  Start a recurring deposit in such a way that it matures correctly to meet those expenses.


Out of net monthly income, invest 10% in huge risk-High return investments.  Invest 10% in liquid investments.  Here the returns would be very low, but you can convert them easily to meet emergency expenses.  Invest remaining 30% in long-term investments ranging from 5 to 10 years maturity