Subhav Samarth

Emergency Fund is the most important component of personal finance. Let us understand in detail what an emergency fund is. An emergency fund is the amount of money that you keep aside safely so that in case of any emergency, you have some money backup to provide you some relief. Let us understand with an example. Suppose you have just started earning through a job or business or any other means. The first thing that you have to do (even before starting your investment journey) is to save as much money as possible, grow your savings and create an emergency fund. Suppose your salary is 50,000/month. You pay rent of 10,000/month. Your food, grocery, electric bills, and other monthly important expenses are 15,000/month. So every month, out of your 50,000 salary, your important expenses are 25,000 rs, right? You are left with the remaining 25,000/month. You have to save this money as much as you can. Do not eat out. Do not buy expensive clothes or branded phones or anything which is not imp...

Term Insurance is the second most important component of personal finance (after Emergency fund). Let us understand in detail what is Term Insurance. Term Insurance is a type of insurance in which you pay a specific amount of money every year for a certain period and in case, you die because of any reason, be it disease or accident or anything, your family members get a huge amount of money. Sounds simple or confusing? Or maybe too good to be true? Let us break it down with an example. Suppose you are a 35-year-old married man with a wife and 2 children. Your parents also live with you. You are the only earning member of your family and you work in a private company or maybe you own a small business or a shop or anything. You buy term insurance from a company in which the rules are: 1) You will pay 20,000 rs every year (not per month) for the next 30 years (till the age of 65). 2) In case you die in these 30 years because of any reason, be it an accident or any disease or even suicide,...