1. Know your correct cash flow: how do you earn and save? Know your net worth, liabilities and payments. Your liabilities and payments should not be more than 25 per cent of your income at any stage. Do this assessment once a month.....

2. Know your short and long-term financial goals: Write them down. For example: I want to go for higher studies a year from now. It will cost Rs.5 lakh. Or I want to buy a house in 2010. So on and so forth.

3. Consult a financial planner. He will direct you in terms. of setting goals and getting goals

4. Maintain proper accounts: filing returns will help you keep yourself updated about your finances. Good bookkeeping is an investment by itself.

5. Never increase debt that can take away peace.

6. Never invest in something you don’t understand. Spend time understanding where you are investing. Then go ahead.

7. Review your financial matters every month. Once a year, do it with advisor. This helps remind you of your goals and allows making necessary changes in your finances.

Maintain good financial habits: Remember your financial advisor’s expectations should not be restricted to selecting products, but also setting goals, build strategies and review your finances.

(The author is a certified financial planner and chartered Accountant.)

Disclaimer: The contents in the article are the intellectual property of the author. The article is purely informative. You’re advised to consult an expert in the related field before taking any decision.