"Uncertainty" is certain.. For sure...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

"Uncertainty" is certain:

After a couple of years, the global economies and markets are back to square one.. sort of a rewind 2008. Thanks to the credit downgrade initiated by S&P on the US economy.

But be assured, such headlines may become a very common sight in the future for the simple reason that today's world is inter connected like never before. Inter connected in every other way; business, markets, trade, travel etc., And India will certainly catch cold if the US sneezes and for that matter the whole world will.. 

The latest in this saga has been the downgrade of the US economy from AAA to AA+ by a rating agency, S&P which has put the US economy in a tight spot. The after effects are that, the world has developed cold after the US sneeze. Stock markets have crashed, gold has touched the peak, Oil prices have fallen. In essence, negative sentiments have taken over the investors world over. 


The impact can be felt across the globe, across the sectors and industries, jobs, outsourcing, foreign trade etc.,
But, what does it really make out for an investor like you and me?..

This is no crisis @ all for you and me, provided you have the basics in place. 

Life is like a batsman playing in a cricket match; All the six deliveries in an over may not be the same and they can attack the batsman in very many ways. One can come on to the head, another one to this chest, so on and so forth. But a cautious batsman ensures his basics are in place before he gets on to his innings. 

 

 # 1: Adequate life insurance cover:

Global uncertainties are not restricted to economic issues alone; security risks are rising with the spate of terrorism across the globe. So called west like Britain is burning. Our jobs and careers have made us extremely mobile that we need enough precautions to handle such security uncertainties. Have adequate life insurance cover to secure your family's financial security.

# 2: Have enough health cover:

Health care is going to be an area of major concern in the future. This is compounded by our sedentary work styles and rapid changes in our life styles. Remember, even the mobile phone which has become an integral part of our lives can cause health scares, if the recent reports are to be believed. An added incentive in our country is that, the health covers give us tax exemptions, more so for people who only care about saving taxes.


# 3: Save wisely: 

Rainy days are sometimes unavoidable in our lives. But if planned and saved wisely, one can spot a rainbow in a rainy day. So save wisely, not only for good days, but also for tougher and uncertain days. That's when you can spot a rainbow in a rainy day.




# 4: Invest Intelligently:

Beware of inflation; its going to impact us in every way in our lives. So just saving is not enough; investing also is not enough; Invest intelligently. The power of compounding will take you past the monster called "Inflation". And remember inflation and power of compounding work very very silently.




# 5: Have a financial plan:

When we make a travel, we plan. We plan the departure, stay and return minute wise. If we can do that for travel, why not for our lives too.. We should have a basic financial plan which can ensure enough life insurance cover, better saving and intelligent investing. When we micro plan smaller things in life, we should not loose on the bigger picture in life. Have a financial plan for better financial future. And the rest will fall in place.

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

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