Financial Advice - Index Card

All the financial advice that you ever need – Pollack’s Index Card: India version

Index Card for India

The original Index Card for personal finance was published by Harold Pollack here: Index Card  It became quite popular and the author co-wrote a book on it.  In a great episode on Freakanmoics Radio, Pollack listed the rules this way.  The transcript can be found here  (Search for Pollack if you want to skip the initial part on NFL players.)

  • Rule No. 1: strive to save 10 to 20 percent of your income.
  • Rule No. 2: pay your credit card balance in full every month.
  • Rule No. 3: max out your 401(k) and other tax-advantaged savings accounts.
  • Rule No. 4: never buy or sell individual stocks  and Rule No. 5: buy inexpensive, well-diversified index mutual funds and exchange-traded funds.
  • Rule No. 6: make your financial advisor commit to the fiduciary standard.
  • Rule No. 7: buy a home when you are financially ready.
  • Rule No. 8: insurance. Make sure you’re protected.
  • Rule No. 9: do what you can to support the social safety net.
  • Rule No. 10: remember the index card.

Here is a version of the Index Card, adapted for India.

All the financial advice that you need in India

The above list tries to stay close to the original version. And like the original version, it is self-explanatory to an extent. I plan to add a short explanation for each point in later posts.

  1. Personal Finance Rule 1 – Save 30% of your income
  2. Personal Finance Rule 2 – Pay your credit card bills in full
  3. Personal Finance Rule 3 – Max out all forms of PF
  4. Personal Finance Rule 4 – Boring is Better
  5. Personal Finance Rule 5 – Don’t invest to just save tax
  6. Personal Finance Rule 6 – ‘Free Advice’ is Expensive
  7. Personal Finance Rule 7 – Buy a house only when financially ready
  8. Personal Finance Rule 8 – Do not mix Life Insurance and Investment
    1. Avoid Endowment Plans – PPF gives better returns
    2. NO – LTCG on equity does not make ULIPs better
    3. Pension Plans – Why you should avoid them in India
  9. Personal Finance Rule 9 – Pay your fair share of taxes, and nothing more

 

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About S R Srinivasan

personal finance blogger - using data to create wealth

8 Comments

  1. […] This short post describes a possible savings target in India – 30% of post tax income. This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version […]

  2. […] This short post reiterates the importance of avoiding an extremely harmful behaviour for your financial health – carrying credit card debt.  This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version […]

  3. […] Fund.  This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version. While there are different types and sub-types of provident funds, this article is generic to all […]

  4. […] is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version. As originally stated, this point reads:  Invest in lower-cost, equity mutual funds, before […]

  5. […] This short post warns against excessive focus on investing to simply save taxes. This results in sub-optimal results. This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version […]

  6. […] Personal Finance can be a complicated topic. In this post, we see how professional, unbiased advice helps individuals get an optimized and comprehensive view of their personal finance. This is so even if the advice needs to be paid for. This article is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version […]

  7. […] Buying a home is one of the biggest decisions that an individual makes. In the present context, it is usually an emotional decision to buy a house. This short article looks at the financial factors to be considered before this big decision. This article is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version […]

  8. […] This short post describes an equitable approach to planning your taxes. As a conscious citizen, it is helpful that you pay your fair share of taxes. There is no need to pay more, and This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version […]

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