FINANCIAL TRANSACTIONS

FINANCIAL TRANSACTIONS


   As a family member you would enter into many financial transaction of substantial value with others like your family members, friends and different financial institutions. Here we exclude the day to day type of transaction that we get into, like buying weekly provisions, fruits, petrol ...

  What we are considering here as transactions of importance may be a loan that you may extend to your near or far relative to get over an urgent medical emergency, a short term loan of Rs 2 lakhs given to your friend or colleague for getting over some loan payment deadline etc. 

  The other type of transactions which we are focused on would be making a fixed Deposit  in a bank or Post Office, investing in Shares or Mutual Funds, taking some insurance cover for life, health or property of self or other family members.
   
  In all these cases, the person entering into such transactions must make sure that at least  one other family member is aware of such transactions and has access to such documents or records.
  
  This sharing of information is critical for the simple reason that, life being prone to be buffeted by unforeseen developments, in case of sudden disablement or death of the key person entering into such transactions, the surviving family members are likely to be subjected to pain and stress due to loss of limb or life along with huge financial loss due to lack of critical information.
   
  While we being busy with the daily demands of life  are likely to brush aside this note of forewarning, many families are a live examples of such neglect and inaction.

   Hence this timely words, begging responsible action NOW !

Comments

Post a Comment

Popular posts from this blog

FINANCIAL LITERACY

  By being a qualified professional or an expert, in any stream - be it engineering, medicine, marketing & sales, teaching - you name it, you do not become a financially literate person. Putting it in another  way, you are  financially not literate. This is the fact, unless you are trained and qualified in the line. As per statistics,  majority of us are financially not literate, which is not a sin. But it is a serious handicap if we do not know how best to manage our finance and grow our wealth, when we are seriously committed to work life long for our own well being and that of our dear and near ones.   To  make a committed beginning towards becoming a successful FAMILY FINANCE  MANAGER the very first step  you must take is to accept this fact. Neither having passed High School Maths or Engineering Math qualify you as a financially literate person. Failing to accept this reality, you deceive yourself. It will be a counter productive...
Read more

INSURANCE PART -1

   Basically Insurance is a risk transfer instrument or arrangement that a typical customer signs with an Insurance Company.    The basic logic in entering into an insurance contract goes like this. Life and events occurring in life, are largely unpredictable and unforeseen.These are beyond human control. But the consequential damages and sufferings to an individual are heavy and painful.    By entering into an insurance contract, we cover our selves and our family members against financial insecurities which come about due to such unforeseen occurrences,by paying a periodic insurance premium to the insurance company. In turn, the insurance company, undertakes to compensate you for the sum assured in case the particular event occurs.      Events may be simple inconsequential event or critical. Let me give some  examples. A kid falling down while playing football and  getting slightly bruised we may classify as inconsequential...
Read more

CONVENTIONAL INVESTMENT AVENUES

  Conventional investment made by most families are on the following assets: a) Gold jewellery, b) Chit funds, c) Silver and other precious stones, d) Saving in Banks and Post Offices, e) Saving in Cooperative banks  and f) Land & property.   Though all the asset class listed above would not qualify as investment, we shall make a beginning with this list. Each type of asset class has its own merit and demerit which we shall  review here.    Investment in Gold is easy. It can be adapted to the fund available to invest in gold, can be bought from the local jeweller, can be exchanged or sold in case immediate cash is needed. Normally gold price has shown an overall increasing trend with every passing year, though it may fluctuate midway, as per changes in the market. The down side in investment in gold jewellery is that while you purchase or sell them, you stand  to loose money on making charges and wastage which varies from 7 to 22% of th...
Read more