It's Diwali again. Most of us will be exchanging gifts as well. This Diwali, why not gift a book on financial planning to your near and loved ones or colleagues instead of regular Diwali gifts?
Here are the top 5 books on financial planning that you can gift to your business associates, family members or friends.
Let's Talk Money by Monika Halan
It is a broad financial planning book and not specifically focused on a certain objective or group of products. The book speaks to those who are generally aware of money but are not very knowledgeable about the differences between various products. Thus, it is best for people with little financial knowledge. However, people with zero financial understanding may also benefit from this book.
It covers every topic a potential investor should be aware of, including wills, insurance, and bank accounts.
But the book begins with the fundamentals: saving, budgeting, and managing your money. It also discusses money boxes for your income, expenses, and investments.
People looking for a simple plan can adhere to and execute the neat approach she lays in the book. There is a step-by-step process to safeguard your assets and your family, deal with emergencies, invest, plan for retirement, and prepare for your post-retirement life.
READ MORE: 7 must-read books for a new investor
If God Was Your Financial Planner by Suresh Sadagopan
Using case studies on seven families who consulted the author for assistance with their financial and investment issues, this book's simple reading style guides readers through financial planning.
Personal finance, financial planning, retirement planning, asset allocation theories, and risk management are some of the subjects covered in this book.
Common issues like a family's finances being in disarray due to an extravagant lifestyle are among the challenges mentioned in this book. A couple's financial strain is increased by their wish to send their two young children to international institutions, which have exorbitant tuition costs. Yet another person is about to lose his job. Another couple wants to create a plan but thinks the costs of a financial planner are too high. Another couple's finances are suffering as a result of the husband's poor investment choices; to make matters worse, he recently lost his job.
He points out that we frequently forgo our retirement savings to pay for our children's international education. It is not a viable alternative to spend down your own retirement savings and then rely on your kids in your later years. Financial support from parents is OK as long as it doesn't burden your own resources.
The book might encourage you to earn money while living a more contented and satisfying life.
READ MORE: Financial Planning: You can accumulate over ₹50 lakh by investing just ₹10,000; Here's how
The Wisest Owl: Be Your Own Financial Planner
This book aims to assist these young investors by providing a foundation for long-term wealth creation.
Six chapters in this book include various viewpoints on the stock market, the economy, FIRE (Financial Independence Retire Early), and planning checklists.
The book provides insightful responses to essential queries like: Should I purchase a house or rent one?
It uses the knowledge and expertise of India's leading personal finance experts. The author and his team talking with six famous investment advisors regarding these financial issues is the highlight of the book.
However, it also captures viewpoints from reputable non-RIA individuals actively working to increase financial literacy among the general public and financial planning practitioners/distributors.
READ MORE: Coffee Can Investing: The best long-term investment strategy?
Coffee Can Investing: The Low Risk Road to Stupendous Wealth by Saurabh Mukherjea
The book focuses on building a buy-and-forget portfolio called Coffee Can investing.
The book advises choosing businesses with a market capitalisation of at least Rs. 100 crore, list organisations that have been around for ten years, and choose businesses that have seen at least 10% annual revenue growth and 15% return on capital employed (RoCE) during the previous ten years. Moreover, these companies need to have a return on equity (RoE) of 15% and annual loan growth of 15% for financial institutions.
This book emphasises the benefits of patience in long-term investments, which is the weak spot for most investors, including Indian investors. It also dedicates to creating a diverse portfolio with non-equity instruments as well.
The book also focuses on examining costs such as expense ratio and brokerages as they tend to compound over time as well.
READ MORE: How can women take charge of their investments? Here are six ways
Moneywise - Perspectives for Women
This book is primarily written with women readers in mind.
The fundamentals of money management are covered in this book, along with concrete suggestions for taking control of your funds. The principles are presented in clear, understandable language. A peek into a woman's head exposes the social and psychological tendencies that keep her from achieving financial independence. The book also aims to encourage women to behave positively toward money. Additionally, it provides advice on how to manage money in various life scenarios that she might encounter.
Then, a comprehensive section is devoted to comprehending cash flow, net worth, insurance, and other topics from scratch. Authors have attempted the most straightforward kind of explanation conceivable. In addition, there is a debate about succession and inheritance, which most women are not naturally inclined to think through. Because preparing for succession is still a man's job.
These were some of the top books on financial planning that you can gift this Diwali and help your loved one better manage their finances.
Padmaja Choudhury is a freelance financial content writer. With around six years of total experience, mutual funds and personal finance are her focus areas.
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