The Simple Rupee:Balance Sheet,a useful tool

1. The Balance Sheet is a very important source for helping you gauge your need for Life Insurance.If you've read my previous article ,you will recollect my having written about liabilities (what you owe).No one would like to pass on the burden of outstanding debts to their loved ones.This is where the Balance Sheet can help you decide the quantum of Life Insurance you should have so that your loved ones are left with enough to clear the debts as well as live comfortably in the event of any untoward incident.
2. The Balance Sheet can help you allocate your investments properly so that you get a decent rate of return (more than what the banks,NSCs and GOI Bonds have to offer!).
3. The Balance Sheet can help you plan for your retirement.Unless you know what is coming in and what is going out,how are you going to know how much to save towards your retirement goal?
4.Planning your Will:You need to know what your assets are before you decide what you want done with them.
5.Moving towards your goals:If you get into the habit of preparing annual balnce sheets and comparing these with the previous year's totals,you can assess how much closer you are to your goal(s).You can make the necessary adjustments when required.
I do not claim to be a financial advisor.Please don't construe this as financial advice.But as I said in the beginning,there may be someone who gains a new insight into their finances through my journey.
First published by me on my blog :ALL THINGS GOOD