Financial Planning: Gaurav Mashruwala

I am a freelance copywriter. My income is quite erratic. Although I use bulk payments to start fixed deposits (FDs), I am forced to break these during lean periods. How do I save better?
First, prepare a monthly budget. Also, list down your cash-outflow requirements. There will be fixed and pre-determined outflows, such as equated monthly instalments, if any, rent, insurance premiums, school fees, etc. You should be able to plan for these easily. Ensure your FDs mature before these payments are due. Also, if you have chalked out your budget accurately, you will be able to control your variable expenses. At any given point, keep aside funds equivalent to six months’ expenses. These should be parked in sweep-in deposits, that is, savings account linked to FDs. Most banks offer this facility. It will ensure that whenever there is surplus money, the amount is transferred into the deposit. And, suppose you issue a cheque and the balance is insufficient, the shortfall is automatically taken from the deposit. You need to spend time and energy to make a family budget and track the outflows meticulously to create long-term wealth.

I am aware of portfolio management services (PMS) offered by banks and brokerages, which invest in equities as well as real estate. Recently, I read about a gold PMS, launched by a brokerage. I am considering investing in PMS, but I am confused about which one to pick. What would you advise?
Your investment should depend on your financial goals. In absence of specific financial goals, this kind of confusion is normal. Also, it becomes difficult for me to answer your query. Ideally, your portfolio should consist of equity, gold, debt and real estate. Based on your goals allocation, asset classes should be decided.

The writer is a certified financial planner. Send your queries to yourmoney@bsmail.in