Let's Talk Money

Name of the Book:  Let’s Talk Money

Author: - Monika Halan

No of Chapters:-14

Number of Pages: - 215

One line Description of the book: - Let Money Work for You

What this book is about: -The Book “Let’s talk Money” is a primer for beginners who want to take control of their financial planning. The book is extremely valuable for anyone who feels overwhelmed by complex financial jargon and don’t know where and how to start their financial planning journey. The book starts with the Covid Experience of the Author which led to change here perceptions about money, life, and work. The importance points of her changed perceptions are enumerated below: -

1.      About Money

a.      Savings can be increased sharply as we require very less for living (From Covid Experience).

b.     For persons below 40 years of age, six months of Emergency funds in terms of FD to meet living expenses and for persons above 40 years of age it should be minimum 02 years.

c.      There is no safe haven for your money. Each investment comes with risk.

2.      About Life

a.      Have wills in place.

b.     Identify three friends and relatives who you can trust fully, in case of death of you and your spouse.

3.      About work

a.      Don’t fall in routine work.

b.     Build a second and a third career even as you work your current job.

First two chapters in the book deals with management of money i.e. financial planning. It lays emphasis on three account system that separates your income, spending and savings.  It also lays importance on the facts like how much should be EMIs and savings of the  your take home income.

Third chapter deals with the aspect that how much fund we should have to meet out emergencies in life depending upon the age profile. Fourth chapter deals with how much medical cover is needed for a person and what are the terms that we should be aware of while buying a medical cover. Some important terms to look out in medical policy are Co-pay clause, Pre-existing disease clause, Disease waiting period, Sub-limits, Exclusions etc. which author had dealt in detail. Chapter also covers strategies for older people regarding the medical cover. Author also deliberates on critical illness and personal accident cover in detail.

Fifth chapter deals about the life cover one should have that allows the family to maintain their lifestyle and future goals in case of death. Author suggests buying pure term insurance plan online to remove agent commission cost. Author states that sum assured should be eight to ten times of your annual take home income or fifteen to twenty times your annual expenditure.

Sixth chapter is dedicated to have a financial investment plan in place considering near, medium, and long goals in place with monetary value of each goal. In chapter seven, Author given detailed explanations of various financial assets like gold, real estate, FD and debt funds. In this chapter, author cited simple thumb rule allocation of debt which is equal to age of person.

Eighth chapter is dedicated to equity which is favorite asset class of Author. Chapter basic information about Sensex, mid-cap index and Banking index. This chapter also compares investment in real estate and equity.

Nineth chapter deals with basic information about mutual funds like what is mutual fund, what are the basic types of mutual funds, costs and terms associated with mutual funds.

Tenth chapter deals with allocation of each financial instrument on basis of cost, returns, Lock-in period, cost to early exit, taxes and holding period associated with each instrument. Author also gives allocation strategies for Emergency, Medical insurance, life insurance and retirement for an individual.

Eleventh Chapter deals with retirement planning. Author stresses the importance of starting early and being consistent. She advises using retirement-specific products like the National Pension Scheme (NPS) and Public Provident Fund (PPF) in India, which offer tax advantages and steady, risk-free returns. She also discusses the role of Employee Provident Fund (EPF) and how one can boost retirement savings by topping up contributions.

Twelfth chapter deals with frequency of auditing your financial planning to see whether the things are moving in line with planned goals or not. Thirteenth chapter deals with the importance of nominations and wills to take care of any emergency.  Will should cover the details of all the assets and who will get what along with information to family members about location of the will.

Last chapter of the book deals with the various things and actions that can destroy your financial planning. Author warns readers about common financial traps such as Ponzi schemes, high-fee financial products, and the over-promotion of complicated investment vehicles. She advises against making decisions based on fear, greed, or lack of knowledge, and advises the readers to stick to simple and proven investment instruments.

Conclusion: - Overall, "Let’s talk money " by Monika Halan is book that demystifies the complex financial planning in a manner that is practical an east to understand. This is a must-read book for anyone who is new financial planning who want clear and simple advice on savings, investing, tax planning and retirement.   

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