Every problem has a solution. Easy. But diagnosing the real problem is a big problem. 
This hit me big time when a relative we lost last month, complained of sore stomach a few months back. Taking it to be a mild acidity thing, the real problem got ignored. And by the time the Doctors got to the real diagnosis, it was too late.
I know it’s a bit scary and what’s that to do with this space where I talk about improving my financial IQ?
The post title is self explanatory. I’ll tell you a few more details.
We are building a “Rupee Manager“, where apart from helping you track your income, expenses, investments,etc, we are also planning a few steps to help you do your own “Financial Health Check (FHC)”. This would be the snapshot view and a more detailed version of your FHC can be done in the “Rupee Management Workshop” that we are planning.
All you have to do is answer a few simple questions and the health check does the rest, providing you with instant feedback.
Now, asking the relevant questions is an issue that I am working on right now. And giving the appropriate answers for a snapshot FHC is the challenge.
I write this post to share with you the relevant questions that I can think of right now. Would you want to add your own questions? Here they are:
Step 1
Personal and family details
Name
Sex
Age
Occupation:
Spouse name
Spouse age
Other dependents
No. of Parents dependent
No. of children
Sons
Daughters
Step 2
Questions to identify your risk profile
Step 3
Finance Overview
Gross Annual Income
Approximate Net Income every month
Approximate expenses every month
Monthly investments
Step 4
Questions to identify your financial IQ:
Are you aware of asset allocation principles?
Are you aware of your assets and liabilities?
What does your liability costs?
Are you aware of your human life value or the amount you should take an insurance cover for yourself?
Have you ever tried to do a personal budget exercise?
What more questions should be there? More importantly what answers should your FHC provide you with?
However it still remains a mystery as how less we know about personal finance. The only solution is to share whatever useful stuff you find.
Some readers have come back to me saying that I should facilitate easy sharing of my content. So go ahead share it with your friends and family
Welcome. This blog is a journey to improving my financial IQ and sharing what I know. Please subscribe to updates via RSS feed or by Email. Thanks for visiting!
Coming Soon! A Personal Finance Workshop & Software "RupeeManager". Stay tuned
hi,
one thing is sure – the software – “Rupee Manager” will be of immense helpful to people across all ages.
here’s my query
what are the possible questions that will come under step 2 ?
and what criteria will be used to evaluate a person risk profile ?
because most people don’t know their risk profile.. there are some people who invest money in the stock market at the age of 60 + and some young investors investing 100 % of their surplus in debt funds . Anyhow , It should be the other way…
and what i expect out of this software ?
after entering in all the answers for the questions – it should give me the following
1. the present status of my financial health ( may be on a score ranging from 0 to 100 )
2. (action plan) what should i need to do to improve my financial health ?
3. and how should i plan my investment , according to my risk profile, so that my long term goals are achieved?
hope this will help u out in developing a better product
regards
@jayarajvmba Thanks. Some of the pointers we will use to profile your risk appetite would be as under:
Choose from the following:
I wish to reduce my chance of short-term losses. To do this, I acknowledge that I must accept potentially lower long-term returns .
I wish to pursue growth of assets over the intermediate to long term. To do this, I know I have to accept some moderate risk, which may include losses..
I wish to pursue higher long-term wealth accumulation. To do this, I know that I have to accept moderate to high risk, which may include losses.
There are more questions. Stay tuned for updates. Thanks again