Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
How to enjoy a comfortable standard of living? - Outside View by PersonalFN

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

How to enjoy a comfortable standard of living?
Jun 18, 2015

You must have heard of the saying that, "too much of a good thing can make you sick". In simple words, right things done in excess can harm you. We are always taught from our childhood thatwe must save as much as we can for safeguarding our future. However, is it right to save most of your earnings and not spend anything for your and your family's enjoyment and comfort?

The answer to that question is no. You don't need to sacrifice all your wishes today to enjoy a better tomorrow. You see, there are many things which you might not be able to do when you age as health issues might become a deterrent. There would be several opportunities that might not strike your door again as the golden time would have passed. And, if you constantly keep sacrificing all your desires at present then you would probably repent by the time you grow old. Does this mean that you should not save at all and rather enjoy your life how much ever you can?

Again, the answer is absolutely no. Saving for your goals (especially retirement) is extremely important. Moreover, having adequate contingency reserves and appropriate insurance coverage (both life and health) are imperative if you wish to have a healthy financial life. However, if you undertake proper planning, then you will not only be able to meet expenses and save for your goals, but also manage to improve your standard of living.

In order to do this, you must manage your finances in a prudent manner. You must create a financial plan either independently (if you have the time and expertise) or with the help of an unbiased and experienced financial planner. While undertaking this activity, you should first set aside at least 6 to 12 months of your expenses in a savings bank account or liquid fund for unforeseen emergencies that may arise in the future (such as - medical expenses, loss of job etc.). Thereafter, you must make a list of all your financial goals and the time remaining for achieving them. Also, determine the future value of the money that would be required to fulfill your goals. Chalk out a suitable asset allocation pattern and calculate the amount that you need to invest per month to achieve your goals. Before making fresh investments, review your existing investments to analyse how many of those are suitable to your risk appetite and financial goals. Make sure that you have an adequate life and health insurance coverage as the financial future of your family is dependent on you.

Once you know how much you need to invest for the future, you can easily spend a small portion of your earnings for enjoying a comfortable lifestyle today. You can increase your family outings, learn that sport which you have always wanted to learn, let your children explore their passion in the area of art, music or anything else that they desire. Heard of the saying - live today like there's no tomorrow? Don't let the fear of the future spoil your present.

PersonalFN is of the view that appropriate financial planning can help you meet all your financial goals and at the same time enable you to have surplus cash to enhance your standard of living. Although achieving financial security and improving your financial health should be your first priority, you must make efforts to let yourself and your family capitalise on the pleasant opportunities that life has to offer today!

PersonalFN is a Mumbai based personal finance firm offering Financial Planning and Mutual Fund Research services.


The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Equitymaster requests your view! Post a comment on "How to enjoy a comfortable standard of living?". Click here!

1 Responses to "How to enjoy a comfortable standard of living?"


Jun 24, 2015

Well said.

Equitymaster requests your view! Post a comment on "How to enjoy a comfortable standard of living?". Click here!

More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

How to Avoid a 90% Loss Suffered by This Super Investor(The 5 Minute Wrapup)

Jul 12, 2018

Blindly following super investors is a dangerous game to play. Here's how you can avoid such mistakes.

The Answer to Your Wealth Worries: Small Caps (Especially Now)(Profit Hunter)

Jul 10, 2018

If you're worried about the markets - you are on the wrong track. This is opportunity - put your wealth-building hat on, instead - Richa shows you how...

The Multiple Problems with the Minimum Support Price (MSP) System(Vivek Kaul's Diary)

Jul 11, 2018

The price signals that MSP sends out, creates its own set of problems.

ICICI Pru Mutual Fund Tarakki Karega! - The Unethical Way?(Outside View)

Jul 11, 2018

PersonalFN explains how ICICI Prudential Mutual Fund flouted the norms of related party transactions while subscribing to the IPO of ICICI Securities.

PPF v/s Mutual Funds: Which Is Better?(Outside View)

Jul 10, 2018

PersonalFN highlights the key points of distinction between PPF and mutual funds.


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms