Tuesday, March 10, 2009

Disposable Income

Disposable Income = Total Income - Total Expenses

Disposable Income should be invested into PRISM.

How to invest in PRISM?
Home loan EMI
Max the PPF
SIP into MF and SM
Commit to annual Insurance renewals
Balance to be invested in FD/ RD to build a corpus to pre-pay a home loan or opt for another.

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