Key points while investing and building financial portfolio...

Three things to be kept in mind, while planning for a financial portfolio and/or planning for a free financial future...

Three aspects are:
Liquidity
Safety and
Asset Allocation for wealth building

Liquidity:
This section is nothing but having liquid cash.
Anytime you need money, you can make use of this cash. In other words, this liquid cash is considered as Emergency or Contingent fund. We never know - there might be a medical emergency, there might be a car breakdown, or an immediate travel need etc., We never know we might need to travel and that might be a huge expense suddenly. Considering all these, we need to be ready for liquidity. Say around 3 to 6 months of the salary/expenses has to be in reserve. Count the number of dependants and multiply the number of months of expense you need to have in reserve. Say if there are 2 dependants, 6 months of expense would be suffice.

Safety:
If you dependants, you might want to make sure your deppendants are safe and sound, even after you expire. Even after you expire, your family should live happily and there should not be any shortcoming for them, except for your absence.

Have enough life insurance, to cover your loss.

Asset Allocation for wealth building:The third section is a huge one, and it itself is a big chapter.
Spend Less, Save More and Invest Diversified...that should be your goal, when you think about asset allocation. Equity Investment in early years, bonds and safe deposits in later years - that is your second statement rule in the asset allocation for wealth building.

Happy Investing...