One doesn’t have to be an expert in economics or accounting to be good at personal finance. All that, one has to do is follow certain rules which are universal like the law of gravity. Personal finance is both a simple concept because all the math one needs to understand is covered in schooling, and complicated because the human brain is not designed for savings and investing.

The mental and emotional thought process of humans is based on millions of years of evolution. The biggest enemy of our financial portfolio is our own behavior. The latest study finds that less than one-third of Indian households are making good savings progress, as compared to the last reports. Those with a financial goal tend to be more successful in saving for the short term which further tends to automate long-term investments.

The brain is the most overburdened organ of the human body. It consumes approximately 80% of the body’s energy. The brain starts taking shortcuts if one keeps troubling it to take complex and multiple financial decisions.

These shortcuts are bad for investing. One can automate personal finance with the help of a financial planner. Automation through SIP in equity, debt, and gold is a good way to build an investment plan. One can automate with the right asset allocation. MyFinopedia and its financially expert team help to inculcate the right decision for investments both for short as well as long-term financial goals.

The investments start from building emergency funds which are for expenses for unexpected emergencies such as sudden unemployment or an extended illness. These funds should be secure and liquid. The next comes the goals and time horizons-based investments such as college education, retirement income, etc. If between 2 to 10 years, use a combination of bonds and stocks. If the horizon exceeds 10 years, focus majorly on stocks, keeping in mind, investment objective and risk appetite. One should start saving for long-term goals by putting money in interest-earning products and letting those funds compound over time. The amount of risk one takes or avoid depends on how much time one has to let finances grow during the set time horizon.