‘Jadoo ki jhappi’ for investment

 Jadoo ki Jhappi' gained popularity after its clever use and depiction in theblockbuster 

M u n n ab h a i MBBS. Medically, the benefits of a hug have been well known for a long time. A simple hug helps lower blood pressure, reduce heart rates and improve blood circulation, among other benefits. Just like a hug, some of the simplest things are likely to be the most beneficial for your health too — eating wellbalanced meals in moderation, eating on time, getting adequate sleep, daily exercise and a daily dose of meditation. 
    In much the same way, your financial health can also be well taken care of through the use of some simple steps. These include: tHaving a contingency/ emergency fund of at least three months of expenses to take care of unforeseen job losses/medical emergencies tA well-controlled expenseto-income ratio (ideally less than 65%) and loan-toincome ratio (ideally less than 40%) tAdequate life insurance to protect your family's lifestyle in case something was to happen to the primary bread earner tHealth coverage for yourself and your 
    dependents so that a medical emergency does not derail both physical health and financial health tInsurance for your home that is likely to be your most valuable asset tA well-diversified portfolio that consists of a combination of investments that have traditionally beaten inflation like real estate and equities, and assets that have fairly predictable rates of return like deposits and bonds tA small portion of your portfolio in gold to act as a protection for the rest of your portfolio tClearly defined goals for what you want your money to do for you -education for your children, an independent retirement for yourself and your spouse, a larger home, etc tA well thought out taxsaving plan that is aligned to your financial goals tUndertaking an annual financial health check-up. If 
you believe you need professional help for this, do not hesitate to seek it tAvoid using products that are too complex and you do not understand tAvoid putting all your money into a single investment type or asset class just because it has given the best rate of return in the recent past 
    To conclude, the simple things in life are often the most effective and make the most difference. So, keep your finances simple and your hug handy. Simplicity should keep you in great physical and financial health. 
    The author is a Mumbaibased certified financial planner and founder of Plan Ahead Wealth Advisors