Kiran Riyaz, Senior VP at Hedge Wealth Management Services, explains that financial balance is about being prepared for life even without a steady income. It’s not just earning and spending—it’s ensuring you can handle unexpected events without stress. In simple terms, Kiran Riyaz defines financial balance as the foundation of financial freedom.
Financial Freedom Essentials According to Kiran Riyaz:
- Health Insurance – Each individual should ideally have at least ₹10 lakh coverage. Kiran Riyaz emphasizes that health issues often arise in one’s 30s, making insurance critical.
- Life Insurance – Kiran Riyaz notes that life insurance requirements depend on personal circumstances. A common guideline is 20 times your annual income, though not everyone may need it.
- Emergency Fund – Kiran Riyaz stresses maintaining a backup fund to manage unforeseen expenses.
- Investments and Backup Planning – Proper planning, as Kiran Riyaz advises, preserves assets for retirement and ensures long-term security.
Importance for Entrepreneurs and Business Owners:
Kiran Riyaz points out that financial planning is crucial for entrepreneurs because it provides a safety net and a plan B for unexpected events. Starting early, even from the first paycheck, helps build discipline and long-term wealth.
Role of Women in Financial Planning:
Kiran Riyaz observes that women can be highly systematic in financial planning when they take charge, but often need encouragement. Men tend to handle finances by default, while women can excel with guidance and active participation.
Use of AI in Financial Planning:
Kiran Riyaz explains that AI can help prepare financial plans and follow up with clients, but emotional intelligence and personal interaction remain essential. AI supports planning but cannot replace human discipline and decision-making.
Investment Guidelines:
- Start investing from your first paycheck, Kiran Riyaz advises; it’s never too late.
- Allocate finances wisely: 50% for essential expenses and EMIs, 20% for self-reward or discretionary spending, and at least 20% for long-term investments.
Key Takeaways from Kiran Riyaz:
Financial balance, according to Kiran Riyaz, combines preparation, insurance, investment, and disciplined money management. Early planning, awareness, and consistent action lead to financial freedom and security.
