In this episode, Monika explains why investment planning is just one piece of the larger financial planning puzzle. Many investors focus solely on where to put their money but overlook critical aspects like cash flow management, risk protection, and long-term goal setting. She walks listeners through the fundamentals of financial planning—starting with tracking expenses and setting savings targets, then building essential safeguards like an emergency fund, medical insurance, and life insurance before even thinking about investments. She emphasizes that true financial security comes from having a well-structured plan that includes retirement and estate planning, not just picking the right stocks or mutual funds.

Monika also breaks down the concept of an asset, clarifying common misconceptions. An asset isn’t just something you own—it must generate income or appreciate in value. From stocks and bonds to property and even a taxi used for earnings, she explains how different assets work and why some, like insurance policies, don’t qualify. Understanding assets is key to making informed investment decisions, and Monika highlights why a thoughtful approach to asset allocation is essential for long-term wealth creation.

Listener queries bring up diverse financial concerns. Himanshu Sharma from Wellington questions the need for asset allocation when small caps tend to outperform over the long term. Dr. Aishwarya from Bengaluru faces major life decisions, including moving cities, having a baby, and buying a home, while managing a partner who prefers to keep his money in a savings account. Finally, Dr. Ajith from the UK seeks Monika’s insights on whether index investing in mid- and small-cap funds is a smart strategy.

Chapters:

(00:46 - 08:01) Why investment planning is just one piece of financial planning

(08:02 - 08:56) Understanding assets: What qualifies and what doesn’t

(09:31 - 12:08)Asset allocation and compounding 

(12:10 - 14:43) Balancing homeownership, career moves, and family planning 

(14:45 - 16:44) Index investing in mid and small caps 

If you have financial questions that you’d like answers for, please email us at ⁠[email protected]⁠ 

Monika’s book on basic money management

⁠⁠https://www.monikahalan.com/lets-talk-money-english/⁠⁠

Monika’s book on mutual funds

⁠https://www.monikahalan.com/lets-talk-mutual-funds/⁠

Monika’s workbook on recording your financial life

⁠⁠https://www.monikahalan.com/lets-talk-legacy/⁠⁠

Calculators

⁠⁠https://investor.sebi.gov.in/calculators/index.html⁠⁠

You can find Monika on her social media @monikahalan. 

Twitter ⁠⁠@MonikaHalan⁠⁠

Instagram ⁠⁠@MonikaHalan⁠⁠

Facebook ⁠⁠@MonikaHalan⁠⁠

LinkedIn⁠@MonikaHalan

Production House:⁠⁠www.inoutcreatives.com⁠⁠

Production Assistant:⁠⁠ Anshika Gogoi

Sponsor Message:

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Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, enlistment of IA with Exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. SEBI RIA Registration No. INA000017523,www.1finance.co.in