How self-employed, start up entrepreneurs, those with a large variable pay and many others with irregular income, can easily achieve every financial goal that the salaried do.

Edited highlights
0:36 This audio will provide tips for financial planning for those with irregular income and large amount of variable pay

1:00 Self-employed, small businessmen, start up entrepreneurs can achieve what the salaried can

1:09 Some minor adjustments need to be done in money management by those with irregular income

1:20 In this audio, we will stick 3 broad steps that people with irregular income need to take

1:32 Get started with your emergency fund. It is also called contingency fund, "rainy day fund" or your reserve

1:47 Emergency fund, in case of a person with irregular income, does more than help during emergencies

1:59 It also takes care of all your regular expenses

2:04 For people with irregular income, we recommend an emergency fund equivalent to 9-12 months of regular expenses

2:15 This will not only cover regular expenses but important expenses such as insurance premiums and children's school fees

2:23 Anticipate the kind of expenses your family will have in the next 9-12 months and build an equivalent amount of emergency funds

2:34 These things are important if you have just started your business, your business is small or your income is based on achieving certain targets

2:42 Try to build an emergency fund bit by bit, over time

2:57 To build an emergency fund, you can stash away some money every month in a separate bank savings account

3:06 You can also use a systematic investment plan (SIP) of a liquid fund

3:16 Keep the emergency fund in a separate investment helps you earmark a specific sum of money for emergencies

3: 40 One of the things not to do is to park the money for long in a bank savings account since the money is taxable and typically receives low interest

4:02 This is a large amount and you can get better returns from alternatives such as liquid funds

4:41 You could even consider investing a small amount in a shorter term debt fund

4:47 Just keep the amount you need in the savings account and keep the other amount in liquid investments

5:15 Emergency funds ensure that you don't draw on your long term investments to meet short term needs

5:27 The second step for those with irregular income is insurance

5:34 A person with irregular income shouldn't be rushing into investments

5:48 You need to have an emergency fund and complete insurance coverage

5:54 Life, health, threat to income from accident and home--all the risks need to be covered

6:08 Smartly shop around for the highest coverage with the lowest premium insurance plans like online term life insurance plans

6:33 The idea is that if something goes wrong, you use the emergency fund or insurance, and not investments

6:49 The third step is invest for future needs such as buying a home, child's higher education and your retirement

7:06 Common excuse of self-employed people for not making investments is inadequate or irregular income

7:25 Remember, small amounts invested over a long period of time can lead to substantial savings

7:53 You can start with an investment as small as Rs 500 in systematic investment plan (SIP) of an equity fund

8:38 Each SIP or a combination of SIPs could be earmarked for particular financial goals like child's higher education

8:56 You can collect your money for nearer term needs like annual life insurance premium through investments in recurring deposits (RD)