You may be a person who earns less but is somehow managing to save a little from that too and you also may be a person who earns a lot but does not care about how much you are spending or saving .
For people of both the kinds, you must know that your finances should be managed and the process should not be delayed if not done yet in order to get the benefits of compound interest as further delay can push those benefits away.
What you should do is start planning which is a simple and crucial step secure a stable financial future .
Different aspects of our life depends on how we plan our finances . It can also be considered as a means to create wealth. So, here follows some tips which you can follow to increase your savings –
- INVEST – Start investing early and put a percentage of your earning as an investment to some fields where your money can grow and multiply. As your money starts growing, take it and put in into a savings account with higher rate of interest so that the amount does not only sit in your account but also earn you some more.
2 . Check and grab the benefits – Many people are not concern about the Section 80C benefits and also struggle to save taxes. This section rules can save you from paying hefty tax amount .
Under this scheme, researches say that most people prefer Equity Linked Saving Schemes (ELSS) which have definitely outperformed the PPF scheme.
The ELSS scheme allows you to invest upto 1.5 lakhs in a financial year and your (total income – investing amount) will be the amount on which you would then have to pay the taxes .
You can learn more about this scheme just by doing some researches and like many , you can also avail the benefits if you are not lazy and hard working only enough to do the necessary formalities for the same.
- Utilize the Savings– Once the savings you have made are set aside, put them in debt funds or ou can also invest in equities .While investing in equities, opt for an SIP .
This strategy will allow you to average out your entry points and automatically insulate for short term market volatility .
Just check and choose the best option for you and be sure that you come up with a long-term view when investing in equities.
- Get Insured – Insurance is a critical thing to take in note as life is unpredictable and you never know when life takes a turn and you need a hefty amount to mend it .
Getting yourself and your family a life insurance will ensure you that you will get coverage from those and will also ensure your family safety and security at least on financial basis.
Along with a life insurance also try to get a health insurance and be sure to buy a policy which gives ten times that of your annual income as coverage amount.
This would in turn make sure that the coverage amount meets all liabilities and future expenses like the cost of your children’s education etc.
Genuinely there are various options available from which you can choose according to your budget ,just make sure that you give a thorough check to the offer documents of multiple brands before coming to a conclusion and taking a decision.
