A new financial year has just begun. It’s a good time to take stock of our investments. Amid an ongoing pandemic, a war between Russia and Ukraine, and rising inflation, Indian investors are exploring avenues to grow their money despite the challenges.
So, let’s begin this new financial year with positivity and careful financial planning to grow our money step by step.
The first lesson of your financial planning is to save your money. What you save and how you save are very important for your financial well-being. Make a budget basis your earnings, expenses, and current and future financial goals. Keeping track of your expenses helps you know what priority spending is and what is not. If you feel your savings are low, you can cut down your non-essential expenses and park that money into your savings.
Also, “you might have some financial goals such as buying a house, funding your children’s higher education and marriage, or retiring with a good corpus in your hand. You can bucket each of your financial goals into the short term and long term. For example, buying a car could be a short-term goal, while buying a house can come under a long-term goal,” says Adhil Shetty, CEO, Bankbazaar.com.
Your savings and investment may hit a roadblock due to a health crisis or the sudden demise of key earning members. If you fail to protect your family from these two uncertainties of life, your lifetime earnings and investment may go in vain. Buy suitable life and health policies to protect your health and wealth. It is a type of investment to keep your financial goals safe from uncertainties and risks.
Your life insurance cover is recommended to be 10-15 times your annual income, while for health insurance, you could get coverage equal to 100 per cent of your annual income. You may go higher or lower depending on your income and family requirements.
You pay taxes to the government over what you earn depending on your income and the…
Read complete post here: