Ignorance and procrastination are two devils that keep you away from managing your finances. This behaviour can cost you a lot later. Dive in to know about 3 effective money saving techniques that will not make you regret later.
Today in this era, dreams come with high price tags attached to it. From a basic car to a normal house costs lakhs of money. Even to fulfil an important and basic need of life requires money such as from buying daily bread and butter to giving your children a decent education. To fulfil your dreams or basic needs, either you have to have a large income source or you would require a strategic and best investment plan.
While a high-income source is not always possible, the latter makes much sense. A strategic financial plan will surely make your dreams come true once you start saving your wealth right soon after you start earning it. However, you should be very careful while choosing your investment plan. A lot of people don’t know how and where to save their money to yield profitable returns. A lot of people don’t know how to formulate a financial plan for them. Wrong choices often lead to faulty investments, flawed portfolios, unmet goals and financial insecurity later in life.
To avoid all the undesired consequences let’s highlight 3 effective money investment plans for people who have started earning lately:
1.Invest in Right Instruments: The biggest problems that young earners face is the question of where to invest their income. In solution, you can just start with simple instruments such as a fixed deposit. Once you successfully prioritize your goals, look for better investment options such as the options that are readily available. The investment plan should be chosen in terms with the line of your goals and time horizon. For the short-term goal, you can keep it in debt and if it’s a long-term goal, it should be mandatorily equity. The medium-term goal, on the other hand, should have a mix of debt and equity because debt will offer you the safety of capital since you need it in the short-term while equity gives highest returns in the long-term.
2.Opt for the Right Insurance: The purpose of insurance is to cover risks in our lives. Insurance doesn’t offer us returns. Many people confuse insurance with investment because of the products that they offer in the market. The young earners might not feel any kind of covers in their current life, but it is highly important for a financially secure life in the long run.
3.Save for an Emergency: Caught in the thrill of making money, young earners often overlook the importance of saving money for emergencies. Most of them are more eager in spending money to buy the house of their dreams of the car of their choice and tend to save little or no money for any future emergency. Be it a sudden loss of job or health drop, everyone requires financial support to face the sudden challenges. The most appropriate option is to put your money in a short-term debt fund, liquid fund or a sweep-in bank account which ensure easy availability and a higher rate of interest for your wealth.
Consult Plan Money who is the best financial advisors that provides their clients with the best investment option in India. Contact us now to know about our customer-oriented services.
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