While the prime focus of most of the people depends on earning more, knowing the art of saving along with the prudent investment is also equally important. Doing proper financial planning allows an individual to achieve life goals by sensible management of finances and money.
Managing your expenses in the right way is all about getting the value for every rupee spent. Many times, due to mismanagement of money it gets difficult to figure out simple ways to save money to pursue your financial goals. With some of these simple tricks, you can meet your spending needs with ease and comfort.
Tax saving investments are one of the best ways to save money and achieve your financial goals.
Record the Expenses
The best way to save your money is to have an estimate of how much you are spending. It is wise to keep a record of everything you spend. Once you have an estimate of your investment you can organize your finances monthly saving bundles on your earning.
Saving money in day to day life is a great asset to deal with uncertainties of life and keep oneself secure and financially sound in trouble time. Although there are many ways to save your hard-earned money. Investment plans are the most important aspects of financial planning tools.
These tax-saving investment plans not only help to save on taxes but also helps to meet the financial goals by intelligently strategizing your investment. To save your hard-earned money on taxes you can either invest your money in insurance or growth plan or put them in saving instruments for the future.
Investment plans are a typical contrivance where one can pay today and reap the benefit later.
Plan on Saving Money
Setting the saving goals makes it much easier to get started. It is advisable to take consideration of your monthly earning and expenses and create a saving category. Setting a saving category can help you to decide how long it will take to reach your short term financial goal.
You can go for different investment cum insurance plans like endowment plans, ULIP plans and money-back plans that provide life coverage as well as help you to save your hard-earned money from time to time. These long-term saving plans can help you to fulfill future goals like saving for retirement, giving money for your child’s education, savings for buying a house, etc.
Decide on your Priorities
When it comes to saving money then different people have different priorities, so it is more sensible to decide which saving goals are most important for you. Depending upon your short term and long term goals you can priorities and set aside money accordingly in your monthly budget.
This can help you to balance out your money so that you can deal with any type of emergency situation. If you are planning for short term goal then you can go for money back policies that provide a sum assured amount of money in a particular interval of years till the completion of the policy tenure, so that you can fulfill all your financial needs from time to time.
Tax saving mutual funds
Tax saving mutual funds or the equity-linked saving scheme is an investment plan qualified for tax benefits. This plan is more suitable for investors with medium and high-risk appetite, among other assets the tax saving mutual funds are invested in the stock market. Under this, the investment is locked in for three years. Under section 80 C of the Income Tax Act, the investment towards tax-saving investments fund is covered up to a maximum of Rs1.5lac.
Watch your Savings grow by Investing in ULIPs
Unit Linked Insurance Plan is a financial instrument that offers customers the best of both the insurance and the investment world. ULIP Plans are provided by the company that offers customers to avail of the benefits of insurance as well as grow their money in order to achieve their financial goals.
ULIPs offer customers a choice to finance various investment tools like stocks, bonds, and mutual funds as well as insurance cover. ULIPs truly act as a popular financial instrument among customers by providing the dual benefit of protection combined with the freedom to choose your investment options.
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.