With these five tips you can take stress out of managing your finances all year around. Take these steps to protect your finances for those times when things go bad. Here are few things that every new and existing investor needs to combine for better control of financial life in FY 2017-18.
Have grip on future
You must plan you need and goals of your future to get grip on your hands. And your needs are to educate your children, to manage decent lifestyle, own home and get easy retirement. Also, you have desire to buy nice car, yearly vacation and assets that provide luxury feeling.
It is good to know when you like to have what you desire. Next you have to write down current income investment to make you goals to meet. This written plan helps focus on getting on road to achieve your goals. Also you can take financial planner guide on this plan.
Check Tax free gratuity has increase limit up to Rs 20 Lakh
Take discounts on your investments
As a common people you look to budget what finance Minister has for us. This is time to budget your investments for next year in same manner as you prepare your household budget. You need to plan to get tax deduction from investment of Rs.1.5 Lakh under section 80C. Like Public Provident Fund (PPF), Equity Linked Savings Schemes, Sukanya Samriddhi Scheme, Senior Citizens Savings Scheme for those above 60 years.
Take discount on your pension fund
There is separate deduction for Rs.50, 000 for investment in National Pension Scheme (NOS). This money cannot draw before age of 60 and this is solid way to protect some of your lifestyle in retirement. If you have dependants life insurance is necessary but buys that without tax benefit so that you can maximize your investment for future. Tax benefit is discount that you get on your investment.
Set up your budget
Before you start planning your finances track your expenses. It is important to maintain your budget because it will not make you into depression. But it is not required to take note of all petty expenses. This is good decision for New Financial Year. This budget is prepared for year broken into 12 months.
On other hand you have festivals month that absorb more money than others, vacation months and time for school fees at beginning of academic year. So you must pay future goals account before spending. That means you invest 40 per cent in normal month and 25 per cent in expensive month. Let this investment as per your financial plan and made it as soon as salary is credited to bank account.
Care whatever is precious to us
Such as Education, children career, home, decent lifestyle and retirement that give reason for life of hard work. These dreams can turn to clean in a moment as road accident, health shock, cooking gas cylinder burst can put us unhappy position.
Your Financial Planner can help to calculate how much insurance can protect children education, pay up home loan and support your spouse’s retirement. Take medical insurance and personal accident insurance and do not drive vehicle without insurance. And special shocks of life will come along less as happiness. Insurance is small cost to pay for falling impact of serious shocks.