An arrear or recent increase has been received, now you are thinking of saving this surplus amount, and you have no clue where to put it. You have heard stories of great investors who will create wealth with little money. You’ve heard quotes from the likes of ‘Rich Dad and Poor Dad’ and Warren Buffet, and now you’re not ready to waste all that money and also can’t afford to buy that new phone model you’ve always wanted to get your hands on .
Dear Reader, You have reached the right article and this ‘Money Guide’ will solve all your queries regarding how to invest and spend the recently acquired Moola in your Savings Account.
Tip #1 – Buy ‘Term Insurance’
If you don’t have one, go and buy life insurance right away. COVID has taught us one thing – life is unsafe. You may not get any chance against it, you should have a cover which will help your family later.
Make sure you are buying a pure insurance product and not a ‘ULIP’ or a ‘Premium Returning Plan’. ULIPs are expensive, save that money and invest in the next pointer.
Tip #2 – Buy a ‘Medical Insurance’
You need a vaccine shot to protect yourself from the dreaded coronavirus, but COVID isn’t the only thing you should be wary of. Gallstones, cardiac events, glaucoma, lumps and nodes – all these things are bound to break your budget too. It is better to protect yourself and your loved ones with medical insurance.
Don’t depend on your office’s medical policy, you may one day change your job and I know someone who had to go under the knife while changing jobs. Hospitals are expensive affairs, keep health insurance handy.
(Photo Credits: Pixabay)
Tip #3 – Open a ‘PPF’
No, SIP comes later, first open Public Provident Fund. You can get an interest rate of 7.1% and it also helps you to achieve that tax saving target at the end of each financial year. At present a minimum of Rs 500 and a maximum of Rs 1.5 lakh per year can be deposited in the PPF account. A PPF account matures in 15 years, after which you can either withdraw all your money or extend the PPF account for every block of 5 years.
Tip #4 – Buy a house!
Wouldn’t we rent a house and invest in more lucrative offers and schemes and make more money?
Yes, you should, so you should definitely buy a tiny house. Either stay in it or rent it out, the idea is to save interest on the home loan, build a decent CIBIL and build an asset for your old days. This may sound conventional and not very ‘expert’ advice, but dear reader, you are reading this article because you are a traditional investor and we both don’t have that much money to buy Amazon shares tomorrow. Go, buy a house, small one – Look out for PM Awas Yojana discounts too, thank us later!
(Photo Credits: Pixabay)
Tip #5 – Invest!
No, your mobile can wait, start investing. I know, you don’t have a lot of money left by now but dear reader, your latest mobile phone won’t pay your bills.
Start investing with INR 2000 and invest for at least 6 months. Watch and learn market curves. Try and read more about stocks and methods of SIP. You can connect with us via FB for more help, but make sure you invest.
Don’t be discouraged if your initial investment doesn’t grow rapidly. Remember that the mobile phone you were planning to buy would have depreciated in the same way. So just be stubborn and keep investing.
But where?
About which we will tell you in our next article because we have to check some new investment plans as well. If you still have any query, any confusion you can always connect with us on Facebook @ZeeNewsEnglish, and on twitter @ZeeNewsEnglish
(Photo Credits: Pixabay)
(You can follow the author – @sushantmohan on Twitter – and ask him questions, he really knows this all too well, we’re sure he’ll answer)
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