The most effective investment habits are the one that helps you manage your money in a way to create financial stability for your future. Let’s know them all:
- Income-savings = expenses. This is the equation of a successful investor. Always keep aside a portion of your income for saving and then allocate your income for expenses.
- Begin early to accumulate big. Start your investment journey early. How? Investing in a Systematic Investment Plan (SIP) is the best approach for you as it allows you to invest a fixed amount regularly regardless of NAV or market conditions.
- Go for automatic investment: You can achieve this by starting a mutual fund SIP which auto-debits from your account every month. Fixed amount on a fixed date!
- Save for emergencies: Make sure you have a separate emergency fund by keeping six months of monthly expenses in an active mutual fund as liquid funds offer better returns than savings accounts.
- Have a diversified portfolio: Jot down your short-term and long-term financial goals and allocate your fund to different investment assets for a bigger corpus at minimum risk.
For more information on investment assets, you can rely on Future Value, a pool of financial experts that can guide you through this and help you to get the insurance policy that suits your needs and goals.
What are the financial planning tips for salaried employees?
As salaried employees, most of us end up facing a financial crunch at the end of the month. So, to save you from financial hiccups, here are the five effective tips for salaried employees to have a financially stable future.
- Start by creating a monthly budget: A budget will keep your expenses in check and you’ll have an account for each penny spent. List down your expenses. Three main things are Needs, Wants, and Savings.
- Invest your money: If you want to earn a good return, go beyond FDs and park your fund in other investment options, like mutual funds, stocks, etc. Define your financial goals and based on that choose the investment instrument for yourself.
- Buy life insurance: Having financial assurance is a must and Insurance ensures that you’re financially at peace. Save your hard-earned money in a smart way that covers up for your family.
- Clear your debts: List down the debts you need to clear and prioritize clearing them, be they EMIs or credit bills. Don’t let them stack up.
- Save for retirement: Don’t let your income just go away in paying EMIs and bills. Park your fund in a long-term investment instrument to yield a bigger corpus for your old age.
For more information on investment assets, you can rely on Future Value, a pool of financial experts that can guide you through this and help you to get the insurance policy that suits your needs and goals.
