Category: Money Matters

National Pension Scheme (NPS) is an investment scheme aiming for retirement benefits. But nowadays, people get confused while choosing a retirement plan. There are many mutual funds available in the Indian financial market right now. So, it is better to get a comparison for a better understanding of both. After that, you can decide which one is best for you.

What is NPS?

• NPS is a National Pension Scheme based on only retirement plans. The government of India provides a backup for this savings scheme.
• Any self-employed or employed professional can open an NPS account. There are some tax benefits one gets after having an NPS account.
• NPS is a low to moderate risk investment option. It aims for optimum monetary benefit with minimum risk.

What are mutual funds?

Mutual funds are some investor-operated investment funds. The fund is for investing in buying company stocks and shares. And a professional fund manager manages the investment for a higher amount of return. And a mutual fund has a share of several investors.

A comparison to understand better: NPS or Mutual Funds

A brief comparison will help you to understand better which one is for you. Some essential factors will direct to the conclusion for choosing the best retirement plan.

Tax benefits

NPS has some tax exemption benefits. You can enjoy tax benefits under the section of 80CCD (1B). There is an extra deduction for investment up to fifty thousand in NPS Tier I account for this exclusive tax benefit. This additional deduction is over Rs.1.5 lakh, which is already in the section 80C of the Income Tax Act, 1961. Moreover, a person with an NPS account can avail tax deduction of 10% of gross income. It is under section 80 CCD (1) that is including Rs.1.5 lakh, which comes under Section 80 CCE.

Mutual funds do not offer such a huge tax deduction benefit like NPS. All equity mutual funds do not have such a facility for tax exemption. Equity-linked saving scheme or ELSS has a tax deduction benefit. It comes under section 80C of the Income Tax Act, 1961. So, an investor can get a tax deduction up to Rs. 1.5 lakh.

Liquidity factor

NPS does not offer liquidity of investment at a larger extension. You can withdraw a premature amount after ten years of investment. And for partial withdrawal, it is possible after three years. Partial withdrawal is 25% of the contribution. There are lots of terms and conditions for getting the permission of partial withdrawal. You can apply for money for purposes like house building, child’s education, or marriage.

Apart from the close-ended mutual funds, almost all mutual funds have the facility of liquidity. And there is no rigid restriction excluding the three years lock-in period in ELSS. So, you can manage your investment as per the market condition, risk, and other things.

After retirement income

The NPS scheme provides a full-proof retirement plan. The returns might not be very high, but it is the safest retirement plan in India. The inflation might affect the pension amount as NPS is related to market conditions. There is no tax exemption on the interest earned.

Mutual funds work in a different way than NPS. So, all mutual funds will not offer equal safety like NPS. But they might give you a higher return.

Final take

If you want to choose mutual funds as a retirement plan, you can select ELSS. Go for some hybrid mutual funds that customize retirement benefits. These generally come under section 80C for tax benefits. But always check with the asset allocation facility before investing in any. But if you want to lower risks for a lump sum amount as a retirement income, you can choose NPS. It has government security for added backup. But returns are higher in mutual funds.

PPF account or Public Provident Fund is a popular investment option among Indians. But the National Pension Scheme or NPS account also has a large number of investors in the country right now. When you are starting to save money for a more extended period, you will get stuck in confusion to select the right one for you. Most of the people do not know the necessary details of these saving schemes. And if you do not know the key factors of these two, you will be unable to select the best one.

What is PPF?

PPF (Public Provident Fund) is a government-backed savings option. You can invest from Rs.500 to Rs.1.5 Lakhs per year. And there is no such age limit or group to open a PPF account. It has a duration of 15 years for completion of the investment.

PPF has a lock-in period. So, once you invest in it, you cannot ask for withdrawing an amount. NRIs cannot invest in PPF.

What is NPS?

NPS (National Pension Scheme) is a pension scheme that is authorized by the government of India. It is a market-linked pension scheme. People from the age of 18 to 60 years can invest in NPS. NRIs can also invest in NPS. There is no such lock-in period in NPS like PPF. It means that one can save money until the age of 60. If you want to extend it more, you can do it for up to 70 years.

Which one to choose: PPF or NPS

It is very difficult to state only one investment option between these two. PPF and NPS are two different types of investment options. So, a direct comparison between these two is almost impossible. But you can judge some key factors of these investment options for choosing the appropriate one. Here is a brief discussion on the same.

Security and safety of investment

It is essential to have a safe investment. And you will never want to lose your hard-earned money in the name of investment. PPF is a low-risk investment option. Here the return is moderate. The interest rate evolves around 8%. So, for secured financing, you can always try PPF.

NPS is a market-linked retirement investment. The returns you get, it comes based on the activities of pension fund managers. But you can change managers as a result of dissatisfaction. The risk factor is low to moderate for NPS.

Investment returns

In the case of returns, PPF provides an average rate. It is around 7% to 8%. So, PPF is like a fixed investment and saving option. There is nothing unexpected in the case of return and risk. And NPS returns act as per the performances of the NPS Funds. You can get up to 75% allocation to equity with NPS. There are many pension funds in India offering high returns like SBI Pension Funds Pvt. Ltd, HDFC Pension Management Co. Ltd., and UTI Retirement Solutions Ltd. You can also choose some other pension funds. The performances of these funds keep fluctuating with the market condition.

Withdrawal and liquidity

PPF has tenure of 15 years for continual investment. And you can withdraw the partial amount after five years of investment or account opening. As there is a lock-in period in PPF account, the liquidity of the invested amount is almost none.

NPS account allows you to withdraw money after three years of account opening. But in terms of liquidity, it is also not much liberal. You can withdraw money only for specific issues like house building, marriage, etc.

There are lots of terms and conditions in both PPF account and NPS account for the withdrawal of money.

Tax benefits

PPF account has lots of tax exemption opportunities. You can enjoy tax deduction benefits under the section of 80c of Income Tax Act, 1961 with PPF.

You can enjoy a tax deduction up to one and a half lakh only. And you can also enjoy an additional tax deduction benefit under Section 80 CCD (1B) for NPS account. After maturity, 40% of the amount will be tax-free.

Final take

Both of the investment options are useful for long term investment. And PPF has a lesser risk than any financial plan. But if you focus on the retirement plan, you can opt for NPS. It will impart higher benefits. And you can enjoy your pension after the age of 60. So, overall, NPS is a pension fund dependent investment plan. And the return might fluctuate with market status. If you do not have any issue with such fluctuation, you can choose NPS over PPF for a higher retirement benefit.

PPF means Public Provident Fund. And SIP is a Systematic Investment Plan. So, before starting with any of these two, you must learn about the details. These two investments are related to long term financial goals. And if you are planning for an investment of fifteen years, you should compare these two.

Here is a comparison of PPF and SIP. Go through it to avoid some common mistakes people make while investing.

What is PPF or Public Provident Fund?

Public Provident Fund (PPF) is an investment scheme for savings by the Indian government. PPF is preferable to start with a fixed savings option. One can open the PPF account with the Post office or any reputed bank. The government of India introduced PPF to Indians in 1968 with the Public Provident Fund Act. It allows an investor to save for a tenure of 15 years. The minimum amount is like Rs. 500 per year. And an investor can save up to Rs. 1,50,000 per year.

What is SIP or Systematic Investment Plan?

You can invest in mutual funds through a Systematic Investment Plan. A SIP allows you to get some mutual fund units. So, you will not get harmed even when the value or price goes down. And here you can save a small amount at a specified interval of time. SIP is a market-linked investment option. The tenure has some time slots. It is like six months, one year, five years, ten years, 15 years, and even 20 years. There is no such lock-in period in SIP apart from ELSS.

A comparison of 15 years tenure of PPF and Mutual fund SIP

There are some factors in the basis of which we can calculate the benefits from both. These factors are:

Security and safety of investment

PPF is a low-risk investment option. The government regulates the interest rate of PPF. So, for a long run investment, PPF will be a risk-free savings mode.

SIP in mutual funds is a market-linked investment option. So, it cannot be as risk-free as PPF is. But some authentic mutual funds are excellent choices for a high return. Investment through SIP can ensure reducing market risk. But it cannot deny the risk at all.

Returns and benefits after investment

The interest rate of PPF fluctuates around 8% per annum. But it still promises an average return of your savings after 15 years. Here, you will get an assurance of benefits. You can opt for the PPF calculator online for calculating the amount you will get after 15years or more.

SIP in mutual funds also allows the investor to check with an online calculator. And SIP return rate is a bit high in comparison to PPF interest. But the interest rate is market-linked. But if you are a risk-taker, you can go for SIP for a more elevated amount of benefit.

The facility of liquidity

PPF has a lock-in period of 15 years. And you cannot break it like open-ended saving schemes. But you can take loans if you need based on your PPF deposit. You can make a  partial withdrawal of deposited money after five years of opening a PPF account.

SIP in mutual funds allows you to redeem invested amount even within a year of investment. But they charge a penalty for that. It is not valid only for close-ended funds. But you can always take a loan against the amount. But the interest rate for such loans is higher.

Tax benefits

PPF allows a tax deduction benefit up to Rs. 1.5 Lakh. It is under the section 80c of the Income Tax Act, 1961.

SIP in mutual funds redeems the earlier units first. Then the wealth gain amount gets taxation accordingly. They follow a First In First Out Principle.

Bottom line

If you are aiming for a low-risk investment option, PPF is a better choice. In comparison to SIP in mutual funds, PPF enables you to enjoy a tax-free life. But in terms of higher monetary benefits, SIP might be a better option if you ignore some market risks. But still, PPF occupies the first place in terms of the safety of investment for a longer period.

What is VPF?

VPF is a Voluntary Provident Fund. An employee can build such a provident fund with the preferred amount of contribution. VPF is also known as the Voluntary Retirement Fund. VPF is an investment option for saving. The investor can decide the amount, and it is quite flexible.

Some important facts about VPF

• VPF or Voluntary Provident Fund is a monthly savings scheme. Just like other savings schemes, it has an interest rate.
• The rate of interest is 8.65% per annum.
• VPF is a secure investment option with low-risk. And it is also easily transferable as per the change of the job.

Who can invest in VPF?

People who get salaries every month get a chance to start with an investment in VPF. So, you must be a salaried person for getting eligibility for investing in VPF.

Why do you need to invest in VPF?

VPF account provides many benefits to the investor. Employees will get tax benefits. And it is a popular finance scheme for in-service people planning for their retirement. The benefits of VPF are here:

Safe and secure

VPF is a low-risk investment option. It has a back of the government of India. As there is a little risk, almost every employee wants to invest in it.

Lucrative rate of interest

The rate of interest is 8.65% per annum in VPF. This rate is in the year 2019. In the financial year 2018-2019, it was a little lower. It was 8.55% per annum. So, the rate is increasing every year. And, once you start investing here, you will never regret it.

Easy processing

Opening a VPF account is quite simple. You need to ask your employer finance department to open a VPF account. And if you already have an Employee Provident Fund (EPF) account, this can also work as a VPF account.

Easy Transfer

The account of VPF is easily transferable. If you change the job, you can transfer the account, as well. Only there are some simple steps to follow for switching accounts.

Tax benefits to avail with a VPF account

A VPF account comes under section 80c of the Income Tax Act, 1961. You will get tax benefit up to Rs. 1.5 lakh with a VPF account.

Money withdrawal from a VPF account

You can withdraw money from a VPF account for emergency needs. But you must avail of this benefit after submitting Form-31. You need to provide some details, also like your PF number, bank details, and full address. You might also have to attach a cancelled cheque.

What is the difference between EPF, PPF, and VPF?

Who can avail?

Any Indian can open a PPF account if he or she is an Indian. But only an employed Indian can avail EPF and VPF account.

Interest rate

PPF interest rate is around 8% per annum. And EPF interest is 8.75% per annum. VPF interest is also the same as EPF.

Duration of investment

PPF is a long-term investment option. It has a lock-in period of 15 years. But for EPF and VPF, the tenure is up to retirement. And if one resigns, the duration will complete till the working period.

Tax benefits

There is no tax deduction on the maturity amount of either of the account. So, with PPF, VPF, and EPF, you get a lot of tax benefits.

Withdrawal

After five years of opening a PPF account, you can withdraw 50% of the investment. And for EPF and VPF, the withdrawals are partial. But there is no such lock-in period of EPF and VPF like a PPF account.

Final note

PPF is an entirely different type of investment option. And you need not be a salaried person to open a PPF account. VPF and EPF have lots of similarities in function. And only an employed or salaried person can open VPF and EPF accounts. If you have an existing PPF account, you can open EPF or VPF account. There is no boundary for keeping even all three accounts (PPF, EPF, and VPF) if you are an employed person.

Moving to a new house is expensive, but there are ways to save money while you move.  If you plan out the relocation and be patient, you can keep yourself from being financially drained and stressed.

Through planning, you can also make sure that the things that are important to you don’t get left behind by opting for a reliable service like movers and other similar moving companies.

1.  Donate or sell things that aren’t important 

The fewer things you’ve to move, the less expensive the relocation is going to be. You should start unloading things that you don’t need weeks or even months before your actual move.

You’ll also find some things that were an expensive purchase, but you don’t require them in your new house. The best option would be to sell them, and the money that’s generated can be used to finance your move. You’ll also be able to get a fresh start at your new house.

2.  Find free boxes

You don’t need a lot of new cardboard boxes while moving. Why spend extra on something that is most of the times used during big moves. Before you splurge the cash on cardboard boxes, try to get as many free as you can; from neighbours, friends and relatives.

You can also visit local stores to look for any free boxes. Some people who’ve just moved also list their old boxes on websites like Craigslist, so you can get them from there and return them after your move is complete.

3.  Pack yourself

You may be tempted to hire someone for packing, but that will only lead to extra cost. Why not pack most of the things yourself? The early you start, the more things you can get packed before the moving day comes.

Inexpensive packing materials should be used wherever possible such as old newspapers. You’ll be able to unpack quickly after the move if you label the packages and place them for moving in an organized manner.

4.  Don’t neglect the post office

The post office can help you to save money for books and magazines. You can opt for this service when there are a lot of books, newspapers you want to keep and magazines in your house. The U.S. Postal service has reasonable rates for magazines and books.

The postal service will get the books and magazines at your new house pretty slowly, but it’ll save you a lot of money in the process.

5.  Get people you know ready for moving day

Try to round up friends, relatives and other people who would be willing to help on the moving day. You can start telling about the big day in advance, and if you can also agree to return the favour yourself later on.

Talk to the people you know weeks before, because if you do so in the end, they may not be able to find time instantly, but talking before can allow them to schedule other tasks for later than on your moving day.

Plan everything ahead of the moving day if you’re serious about saving money. Waiting for long to plan and make decisions can cost you in the form of having no help or the required equipment when the time comes.

I belong to a women’s networking group for entrepreneurs. We get together every few months to share ideas, experiences, vent… etc. It’s not a large group, but we always have exciting gatherings because most have completely different businesses and therefore, very different experiences. Some of the stories are priceless.

We recently had a brilliant woman join our team. After being a Financial Analyst for years, she decided that she was tired of trying to climb the corporate ladder and started a residential cleaning company. She’s very candid about her experiences, which I love, and goes into great detail about some of the challenges she faces every day. Because I’m nosy, I found her stories fascinating. The reality is that her stories are quite entertaining.

To solidify that even when we’re adults, we can still act like kids, one woman asked the question “cleaning toilets can’t be much fun, can it?” Her response…

“You know what fun is? Getting paid to clean them.”

Her business has been a success in less than a year. In the first seven months of being in business, she’s had such a steady stream of new clients that she’s already hired, 9 people. Her business is growing so fast that she’s had to turn away clients until she expands her team.

How many of us have ever had to turn away business in the first year?

Her days are hectic. Not only is she cleaning along with her staff, she’s also responsible for employee management, marketing, customer service and business development. She barely sleeps, and when I asked her how she does it, she said that in another five months, she’d be able to stop cleaning and focus on the operations of her business. She plans to hire another ten people at that time.

I was impressed.

Fast forward a few days – I have a friend who’s been looking for a job for close to 2 years now. Unfortunately, she chose a field that is quickly dying. She’s thought about starting a business but can’t quite decide what to do. Thinking she would be excited and inspired, I told her about the woman with the cleaning business and how well she’s doing

“I’m not that desperate” was her response. She was visibly grossed out.

It’s not about desperation; it’s about making money.

Don’t we all want to make money? I thought my friend would jump on this. This is one business where other than insurance, bonding and cleaning supplies, you don’t have to put much capital into getting started. But the stigma was too much for her to overcome, which is pretty sad.

Sure there is a lot of elbow grease that goes into every job, but if you’re making money,  isn’t it worth it? If I weren’t working on a side business already, I would honestly think about getting into this. Even doing it alone can bring in a decent side income.

My friend still doesn’t agree. She’s still trying to find business ideas.

Would you consider this type of business?
How do you feel about the stigma of cleaning someone home?

Years ago when I was starting my first job out of school, I got the worst piece of money advice from my boss.

“Charge something big on your credit card to motivate you to make your sales quota.”

Horrible advice!

It was great for my boss because it meant that I made her more money, but worthless to me because it meant that instead of making money I was just breaking even because my income would go right to paying off my credit card.

I didn’t take her advice. But I remember a girl who took it and ran with it.

Her first week on the job, she bought a $4000 purse. That’s 20% of a decent down payment on a home and she spent it on a PURSE!

She sat in the cubicle next to me and I can remember how desperate she sounded talking to potential clients. Desperate to land a big client in the hopes of paying off her useless debt. Clients don’t respond to desperation and the less they responded to her, the more she pestered them.

She never did make her sales quota and was let go within two months. The only thing she gained from that job was stress of having to pay back her debt.

This is an example on a small scale, but a problem I see with new college graduates. They get their first job and go from make $8 an hour at a part-time job to $40,000 a year and go crazy! They rent expensive apartments, buy new cars and max out their credit cards.

With the ‘last in, first out’ lay-off approach and our economy the way it is, new grads are usually the first to go and they’re left with consumer debt they piled on assuming they’d have this job for a few years.

Some are smart enough to sell some of their new purchases (at a loss) to pay off their debt, but most are now used to living beyond their means and…

The life of debt is born.

I made these mistakes myself. The more money I made, the more I spent attempting to keep up a lifestyle rather than plan for the future and ended up with a $34,00 debt and very little to show for it .

If I could go back, here’s what I would do to save more money as a new grad:

1. Live at home for another year or two

We all want our freedom when we get our first jobs, but the ones who are most free are the ones who continue to live at home at almost no cost for a few more years and save their money so that when they are ready to move out, they’re not strangled by debt.

2. Start an emergency fund

Lay offs, accidents and all kinds of unexpected things happen all the time.  I didn’t start an emergency fund until I was 30 and I regret this. Even if I had saved $100 a month when I was 25, it would have turned into $6000 by 30.

3. Start paying student loans ASAP

I have friends who are paying their student loans into their late 30′s because they’ve been making tiny payments or deferred them as long as they can. By this age, they have mortgages, insurance and kids to pay for. Why include a student loan as well?

Some suggest not paying your student loan and investing instead. I disagree. You don’t know what will happen with your investments. You could easily lose most of that money.

4. Don’t use more than one credit card

This is the time that most people acquire credit card debt. Using 3 or 4 credit cards and paying the minimum on each is a sure way to create a nightmare. Instead, stick to one card and pay it off every month.

5. Save, save, save

This is the easiest time to save money, especially if you’re living at home. Saving money now doesn’t only create excellent money habits, but it prepares you for a much better life in the future. If you’re living at home and making a decent income, there’s no reason not to save half of your monthly income.

These days, it seems like it’s getting worse and students are piling on debt even before graduation. In 2005, 69% of first year students had no debt, today that number is less than 15%.

Based on my own experience and what I see new grads do, I know we’re not adequately prepared upon graduation. We’re taught how to find jobs and identify careers we’d like to pursue, but not how to manage money and as a result, most of us start out with pesky debt.

What did you do right or wrong as a new grad?

We all want to save money but our tight budget and too many expenses are not allowing us to do but once you have started to take action in the right direction, you can save a good amount of money each day. Yes! Righty heard you can save money daily.

You don’t need to take bold actions for that but all you have to do look carefully your daily money outflow and start managing or cutting down expenses.

I have some money-saving tips which will surely help you to save money from your day to day activities, they all are incredibly simple to follow and if you start implementing few of the tips from these, you will see a good difference:

1. Set Saving Goals: One can achieve something once he makes a goal. Thinking about saving is a part of our life but setting goals to set aside a small amount actually in a day will help you to achieve your goal. For instance, if you can save let say Rs. 500 per day, then you have a saving of Rs. 15,000 in a month and approx Rs. 1,80,000 in a year.

Wait, the saving is not ending here. Now, think to double it. Yes, invest your savings now in FDs, SIPs, etc. This will ultimately help you to save a good amount of money.

2. Benefit of Cash backs and discounts: Before making any purchase, compare the prices of different sites, look for the benefit of maximum cashback every month you can avail. For making bills payments also, there are various sites like Paytm, Freecharge, Phonepay, etc.which gives you discounts on every month’s payments and additional cashback also.

Similarly, if you use a credit card then you can avail the benefit of Interest-Free EMI also when some companies offer zero interest EMI in the peak shopping season.

3. Investment plans: Investment in different instruments is one of the best alternatives to invest and save your money along with getting a good return. It’s always good to diversify your investments with higher return plans.

People generally limit their investment in saving account and Insurance-linked plans but there are other options which give you much higher return when you distribute your money in Fixed Deposits, PPF, Bonds, ELSS, Mutual Funds and Equity Market.

4. Curbing your spending: Cutting off your expenditure is a mostly heard option to save money which is possible with a good financial budget only, but we are too lazy to spend our time in making a budget and free enough to spend without thinking about savings.

You just need to keep a track of daily expenses like rent, travel, education, shopping, Bills, etc. and start cutting off your unnecessary spending. Next month again you can use the same revised budget.

5. Prepayment of Loans: Mostly families are under the debt of personal or home loans, which is a financial burden on them to repay. Prepayment of loans can help you to save a huge amount of interest. Prepayment will only give you the benefit of early disposing of your loan but also various tax saving options.

Make a good plan with the help of your lender to repay your loan and take advantage of saving interest.

6. High-Interest Savings Accounts: Having a saving account is common for each individual now but having an account offering higher interest and other benefits is still a lack of understanding for a few people.

Most people look about the minimum balance or zero balance saving accounts but they offer low interest. It is recommendable to compare the interest rates while opening a bank account as various banks offer a good rate of interest.

We all are aware that saving money is a priority rather than spending it but failed to get good ways to save money to secure our future or to deal with some emergencies. On average a person can save 25% of their earnings without disturbing their routine life. Now, it’s your time to check how much you can save by following the above simple and practical ways.

In the era of technology, if we talk about social media, academic, personal development, young people are well prepared in advance, but what about financially?

Are they fit and prepared financially for securing their life in the future or after retirement? We all know about the day to day expenses to be incurred, it can be college fees, education loans, or how can someone forget about online shopping and Entertainment?

Yes, I’m talking about personal Finance responsibility. It’s your turn to secure your future by making yourself financially independent while taking other duties.

Now, the question arises from where you can get all the excellent advice when it comes to your finance so that you don’t end up with the middle age.

Here is some best financial advice for young people to follow to become financially independent without relying on anyone else.

1. Keep money inflow and outflow track: People don’t like to keep records of their earning and spending but keep looking for the options to save money. You must be aware where you are spending your money and is it worth to spend it or save it?

For keeping a track, monthly budgets are always recommendable. Everyone is addicted to smartphones now, and you can take benefit of creating a checklist of daily expenses and Income by using any app. It will also generate interest and encouragement when you start saving form your salary.

2. Start Investing: Following Investing advice at a young age is the best advice. If you haven’t yet started to invest, you are making the biggest mistake of life. Only the problem is people afraid to take the risk, but this risk is worthy of taking at a young age. Investment is something creating money out of your own money without making efforts.

Depending upon your choice, you can invest in the long term, medium or short term plans to diversify your investment for availing the maximum benefit.

There are many investment plans like Mutual Funds, SIPs, Equity instruments (stock), etc. which will help them again to manage their finance and the get maximum benefits not only in terms of money but also availing many other offers of discounts, higher rate interest benefits, tax saving, etc.

3. Buying a Home: At your young age, you can make a plan to buy your home and avoid paying higher rents and shifting from one locality to another. Surveys also revealed that 15% of the young generation said buying house is the best financial decision they have ever taken.

It is also the best investment plan as renting out a part of the property can bring an extra source of income. Investing in real estate now and sell it in the future will let you enjoy an unbelievable amount of profits.

4. Earn extra with the Internet: Risky !! One should be aware while earning the income online as there is no doubt that scams held, but a proper research about making from online can surely help you to earn and learn more like with the help of freelancing work, selling an E-books, Teaching online, etc are few of the reliable work you can do to earn extra income in your idle time.
5. Take care of Health: You must have heard “Health is Wealth” but how many of you are taking care of it? The fact is that taking care of your physical health will help to save you a lot of money over time. You won’t have to pay high premiums on your health and life insurance.
6. Retirement Savings: Make sure to have enough savings to live your life after retirement. After a stage, you are somehow not much capable of earning as much as you are earning now. You need to prepare your retirement in advance.
7. Prepare Emergency Fund: The future is unsustainable, so the emergencies are! It’s always a good idea to have an emergency fund for some medical issues or sudden huge expenditures than to run for a loan and create a financial burden of paying EMIs. An emergency fund will help you to come out of the problems smoothly without being stuck in a bad situation for a long time.