Get rich by following these amazing investment strategies
Abraham Maslow in his paper “A theory of Human Motivation” mentions psychological and safety needs as the top priorities of every human being. In a deeper aspect it points to the importance of financial stability and how crucial it is to manage your finances and save for accomplishing future goals without any hiccups. No wonder, everyone knows about that but nobody cares. Until you reach that level in your life where you become 40 years old, investments and savings don’t pop up on your thoughts. Apparently, it’s due to the layer of glamour at your young age, you tend to focus less on tense terms like finance and want to just cut free and enjoy to the fullest.
However, nature doesn’t work that way and time changes, changing you as well in that course. Therefore, while you are in your early 20s, start making financial plans, make sure to invest regularly and save on monthly basis so that you can relax after you hit your 40th birthday. And, you can plan your finances and save for future without even compromising on your present aspirations.
Here’s how to do that:
Tax saving investments
No matter you are working or about to join a company, make sure to understand and know about your tax liability. This is the way you can avail advantage of tax deductions available under the Section 80C of Income Tax Act. Working professionals can not only lessen their tax charges but also do more savings to invest for future goals through appropriate tax planning. Equity-linked saving schemes are one of the best ways for saving tax wherein an investor can avail deduction of Rs 1.50 Lakh in tax for a financial year.
Investment for emergency cases
Life is a bag of surprises, sometimes sweet and sour on some days. You cannot see some unfortunate events coming your way. God forbid, such events should never take place, however, you should stay prepared any situation in your life. In such cases, your earnings may get hampered and may lead to heavy losses. In order to overcome such situations, you should invest and save regularly for future. It is strongly recommended to plan a contingency corpus (emergency investment), which is similar to at-least 6 months cover of living expenses. This may help you in your bad times and give you the time to recover. Remember that your emergency fund should be safe and liquid in nature for easy accessibility at a short notice. You can even opt for ultra-short mutual funds that are more tax efficient in nature.
Long-term investment Goals
Long-term investments are very important keeping in mind the factors such as buying a house, marriage, starting a new company, retirement, child education and so on. These events don’t happen at one go and need advance planning and financial stability before taking an action. Therefore, make sure to plan your savings and start SIPs (Systemic Investment Plan) in mutual funds. But, make sure to start investing quite early to avail the benefits from the power of compound interests. Equity mutual funds which are inclined towards growth are ideal for long-term of investment. It will cost you nothing to start investing Rs. 1000 or 2000 monthly to understand its value after a while when you can easily complete your future goals.
Short-term investment plan
It’s common and good to have aspiration without which a human life has no value. So, now that you you have decided to buy a new car or go for a long vacation, you should focus on short-term investments in such cases. Therefore, start investing your funds in liquid or arbitrage mutual funds. Refrain from opting savings account as they are not as efficient as mutual funds. Mutual funds guarantee healthier returns and are tax-savvy. So, start with ultra-short term funds, which can be withdrawn in a short span of time when needed.
Health and life-cover investment
Health and life-cover investment are not investment precisely as they are a necessity. The kind of modern lifestyle we follow, health and life-cover investment is a must. There’s no guarantee that you may stay fit and healthy life long (hop, you should), so, better to cover the risk with health plans to help you when you need it most. Therefore, start looking for various health plans and choose the one that suits you the most according to your priorities.
Now that you have got a fair idea of how to start your invest plans and cover your future risks, please share this article to your friends and relatives to spread the news. Further, feel free to comment below in case you need to find more help in regard to a smart investment plan. We are always open to feedbacks and comments.