By submitting your proposed investment declarations in time, you could take home a higher pay every month.
With the new financial year well on its way, it is time to set your financial plan including investments for tax saving. Your employer plays a part in reminding you of the need to plan your taxes for the year and you would have received multiple reminder mails to submit your investment declaration for the year based on which your tax calculations would be made.
If you submit your proposed investment declarations for the year in time that are eligible for tax deductions, you get a higher take home pay.
Most employees use either of these two simple approaches to handle the situation. Either ignore the mails till the income tax deductions appear on their salary slip or fill in some random numbers – like Rs 1.5 lakh under section 80C and Rs 50,000 under the health insurance option.
Though human the resource department or payroll managers allow deviations between the proposed and actual investments, if you take a more calculated path, you can get a fair idea of your tax planning needs.
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Read our article: Five things you should have in mind while making your declaration.
Along with saving on taxes, you need to invest a part of your earnings for future. One of the best ways to save over a long period are Systematic Investment Plans (SIP) where you can invest part of your monthly savings, even in small amounts, to achieve your long-term financial goals over a period of time. SIP is a process through which you invest a certain amount in predetermined periods to create huge wealth. It is also one of the most recommended modes of investing in mutual funds.
Read our article: 8 benefits why you should adopt the SIP route.
If you are looking for guidance on handling your money, you can take cues from the ongoing Indian Premier leage (IPL). It can you to pace your investments to make a big corpus (runs in case of IPL), have a balanced portfolio (like a balanced team) or to dump your non-performing investment (dropping an out-of-form player).
Read our article: 10 investment planning tips you can take from IPL 2018
Your financial plan should also include sufficient liquidity to meet emergency requirements. Maintaining and saving money as an emergency fund is necessary for all earning individuals with dependents. The amount they save should be secured in a way that it can be accessed quickly to meet sudden demands such as paying household expenses, hospital bills, tuition fees, etc.
While starting to save money as an emergency fund, the first step is to understand how much funds are available, in what form, and how they can be accessed.
Read our article: Learn how much you should have in your emergency fund
Healthcare costs are rising. A few days of hospitalisation can create a serious dent on your finances. Having a good health insurance cover is a must. However, at times your insurance cover may prove to be inadequate. What do you do in such situations? There are good reasons to think beyond the cover bought by you or provided by your employer.Have you considered creating a separate healthcare fund?
Read our article: Why you must set aside money for a separate healthcare fund.
If you are buying property and opting for a home loan you will be required to deposit a collateral security to be able to secure against default in repayment. A common form of security is to deposit the property title deed with the bank until the loan is repaid. However, what happens if the bank loses the title deed and is unable to return it after the loan is repaid?
The Maharashtra State Consumer Disputes Redressal Commission recently penalised a foreign bank for losing the original sale deed of a property owner in Mulund, who was unable to sell the apartment in the absence of the documents.
Read our article: What happens if your lender loses your house documents and ways to cope with it.
Lastly, with summer holidays in schools and colleges around the corner, it is time to plan a family outing. But, do you have enough funds. Like many other financial goals, you need to plan for holidays to control expenses.
Read our article: Why and how you should set aside money to fund