Hi Readers,
If this is the first year of your job and you have not yet started planning your savings then you could end up paying a good amount at your tax. Yes, if your salary falls on to large bracket, you need to pay tax anyway. However, you need to start saving so that you could reduce the tax amount.
1- Firstly,I would suggest to take up insurance policy. However, do not place all your money that you want to invest in insurance in just one policy. Try investing in multiple policies. This way the premium that you need to pay each year would be distributed and in case you could not pay the premium at some point, then you have option to close one policy and run the other.
Some people go for policy that would require to pay a large amount at one time. But, this is not good planning. If you could not manage to pay the premium at that time, then their is risk of becoming defaulter. So, the best way would be to distribute the total premium into different months and take up more than one policy.
2- Secondly, I would suggest you to open up a Recurring deposit with your bank. This way every month the bank will deduct the specified amount from your salary account. Even though the amount saved in RD account is less it would compound and give a good return at the end. The interest on RD is same as the fixed deposit. So, this is best way to save in RD than in your saving account.
3- If you have education loan. Then start repaying the same. Try to complete the same as early as possible.
Most parents in India do not allow their children to handle their own money at the beginning of their job. They would suggest you not to spend from your salary account, instead would give pocket money on the account that they had opened for you. But, I would suggest you to handle your money. The sooner you start managing money the sooner you learn the techniques.
In my next post I would dedicate it to girls and boys, who are interested in financing their own marriage.
Stay tuned.
If this is the first year of your job and you have not yet started planning your savings then you could end up paying a good amount at your tax. Yes, if your salary falls on to large bracket, you need to pay tax anyway. However, you need to start saving so that you could reduce the tax amount.
1- Firstly,I would suggest to take up insurance policy. However, do not place all your money that you want to invest in insurance in just one policy. Try investing in multiple policies. This way the premium that you need to pay each year would be distributed and in case you could not pay the premium at some point, then you have option to close one policy and run the other.
Some people go for policy that would require to pay a large amount at one time. But, this is not good planning. If you could not manage to pay the premium at that time, then their is risk of becoming defaulter. So, the best way would be to distribute the total premium into different months and take up more than one policy.
2- Secondly, I would suggest you to open up a Recurring deposit with your bank. This way every month the bank will deduct the specified amount from your salary account. Even though the amount saved in RD account is less it would compound and give a good return at the end. The interest on RD is same as the fixed deposit. So, this is best way to save in RD than in your saving account.
3- If you have education loan. Then start repaying the same. Try to complete the same as early as possible.
Most parents in India do not allow their children to handle their own money at the beginning of their job. They would suggest you not to spend from your salary account, instead would give pocket money on the account that they had opened for you. But, I would suggest you to handle your money. The sooner you start managing money the sooner you learn the techniques.
In my next post I would dedicate it to girls and boys, who are interested in financing their own marriage.
Stay tuned.
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