Being an employee, thinking about work, assignments, an increment is natural, but you forget to invest your saving in a proper fruitful way, which causes a loss in your return of income. In this article, we will discuss the best financial planning for a salaried employee.
The Important step towards building your portfolio is to understand how to save money in India.
Employee investment mistakes are seen for almost 100% employee nowadays. Learning a comprehensive guide on investment of money.
The question is:
How to save salary in India?
Saving Salary allows you to invest money for long term wealth creation. You are already very much talented to just implement basis rules and get rid of investment mistakes and activate another source of income.
Always have a salary saving plan!
The main purpose of wealth creation is an Emergency Fund and Retirement Fund.
- Retirement Fund:- The fund which supports you in your old age when there is no job and strength to work.
- Emergency Fund:- Under this category, it is that fund which takes car of unforeseen future expenses, such as a medical emergency.
We are trying to highlight the strategies for investment segments.
Here are some of the financial technics which was usually Ignore-
Prepare your Income statement
Making a note of your income helps you to remember the sum of an amount you earn on the weekly or monthly basis. usually, you are very much busy with your daily schedule and also unable to remember the amount of income.
Also read: What is Form 15G Form 15H?
The biggest mistake the employee made while investing is ‘Investing without planning’ investing in a fruitful platform provides a better return on your portfolio.
Fake Investment Tips
Fake investment tips are floating on the market which shows glittering results, most of the employees attract and invest their savings in it, and the consequences are a big loss.
Although a high paid Employee doesn’t get any difference with it, it will mark a spot on your investments.
Investments are directly related to two things.
- Boost your Portfolio (Savings)
- Accomplishment of Aim
There are tons of platform available on the market- Equity, Mutual Funds, Bonds, Fixed Deposit, Insurance Policy, and every category gots another subcategory.
Fund diversification is one of the employee investment mistakes which drives the portfolio on rough roads.
You must distribute the funds in the different available platform with different requirements.
Keeping money in Saving Account
Employee investment mistakes also include keeping money in a savings account, which will provide a nominal interest of 6 % in India.
You always go with fixed deposits or recurring deposits to get better returns more than saving accounts.
Taking Benefits of Tax saving Opinions
Being a high taxpayer, you must aware of the Tax benefits options and you will have to avail the benefits to get rid of high taxes, which will reduce the weight of your pocket.
In recent day most of the employee is not aware of those things.
Always use a piggy bank
When I was a kid I always use to keep the changes in my piggy bank, when the amount is healthy I use to buy a cricket bat, ball or anything keep me happy.
And now today also:
I keep the changes in the same piggy bank and when the amount becomes health, I use to put the whole amount in SIP.
These strategies also help “how to save money from salary in India”.
For more details, you must refer https://financialcontrol.in/understand-tax-saving-options/
Although, every employee nowadays having EMI’s of their Home Loans, Car Loans, Education Loans, Retirement Planning etc. Seeking Good, and avoiding Financial mistakes will help you earn and also that part will get your EMI’s reduced.