What do you need to lead a comfortable life? We list the 4 essentials you need, and why you should buy them this year.
Every human being craves emotional and financial security. This explains why most people spend a better part of their lives working really hard. They wish to create fiscal stability for themselves and their loved ones. The desire for constant protection is quite strong, and you work hard for it.
To this end, let the year 2018 be the year that you ensure that this sense of security is with you and your loved ones always. We list the 4 most important things you should buy this year for financial stability in the future:
#1 A term plan.
Buying a term plan is the single most important purchase you will make in 2018. It solves many future problems in one fell stroke. There are a variety of term plans in India that adequately meet the purpose they were designed for: to protect your family in your absence. It is not meant to benefit you, but your loved ones when you are no longer present in their lives. They have a vested horizon of 20 to 30 years, and some of the best term plans in India in 2018 cost as little as Rs 17 per day in terms of premium payments. Besides, the sum assured is sufficiently high for your family’s future needs. So when you buy a term plan, you effectively buy future financial stability for your loved ones.
#2 A house of your own.
This one’s not as simple as buying a term plan, but it can be by dint of planning. Buying your own property should be one of the biggest priorities this year, purely because realty rates are so high. Realty rates reflect not just in houses for sale, but also houses on rent. Besides, the rent you pay every month is money that will never be returned to you, and the rental increases by 10% every year. Why not pay the same amount towards EMIs on a home loan instead? Start by assessing how much money you have saved up to make a down payment on a house. Meanwhile, you can check your home loan eligibility and approach your bank for a home loan to complete the purchase. Having your own house gives you the security of permanence – you never need to move again, and your house becomes your refuge till you decide to sell it for a better one.
#3 A good savings account.
Each person earns an income that must be used for the benefit of oneself and their loved ones. However, most people’s income is finished quite quickly by several competing expenses. This scenario makes it nearly impossible to set aside savings regularly. But saving money every month is an exercise in discipline and focus, and the trick lies in setting aside the savings the moment you receive your monthly salary or business income. Leaving the savings component for later results in you not saving any money at all! So the third purchase to make this year is a good savings account that offers a higher rate of interest than that offered by most banks. Some leading banks offer savings account interest between 6% and 7% – the higher the rate of interest, the more your savings fund earns every quarter.
#4 A good mutual fund.
Apart from saving money regularly, you need to make your money work for you even when you don’t. This simply means that you must invest it in a good instrument to augment it for the future. The best way to do this is to invest in a mutual fund, after consulting with a leading fund house or bank for the same. Picking a good mutual fund assures good returns on investment with reduced risk when you stay invested for a longer time. You can buy a SIP instead of investing a large sum of money upfront in the fund. Or you can buy a ULIP (Unit Linked Insurance Plan) from a leading insurance provider to get life protection as well as market-linked returns on investment.