How Are You Faring Financially?

By | December 17, 2020

Here’s a simple financial checklist to help you easily figure out if you’ve got your financial commitments in place. Read on.

How Are You Faring Financially?

Are you on top of your game when it comes to your finances?

As we are nearing the end of another year, it is time for us to review our financial standing. Wondering how to go about it? Well, here’s a simple financial checklist to help you easily figure out if you’ve got your financial commitments in place.

Have you checked out these offers on BankBazaar?

Investments And SIPs – Check?

For those of you who haven’t started investing yet, it isn’t late yet. Start today.

If you’ve already been investing, you may want to review your investments and probably increase your SIPs based on your income. It’s always great to have a mix of investments in your kitty. Different investment avenues available include equities, liquid funds, National Pension System (NPS), Fixed Deposits (FDs), Public Provident Fund (PPF), gold, real estate and more.

These investment products, although a few may not be without risks, can fetch you high returns and help you achieve your financial goals easily. Remember that returns and risk are directly proportional, i.e. the higher the returns, the higher will be the risk associated with the investment product.

Tax-Saver Investments – Check?

Why shell out a major chunk of your income towards taxes? There are a great deal of tax-saver investments available under Section 80C of the IT Act, such as five-year bank Fixed Deposits, Equity-linked Savings Schemes (ELSS), PPF, National Savings Certificate (NSC), Unit-linked Investment Plan (ULIP), Life Insurance and more.

While it is important to factor in safety, liquidity and returns when choosing your tax-saver investment products, you need to have a good understanding of how the returns you get from these investments get taxed. If returns are taxable, it can delay your long-term wealth creation plans to an extent.

Psst! ELSS investments can help you save up to Rs. 46,800 on taxes in a year. Plus, it comes with a short lock-in period of just three years. Give it a shot, will you?

Term Insurance – Check?

Like they all keep saying – life is indeed unpredictable. So, have your insured your life such that you family is financially supported in case (and God forbid!) something were to happen to you? Investing in a good Term Life Insurance cover can provide your family with the much-needed financial support in your absence. Just make sure you choose an adequate cover that will ensure your family is financially sorted.

Additional Reading: How to Choose The Right Life Insurance Policy

Health Insurance – Check?

Medical emergencies come unannounced. If you aren’t prepared for them, then you may have to part with a major chunk of your savings. And that’s not really good for your financial health. Here’s where Health Insurance comes into the picture.

No, unlike popular belief, Health Insurance isn’t just for the elderly folks. Rather it is a really good investment if you don’t want to spend all your life’s savings on unforeseen medical treatments. Plus, you get tax benefits too.

Additional Reading: Lesser-Known Features Of Health Insurance Plans That You Should Take Advantage Of

Looking to amp up your financial game in the coming year? You may want to check out what BankBazaar has to offer.

*First published in December 2019.
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