Reema and Ashish were excited about their 3rd wedding anniversary.
Since their past two anniversaries, they followed two things as a regime.
The first one – taking a break from work and spending time with each other while the second one – taking a resolution that would be beneficial for both of them. When it came to planning for a resolution health and fitness were evergreen themes with most common resolutions seeming to be around diet, regular exercise etc. This was because good health is something that both cherished to a great extent.
But this time Reema thought their resolution should be slightly different. While fitness when it comes to being healthy was her primary thought but she also realized that financial fitness also plays an integral part of overall fitness. After all, if finances are in good shape, logically they both will be relatively stress-free, which in itself will increase their well-being.
Reema spoke to Ashish about her idea of this unique resolution which they can make together. Ashish supported her and asked her to list down the things take can help them achieve financial fitness. Reema immediately started her research and she began listing down a few important points that can help them fulfill their resolution together;
- List down goals: We need to list down our future goals like a vacation, buying a new car, new home and so on. Once we list them down we would be able to estimate the wealth we would require in the future to achieve these goals.
- Set defined timelines: It is important to set timelines for each financial goal and keep a track on the investments aligned to meet those goals. Review this investment every year to see any modifications are needed.
- Review life cover: We need to analyze if our life cover and health insurance cover is appropriate as per our responsibilities, life stage and the growing rate of inflation. An adequate life cover should be at least 10 times more than our annual income.
- Plan for taxes: Planning for taxes will help in making a right choice. We need to choose different investment options so that we can save tax effectively and also accumulate wealth for our financial goals.
- Building a retirement corpus: We need to start saving for our retirement as early as possible. The power of compounding works well in the long-term. If we start late, we may have less money during our sunset years. We can consider the new age ULIP that is Edelweiss Tokio Life Wealth Plus to fulfill our retirement goals. It is known as an unyakeenable plan as this is an investment plan where the company will also invest with us in the form of additional allocations which will grow at regular intervals. The fund options available are all high rated funds and we can switch between these funds as per our risk appetite and the market’s performance without any charges. This plan will also help us save tax as it provides tax benefit on both premiums paid and returns received.
When Ashish read all the points, he was confident and proud about Reema’s decision to make a challenging financial resolution. They both considered this approach towards financial fitness so that they could be more disciplined and organized when it came to planning for their future financial goals.
Do you have a strategy just like Reema and Ashish to meet your financial goals? If no, then how about using this approach to attain financial stability in the future and live a stress-free life!