Gift Yourself Peace of Mind with These 5 Essential Financial Planning Tips

Financial Planning Can Help You Achieve Peace of Mind

Financial headaches are an unavoidable stress factor that almost every person faces in their day-to-day life. But instead of letting financial hurdles stress you out, the best course of action is to have a solid plan of action that can help you achieve your future goals. Don’t let your current financial situation put you down! Plan to grow your wealth so that you and your loved ones can fulfil all your dreams.

Proper financial planning can truly help you achieve peace of mind and can drastically reduce the stress you go through in your day-to-day life.

The Role of Financial Planning in Your Life

Financial planning enables you to build a roadmap to fulfilling short-term and long-term life goals. For instance, you can grow your savings systematically with a unit-linked plan. Alternatively, you can opt for the best investment plan that can give you higher returns on maturity.

You can choose investment plans that suit your goals, but there are some key financial tips that you must remember before you begin:

Invest for Your Future

We all have big dreams. However, we should also be prepared to work hard so that we can fulfil them. One of the most common financial worries is the fear of not having the savings required for future goals. Saving for your child’s education, a wedding, or your retirement is not an easy process.

The best way to stop worrying about the future is to start investing for it as soon as possible! It’s wise to invest in high-yield investment options such as ULIPs and endowment plans early in life, so that you have a sizable savings corpus later down the line.

Gear-up for Emergencies

A financial emergency could include loss of job, a medical emergency, or a pandemic like 2020’s COVID-19 crisis. For such crucial times, make sure that you have enough funds to sail out of troubled waters. Start building your emergency funds right away without waiting for trouble to come knocking. Allocate money for your emergency savings so that you get peace of mind even during a crisis.

Insure Your Life

Ensure financial protection through a life insurance plan. It is advisable that you check out all the types of life insurance plans available and choose the one that suits you. If you invest in a term life insurance, you can ensure financial protection for your family at affordable premiums.

Avoid Loans amidst Crises

Juggling between too many EMIs may already be a hindrance to your financial planning. So, it’s better to not opt for any new loans during crisis moments. A loan to fulfil your short-term plans may be tempting, but resistance and patience is the key. It is generally advisable to first pay-off your existing loans. Plus, paying off your debts will also reduce your financial stress.

Some insurance plans also allow you to get a loan on policy that has fair interest rates. Policy loans are a great way to get some quick emergency funds without having to worry about bank approvals or collateral. The only collateral for a policy loan is the policy’s sum assured, and failure to pay back the loan will only terminate the policy without any further repercussions. With Edelweiss Tokio Life- Premier Guaranteed STAR, you can avail of a policy loan in case of any financial crisis.

Choose Tax-Saving Schemes

There are multiple provisions available in the Income Tax Act that help you save your taxes. Seeing your hard-earned salary being deducted can be quite stressful, especially during a financial crisis!

Insurance plans come with the added benefit of numerous tax deductions under Section 80C and 10(10D) of the Income Tax Act. Section 80C provides tax deductions of up to ₹1.5 lakhs for all premiums paid towards a life insurance plan. Moreover, Section 10(10D) provides tax exemptions for death benefit on all insurance plans, and even the maturity benefit can be tax exempt if your policy qualifies under the terms & conditions.

Peace of Mind Through Financial Safety!

Yoga and meditation may be popular ways of gaining peace of mind, but financial planning can be just as effective! Follow the five financial tips mentioned above and to avoided felling stressed and helpless during financial hardship!

 

Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.