As you grow old, you experience different life stages. You graduate, start working, become financially independent, you buy a home, you progress in your career, you get married, have children, get your children married, retire, and so on. Each stage has its own financial needs. When you are young, you have fewer responsibilities. However, as you advance in life, your financial responsibilities increase, requiring you to plan well for your future. Sound planning and smart investments like the best regular income plans can help you boost your financial growth, enabling you to be assured of your future financial security.
Measures to improve your financial health and safeguard your future:
- Set financial goals: Before you begin your financial planning journey, it is important to precisely understand your financial goals. Once you know why you are saving your hard-earned money, it will be better to create a plan to achieve the target. However, you must be specific about your objectives and set realistic goals. Moreover, ensure to factor in inflation in your aim and set a specific tenure of achieving the targets.
- Create a budget: The most critical measure to improve your financial health is to stay within a budget. Your budget should adequately fulfil the needs of the present while also help you save enough for the future. You should create a budget keeping in mind factors such as your current income, liabilities, expenses, dependents, etc. Keep a strict tab of your expenses and aim to minimise the non-discretionary expenses as much as possible. Remember, even if you save a small amount every month, it can be a large sum in the long run. Further, as you move up the financial ladder, increase your savings rate.
- Manage your debts: Debts can cause a significant hurdle in your financial growth. The higher the amount of debt, the less efficient will be your financial progress. Aim to eliminate or reduce as much of your liabilities as possible. For instance, you could pay off a high-interest loan first and faster than any other debt. You could skip using your credit card to avoid the piling of bills. Also, pay off your debt by bridging the income gap and saving more.
- Optimise taxes: Taxes reduce your savings and ultimately impact your financial growth. You can minimise your tax liabilities by using efficient tax planning strategies such as investing in tax-friendly options like insurance, regular income plan, etc. Opting for tax-saving investments can help you save for the future while also increase your disposable income in the present by reducing your tax liabilities.
- Invest wisely: It is a good thing to budget and save your money. However, it is more critical to invest your savings in the right manner to allow your corpus to grow and fulfil your needs. Investing for income is a great way to increase your financial worth, provided you select the right instruments. You should choose investments that best match your needs, financial goals, risk ability, age, income, expenses and other variables. Experts suggest maintaining an optimal balance portfolio. Ideally, you should invest in high rewarding stocks, reliable bonds, as well as guaranteed income return options like insurance policies, income builder plans, etc.
The best kind of investments are ones that offer competitive features, dual benefits and assured income. Investing in an online income builder plan is a smart choice to make in this regard. Income builder plans are fixed-income instruments that provide you with the dual benefit of a guaranteed income and insurance along with tax benefits. The insurance cover can protect your family, while the income component gives your assured payouts enabling you to fulfil your goals like paying for your child’s education, buying a home, retirement planning, etc.
After you create and execute your plan for financial growth, you must review it timely. Revaluate your plan at least once a year or after a big life change such as a significant change in income, job switch, getting married, having a baby, getting divorced, buying a home, etc. Moreover, in case you change your financial goals, you should review your financial plan to align it with your objectives.
Edelweiss Tokio Life Insurance Income Builder Plan
With the Edelweiss Tokio Life Income Builder Plan, you can protect your family’s financial future through life insurance cover and also get a guaranteed second income to fulfil your expected and unexpected expenses. This guaranteed income plan from Edelweiss Tokio Life takes care of your financial security and also helps you accumulate wealth.
Here are some of the top features and benefits of this plan:
- Offers protection and regular income in the same plan.
- The choice to receive returns in the form of regular payouts or regular payouts and lump sum, as per your needs. You can choose the frequency of your regular income instalments – annually, semi-annually, quarterly and monthly.
- Option to fix a specific date to receive the regular payout. This can help you with paying your loan instalments, paying bills, etc.
- Freedom to pay your premiums in one go or pay through regular instalments at a frequency of your choice.
- Allows you to opt for a plan where your loved ones continue to receive the payouts during the payout term in case of your unfortunate demise or diagnosis of critical illness. This option will also waive future premiums, if any.
- Premiums paid for the plan are exempt under Section 80 (C) and the maturity benefit under Section 10(10D).
- Option to enhance your insurance cover through various riders like Accidental Total and Permanent Disability, Income Benefit Rider, Waiver of Premium Rider and Payor Waiver Benefit Rider.
Overall, regular income plans allow you to secure your loved ones and also fulfil goals like sponsoring higher education or the wedding of your child, supporting your retired parents, living a self-reliant retirement, etc. However, given so many regular monthly income plans in India, you must conduct in-depth research and choose a guaranteed income plan like the Edelweiss Tokio Income Builder Plan.
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