I. FD’s are the Best Investments
Post Demonetisation Banks have reduced their deposit rates. Following which Fixed Deposits now are not an attractive debt investment option.
Moreover, If you fall in 30% Tax Bracket then the return which you will earn from your FD will fall further.
II. Time the Markets
They Say, Time and Tide waits for none. Well, you can say the same for equity markets as well. So, don’t try to time the market, stay invested for the long term.
*Sensex moved from 26595 to 34056 in the year 2017
III. Save only during Tax saving season
As Benjamin Franklin rightly said, “You may delay, but time will not.”
You should not save only in the Tax saving season, you should invest systematically with discipline at regular intervals. This way you can average out your returns.
IV. Rely on your Company Health Insurance
Most of us don’t take Personal Health Plan, thinking that our Company covers us. But have we ever thought of a scenario when we are out of job, or when we are old and retired with some ailment AND WITHOUT ANY HEALTH INSURANCE because no one will insure us in our old days.
V. Not having a Consolidated Portfolio
We get so unorganized with our finances, we keep one document in one cupboard and another would be lying somewhere in the drawer. Worst of it, we have our mutual funds in different demat accounts which makes it impossible to consolidate the portfolio.
One should have a consolidated portfolio to see the correct picture.