The new year is on a roll, and everyone is under pressure to raise money more than ever so that they start the year with better finances. With improved investments, you can expect a better 2020 with smooth cash flow, healthier financial health, and an opportunity to explore the best financial options.
It is essential to manage your finances for the growth of your business also. One needs to plan, organize, control, and monitor his or her investments and invest in a fixed deposit to achieve better finances. It is never late if you don’t know how to manage your finances then you start by following these ten steps. A bonus point will be to undertake the comparison of different bank interest rates for the investment plans.
Here are the top 3 tips to achieve better finances in 2020.
Review your retirement plan
The sooner you start planning your retirement, the more you can save for your retirement years. It is never too early to begin your retirement planning because you need to beat inflation in the long run.
ELSS - It is always better to start this kind of investment at an early age. The amount of money you spend on your youth will urge you to spend the same amount in your retirement years also. So, it would be best if you considered investing in a long term plan for your retirement. These tax saving mutual funds scheme can exempt you from tax deductions up to Rs. 1.5 lakhs as per sec 80 C of ‘Income Tax’ act. These high tolerance risk schemes can undoubtedly help you to save taxes in the long run.
FDs - There are many banking and non-banking financial companies that offer such fixed deposit options. Besides, there are fixed deposits for senior citizens as well. These kinds of FDs will help senior citizens to save money. Investing in fixed deposits schemes can help you to escalate your savings with stability.
Insurance plans - You save a certain amount from your earnings as your pension insurance plan. Apart from that, you can also look for pension plans that can give you a steady cash flow in your retirement years. These types of investments not only help you to plan your retirement but also makes you financially secure in the long run.
Review tax options
While starting a new year, we were all concerned about clearing out taxes. Paying our taxes on time made us feel less burdened; however, you should always look for tax-deductible options to save your money. Here are some tax-deductible options which you could use to manage finance in 2020.
PPF- PPF is the most substantial amount of deposit of 1.5 Lakhs, and it is tax-deductible. But you can not take your investment before 15 years. In case you do, then you will be penalized with additional charges.
Mutual Funds - Investing in mutual funds will also provide you with a tax benefit. They depend on the performance of the stock market so you can also earn a lot of money when stocks are upwards.
Health insurance - Health insurance is tax-deductible as per Indian tax laws, so if you are above 60 then and pay a health insurance premium for your parents, they can claim up to RS 60,000 tax deduction.
Fixed deposits - Investing in fixed deposits is another excellent way to save taxes. This a type of risk-free investment because you can claim tax deductions and save at the same time.
Review your investment and protection plans
When you want to maintain healthy finances in the coming years, then you invest in security deposits like health insurance and term insurance so that you can enjoy long term benefits.
Term insurance or life insurance plan - Investing in basic term insurance plan not only saves taxes but also help your family to get through tragic circumstances.
Medical insurance - By availing medical insurance, you can avoid unwanted medical costs in case of any medical emergency. Medical insurance also helps you to avail of the benefits of tax deductions.
Planning your finances may take up a little time, but you should do it if you want to make a better financial start in 2020. These points, as mentioned above, may help you to improve your finances.