How to invest your salary?
Investing in your salary is very important to secure your future and enable you to have a smooth life. It is not only a matter of saving money but also planning for your future so that you will not be in trouble when it comes to old age. The importance of this is visible from the fact that it is one of the functions of hrm to educate employees on the importance of investing. Click here to learn more. Investing is one of the ways of securing the future and in this article, we will look at the different ways to invest your salary.
- Saving
The first step is to know how to save your money wisely. You should have already known that saving money is not easy in this day and age, since a lot of expenses could be unexpected or unwarranted. In short, saving money should not be a burden because we have too many expenses and bills to pay every month. Therefore, we must take our time and think hard about where to spend our money wisely so as not to drain our resources or savings account.
To start with, you should set some fixed amount on your paycheck that goes straight into your savings account each payday. You can use the epfo e sewa portal to get more info about your salary so you may plan for your savings better.
- Medical insurance
Medical insurance is very important for the family. It is taken by the family regularly and it provides financial support in case of any critical ill health of the family members. Medical insurance not only gives financial support but also important guidance and information about various diseases to the patients through consultation with the doctors.
- SIP
A SIP (systematic investment plan) is an investment plan where you contribute a fixed amount every month to a Mutual Fund. You only need to pay the money and forget about the market or how it’s changing. The mutual fund company does that for you.
If you want to start SIP, you can start with a small amount of Rs 500 per month and invest in the equity asset class. Equity is a good asset class to make good returns over a long period.
- Disability insurance
Disability insurance is the policy that protects you from the loss of income due to sickness or accident. It provides you with a health cover in case you meet any accident or critical illness. It also provides financial support for your family if you are not able to work and earn income for them, because of your illness.
- Term insurance.
Term insurance is a type of life insurance that provides coverage for a specific amount of time. The premiums of these are extremely affordable hence anyone can get it.
There are various ways in which you can invest your salary and by doing so you will be able to increase your income over time. You can start by investing in term deposits, bonds and debentures, mutual funds or real estate. However, it should be kept in mind that before choosing any of these investments for investing your salary you should make sure that it suits your requirement.