How to plan your saving in 2019?

Financial security is one of the most basic parameters in life for a secure and sound future. When it comes to financial planning and monetary planning, the decisions that you take must be not just informed ones, but inclusive of all the possibilities that can garner higher returns at an optimum rate. This means many things from planning your savings to maintaining a balanced financial and investment portfolio. The diversity of choices will always be a parameter however, and you must ensure that you do not have a lop-sided mode of investment. This year, as the previous fiscal comes to a close, this is the right time for you to decide on the proper course of action so that you can have an optimum and stable financial gain.

Following are some important pointers on how to plan your savings in 2019:

1. Make your savings proportional to your income:

   Starting a savings corpus is the first thing that you must do in order to ensure that you remain financially strong at all times. However, the quantum of savings that you create must match your income. In simple words, this means that from your monthly income, you must set aside a particular amount every month after deducting the essential expenses. This also involves cutting back on the non-essential expenses and ensuring that there is a proper level of frugality in your budget. This will ensure that there are surplus funds available which can then be used for further investment and monetary growth.

2. Take out a health insurance plan:

   Medical expenditure these days has risen to a high extent and often burns a hole in ones pocket. The rising costs of healthcare can put a heavy burden on your finances in the event of a health-related contingency. Therefore, it is essential that once you are left with surplus funds, you invest a part of them in a health insurance plan as this will give you a guaranteed coverage against incurred medical costs. However, before choosing a health insurance plan, be sure to make a thorough online comparison of the various available policies and their features so that you can take a correct decision.

3. Plan your taxes:

   No amount of financial planning is enough if you end up getting over-taxed. There are various investments and instruments that offer tax-saving benefits, however, under the relevant sections of the Income Tax Act. These tax saving investments include investment in National Pension Scheme (NPS), Sukanya Samriddhi Yojana, Equity-Linked Savings Schemes (ELSS), National Savings Certificate (NSC), etc. Under Section 80C of the Income Tax Act, you are eligible for an exemption up to Rs 1.5 Lac in a financial year against such investments. You must avail of these investments, therefore, as they will enable you to save on your payable taxes while working towards creating a sufficient corpus.

4. Invest in ULIPs:

   Unit-Linked Investment Plans (ULIPs) are joint vehicles for investment and insurance and offer flexible investment benefits. They come with varied fund options, have a lock-in period of five years and also offer tax benefits.

HDFC Life offers various saving and investment plans that are directed towards making your money work for you and to enable you to create a sufficient corpus by the time of maturity. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans.