Securing family wealth and aspirations in the new normal

 

Within a short span of time, the entire world has changed drastically. Adoption of digital payments has gone up, professionals are working remotely and individuals are paying more important to their health.

Similarly, we are realising the importance of securing the wealth and aspirations of our family during the new normal.

Here are six ways to go about the same:

• Differentiate between wants and needs:

Need is something that is a necessity in life, for example, food, clothing, accommodation, etc. And want is the desire for something to improve the quality of living, for example, expensive phones, cars, etc.

Analyse your spending pattern and categorise your spending based on wants and needs. Use the 50-30-20 budgeting rule which states, allocate 50% of your income for needs, 30% for wants, and 20% for savings.

• Pay off your debt:

To become financially secure, it is important to become debt-free first. It includes credit card dues as well. List out all your debt and devise a plan for early repayment of all your loans. Consider consolidating multiple loans to one and pay off all your debt quickly.

• Start saving for retirement:

Retirement planning should start as early as possible because it will reduce the burden at the later stage of your life. Consider investing in retirement and pension plans like HDFC Life New Immediate Annuity Plan.

• Build a passive income source:

 Having a passive income source along with your active income source safeguards your financial future and ensure more financial freedom. Plans like HDFC Life Sanchay Plus not only guarantee^* lifelong income but also safeguard your family’s future.

^*Provided all due premiums have been paid and the policy is in force.

• Secure your child’s future:

 You should not take your child’s future lightly. A year’s gap in learning and coaching negatively impacts your child’s overall development and performance. Therefore, as a smart parent, your goal should be to secure your child’s future for every milestone.

For example, HDFC Life’s YoungStar Udaan child plan not only secure your child’s aspirations but the maturity benefits are matched as per the key milestones of your child’s future.

• Get yourself protected:

The Covid-19 crisis has shown us how fragile and uncertain is everyone’s life. And, the best of medical care sometimes fail to save lives. In such a case, if you are the sole earning member in your family, it can wreak havoc. Therefore, never leave anything to chance and get yourself insured to protect your family’s well-being in your absence.

Conclusion

In the new normal, securing your family’s wealth and aspirations should be your top priority and should not be taken lightly. And, the way to financial security also comes from improving your financial knowledge. It helps you in making informed financial decisions. Remember, strong financial planning and execution is key to tomorrow’s peace of mind.

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