1. Invest Early
Start saving money as soon as you start earning. you should save at least 30% of your salary i.e, if you are earning Rs. 10000 , you should save at least Rs. 3000. You should invest this money in a recurring deposit or an FD, PPF so that money is not lying idle in your account.
You can also but equities with that if you have knowledge with that or you inest with an mutual fund with a good record. These will give you at least 10% to 12% return if you are being realistic. The markets are tough and 25% return does not seems reasonable. You will be happy that you at least beat the inflation.
2. Buy a Property
Rental rates are high these days. Even a simple PG costs you around Rs. 7000. If you live in rented house with you family, then it will carry you no less than Rs. 15000. It is better to take a flat. You will say, how will I afford a flat if my monthly income is around Rs. 40000. Buy a small property in a small town where your parents or relatives live. The loan that you incur will be less in case you incur property in a small city and you will be able to manage the loan amount. So, if you buy a property for Rs. 10 lakh with a loan, you need to pay say 11.50% interest rate. so you will be paying Rs 11500 /month on property. So , out of salary of Rs. 40000 , you shell Rs 11500 on property and Rd 10000 on rent and rest on expenses.A good strategy indeed.
However, if you can take a studio apartment that costs you a monthly installment of Rs 25000, and ready to move in it will be best bet. You can save the rent and you have a property too. Later, when you start earning more, you can put it on rent and move to a larger flat or you can sell it and use the money to buy a bigger flat. A very good strategy.
3. Invest in Funds.
Mutual Funds are subjected to market risk. So, invest only when you have money to spare and not looking for a regular income from those. They might not work the way you want to but you might get a return of average 12-15%.
4. Invest in Medical Insurance
Invest in medical insurance. Aging parents can have multiple heath issues and lead to additional expenses. A heart surgery costs no less than Rs. 5 Lakh. Get you family and parents insured to save yourself for an undue emergency that can root you off your money.
5. Invest in Life Insurance
It might seem a useless investment. Everyone believes nothing bad will happen but God forbid if something did, please keep you family safe from troubles.
6. Child Education and Marriage
As soon as your children are born, start saving and investing. You need to pay for school admissions and admission fees ranges from Rs 70000 tp Rs 150000. So, if you plan to send your kids to school in say three years, better to go for school that is from nursery to 12 th. This will save you from unnecessary double admission fees. You can plan tom save around Rs 1000/2000 for kids admission so you do not have additional burden while getting admitting.
Put some amount for higher education/marriage. At least Rs 5000 starting 1st year . Do not touch that money. Invest in some where to get around 10-15% returns.Gradually increase the amount by 5%. This will lead to huge amount receivables later.
Start saving money as soon as you start earning. you should save at least 30% of your salary i.e, if you are earning Rs. 10000 , you should save at least Rs. 3000. You should invest this money in a recurring deposit or an FD, PPF so that money is not lying idle in your account.
You can also but equities with that if you have knowledge with that or you inest with an mutual fund with a good record. These will give you at least 10% to 12% return if you are being realistic. The markets are tough and 25% return does not seems reasonable. You will be happy that you at least beat the inflation.
2. Buy a Property
Rental rates are high these days. Even a simple PG costs you around Rs. 7000. If you live in rented house with you family, then it will carry you no less than Rs. 15000. It is better to take a flat. You will say, how will I afford a flat if my monthly income is around Rs. 40000. Buy a small property in a small town where your parents or relatives live. The loan that you incur will be less in case you incur property in a small city and you will be able to manage the loan amount. So, if you buy a property for Rs. 10 lakh with a loan, you need to pay say 11.50% interest rate. so you will be paying Rs 11500 /month on property. So , out of salary of Rs. 40000 , you shell Rs 11500 on property and Rd 10000 on rent and rest on expenses.A good strategy indeed.
However, if you can take a studio apartment that costs you a monthly installment of Rs 25000, and ready to move in it will be best bet. You can save the rent and you have a property too. Later, when you start earning more, you can put it on rent and move to a larger flat or you can sell it and use the money to buy a bigger flat. A very good strategy.
3. Invest in Funds.
Mutual Funds are subjected to market risk. So, invest only when you have money to spare and not looking for a regular income from those. They might not work the way you want to but you might get a return of average 12-15%.
4. Invest in Medical Insurance
Invest in medical insurance. Aging parents can have multiple heath issues and lead to additional expenses. A heart surgery costs no less than Rs. 5 Lakh. Get you family and parents insured to save yourself for an undue emergency that can root you off your money.
5. Invest in Life Insurance
It might seem a useless investment. Everyone believes nothing bad will happen but God forbid if something did, please keep you family safe from troubles.
6. Child Education and Marriage
As soon as your children are born, start saving and investing. You need to pay for school admissions and admission fees ranges from Rs 70000 tp Rs 150000. So, if you plan to send your kids to school in say three years, better to go for school that is from nursery to 12 th. This will save you from unnecessary double admission fees. You can plan tom save around Rs 1000/2000 for kids admission so you do not have additional burden while getting admitting.
Put some amount for higher education/marriage. At least Rs 5000 starting 1st year . Do not touch that money. Invest in some where to get around 10-15% returns.Gradually increase the amount by 5%. This will lead to huge amount receivables later.
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