Save Money by Investing in Three Things for your Family

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Earning money is an essential aspect of your life, as it helps you to satisfy your day-to-day needs. However, are you aware that saving money is equally important as earning it? Your current income can fulfil the obligations you are facing at present, but what about the future engagements related to you and your family? Are you prepared enough to deal with weird situations like your untimely death, an accident, or to pay for the mounting fees of your children in future? Perhaps, saving money with a full-proof plan could help great guns in satisfying such needs in the coming times. We discuss three investment modes. Let’s start with health insurance plans for family.

  1. Preventive Healthcare

Usually, hectic professional life gives us little time to pay due attention to healthcare, which results in the culmination of more serious health concerns with time. Unhealthy eating habits and stressed lifestyle further prompt our body to fall prey to diseases like diabetes, hypertension, cardiac problems and more. As per Cardiology Society of India, near about one-third of the adult population of India is affected by hypertension. Even more startling fact is that two-thirds of this population is not even aware that this disease is taking a toll on their health.

Hence, in addition to adopting preventive health care methods such as home monitoring, opting for health insurance plans for a family is equally necessary. In fact, you can secure the life of your family along with yourself, by investing in health insurance coverage. This could also help you save money in the long run as the tax benefits of preventive health care insurance plans are immense.

  1. Under Section 80D of the IT Act of India, the premium paid for health insurance plans gets qualified for deduction.
  2. If you pay around Rs 25,000 premium for your family and self, you can save up to 30% tax
  3. Whether your health insurance cover comes under ‘defined benefit’ or ‘indemnity’ kind, it qualifies for tax benefit.
  4. With a health plan having a maximum limit of up to Rs 30,000, you can save up to Rs 5,000 on preventive health check-ups.
  1. Security (Contingency)

Investing in security of your family is another significant way to save money in the long run. You never know how the life will treat you in future, and hence it is good to be prepared to deal with all types of contingencies. The habit of saving a fixed portion of your salary every month could contribute significantly in this context. You could keep it as cash or merely deposit in your bank account.

In the times of emergency, for example in the wake of your job loss, to pay the bill for your wife’s treatment, or to pay the fees for your child’s admission, this amount could come handy. Moreover, if you are investing in an insurance plan or a mutual fund, it could also help you get rich dividends when it matters the most. In the event of your sudden demise, the corpus thus developed can help to ensure the financial security of your family.

In case, if your policy matures while you are alive, you also get the benefits of the invested bonus in addition to the sum assured. Likewise, mutual funds also accompany lucrative benefits, and the best thing is that you can withdraw the amount from your mutual fund anytime, without waiting for a fixed period. Such wisely calculated steps help you deal with the uninvited risks coming your way conveniently.

  1. Education (economic oriented/interest based)

Instead of wasting money in buying worldly possessions, investing it for the education of your children is indeed a recommended move. Whether it is the interest-based knowledge or economic oriented, education holds the capability to turn the table in your favour, enabling you to lead an accentuated life. You would surely want your young ones to establish themselves on their own and contribute to the progressive tasks of nation-building.

With the rapidly rising cost for general education and professional courses, the practice to start saving from an early age of your child would be even better. The decision to invest the amount would rely significantly on the interest of your child.

After knowing the financial requirement to educate your child, you can invest in equity-oriented instruments, such as Ulips, equity mutual funds, PPF for child’s education requirements, and so forth. A final point to remember is to never touch your child investment portfolio for any requirement other than education, for which you have created it. This saving habit will set you free from managing the necessary funds when required.

Wrapping-up!

To conclude, the habit of saving money could, in fact, save you big from the testing times in your life. The investment practices such as buying health insurance plans for a family, saving for the education of your young ones and investing help in securing the future of your family through term plans, and mutual funds.

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About Deepti Verma 143 Articles
Deepti Verma is a Political/Social Writer and Researcher based in Navi Mumbai. A lightworker, she is often seen spreading the light via Law of Attraction, Positive Affirmations and other Manifestation as well as self-healing techniques. Follow @universal_rover