Investing Money is More Important in Life than You Think

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Even though many people feel that money is not everything, it is true that it is the most essential thing in today’s world for survival. And it’ not just about survival, money helps in fulfilling wishes and desires as well.

However, it is often seen that even after having money, people are unable to use it wisely. Here is a tale of Ram and Nakul to help you understand the importance of utilizing and investing money wisely. Take a look!

Ram and Nakul have the same income and financial stature. Ram is a long-term investor who invests in every product that offers higher returns in the long-term. However, he invests without assessing his goals. Nakul, on the other hand, is an investor who assesses his financial needs and then invests.

Which is why Ram’s financial portfolio only comprises long-term investments, while Nakul’s includes short, medium and long-term investments. Both Ram and Nakul thought they were financially secured, but life had other plans, and both got to know the true worth of their investments.

 “The actual worth of anything is seen at the time of need.”

Ram’s wife was hospitalised due to cancer, and he required some money as their health insurance policy did not cover all the costs.

Because all his money was invested in long-term plans, the only options he was left with were – personal loan or borrowing money. However, when Nakul encountered a similar situation, he just took money out of his short-term investments.  

Even after having the same financial stature as Nakul he was left in debt. So, where did Ram go wrong? The answer is – improper financial planning.

Nakul was a smart investor as he included life’s unpredictability into his financial plan. Therefore, when he encountered an unfortunate situation, he was prepared.  

So, what’s the solution?

After evaluating Ram and Nakul’s situation, it’s clear that financial planning is vital for every stage of life. It allows you to determine your short, medium and long-term goals and create a balanced approach to meet them. After you have determined these goals, the next step is to consider the instruments that can help achieve them. Here we have listed some of the most popular and effective ones:

Term Insurance

Your family will need money to continue their lives even after you are gone. Therefore, it is imperative that you purchase an online life insurance policy, specifically, a term insurance policy. It will provide a lump sum amount to your family in case of your untimely death.

If you don’t have a term insurance policy and are looking to buy one, you can compare policies online. While doing so, check the death benefits, premium amount, payment tenure and other benefits to make the right choice.

Today many leading insurers including Max Life Insurance offer ample benefits with term policies like affordable premium, tax benefits, monthly income payout options, rider facilities, milestone-based planning and so forth. Buying your online life insurance policy from such insurers, therefore, will make the process hassle-free and offer you the much-needed peace of mind.


ULIP is a hybrid investment option that provides the benefit of life cover and wealth creation. In ULIPs, a part of the premium is invested into various market-linked funds while the other goes towards providing you with life cover.

However, before making the purchase, evaluate the benefits and check the claim settlement ratio of the insurer. This will help you in picking an ideal policy.

With a lock-in period of five years, ULIPs act as the perfect instrument to achieve medium and long-term financial goals.

Bank FDs

A fixed deposit is one of the safest short-term investment options available in the country. Fixed deposits come up with various tenures that start from seven days and can go up to ten years.

Different banks offer different duration of deposits. You can also renew the deposits on maturity. Moreover, after the interim Budget 2019, interest amount up to Rs. 40,000 has been made tax free.

Use Your Money Wisely with Smart Investments

Life is unpredictable, and it can throw any unforeseen situations at you. These situations can many times cause major financial troubles. So, be prepared for these eventualities and keep your finances intact by investing money smartly!

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About Deepti Verma 216 Articles
Deepti Verma is a Political/Social Writer with an opinion on almost everything! Follow @universal_rover