How to Live A Good Life by Making These 5 Choices?

| Updated on March 1, 2024

If a person is asked to imagine a stress-free life, there is a list of things that comes to his or her mind. And, becoming financially independent is definitely one of those factors. The current generation is constantly fluctuating between the thought process of ‘I have to start saving!’ and ‘You only Live Once!’. But, at a point of time, everyone realizes the importance of investing or saving for the future expenses. There are hundreds of schemes and financial instruments that are available to the investors, to create a corpus over the long run. There are also avenues that might provide short term gains or a steady income stream, depending on the investment objectives of individuals. In this write-up, we will take a close look at the factors one must consider for a financially secure life.

Plan for the Life after Retirement

 People who have just started their career, or in the age of 25-30 might feel they could plan for retirement life in later stages of their career. However, they tend to forget that the retirement life could be as long as 15 to 20 years, wherein one might not have a stable inflow of active income. In order to meet the expenses, especially medical and health care expenses, investors have to pre-plan via retirement schemes. Options like Public Provident Fund, Senior Citizen Savings Scheme, Kisan Vikas Patra, National Pension Scheme benefits the investors with interest rates better than fixed deposits.

Start Saving or Investing early

The benefits that one could receive by investing early beats the expectation of an ordinary individual. For instance, a person could even have double the amount at the age of 60, if he/she starts investing at 25 rather than at 30 (subject to rate of returns). This is solely because the power of compounding is very effective at the later stages than at the beginning of investments. Also, this gives enough time to take risks and receive higher returns.

Get Medical/Health Insurance Cover

Getting medical insurance is lightly taken by most of the people. Getting the insurance done at an early stage provides the benefit of paying a lower insurance premium, than at the later stage of life.

Learn To Plan Taxes

Most of us might have complained about the schools not teaching about taxes. But one must take the responsibility of learning how to plan income and other taxes. There are multiple provisions in the Income Tax Act, 1961 through which one can claim for deductions from the taxable income.

Diversify the Investment Portfolio

Risk differs from person to person. But too much of risk could be cynical to the investments made for several years. Hence, the risks must be diversified by investing in different assets like equity, debt, commodities like gold and other risk-free sovereign schemes. This ensures the corpus built is not eroded away. 

Invest in Development Projects Online

A development project is a project generally funded by a bilateral, multilateral or private donor. The aim is to improve the socio-economic level (GDP) of a country and to improve the living conditions and living standards of local residents (PNBs) in that country. Therefore, it is very common for multiple donors to co-finance a project. Funding has always been a challenge for small and medium-sized businesses. And the situation only got worse five years ago when banks began to squeeze and they reduced the loans they gave. Most banks only collaborate with companies with a specific history. So if you’re just starting an e-commerce business, or if the terms of a traditional loan are too abusive, you should know that there are other options also to help you fund your e-commerce project.
Personal Savings should be measured when your money return is very low and borrowing costs are high. If you are thinking of taking your savings out of your pension system, it is important to study the penalty for the amount taken. So, be wise about choosing out of your options and decide carefully.

Bhavya Singh

Social Media & Lifestyle Expert

Related Posts