K Mohan @ Moga
'Idhuvum Kadandhu Pogum "
Even this challenging situation would ease
Knowledge is power.
As a thumb rule, please do try to limit expenses to 60 percent of one's earnings. Go in only for term insurance policies to protect the family. LIC is not an investment. LIC is only for protection. This is one vital difference that most people fail to notice.
The best option is to invest just 10 percent of one's possible savings and then invest the rest in FDs and RDs. However, from wherever you are living, if there are housing plots available for cheaper affordable rates like a 2400 sq. Ft plot for five lakh rupees one can even withdraw 50 percent from PF and manage the rest through jewel loans. Now is the time to invest in land, even if the distance is some 15 or 20 Kms from the city centre. The reason is simple. All future developments will happen in such areas.
And never forget the PPF vehicle where everything is tax-free at the moment. Let us hope the FM does something better for the middle class at least now. With petrol costing Rs90 per litre, the middle classes will never be happy at all. Save at least 40 percent.
One can try to save their earning by investing in gold and mutual funds.
No life without Sun
We should try to save maximum amount. It can't said be said how much we can save but try to maximise it. Insurance of property has become a necessity of the day, especially, for certain sections of the society. We don't know what happens tomorrow. We are undergoing bad phase of life. Probably, worst time is still to come. Let our homes be fixed before it starts rain.
But people who are earning more can plan for higher savings.
Even people who earn less also should plan for minimum savings. But we should not spend completely whatever we earn. My father always telling us about the importance of savings. He used to tell me that if we have a rupee with us, we should save 10 paise and the remaining 90 paise can be spent. He used to follow the same rule. As his salary was low and expenses are more he fixed that 10% saving for himself. But he never deviated from that 10% saving pattern.
Hence the situation seems to be very tough having little scopes for low earners. However, whenever there is a will there is a way. People have to work out their home exercise and should analyse the scopes where the savings could be effected. Just take the instance of car driving and in the present phase, when the price of the petrol has soared to around Rs 90/-, sharing of cars between the two employees could be justified. Limiting outings could enhance savings. In nut shells, a prudent analysis would work better in maximising savings.
Knowledge is power.