How To Secure Your Future Financially:

One can plan and secure his or her future from financial point of view by following the basic steps mentioned below.

1.    Once you start earning inculcate a habit of saving. You need to remember that that your expenses will normally go on increasing as you move on with your life so one must start saving at an early age.

2.    Plan and monitor your expenses. Remember once you plan and control your expenses then only you can save

3.    The different mediums of savings could be as follows :

Ø  Start saving in Public Provident Fund ( PPF ) scheme this will also give you income tax benefit under section 80C and the interest income is also tax free. If you can save `.150000 in PPF each year for 15 years then you will get ` 4439810 considering the present interest rate of 8.1% PA

Ø  Start saving in SIP of Mutual Fund Investments or Selective Equity Schemes. Just for example assuming that you bought INFOSYS stock at the closing price on 30-12-2005 on the BSE, your gain today is 229.14%. if you had bought on the NSE, your gain would be 228.92%., this is considering for bonus and stock splits but excluding the dividends.

Ø  Do not let your money sit idle in savings bank at a 4% or 6% interest opt for a Sweep in account where the excess money is automatically converted into a fixed deposit and broken automatically in small units when the need arises, thus giving you a higher interest.

Ø  Plan to build an asset for example plan to take a home loan as soon as you are eligible and capable rather than staying in a rented house.

4.    Have adequate insurance cover to support your family in case of any unfortunate event.

5.      Do a proper financial planning and goal setting with expert advice and follow that plan