People irrespective of gender and age always expect to have a balanced monetary flow in a year. Money management needs proper planning, and there are certain checks that you should complete before the new year comes. Here, three types of inspections are discussed in details that can help you make the finances better in 2020. You can take the help of a financial expert who can advise you on effective money management.
Details of fixed deposit investments, term investments, bank interest rates and options of tax saving are given below. Moreover, if you are a retired person, you can go through specific options mentioned below to enhance the financial balance.
Check Your Taxes
If you have a taxable income, it is your responsibility to file it within the deadline. Tax defaulters often face severe legal proceedings and harsh fines. There are specific strategies by which you can save a lot of taxes. Some are mentioned below:
Tax Saving FDs- Banks, financing companies, and corporate entities provide FD facilities that you can take to invest money. If you check for a comfortable interest rate and open an FD in such an organization, there will be a lot of chances to save taxes.
Mutual Funds- Investing in mutual funds can help you save a lot of taxes. However, you need to look for MF that is enabled with a tax-saving option. You must know about the usual lock-in period that MFs come with before investing.
PPFs- Investing some amount in PPFs can turn it into a tax-free amount. You can easily skip paying the taxes on the monthly returns you get from the PPF.
Check if You have a Protection Plan
Purchasing a protection plan is vitally important as it covers different incidents like death or severe physical illness. Some types of protection plans are given below:
- Medical Insurance
- Term Insurance
The medical insurance covers for all major diseases that might happen to you in a certain period. This can decently save your regular income and help you meet the financial emergency smartly. Look for the medical insurance plans that can deliver tax benefits.
On the other hand, term insurance can provide an impressive amount to your family in case of your death. So, they can meet financial needs effectively.
On being a working professional, you can make a well-structured retirement plan as your professional career continues. There are a few options where you can invest money in 2020. They are given below:
FDs for Senior Citizens: Senior Citizen FDs have a higher rate of interest, and it can deliver more amount of cash monthly. If you are retiring soon as a senior citizen, try to invest in a senior citizen FD.
Retirement Plan: Check the retirement plans that are provided by different organizations dealing with finances. You can take a retirement plan during your professional years and keep investing in it till your retirement. During the post-retirement years, you can get a monthly amount as a pension.
So, these are the three necessary checks and some facts related to it that you can check to ensure better finances in 2020. It is essential to gather knowledge about the rates of premiums that are related to insurance plans. Moreover, you should have some withdrawable money in your savings bank account that you can access for regular usage.