The earlier you start saving; higher will be your chances of building a strong corpus. Your financial goals may or may not vary from shifting stages of life. Mostly, you might not look into the larger financial picture when you start earning. However, ideally, you must look into the short-term as well as long-term financial goals. For easier and adequate savings for retirement, you need to start focusing on both the financial goals. Experts suggest investing in Fixed Deposit (FD) for higher returns and better savings. Below are a few financial checklists to keep in mind for all stages of life:
When new to Work life
Create a budget:
You should analyze your income and determine your budget accordingly. The primary step to start building wealth is not to spend more than you earn.
Keep a record of your expenses:
You must make sure to keep a record of your expenses. You can either note down your expenses as and when you spend or you can make use of online expense trackers to do the same. By doing so, you can plan your expenses and make smart financial choices and help you reach your financial goals efficiently.
Pay your debts:
You should always make sure to pay your debts on time and not to pile it up. The more you pile, the harder it will be to repay the amount. You should prioritize your debts and pay the ones that may cost you more if not paid on time.
Save for your retirement:
It is advisable to start early for your retirement years. The earlier you start saving, the stronger will be your retirement corpus. Initially, you can consider investing in secure investment options such as Fixed Deposit (FD) wherein you can deposit amount as low as Rs. 1000 to Rs. 25000 for a fixed tenor. After the maturity period, the FD interest rates along with the maturity amount can be reinvested, and you can gain higher returns from your investment. At present, FD offers the highest interest rates up to 9.10% in India compared to other secure investment options. Many employers provide the facility to save for retirement with investment options such as Employee Provident Fund. Do the needful by contributing a portion of your salary for the same.
Opt for beneficiaries:
Beneficiaries receive the amount you invested in case of your sudden demise. Although it is a fundamental step to investment, it is essential to follow it.
When in the peak of career
Negotiate when switching jobs:
When you switch your job, you should make sure to negotiate your salary for your benefit. It is an essential factor to consider when you are at the peak of your career.
Carry your retirement money with you:
As mentioned above, if you have saved for your retirement money with your first employer, you must make sure to carry the same to your second employer. Switching your investment option from one employer to the other is usually free of cost.
Seek aid from a good financial planner:
In case you are not sure about making the right financial choices, you must seek the advice of a good financial planner. You can easily find the financial planner as per your requirements from various sources as well as online.
When getting married
Update your beneficiaries and you will:
If you have a will and you have chosen your beneficiaries earlier, you must update both if you are changing from one place to another. Although this step is entirely optional, it is essential when changing your status.
Re-Evaluate your Life Insurance Policies:
You must re-evaluate your life insurance policies if already purchased. If not then you can consider buying one for your future. Insurance policies are a must for the financial protection of the uncertainties that may occur in the future.
When Purchasing a New House
Choose a house according to your financial health:
If you are purchasing a new home, you need to evaluate your income and expenditure and buy one so that it won’t be a burden for your pockets.
When having children
Review your will:
You can review and revise your will in case you wish to add your children to the same.
Start investing for your children:
Investing for your child is the most important step to saving for their education and their future. There are various investment options available in India for children. Also, you can imbibe financial management in your children for their benefit.
When you retire
Review your investment:
You need to determine your budget by reviewing your investments. Also, you can consider downsizing by switching to a small house or cutting down your expenses. You can consider reinvesting your corpus in Senior Citizen Fixed Deposit for the best FD rates. Moreover, you can calculate your FD returns as well as interest rates using the Online Fixed Deposit interest calculator to manage your funds efficiently.