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Financial independence is what many people work hard to achieve. However, it is only a few who manage to achieve this status. What stops most of us from reaching financial security in life, is the fact that we focus on short-term benefits rather than going for long-term gains, through investments.
As a result, we end up investing our precious savings into instruments such as real estate or equity market, without assessing the associated risk or their growth potential. Eventually, we end up making mistakes that ultimately affect our family’s well-being financially.
To avoid this; therefore, we must first understand how to manage and maximise money efficiently, through investments, while making sure that the investments themselves are protected from the volatilities of the market. Here are some tips on how you can make your finances work for you, with minimal risk exposure.
Investments Are Crucial for Creating Wealth
First and foremost, you must understand that your life goals need financial support and your savings alone, cannot help fulfill your needs and requirements. Instead, you need to maximise your savings into wealth with the help of future investment plans. Whether your goal is to buy a house or support your child’s education, you would need an ample amount of funds to accomplish those goals. It is by investing in the right future investment plan and at the right time that you can start provisioning for each one of the goals in a disciplined manner while managing your present-day expenses.
Future investment plans from reputable insurers such as Max Life Insurance allow you to select both the investment amount and the period for which you need to invest. Under these future investment plans, you invest a portion of your savings for a fixed amount of time. By the end of the investment period, you would have the required amount of funds to achieve your goal, thanks to the capital appreciation of your investments.
Adding A Health Plan with CI Cover Will Help Protect Your Savings
The golden rule of investing is that you go long-term, meaning you continue making disciplined contributions into the investment of your choice while allowing them to grow up until the right time. It is here that you need to make sure that you minimise any potential risks that might impact your investing capabilities – whether it is loss of income due to an accident or any severe health ailment such as cancer.
In case you are diagnosed with a severe health condition such as cancer or kidney failure, you suffer a dual financial crisis –
• First, you may experience a loss of income while undergoing the treatment and have to use up your savings to take care of daily expenses and the treatment costs, and;
• Secondly, you may have to opt for subpar or inadequate treatment due to shortage of funds and may have to withdraw from your investments before time; thus, cutting short on the possible capital appreciation of your finances and at the same time, reducing your chances of quick recovery from the illness.
It is; therefore, essential that you prepare for any such medical situations beforehand with a health insurance plan that also offers additional coverage against critical illnesses (CI). Having health insurance with CI benefit will allow you to handle all hospitalisation, surgery, and recovery expenses without putting your savings at risk; thus, helping you to opt for the best possible treatment and expedite your recovery.
3. Augmenting Your Investments with Term Insurance Makes Sense
When it comes to investments, you need to make sure that they remain minimally affected by the volatilities of the money market. It is a no brainer that when you invest in equity instruments such as stocks, bonds, mutual funds, ULIPs and savings policies, you expose your investments to the upheavals of the stock market.
As a result, you would gain significant returns, but only if you remain invested for an extended period.
Talking about investing long-term, you need to make sure that you remain physically healthy and have enough earnings to make a regular investment while taking care of your family’s increasing financial needs and daily expenses. If say, something were to happen to you, not only would your family be unable to cope with the sudden loss, they would have no one to look up to for financial support and your investments too, would take a severe hit.
Thankfully, you can prepare for such an eventuality in the foresight, by investing in a term life insurance plan. Having a term plan serves a variety of purposes, including –
• Provide the much-needed financial support to your family after your untimely demise
• Serve as a dependable future investment plan, meaning that your family would receive the intended investment benefit
• Provide funds to help your family continue making the investments in any saving policy, ULIP or stock that you have purchased earlier
We live in a world where you need money for everything – whether it is for supporting your lifestyle or your family’s dreams and life goals. While you may continue to increase your earnings throughout your life, you cannot depend on saving a portion of your earnings alone to fulfil your dreams. Instead, it would help if you maximised your savings through investments while making sure that your investments continue to grow and remain protected at all times. For this, you must choose a future investment plan and saving policy that aligns with your goals and investment capabilities.