Ok, so you got an increment this month! Hoorah! Yippee, Way to go! Let’s Party! At no point in time I will discourage you from spending. My wife tells me, unless you spend more you will not earn more. So go out and spend it on you and your loved ones, but especially on yourself. You got an increment coz you deserved it, go treat yourself.
I am sure you know you can treat yourself in various ways. Other than buying your watch, shoes and that sexy car you always eyed? What else? Heard of INVESTING? Investing some part of your raised salary should be going in making money out of money. Ya, I might get a little boring out here, but if you pay attention for the next 2 minutes (only) you may start liking me more, assuming you already like me.
I have only 2 suggestions:
Start an SIP (Systematic Investment Plan) with one of the leading Mutual Fund Schemes. I have one with HDFC Tax Saver, invest for good and save tax at the same time! Amount could be whatever suits you, minimum being Rs. 500 per month. One time registration and buy it online. Register online and start fast, Moneysights and FundsIndia should be easy. Check it out you will be able to set yourself up for this in no time.
Invest in PPF (Public Provident Fund), Open up an account with SBI, invest online. With a minimum 15 years lock-in, 8.8% interest, part of the tax saving instruments, Tax-Free interest, the actual return for someone in the 30% tax bracket will work out to be 12% ! A very good long-term investment option I say!
Free Advice:
Insure your Life, almost everybody in India is under Insured or NOT insured at all! But DO not think of it as an investment, just go and buy a TERM plan from LIC and you are good. A term plan is a Insurance policy which insures your life and passes on the big amount to your loved one, when you die. Ya, you do NOT get anything at the end of this policy – choose this type plan – economical and best!
A big question people have is that the insurance policy should return good amount after it ends. Let me ask you a question, Do you think twice before insuring your bike or car? And, by the way, you do not forget to insure your 50k or 5 lakh asset but not your own life? Which is priceless am assuming.
2 minutes up. Thank you!
Oh, before I forget, congratulations and all the best.