Yes, that’s true. You will be saving more from today as the new tax slabs are applicable from 1st April 2010. This is very good news for all the tax payers in the country but is that all? Have you realized that you would have extra money at your disposal? Do you have any plans on how you are going to spend/utilize this money? Well, I have a few ideas which I would like to share with you today. Looks useful to me ,still feel free to add your own thoughts to it.
[For understanding what’s the news tax slab for the year 2010-2011 please do a Google search and you will get more than enough articles talking about it, hence am not mentioning it here]
OK, now to start with the most ignored aspect of your lives – Life Insurance. Do you have a Life Insurance policy with atleast 10 times the Life cover of your annual salary? IF no, please go ahead and buy a Term Insurance Policy.
Do you have enough savings to sustain your normal life for couple of months in case there is a loss of job? This need not mean you have to keep all your money in your Bank Account. Discuss with your Financial Consultant or a Wealth Manager to give you a better understanding of liquid Mutual Funds which gives far better returns than simply keeping your money idle in the bank.
If you are not comfortable with any market related instruments then atleast get multiple Fixed Deposit done. These days many banks(ICICI and HDFC to name a few) provide online FD account creation option, where you can set up FD accounts with your choice of amount/duration and even set it up for automatic renewal or the amount would come back to your savings account with interest. You also have the option of monthly/quarterly/yearly interest payment directly to your account. No paper work involved!
Start an SIP (Systematic Investment Plan) – This can be done with 2 benefits. If you start with a tax saving mutual fund scheme then you know you are saving for future plus you also saving tax for the year. Double Bonanza.
These are just a few things which I feel you should start with and more can be done on a personal capacity or choice – like invest in Gold, start saving for the luxury item you always wanted to buy etc. All the best.