If you have just got your first pay cheque and are thinking of going on a spending spree, take a step back. While the urge to splurge might be tempting, do you know that this is also the time to inculcate money management habits that could help you save for your future? Putting some funds aside to invest in tax-saving schemes now can not only reduce your tax outgo but could also help you grow your wealth in the long run.
You can take more risks with your money when you are young unlike when you are approaching retirement. This strategy has the potential to generate higher returns allowing you to accumulate a bigger corpus over the years. It is important to sit down and chalk out an investment plan taking into account your ability to take risks and expected returns keeping your financial goals in mind. Here are a few tax saving investments that can come to your rescue in your 20s:
These are a few tax-saving schemes which you should include in your investment plan in order to build the discipline of saving for the future. Design a monthly budget and plan your expenses while setting aside funds for saving. This helps your money work for you, the same way you are working hard to earn money.
Invest 4G plan from Canara HSBC Oriental Bank of Commerce Life Insurance not only allows you to reduce your taxable income, it also can be an effective tool for long term wealth creation. It offers 4 different strategies to build your portfolio keeping different risk appetites in mind. Each investor has a choice of 7 fund options which range from equities to debt and even hybrid funds.
Chalk out your financial goals and invest accordingly as you start managing your money in your 20s. Learn from your mistakes and take risks as you grow on your path to becoming a savvy investor in the next few years. Do not forget to include investments that save tax and allow you the advantage of building your corpus with better returns.