27 years old, Single, earning 30,000 - 35,000 Rs. p.m. living in Metro.
Let’s say you spend 60% of your salary in house rent, weekend parties, movies etc and save 40% i.e. 14,000 Rs.
5 investments you must do in order to get prepared for future uncertainties
Mutual Fund (SIP):. 3,000 Rs. per month in aggressive funds.
Some of the good funds are Aditya Birla Midcap Fund (G), ICICI Value Discovery Fund (G). These funds have a CAGR of 25–30% in 5 years.
2. Direct Equities (Stock Market). 5,000 Rs. per month. As you are young, you can take some calculated risk. Some of the Bluechip companies delivered 100% returns in less than 5 years. Reliance delivered 66%, TCS 70% etc.
Invest Only in Bluechip companies: If you have LOW-risk appetite
Invest Only in Small/MidCap companies: If you have HIGH-risk appetite
Invest in Bluechip + MidCap +SmallCap: If you have MID risk appetite.
If you are already trading in stocks then try to use brokerage free demat account. I use Upstox as it is easy to use and 0 Brokerage charges. You can any broker as per your wish. Before investing in Stocks you are suggested to first learn to analyse the stock and then start investing. As elections are over, you can invest in some stocks like Sun Pharma ( 427 Rs.), REC ( 104 Rs.), Yes Bank ( 185 Rs.) etc
3. Medical Insurance: 350 Rs.per month ( 4,200 Per year)
In case you get sick tomorrow and you have needed 1 lakh Rs., what would you do? Insurance companies will pay this amount on your behalf. In 4200 per year, you can easily get the health insurance of 5L.
4. Recurring Deposit : 2,000 Rs. per month.
Why RD? Because you must have some liquid funds in case of an emergency. You can’t redeem stocks/MFs in one day, it takes at least 3 days.
5. Term insurance: 500 Rs. per month. ( Approx 6,000 Rs. /year)
This is ‘must’ for those who have a family member dependent on you. In case of any uncertainties, your family would be benefited.
6. Savings Account: 3,000 Rs. per month.
This is for you to use anytime, anywhere you want. Use Credit cards as a backup and don’t forget to pay the bills on time otherwise they charge massive interest and penalties on that.
As your salary is 35,000 Rs. per month or 5,40,000 p.a. then you come under the first slab in which you have to pay 5% tax. So, on 170,000 Rs. ( 4,20,000 - 2,50,000) you have to pay 8,500 tax per year.
Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a financial plan, it’s easier to make financial decisions and stay on track to meet your goals. Big reasons why Financial planning is very important are Inflation, Long-term goals, Emergencies, Dreams and a peaceful Retirement/
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