Received an arrear or a recent hike, you are now thinking of saving this surplus amount, and you have no clue where to put it. You have heard stories of great investors who will create wealth out of small pennies. You heard quotes of 'Rich Dad & Poor Dad' and the likes of Warren Buffet, and now you are not willing to waste this money and also cannot skip buying that new phone model you always wanted to get your hands on. 


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Dear reader, you have reached the right article and this 'Money Guide' will sort all your queries about investing and spending the moolah you have recently received in your savings account. 


Tip #1 - Buy a 'Term Insurance'


If you do not have one, go and immediately buy life insurance. COVID has taught us one thing - life is vulnerable. You might not stand a chance against it, you should have a cover with you which will help your family later. 


Make sure that you are buying a pure insurance product and not a 'ULIP' or 'premium returning plan'. ULIP's are costlier, save on that money and invest in the next pointer. 


 



 


Tip #2 - Buy a 'Medical Insurance'


You need a vaccine shot to safeguard yourself from the dreaded coronavirus, but COVID is not the only thing you should remain wary of.Gall stones, Cardiac events, Glaucoma, Lumps, and Nodes - all these things are there to break your budgets even. It is better that you secure yourself and your dear ones with Medical Insurance. 


Do not depend on your office medical policy, you might change your job one day and I know someone who had to go under the knife when he was switching jobs. Hospitals are costly affairs, keep Health Insurance handy. 


 



(Pic courtesy: Pixabay)


 


Tip #3 - Open a 'PPF'


No, SIP comes later, open a Public Provident Fund first. You can get an interest of 7.1% and it also helps you to achieve that tax saving goal at the end of every financial year. A minimum of Rs 500 and a maximum of Rs 1.5 lakh per annum can be deposited every year in a PPF account at present. A PPF account matures in 15 years, after which you can either withdraw all your money or extend the PPF account for a block of 5 years each.


 



Tip #4 - Buy a House!


Shall we not rent a house and invest money in more lucrative offers and schemes and make more money?


Yes, you should, that is why you must buy a small house. Either stay in it or just rent it out, the idea is to save interest on a housing loan, create a good CIBIL and create an asset for your older days. It may sound traditional and not a very 'expert' advice, but dear reader, you are reading this article because you are a traditional investor and we both do not have that much mega-money to buy Amazon shares tomorrow. Go, buy a house, small one - look for PM Awas Yojna discount as well, thank us later! 


 



(Pic courtesy: Pixabay)


Tip #5 - Invest!


No, your mobile can wait, start investing. I know, by now you are not left with a lot of money but dear reader, your latest mobile phone will not pay your bills. 


Start investing with INR 2000 and invest for at least 6 months. Observe and learn the market curves. Try and read more about shares and SIP ways. You can connect with us via FB for more help, but make sure that you invest. 


Do not feel disheartened if your initial investment doesn't grow exponentially. Remember the mobile phone you were planning to buy would have depreciated the same way. So just remain headstrong and keep investing. 


But where? 


That we will tell you about in our next article as we also have to check some new investment plans. If you still have any queries, any confusions you can always connect with us on Facebook at @ZeeNewsEnglish, and on Twitter at @ZeeNewsEnglish


 



(Pic courtesy: Pixabay)


(You can follow the author - @sushantmohan on Twitter - and ask him questions, he really knows all this stuff well, we are sure he will answer)


 


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