How to Make your Money Work for you

IN THIS POLICY, THE INVESTEMNT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.

In life, we are always looking for ways to earn more. Most of us think that working harder and reaching higher levels in our careers is the only way we can achieve financial targets. Yes, these things are important, but what if you could make your money work hard for you in return?

Achieving financial freedom and security is not just about earning a higher income; it’s about making your money work for you through smart investments, saving strategies, and financial planning. In this blog, we’ll explore effective ways to make your money work for you and set you on the path to a brighter financial future.

Set Financial Goals

The first step to making your money work for you is to gain a clear understanding of your financial goals. For you to do this, you will need to understand your financial situation. Through this, you can create a budget that outlines your income and expenses. This simple yet essential tool will help you identify areas where you can cut unnecessary spending. Accordingly, you can allocate more funds to investments and savings that will help you build more funds from the money you already have.

Offset High-Interest Debt

High-interest debt, such as credit cards, auto loans, personal loans, and student loans, can erode your finances. Most creditors charge up to 20% or more interest for such loans and when you pay them off early, you can save the money that you pay for interest. It’s challenging for your money to work for you when you’re constantly paying interest to creditors.

Hence, prioritise paying off high-interest debt to free up more money for saving and investing. It may sound impossible, but again, budgeting is the way forward to pay off these debts. You can cut down on daily coffee runs, expensive holidays for a while, use more public transport, etc. Remember, every penny counts.

Opt for a Savings Account with High Interest

Whether you are a self-employed or salaried individual, opening a high-yielding savings account can help you increase your corpus steadily. It is also a great way to build emergency funds for any unforeseen circumstances like medical bills, loss of income, home repairs, and more. Ideally, it is advised to accumulate at least three to six months’ worth of living expenses.

While many banks in India offer savings accounts with a high-interest rate, make sure to research and compare rates, fees, and minimum balance requirements to avoid paying more unnecessarily.

Invest wisely

Investing is a powerful way to make your money work for you. However, before you start investing, it is important to understand the various avenues of investment, including stocks, real estate, mutual funds, bonds, and life insurance.

After that, the next step would be to understand your risk and investment appetite. Every individual’s risk tolerance is unique, and it’s essential to align your investments with your comfort level. Some investments, like stocks, can offer higher returns but come with greater volatility, while others, such as bonds or life insurance, may provide more stability but potentially lower returns.

SUD Life e-Wealth Royale offers life cover with the flexibility to choose a wealth creation journey according to your own terms. Moreover, you get a double tax benefit, saving you up to ₹1.5 lakhs under Section 80C of the Income tax Act, 1961 and a tax-free maturity amount under Section 10 (10D) of the Act.

Remember that investments carry some level of risk, so it’s essential to do your research or seek the advice of a financial advisor to make informed investment decisions.

Save and Automate

We are all human beings and we may choose to not save sometimes. While that is perfectly normal, consistency is important to achieve your financial goals. An easy way to avoid such situations is to set up automatic transfers to your savings or investment accounts each month.

Depending on when you get paid, you can set up a date for automatic transfers. This way, you’ll pay yourself first and ensure that your money is actively working towards your financial goals. You can use the rest of your salary for other expenses like utilities, EMIs, entertainment, etc.

Create Multiple Streams of Income

In addition to your regular job, consider creating multiple income streams. You can start a side business, freelance, rent properties, or invest in the stock market. Having additional income not only increases your earning potential, but you’ll also have extra income to invest for wealth creation.

Use Credit Card Rewards

If you’re a credit card user, there are several ways you can make your spending via your credit card advantageous. Take time to understand your credit card and its offerings so that you can strategically plan your spending.

Most credit cards offer cashback when you spend up to a certain amount in various categories. You can use this offer for your regular purchases. Keep track of your rewards expiry and make use of them before they do.

Make sure to practise discipline and pay off your monthly bill regularly to avoid interest charges.

Making your money work for you is not an overnight process, but with commitment, discipline, and the right financial strategies, you can achieve financial security and freedom. Budgeting, saving, investing wisely, and continuous learning are essential components of this journey. By taking control of your finances and letting your money work for you, you can look forward to a brighter financial future and the peace of mind that comes with it. Start today, and watch your financial goals become a reality.

Disclaimer
Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life e-Wealth Royale” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.

Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factor. The premium paid in Unit Linked Life Insurance Policies are subject to Investment Risks associated with Capital Markets and NAVs of units may go up or down based on the performance of the fund and factors influencing the Capital Market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges, from your insurance agent or the intermediary or policy document issued by the insurance company. The various funds offered under this product are the names of the funds and do not in any indicate the quality of these, their prospects and returns. The past performances of the funds are not indicative of the future performance of any of the funds available under this Policy. There are no guaranteed or assured returns in this policy, except under Discontinued Policies Fund where the minimum guaranteed interest will be as prescribed by the IRDAI from time to time.

The policyholder can withdraw the invested amount only after the completion of five plan years.

SUD Life e-Wealth Royale | UIN: 142L082V02 | A Unit–Linked Non-Participating Individual Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472

Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.

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