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One-year Goals, Various Investments: 5 Tips One Could Follow to Secure their Financial Future

Representative photo. (Image: Reuters)

Representative photo. (Image: Reuters)

As coronavirus has made people realise that they should be well prepared for the future, here are some options which one can consider to make their future secure.

Nowadays, people have many options for earning. They use their income for travelling, buying gadgets and other stuff. Some of them prefer to invest in mutual funds, stocks or bonds. Owing to the penetration of the internet, people have started gaining knowledge about smart investing. They believe in asset building for their future.

As coronavirus has made people realise that they should be well prepared for the future, here are some options which one can consider to make their future secure.

Don’t keep all your eggs in one basket

Investments should be made in different avenues like debt mutual funds, equities, among others. Putting all your money in one avenue can be risky and is not considered a smart option.

Retirement plans

Most people only depend on the provident fund (PF) or insurance for their post-retirement life. But, in view of the inflation and rising prices of commodities, depending only on PF or insurance is not a good choice. One should keep their post-retirement life in mind before making investments. Focus on buying a property which could also help you fetch rent.

Debt management

Most of the people usually buy home or gadget using the EMI option. They find it easier to purchase things on EMIs as they manage to pay them comfortably. However, they should not develop a habit of using credit cards frequently to buy unnecessary things.

Don’t rely only on active income

People should look for more than one earning option. The income that is generated from a job is called active income. We receive a salary when we put in our hours. So, one should also generate a passive source of income which is independent of our direct efforts.

Stick to financial goals

One should make short term financial goals. For example, if you have thought of saving Rs 1 lakh per year, so try to fulfill that goal at any cost. Reduce your extra expenses, if required, to achieve the target. Once you develop the habit of meeting short-term targets, you will easily be able to achieve long-term goals.