Outlook Money
With low income, saving money can be challenging, but following strategic planning and discipline, one can achieve financial stability and build a secure future.
1. Evaluate Savings Feasibility; It involves evaluating income carefully and spending to see whether putting away money for savings is achievable without compromising the basic needs. This helps in making realistic judgements about financial objectives and saving targets.
This includes allocating money to cover essential expenses such as rent, loan payments, insurance premiums and mandated investments like PPF and Section 80C contributions. This can help minimise overspending and improve capacity to save money.
This involves setting up an Electronic Clearing Service (ECS) mandate which instructs banks to automatically transfer a predetermined amount from salary accounts to savings or investment accounts after salary is credited. This strategy makes sure that funds are transferred without manual intervention.
Under section 80C, individuals can cater opportunities to avoid taxes on investments i.e. PPF, ELSS, NSC and life Insurance premiums. These investments reduce taxable income while encouraging long-term saving and financial progress.
Financial discipline involves developing habits such as saving before spending and getting professional financial counsel to improve financial management abilities. This helps individuals in the methodical achievement of financial goals.
Long-term financial planning includes saving for future expenses like education and retirement. It emphasizes the need to save and invest early to build a strong financial foundation.
Compiled by Syed Muskan