Is Your Family Financially Secure?
Taking care of your family is no easy matter. Making sure they are well looked after extends beyond health though - are they financially secure? Here’s what you need to do.
What do you want for your family? Do you want to invest in a home, or save up for a great college? Or invest in experiences like holidays? Understand what you want to build wealth for.
Set A Purpose
The sooner you start saving and investing, the better. In fact, you can start from the time you are married or have your first child!
You MUST have an emergency fund that is easy to access by your spouse and children. It should be easy to liquidate, should the need arise. Work on building this fund as a first step.
You need to invest in some long-term assets that will bring good returns over a 5+ year period. This can be in the form of mutual funds, PPF, NSS, bonds etc, based on your risk appetite.
Taking out a loan can be a necessity at times, whether it’s for a car or a home. The key is to stay on track with your EMI and repay it in time so you don’t accumulate more debt.
Aim To Be Debt-Free
Every family member needs health insurance. You never know when a medical emergency may arise, and you don’t want to scramble for funds at that moment.
For a young family, of 4 people, an amount of Rs 10 lakh should be good enough. But you need to top it up regularly as medical costs escalate.
Health Cover: How Much
Be it saving, investing, making your premium payments and bill payments on time, you must be disciplined and consistent - that’s how you can achieve financial security for your family.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.