For most people who are conscious of their financial health (both in the present and for their future as well), the news that there is a best monthly income plan will come as no shocker. More and more people are investing in their financial knowledge and are gaining information about their active income and passive income.
Several people secure their passive income by leaning into their creative side by becoming authors, entrepreneurs, etc. Others mesh together their affection for beauty and business by becoming active investors in the real estate sector. Which is all well and good, but what about the rest of us? Fear not! There are many others in the same boat as you. So, without further ado, here are our top 10 solutions –
- Steps For Yourself
- Invest in Yourself:The first and foremost thing that you should invest in is yourself. Contrary to popular belief, by investing in your own interpersonal skills, hobbies, passions and more you do not miss time but make yourself more employable. The experience, knowledge and wisdom you gain through various channels will only serve to make you stand out more.
- Gain Financial Knowledge:Gaining financial knowledge at every turn of your life is an imperative step that everyone needs to take. From learning how to save and invest for yourself, to managing finances in the present and the future for your family, to finance management for your parents to taking care that the generations that come after you that can start off on a better and a more even playing field than you possibly could have – financial intelligence is a must.
- Making Investments:Take a few risks when you can while making investments, by all means start small but make sure that those baby steps are taken. Whether you invest in the stock market and want to start trading or want to invest elsewhere, investments are another must when it comes to wealth creation.
- Organize Yourself and Your Life:By this we mean keeping financial goals for your wealth creation and then actually achieving those targets. It is important that you take charge of your finances by making a timeline or a track-list of all your goals. However, please note – it is highly advisable to do this with a mentor or a coach who can guide you through this whole process and keep you accountable.
- Simple Investment in Plans:You can also simply invest in plans and schemes that are all currently available for your financial security. Some of these plans and schemes are –
- Public Provident Fund (PPF) –This fund offers a great deal with substantial returns keeping small savings in mind. The amount, which must be consistently put aside for this fund, can be extremely low to very high – all depending upon what suits the investor.
- National Savings Certificate –A plan with a low tenure and offering substantial returns, this is another quite famous plan with investors. A onetime payment is required and the amount is paid back with interest upon maturity.
- Kisan Vikas Patra (KVP):This scheme has a long tenure but will double the amount invested in it at the very end, making this a favorable option for investment purposes.
- Post Office Monthly Income Scheme:“As the name suggests, this scheme provides monthly income (at 8% pa) to investors. On competition of 6 years, a 10% bonus on the principal sum is provided.”
- Steps For The Generation Before You
- A lot of the times, especially in India, children stay with their parents or move into their own homes and then have their parents move in with them. This is not an uncommon practice but can take a toll on the family in terms of finances. One-step in making things easier is by contributing towards the finances. The children can look into the costs by taking up work-from-home assignments as a freelancer, or working part-time or can apply for scholarships. This ensures a comfortable future for their parents.
- Another way is to take charge of some, if not all, household expenditure. By contributing towards the finances at home, children can ensure that their parents can save up for their future in a comfortable pace.
- Children can look into their parents financial planningand help wean them off any unnecessary plans. This can be done by ensuring that their investments in any policies and plans are relevant and will cover their lifestyle expenses without any change in it.
- Another way to go about it is to invest in the Senior Citizens Savings Scheme. A scheme exclusively meant for senior citizens, this has a return of 9% and anyone over the age of 60 can apply for it. Citizens over the age of 55 can also apply for it, provided they fill up certain criteria’s.
- Real estate is another option for securing the future. If finances allow, then investment in another house and giving it out on rent is a great option, as the rent will provide a steady stream of income. However, one other way is to reverse mortgage the house that the family is living in. ***“With each payment to the bank, the ownership of the bank for the property will increase and after the demise of the last surviving spouse or owner, the heirs can either claim the ownership by recompensing the loan, along with interest, or let the bank sell the property.”