Droplet Wealth

In Tip#1, We saw what we should not do in the name of tax saving. Today we will see the 1st thing we should do for tax saving. In a recent survey it was found that people go financially broke or fall in debt trap primarily for two reasons - 1. Wedding 2. Health disease. Today we are going to talk about 2nd point and how tax saving is related to it.  Like we said earlier, a lot of people are obsessed with Section 80C. People have their obsession, we have ours and it is Health is Wealth . Honestly, In today's world, it is impossible to be healthy, If Diabetes does not catch you, some Heart disease will catch you, If Heart does not then some cancer will, the list will go on... But seldom can we find a person who is 40 plus but all healthy.  The Proverb -"Health is Wealth" might be cliché but the context has changed. In the sense that almost all ailments today have treatments and can be cured if diagnosed and treated properly. But these treatments cost us our life savings...

  A Wiseman once said - "Haste Makes Waste" Its that time of the year when people go helter-skelter to save taxes. Most of the time because of poor planning, people end up "buying" products that hardly help them save taxes or avoid helping them build savings corpus. In this blog, we thought we would bring to fore some grave mistakes that People do in the name of "Saving Taxes"  Horror#1   - Buying Traditional Insurance Policies In our small life as Financial Planners we have not come across a person in 30% tax bracket who has bought a LIC policy to save tax. That is because they already bought a 15 year policy when they were in 20% tax bracket. Now google "Charges paid on Insurance", you will understand that there are multiple charges that sum up to almost 20% of Premium amount like Document charges, Morbidity Charges, GST, Etc.,  To save 20% Income tax, People end up paying 20% in other form. So where did you save tax? So buyers of I...

                  This is going to be the Fourth New Year Droplet will be welcoming. A really odd one in that since we have seen a pandemic that shut the world but then it did not shut the returns for the investors. This year saw both Equity & Gold giving some solid returns to the investors. Of the many lessons that 2020 gave, one that stands out is, " You have to be invested to reap returns market gives you " since many of us stayed out of the investing or quit investing and lost on what would have been a great year to reap the returns :) Years may come and go, So would a Pandemic, the World may change accordingly but the rules of personal finance never change. Here they are - Make sure you follow this at any cost –> Expenses = Income minus Savings Save a minimum 30% of your monthly earnings. Alternatively, if you are a family with two earning members, try to save one person’s income at 100%. Have SIX months of your ...