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Started earning? Bright future is a secured future

To ensure you fulfil your priorities, a robust financial planning can help reach your life goals; preparing you adequately in the long run.

Started earning? Bright future is a secured future
Financial wealth is created not just by earning and saving, it is created when you take steps to protect and prepare for not-so-sunny days.

By Rahul Talwar, Chief Marketing Officer at Max Life Insurance

You’re in your 20s, you are excited to have finally started earning your own income, you feel independent and on top of the world. This is a great phase and a start to infinite possibilities – you must also consider securing your new found freedom. To ensure you fulfil your priorities, a robust financial planning can help reach your life goals; preparing you adequately in the long run.

Financial wealth is created not just by earning and saving, it is created when you take steps to protect and prepare for not-so-sunny days. At every stage in the life cycle, you will need different types of financial plans to meet your needs.

Read to know more about how you can financially equip yourself and protect your tomorrow:

The first-income stage

Budgeting and tracking your finances are the two most important elements at this stage when you are entering the workforce. In a recent survey by Max Life, it was found that about 33 per cent respondents below 35 years of age expressed positive opinions towards investing early for their retirement. The number increased by 6 per cent as compared to last year indicating the growing awareness and action towards securing one’s future, financially. This is certainly a step in the right direction for people entering the workforce. Develop a suitable budget to balance your daily and long-term needs.

Family stage

This is where you expand both your family and your career making it the most fulfilling stage of life and therefore, the time for prudent financial investments. To ensure your investments benefit and financially protect you, consider opting for both term insurance and health insurance. For long term financial gains, invest in a savings plan that can help you provide for your child’s higher education or marriage among other life milestone. As this is perhaps the longest phase of your earning and financial planning life, make sure to review and compare the features, benefits of different financial plans – choose one that aligns with your future needs.

Career peak stage

In the pre-retirement years of your life, it’s a good time to review your financial portfolio. Most income sources in retirement are taxed and therefore it is important to minimise taxable income. Take guidance from a financial advisor and understand if you are on the right track of building a healthy financial corpus.

The retirement stage

This can be defined as the stage when most of your responsibilities are fulfilled, and you finally enter the golden age. How well a person can navigate through retirement depends on your decision making in the above three stages. Retirement is an opportunity to fulfil dreams that were put on the backburner, soak in new experiences that were earlier deprioritised. Creating a solid retirement corpus that is optimised to soak in inflationary and other financial shocks is an ideal solution to look at.

While financial protection has always been an important requirement in life, it has become even more pertinent in an increasingly uncertain world. Your journey towards a blissfully and financially strong adulthood and an ultimately retried life, should begin as early as possible. It is the best way to ensure that your income and family is well-protected, always!

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First published on: 08-12-2022 at 23:32 IST