3 Things To Do With Money Saved During The Lockdown

Due to lockdown, people are unable to move out of house. It has its own benefits- e.g. More time for self and family, more time for learning and self development, no traffic, no outing, no junk food, no shopping which leads to less expenses and we can save more for our future goals.

Saved money can be utilized for these 3 things:- 1. Wealth Creation 2. Wealth Protection and 3. Wealth Transfer.

Our life start at point B(birth) and end at point D(death). In between, everything is C(challange). C for cash, C for cheque, C for Change, C for challange, all these things are mandate for everyone. I mean, any changes or challanges (child education, child marriage, dream house, car, vacation, retirement planning) comes to our life, required cash or cheque i.e wealth. So, to achieve our short term, mid term and long term goals we need to create wealth, which can be achieved by investing in equity, mf or pms.

Our hard earn money simply goes for a toss, if we have not done proper protection planning. The same can be done by having sufficient life coverage(term insurance), disability or decease coverage(health insurance). One must have 20 times of his annual income of term insurance and 10 to 20 lacs of health insurance per family.

People at the verge of retirement or already retired must plan for proper transferring of their wealth to next generation. As, its equally important as wealth creation and wealth protection. The same can be done by doing proper estate planning by taking experts help.

At the end, very clear message to the people who are able to save some money during lockdown can be utilized for wealth creation, protection or may be for transferring of their wealth. The same can be done by starting SIPs for their short term, mid term or long term goals. Lumpsum amount can be invested to create emergency fund or wealth creation for future goals. To protect own wealth, one can buy term insurance or health insurance for family by paying nominal premium. Also one can go for estste planning at very low cost for transferring his wealth to his next generation as per his wish.