how to make your hard earned money work for you …

india has various savings schemes for people

provident fund .. it is a govt. fund where working people can deposit a certain amount from their monthly salary ( usually 12.5 %) , with the employer contributing an equal amount – the interest rate year varies from 8 to 9 % per year – it is decided by the government. the money you deposit here is eligible for tax relief. you can take out this money when you retire .

sukanya scheme – for the girl child – if you have a precious young lady in the house , you can deposit money into an account opened in her name – upto 12,500 INR per month , 1.5 lakhs INR per year – this is tax deductible as well . you can do the deposits till your daughter turns 15 . you can save this money for her marriage or education , as the case may be. it is part of the beti bachaao scheme by the indian govt – again the interest rate varies – so , you can assume – around 8 %

some other services offered by the indian banks are

• fixed deposits – you keep your money locked up for a certain period , eg 6 months or more and they pay you an interest rate of 7 to 10 percent .
• recurring deposits – you take a little amount from the salary each month and deposit this money to a bank account , works similar to a fixed deposit – you get a higher return on your money
• sweeping accounts – which are a combination of savings and fixed deposits – your idle cash is swept into a fixed deposit for a higher interest rate

of course , you have the stock market , where you can deposit a lump sum or a fixed amount ( Systematic Investment Plan or SIP ) every month in select stocks , one or more mutual fund(s) or one or more index fund(s).

or you can go the real estate investing way – buy one or more home(s) and put them up for rent and collect rental income .

In the recent years , there has been a program to expand the health insurance to all people ( specially those who are not covered by their employer’s plans – eg daily wage earners ) .

warren buffet says .. put your money into income generating assets , otherwise , you will be working till death and never be able to retire.

of late , the financial freedom movement has been picking up pace – save 50 % of more of your income , put them into stocks for 10 – 15 years and live off the income after the age of 40 – work then becomes optional . you can live off 4% of your total investment amount per year – let the remaining part of the money appreciate and earn interest.

you can still work , but you can walk away if you don’t like the type or quality of work . you are not dependent on the work for daily expenses – home payments , travel , etc.