Here are 4 Steps to Generate Wealth for Your Family

Loving our family comes naturally but protecting them through the ups and downs of life takes commitment and hard work. Providing for our family is one of the sincerest ways we can show our love and a duty not to be taken lightly. After all, having ample finances is essential for a family to lead a stress-free life and fulfil their goals.

This is why only earning and spending money on them in the present isn’t enough. You must also prepare for the long run and ensure your cherished ones have a financial reserve to fall back on during the good and bad, especially in your absence or retirement.

Here is when becoming active with growing money and thinking of ways to generate wealth is crucial. These four time-tested steps can help you leave a legacy of wealth for your family.

Here is the list of steps that you can take to generate wealth:

• Save your money every month.
  

  Save your money for a rainy day is something you must have heard ever since you were little. Saving money is essential not just for rainy days but to enjoy the sunny ones too. When we are young, the traditional forms of saving money like keeping money in a safety box or opening a savings account are fine.
  
  But as we grow older, we need to move to wiser ways of saving – so we can make a profit on our efforts and beat inflation and the rising costs of living. Saving your money through investments in wealth plans like Systematic Investment Plans (SIPs), recurring deposits, Public provident funds, etc., is important.

• Invest in a wealth creation plan.
  

  While saving and protecting your wealth is necessary, investing is the only way to grow your financial empire. So invest your money in financial instruments that will help you earn profits and accumulate interest through the years. There are plenty of income-creating options in the investment market, but you can categorise them into market-linked and non-market-linked instruments in a broad sense.
  
  Both market-linked and non-market-linked wealth creation plans help you save and grow money at the same time. However, market-linked wealth plans can give you more earnings as they work on the principle of compounding. So, the rate of return/ interest is higher than in non-linked wealth plans.

• Protect your family with wealth insurance.
  

  A big part of generating wealth for your family is leaving a continuous source of income for them in your absence caused by your unforeseen demise or the development of a life-altering eventuality. Of course, you can rely on your saving wealth plans or investment tools to support your family, but most of the time, such wealth plans end on the expiry of the buyer/ investor. This is why you need a wealth protection plan in the form of wealth insurance or some form of life insurance. Life or wealth insurance will give your family the monetary support they need after eventualities like your death, accidental death, critical illness, terminal disease, job loss, and the like.

• Don’t forget to save from your taxes.
  

  Creating wealth through tax is something that most people forget. Of course, as citizens, we have to pay our taxes. But there are many ways you can save and create surplus wealth through tax every year. In fact, the government even encourages tax-saving through the various sections under the Income Tax Act, 1961.
  
  For instance, you can get back up to ₹1,50,000 u/s 80C every year under several investments and wealth plans. u/s 10(10D), the pay-out you receive from a wealth insurance plan of any type is exempt from tax deductions. If you are confused about how you can create wealth from tax, try consulting a wealth management service.

Conclusion

Wealth is not created in a day or at an impulse. Therefore, to earn wealth for your family that does not run out, it is crucial to take the necessary steps in the present and be consistent about it. Visit now to know more about term plan, term insurance, ulip plan, retirement plan, long term savings.