Malfunctions of My Brain

SAVE and SALE are two Red Boards with white letters that attract us to check out. Both have wealth building prospective in the long run.

JFM acronym for Jan, Feb & Mar in the business world is famous for both SAVE and SALE. It’s often a win-win situation.

Tax saving is one that I wish to attend to day as part of wealth management. To Save Tax or Not to Save Tax is one that haunts almost every youngster when they start earning.

Contention here are
Why am I taxed? Why Tax slabs? Where does the money that I pay as tax goes?

If you think that I am going to answer them, you are seriously mistaken.

Instead, I shall take you to a path of financial wisdom that is more enlightening than just beating around a thorny bush full of Under Section 80’s.

Hence let me start by quoting the great Benjamin Franklin. His 3 most famous quotes applicable to my topic are these, placing them in it’s order of importance and understanding.

“In this world, nothing is certain except death and taxes.”
“A penny saved is a penny earned.”
“Remember that time is money.”

The obvious is seldom convincing. The willingness to get convinced about the importance of saving for tax savings is clouded due to two embossings in our head.

‘I know that’ and ‘Let it be’.

Various ITR Sections are a luxury that is given to us by the Govt of India. You can either exploit them or just pay taxes on all your income and be cool about it.

Every penny you save adds value to your wealth. Most of the time we fail to understand that till a time comes when we have enough to look after ourselves. Here comes the 3rd quote of B. Franklin in play.

Time you gave in tax saving instruments saves you from working time after 60. My staunch belief.

With this comes the most difficult part, where to park money?

These are some of the options I wish you to look in to. There are many more available at your disposal, some are absolutely idiotic and some super good.

The most intelligent way to save is a combination of 2 to 5 products in this basket covering Rs. 2 Lakhs.

My personal choice is a combination of ELSS + PF + NPS + Term Plan + Guaranteed Traditional Plans.

These are some very important things that you need to keep in mind since it is a long-term investment.

You need Single Platform Technological interface with an advisor who will be able to look into all of them. A Chartered Accountant to file your ITR properly. Last but not the least, you must have a dream to become wealthy.

I will conclude with a small inspiring conversation I had in the year 2005 with a well-respected Gujrati business man aged 55.

After I finished my presentation on investments, he made a statement which shook me then and it still makes me wonder what kind of a man he would have been in his younger days?

“Mr. Antony, I pay an average 20% as taxes to our Govt. If you make 25 to 30% ROI on my money, its only 5 to 10% more. So, I would like you to plan and invest in places where I get to earn 40%. I am not against Taxes, but I am against not making best use of the money I have in hand.”

All said and done, start your investment and wealth creation journey ASAP. You can contact me and my team for more information in this regard. Experience a cut above the rest wealth planning.

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