Save Smartly, Make Wise Investment Choices

Save Smartly, Make Wise Investment Choices

Columnist and financial advisor Leena Parwani provides a guide to identify the right savings plan
Save Smartly, Make Wise Investment Choices

Beautiful Money By Leena Parwani 

Since tomorrow is uncertain, prepare yourself in advance to grab great financial opportunities. 

In 2012, one of my clients named Susan asked me to cancel her policy and withdraw all the cash from the account she was maintaining for 7 years with a saving plan of USD 900 per month. I didn't quite understand the reasoning behind this since her plan had just begun giving returns worth USD 90,000. 

Upon me asking her the reasons for her decision, she explained, her uncle who was leaving the country had decided to sell his house for lesser than 40% of the market price due to urgent financial requirements. Susan capitalised on this smart investment opportunity and withdrew the cash from her policy to be able to pay a down payment of 50% toward the house. For the other 50% she decided to go in for a loan from the bank. 

As of today, the house is worth over 1 million and Susan is enjoying the benefits from the rental income. Saving is not entirely necessary, but it is a great practice. Making smart investments provides you with an opportunity to make way for a financially safer future. 

In order to make wise saving decisions it is important to educate yourself financially and choose smart saving plans. 

Follow these tips that will lead you to making the right choices:

1. Consult a smart advisor to manage your money. 

2. Make investments with entities you can trust. 

3. Choose capital protected plans, which yields lower returns but come with a set guarantee, so you feel safe and secure.

4. Go for medium to high risk investments where you have a platform to access the information on your portfolio at any given time.

5. Always stick to a non-flexible plan. This will avoid the temptation of withdrawing prematurely, thus making sure your purpose of saving is met with. 

Lastly, be alert and make smart decisions.