These days, the craze for doing business in the youth is full of passion and passion. A large number of young people are making a bold decision till they leave their jobs. However, it is not easy to become an entrepreneur. There are many challenges in this way, which can successfully cope only with those who are already ready for them.
Technology startup
Most educated teenagers are trying their best in startup technology. According to Finance Minister Arun Jaitley, the number of techno-startups in the country is more than 19,000 now. It is the third largest number in the world and it is growing rapidly.
We are giving here some of the financial tips needed for such enthusiastic youth today, which can make their path of entrepreneurship easier.
Three year budget is necessary
If you want to start your business you must have a budget of at least 3 years. In this sequence, evaluate the needs of your housing, food, clothes and transport as well as honestly.
Keep your expenses low
Since your income may be limited in the first few months, there is a need to limit your expenses and better utilization of money. If you have taken loan, then try to reduce its interest rate and EMI. Keeping in this order, staying in small apartments, using a car instead of two or using a used taxi, eating at hotels and spending less on drinks should also be considered. You can also use the management app to monitor your budget or expenses. However, too small costs should not feel too much pressure.
Get Enough Insurance
Even if you do not need more insurance during the job or if your company has given you the policy, but if you are doing all your own trust, then you should take an adequate insurance policy. Make sure to have a term life cover of at least 1-2 million rupees. Family Health Insurance Policy is also important.
Keep your current investment also
If you already have a mutual fund or stock investment, then you should try to keep it. Do not even stop your SIP if possible, because your investment is long term, which can lead to better returns.
Planning tax exemption should also be done
Since you are no longer in the job, in such a way EPF will not be with you now, so you should also have proper planning of tax saving. You can take ELSS Tax Saving MF Plans for this. Put your MF investment into the brokerage directly from the broker, so you can save up to 1.5 percent as a commission cost every year.
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