Being aware of your finances.

When I was talking to a couple of my friends/colleagues , I got great surprises .
Person A was telling that he had never claimed his medical bills ( 15,000 Limit) in his entire career spanning more than a decade. Not that he wasn't aware of it, but he didn't care to take time to submit claims.
Another one said, he never bothered to withdraw/ transfer his PF from his previous employers. He is with the present employer for six years. He says he doesn't understand finance nitty gritties to do this!!!
In the same way, many succumb to buying money back policies or ULIPs as 'Investments" because they do not do enough research.
Another friend of mine doesn't stretch himself to transfer his funds from his savings account to an 80C instrument and ends up paying extra tax every year.
In none of the cases, this is happening because they can afford to do away with their money. It's because they fail to take that small initiative towards understanding an instrument or making an effort to being aware and acting in time.
In this context, we are in April and this is the right time to plan your tax savings and other investments for the financial year.

1 comment:

Raag Vamdatt said...

A very important observation!

People spend all their effort in thinking about ways to save large amounts... But these are the small things that can add up to a LOT in the long run...

Eg Just the PF money after 6 years employment would be quite sizeable! And not submitting bills for Rs. 15000 for 10 years is a clear loss of Rs. 1.5 lakhs - without considering even the interest!

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