# General :
- Start Personal Financial Planning At the age 18
- Income , Expense and Saving
- Simple ways to Control Expenses and Save Money
# Investment Under Section 80-C
| Sr. No. | Name | Limit | Amount |
| 1 | Provident Fund | 1,50,000 | 50,000 |
| 2 | Voluntary Provident Fund | ||
| 3 | Life Insurance Premium | 50,000 | |
| 4 | National Pension Scheme 80CCD(1) | ||
| 5 | Pension Plan | ||
| 6 | Housing Loan – Principal | 30,000 | |
| 7 | Public Provident Fund | ||
| 8 | National Saving Certificate | ||
| 9 | Unit Linked Insurance Plan | ||
| 11 | Fixed Deposits More Than 5 Yrs | ||
| 12 | Mutual Fund | 20,000 | |
| 13 | Housing – Stamp Duty & Registration | ||
| 15 | Post Office Time Deposit Scheme | ||
| 16 | Sukanya Samriddhi Scheme | ||
| 17 | Senior Citizen Saving Scheme | ||
| 20 | Other | ||
| Total | 1,50,000 | 150000 |
Real Estate :
- Stamp Duty & Registration Charges u/s 80-C
- Interest on Housing Loan u/s 80 EE
- House Rent Allowance (HRA) u/s 10 (13)
Medical & Insurance :
- Medical Insurance Premium u/s 80D
- Medical Treatment u/s 80DDB
- LIC u/s 80-C
Education :
- Education Loan u/s 80E
- Tuition Fees (For Children Education Only) u/s 80-C
Bank & Market :
- Mutual Fund u/s 80-C [ELSS]
- Fixed Deposit for 5 years u/s 80-C
- ULIP u/s 80-C [Insurance + Investment]
Government Schemes :
- PPF u/s 80-C
- Post Office Time Deposit Scheme u/s 80-C
- NSC u/s 80-C
- Sukanya Samriddhi Account (SSA) u/s 80-C – (For girl child )
- National Pension System (NPS) [Employee Contribution u/s 80CCD(1)] [Employer Contribution 80CCD(2)]
- National Pension System (NPS) u/s80CCD(1B) (Additional Rs. 50,000)
# Investments :
Module 1 Example : Salaried Person With HomeLoan
Let’s Take an Example of a Salaried Person who gets Monthly Take Home salary Rs. 50,000/-
Income : Rs. 50,000/-
A. Debts [60%] : Rs. 30,000 /-
This includes all your Liabilities such as Home Loan, Personal Loan, Rent etc.
This amount should Not Exceed 60% of Monthly Take Home salary i.e. Rs. 30,000 /-
So, Now We are Left with [40% of Monthly Take Home salary] i.e. Rs. 20,000 /-
Split this amount into your Monthly Expense and Savings Equally.
B. Expense [20%] : Rs. 10,000 /-
We can’t escape from our Monthly Expenses and these vary month to month. But if we could limit the amount to 20% of Monthly Take Home salary then we could achieve our Saving Goal.
- Glossary, Fruits & Vegetables, etc : Rs. 3,000 /-
- Bills & Recharges : Rs 3,000 /-
- Weekly Expense [Rs. 500 each week] : Rs. 2,000 /-
- Weekend Expense [Rs. 500 each week] : Rs 2,000 /-
C. Savings [20%] : Rs. 10,000 /-
This is a chunk of Money we want to save Every Month. More Saving % is always better.
- Mutual Fund : 10% –> Rs. 5,000/-
- PPF : 2 % –> Rs. 1000 /-
- LIC : 4 % –> Rs. 2,000 /- { If you are paying LIC Premium Annually then Open Monthly Recurring Deposit }
- Shopping Saving 4% –> Rs. 2,000 /- [It is advisable to do saving first and then shopping
# Recommended Books:
- How to be Your Own Financial Planner in 10 Steps – by Manish Chauhan
Link: EPFO
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To Check EPF Passbook : Link