6. Buy Insurance to Guard Against The Unforeseen

Insurance are the best ways which can increase your risk taking abilities and prepare yourself for the unexpected. Once you know you are prepared for any kind of mishaps it lowers your worries. It is safe to take an insurance plan at least 5-6 times of their annual income. But one should not consider buying an Insurance plan as their investment. An Insurance plan is just to take care of the dependents and shouldn't be considered as return bearing investment.

7. Don't Leave Tax Planning Till End of Financial Year

Often taxpayers wake up just before the last alarming date when they are asked to provide their tax saving investment proof and taxpayers make erroneous decisions and go for the wrong plan. If the plan bought doest proves to be appropriate, the entire money along with the premium goes waste. For instance, one should go for a medical insurance only when they need it and not due to the deduction received under section 80D. To avoid all the mishaps, it is better to go for an investment when you have time to analyze all the factors.

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