When we starting investing early, we give our investments more time to compound and give us exponential returns. 

The law of 72 states that your investment will double every X years, where X = 72/return%

So, assuming the long-term average of 12% returns from equity mutual funds, your investments should double every 6 years. If you can manage to increase returns to 14%, your investments double every 5 years! 24%? EVERY 3 YEARS!!

Compounding leads to spectacular returns, if you give it time

Now this is where it gets interesting – For every 5 or 6 years you don’t invest you are missing out on huge returns. 

Suppose you invest ₹1,000 today and expect 12% return.  The investment in 6 years will be ₹2,000. Not bad, but not great either!

In 12 years though, the investment will be ₹4,000 and ₹8,000 in 18 years! Those are phenomenal returns! 

But if you missed start later, let’s say 6 years later, you will only have ₹4,000 instead of ₹8,000 for the same investment. 

While these are lumpsums, the effect of starting later is even more pronounced with SIPs. Below is an indicative schedule of investments where either your start at 15 and invest ₹2,500 a month, or you start at 25 and invest ₹10,000 a month. At the age of 35, both investments give almost the same returns, but in the first case, you invested half the amount!

Compounding is truly the 8th wonder of the world!

As is evident, starting small but giving your investments time by starting as early as possible, is the best way to create wealth for yourself.  

Why should you start investing early? - upsurge

The stock market is a highway that leads to wealth-building opportunities. The stock market has the potential to make you a lot of money, but also is volatile enough to wipe out wealth. As a result, learning how to trade in the stock market is essential.

The following pointers will assist you in starting your stock investing journey:

1 . Open a demat account: To invest in stocks, you must first open a demat account and a brokerage account. The demat account functions like a bank account in that it holds your shares in a digital form 


2. Understand how prices move: The price of a stock fluctuates in response to news, fundamentals, technical analysis, and other factors. You may improve your understanding of stocks and stock markets by learning about these topics.


3. Stock fundamental and technical knowledge: To plan your investments, study the stock's fundamental and technical evaluations. Fundamental analysis is a method of determining a security's real value. It takes into account a variety of factors such as profits, expenses, assets, and obligations. Technical analysis, on the other hand, analyses the stock based on its historical price and volume chart in order to forecast its future potential.


4. Consult a professional: The stock market is unpredictably volatile. Nobody can precisely anticipate the price of a stock. Taking experienced assistance, on the other hand, might help beginners make the best investment decisions. 


5. Begin with safer stocks: A large capital loss at the outset may shake your confidence. Starting with the less volatile equities is a good idea. It's possible that you'll get off to a slow start as a result of this. Those stocks, on the other hand, are more likely to maintain a positive performance even in the face of adversity.

Investing in the stock market can be challenging. Opening a demat account is the first step toward trading success. Next, work on gaining a thorough understanding of the stock market. This will enable you to pick stocks for long-term or short-term profits.

In case you don’t have the time of inclination to go through all this, you can always invest in Mutual Funds of ETFs to enjoy the returns from the equity markets with much less involvement and risk. 

How to start investing in stocks? - upsurge

Understanding the various asset classes and which investments belong into each is critical when planning your investments. An asset class is a group of investment products with similar characteristics, such as how they behave in the market, how they are purchased, and how the government controls them. There are five main asset classes:

Your portfolio is deemed balanced if it includes investments from all asset classes, which is good because it helps decrease the portfolio risk while optimising returns. You could be in trouble if your portfolio is heavily weighted in one area and that sector underperforms for some reason. If your portfolio is spread out and one asset class underperforms, you should still be able to get through the crisis with the other assets functioning well enough.

Ownership in listed companies is represented through equities. When you buy stock in a firm, you're buying a piece of the company. If Company ABC has 100,000 shares and you acquire 1,000 of them, you will own 1% of the company. You have a right to a percentage of a company's profits as a part-owner, and these gains are frequently distributed to investors in the form of a dividend. The dividend amount varies by company, and some corporations choose to reinvest dividends back into the business to help it develop.

The easiest way to invest in equities is through a Stock broker, such as HDFC Securities or ICICI securities, or through the new-age trading platforms, such as Zerodha or Groww. They will first open your Demat account, and then allow you to invest or trade in equities.

When you create a fixed deposit with the bank, you are in-essence lending the bank money for which they pay you interest. They will in turn lend this money to other parties and earn interest on it. This is how banks make money. FDs are the most convenient debt investment options and can be made easily using your bank’s netbanking platform. 

When you buy a bond from a company, you're essentially lending them money, which is why they classify it as debt. The institution offers to pay interest on the loan in the form of periodic instalments in exchange for this loan. Bondholders get interest payments throughout the duration of the bond, and the principal is refunded at the completion of the term (called as maturity date). Bonds are now available for public to invest in through platforms such as INDWealth and Coin, as well as through ETFs listed on the stock exchange.

Any money in the form of currency, both domestic and international, is referred to as cash. This can include cash in your bank accounts as well as physical bills and coins. Like money market assets, cash equivalents are highly liquid investments that may be turned into cash quickly—usually within 90 days or less. Cash equivalents, unlike stocks and other assets, must have a fixed market price that does not vary. These are primarily available to individual investors through mutual funds and platforms such as Coin and INDWealth.

Tangible assets are separated into their own asset class since they can be seen and touched. People's most common physical asset is real estate, however commodities such as gold and metals also fall into this category. In general, these assets can withstand inflationary periods.

To invest in Real Estate and Commodities, one way is to buy real assets and hold them, but this often requires large sums of money and a lot of compliance. Another, more accessible way to invest in Real Estate and commodities now is through various mutual funds, exchange traded funds and REITs (Real Estate Investment Trusts) where you can start your investment with just 1 unit and grow it over time.

Surely you’ve heard about Bitcoin and Ethereum, two of the most valuable ccryptocurrencies in the world today which have given astronomical returns over the last decade. While these are possibly the highest risk, the doesn’t mean that we should miss a generational opportunity to create wealth.

To invest in crypto in India, you have to use apps such as WazirX or Coinswitch, complete your KYC, fund your wallet and start investing!

The goal of including all five asset classes in your portfolio is to not only protect against investment losses, but also to reap the benefits of each class's unique characteristics. The entire asset allocation idea is predicated on diversification your portfolio by asset class; you never want to be in a scenario where your portfolio is solely reliant on one asset category to carry the burden. Bonds don't offer significant gains, but they are one of the safer investing options. Stocks offer bigger returns, but they also come with more risk. It's up to you to figure out which asset combination sounds reasonable for you.

A portfolio with only one or two asset classes is poorly diversified, and it may not be able to effectively manage benefit of all of the market's fluctuations. However, diversification—or at least the degree to which you diversify—is a personal choice that is influenced by your objectives and risk level.

If you're a risk adverse person, you might like to diversify further or make sure you're well-diversified within each class, allowing for tiny deviations. 

Investing in various assets - upsurge

In the equity markets, there are two sorts of players: investors and traders. The two names are frequently used interchangeably, which assumes that traders and investors are the same.

Actually, that is not the case as there are significant distinctions between the two.

Investing and trading are two distinct strategies to earn money in the financial markets. For someone who is new to the financial market, both investing and trading may appear to be components of the same process, but they are not.

Let's look at each one independently to see what the differences are.

Investing is the process of purchasing and holding a portfolio of stocks, bundles of stocks, mutual funds, bonds, as well as other financial investments with the purpose of progressively building wealth over time.

Investments are frequently held for years, if not decades, to take advantage of compounding benefits such as interest, dividend, and capital gains. While markets are destined to fluctuate, investors often "ride out" downtrends in the hope that prices will return, and any losses would be reimbursed soon.

As a matter of fact, investors don't sell their investments on a regular basis. It's only used in an emergency or when the portfolio's long-term goals have been reached.

Purchasing and selling stocks, commodities, currency pairings, and other products on a regular basis is trading. It requires us to be a lot more engaged and involved as, traders frequently take risky bets that need constant monitorin.

The aim here is to surpass buy-and-hold investment in terms of returns. Whereas investors may be satisfied with annual profits of 12% to 15%, traders may strive for a 10% return every quarter. Buying at a lower price and selling at a better price within such a short amount of time generates trading profits. 

There are various distinctions between trading and investing, but the most common are the investment strategy and the amount of time invested.

The major difference between trading and investing is that trading allows you to benefit from market volatility while investing does not. Short-term gains and losses are neglected in investment in favor of long-term gains, which are realized when the company grows. A trader will focus on the stock's movement and performance, and be mostly unconcerned with the company's fundamental situation. An investor, on the other hand, would be more concerned with the company's fundamental financial and business performance, than with the stock's performance.

The approaches, risk, and time involved in investing and trading are the most significant distinctions between the two. It is acceptable to do both, and the decision to do either or both is based on the person's risk-taking abilities, time availability and tolerance. Investing is a long-term strategy with lower risk, whereas trading is a short-term strategy with high risk. Both make money, but traders typically make more than investors when they make the proper selections, and the market performs as expected.
 

Trading vs. Investing – What’s the difference? - upsurge

The majority of people who are thinking about retiring or buying a house, want to learn how to invest. After all, how you save and invest in the decades leading up to a big financial event has an impact on how you live. It's also vital to understand that the asset allocation plan you used in your twenties and thirties will not work when you're approaching (or have reached) retirement age. 

Here's how to invest for your objectives based on your age.

It's useful to comprehend the concept of asset allocation before thinking about how to invest at different periods of your life. There are many asset classes—or, to put it another way, investment "categories"—to choose from when it comes to investing. The following are the three main asset classes:

Debt - Bonds/Fixed Deposits (fixed-income securities)

Each asset class has a different risk and reward profile—or returns, as they're commonly referred as. As a result, depending on the broader economy and other circumstances, each class performs differently throughout time.

Your 20s are a great time to start investing for retirements or that dream home.

Use this opportunity to start investing, even if you have just graduated from university and are not earning a lot. Invest all you can as a 20-something, even if you can't commit the recommended 20%.

By investing right now, you have the greatest advantage over everyone else: time. Compound interest ensures that whatever you invest during this decade will increase at the fastest potential rate.

If you start investing ₹1,000 a month at 22 and increase it by 10% every year, at the end of 30 years, you will have invested ~ ₹9L and would receive over ₹1 CRORE!! Yes, compounding is truly the 8th wonder of the world!

If you put off investing in your 20s due to the ups and downs of starting a career, your 30s are the time to get serious about saving. You're still young enough to benefit from compound interest, but you're mature enough to put aside 15% to 20% of your salary, which would have grown significantly by now.

Contributing to your wealth should be a primary priority, even if you're currently paying off a loan or beginning a family.

If you waited until your 40s to start saving for retirement—or if you were in a low-paying job and transitioned to something more financially rewarding, now is the time to stay focused and get serious.

If you're not certain which investments to choose, talk to a financial expert. To offer your savings the best chance of beating inflation, which is the rate at which prices rise in the economy, you'll need to save in risky assets like equities.

"Risky" does not, however, imply "careless." Resist "too good to be true" deals and commit with assets that have a track record of earning profits. Continue to max out your PF and NPS investments.

You're in your 50s and 60s, and you're almost ready to retire.

Now is not the time to lose concentration, as you approach closer to retirement age. You children are also growing up, and their college fee is going to be significant. They also will be getting married soon.

If you invested your money in the latest hot stocks when you were younger, you'll need to be more careful as you approach closer to the business end of your career.

If you don't want to risk losing all of your money, shifting significant amount of your investments to more secure, low-earning investments like bonds and FDs is a sensible option.

You're probably retired by now, so it's time to focus on income rather than growing your wealth. That isn't to say you should sell all of your investments. Concentrate on stocks that pay dividends and add to your debt portfolio.

You'll most likely be collecting your provident fund, and pension payments, which should help you have a happy stress free retirement!

"The best time to plant a tree was 20 years ago. Now is the second-best time." – Chinese proverb

Investing is all about having this mindset. The greatest moment to start investing, no matter how old you are, was a long time ago. But it's never too late to start the journey.

Simply ensure that the judgments you make are appropriate for your age—your investment strategy should grow with you.  

Best Investment options based on your age - upsurge

We all have hobbies that we devote some of our free time to, because they are either enjoyable, gratifying or relaxing for us.

But, in today’s day and age, where the world is inter-conneccted and the gig-economy is flourishing, several of these “pass-times” can be transformed into sources of income for you. You can gain anything from free goods and extra pocket money, to building an entire business or a platform for advertising depending on how you go about it. 

Here's a list of seven common hobbies from which you can make money.

The personal benefits of writing and journaling are aplenty. But now, with the popularity of blogs skyrocketing, writing and publishing online has the potential to provide you with additional income as well. 

Either you can create your own platform for your work, or even work as a content creator for other companies – based on your area of interest or expertise. As a blogger, you could start by focusing on a nice, gradually growing your readership and then monetize either through advertising or subscriptions.

Art and design, like writing, are creative skills that can help you earn money as a freelancer. Many emerging artists with a range of artistic styles use Fiverr or Upwork to locate clients in need of their services, whether it's for making social media creatives, branding collaterals or even their portraits.

As an artist, you can also monetize your creations by directly selling your artwork on canvasses, or on t-shirts and posters. It's essential to realize that if you want to transform your creativity into a product, you'll need to target a certain market and create a different brand to target customers effectively.

Do you have a talent for making others laugh? Have you always been the family or group jester? Do you know what the most popular memes are now? 

Well, now you can put your sense of humor to good use and use it to establish an online community. I’m sure you can think of a few Instagram, Facebook, YouTube, or Twitter accounts that have built enormous followings merely by collecting memes and viral videos, or by tapping into a niche of humor that nobody else is covering.

Once you've built up a following, you can earn money through sponsorship, merchandise and views!

Food has evolved into an art form and good food is possibly the easiest product to sell! 

And now, you don’t need to go to culinary school to understand cooking – all the lessons you need are available online! There are plenty of ways to make money from your passion for food – starting with a recipe blog or videos, all the way to starting a delivery service as a home-chef. You can even bottle condiments, spices and sauces and sell those in your locality or personal networks using whatsapp. 

Do check platforms such as masalamonk or foodcloud to see how you can start selling that cake or pasta sauce you’re famous for!

If you have a good camera and know how to operate it, you have a few options for making money along the way.

While becoming a freelance photographer is possible, you are typically limited to local events and assignments that you can personally attend.

Now, you can also monetize your photos by selling them as prints or on photo sharing sites (pixel, shutterstock) and get paid every time someone downloads your photos. You may also grow your Instagram following by using your photography abilities, and then monetize that through sponsorships. Again, focusing on a niche is the best way to grow here!

You may be wary of the idea of making money while playing your favourite games, but if there's one thing this list has taught us, it's that if you can get people to pay attention to you, you can turn it into a profit.

The emergence of the "Let's Play" video format has enabled us to make money from gaming, particularly live-streaming on Twitch. You can make money by sharing ad revenue, just like YouTube. However, there is also the possibility of receiving one-time and subscription donations from a big audience. This means that the amount of money you make from live streaming will vary substantially, but it's extremely simple to get started earning money.

Do you make a mean candle or bracelet? Are your crotchet skills out of this world? Well, you  can now sell anything that you make – as long as its unique and of high quality. Everything from candles, cushions and potpourri, to Soap and bath-bombs can be sold for a neat profit from the comforts of your home!


Well, what are you waiting for? Armed with this information, and the ample knowledge available online, you can start your journey to upskill your hobbies, create a community or a portfolio of products and then MONETIZE!
 

7 fun hobbies that can actually make you money - upsurge

Every parent dreams that their children will outshine them in every way, especially financially. In today’s day and age, achieving financial freedom is much more complicated than saving whatever you can and investing in gold, fixed deposits and, maybe, real estate. It is important that they understand about setting financial goals and the various different asset classes they can invest in to achieve them.

While it's never too late to learn, the earlier you start, the more long-term benefits they’ll accrue. Stock markets and mutual funds can double your money every 5-6 years, so starting early definitely creates more wealth. 

Below, we're sharing some tips and tricks to learn about money for kids of all ages.

Children begin learning as soon as they are born. This learning begins with imitation, including following a parent's lead in smiling, tracking objects, and saying their first words. They are learning and picking up on your habits whether you are aware of it or not.

Begin by establishing a positive example for them to emulate. They'll pick up behaviours like creating a grocery budget, working hard, paying bills, and not buying items that are too expensive. When you talk to your child about how you make decisions, they'll eventually start replicating your decision-making with respect to what to buy (or not).

While children of this age may not grasp the value of money, they should be aware of the necessity of paying for goods. Shared experiences help children learn, so engage them in the grocery shopping trip to help them comprehend the process. Leave the credit cards at home and pay with cash to make it more tangible. This is a good age to also introduce the concept of jobs and careers, and how money is earnt. 

Your child is likely to desire more now that he or she has a basic concept of money's purchasing power. It's time to go through how to make money, save money, and calculate opportunity costs. Some concepts and activities than should be covered are

Unfortunately, money does not grow on trees as our parents warned you. It must be earned, and it should be gained with chores for children of this age. Work should be rewarded with personal funds rather than an allowance. This teaches the most important financial lesson: money is earned via hard work.

Instead, of a piggy bank try using a mason jar so that the child can see money grow in a clear jar over time. It aids in reinforcing the advantages of saving. You can also introduce the concept of a bank account and possibly open your child’s account.

Even if you don't use the term, a 10-year-old should be capable of understanding the cocept of opportunity cost. When one option is chosen, the opportunity cost is the loss of potential gain from other options. You can teach your youngster the difference between impulse purchases and long-term aspirations.


The following stages concentrate on elaborating on the fundamental principles of income and budgeting.

Examine several career opportunities and talk about their tasks as well as their salary. This is also an excellent time to clarify why your pay isn't the same as your take-home pay, because of taxes.

While your child does not require a personal budget at this time, it is a good idea for him or her to understand how to create one. Include them in your budgeting process by soliciting their feedback on financial matters such as meal planning and grocery budgeting.


Teenager’s desire and require increased levels of freedom. It doesn't take long for them to be on their own. Many of the teachings at this stage are influenced by individual experience with a bank account and college budgeting.

While your child may not use the same check register you did, every youngster should be able to balance a bank account. Personal accounts do demonstrate your financial management skills.

Our culture is increasingly reliant on credit cards, which offer their own set of advantages. They may, however, entail exorbitant fees and interest rates, which is especially true for those with little or no credit history. Teenagers must understand the risks of credit cards and how to use them responsibly.

The expense of college, as well as student debt, is growing. Compare the prices with your teen as you plan for the next step, and talk about how you'll pay for college.

Children can start investing in mutual funds or fixed deposits at an early age, and you should encourage them to look at various options and differences between them. This would also be great time to help them understand the risk-reward trade-off that exists in not only the financial markets, but also other facets of life.


It takes a lifetime to learn how to manage money. The sooner your child develops solid financial practices, the more likely they are to succeed financially and create wealth for themselves. 

When to teach kids about money? - upsurge

Our educational system does not place a high value on money management, leaving youngsters unprepared to grow into financially responsible individuals. As a result, parents have a significant influence on how children spend and handle their money as they grow up. This emphasises the importance of parents instilling good financial habits in their children starting at a young age.

This post is a quick introduction on how to utilise your own experience and knowledge to raise financially responsible children.

You must begin by instilling in children a sense of financial worth. Discuss with your children what it takes to make money in today's competitive world, as well as how much money it needs to live a comfortable life. This awareness will motivate them to spend your money sensibly.

Discuss budgeting with your children - what are some good strategies to match one's costs to one's earnings or income? Tracking expenses and incomes, followed by an educated allocation of money to various living expenses, is a smart method to start budgeting.

Introduce your youngsters to the terms "saving" and "investing." Explain to your kids how much of their money should be saved and how much should be invested. It's also a good idea to open an investment account for your child and invest in it on their behalf on a regular basis. When the child reaches the age of accountability, the account can be turned over to them. The money accumulated will earn interest, and your children will learn the value of starting early and investing frequently as they observe the wonder of compounding.

Until they reach the age of majority, anyone under the age of 18 can invest in mutual funds with the assistance of their parents or legal guardians. Following that, students will be able to manage their own investing account. Investing over a long period of time enhances your children's risk appetite, allowing them to invest in higher-potential mutual funds such as equities funds and sectoral/thematic funds. 

We advocate encouraging your child to work part-time in a safe, age-appropriate job to supplement their income. Once a substantial sum has accumulated, it can be sensibly spent on a gadget or toy of the child's choice. This can help your child understand the importance of hard work and commitment, the worth of money and also introduce them to the concept of goal-based investing.

Because financial transactions are increasingly taking place online, it's critical to teach your children how to use net-banking and investment apps properly. Show them how to use a smartphone to pay bills, send money, and receive money.

Teach your children the distinction between needs, wants, and desires; explain why having wants and desires is beneficial, and how they can use their money to get the things they want without sacrificing their everyday needs and wants.

Discuss with your children the possibility of unforeseen emergencies for which they should be prepared. Teach them the necessity of setting up an emergency fund and committing a percentage of their salary to it on a regular basis in case of a financial emergency. Having an emergency fund from a young age allows your children to be between jobs without fear and to seek out the best revenue sources for themselves rather than settling for a job they despise.

Children, unlike adults, have the luxury of making financial mistakes early in life, which will have little impact on them, but will teach them a lot. Developing a child's desire to achieve financial independence by teaching them about saving and investing at a young age can help them achieve financial independence faster in life.

By teaching kids about the power of compounding at a young age, they are less likely to spend irresponsibly because they are not thinking of money as an infinite resource. 



 

What Can You Do Right Now to Ensure That Your Child Will Be Financially Responsible in 10 Years? - upsurge

Tax is something that everyone dislikes paying as it is undeniably difficult to part with your hard-earned money. Thankfully, if we make the right investments, we not only save for the future but also save up to ₹60,000 in taxes.

Not only can carefully planning and investment help you save money on taxes, but it will also allow you to earn tax-free income if you make the right investment decisions. For different people, returns from investing can be different and for people looking to make risk-free tax-free returns, albeit lesser than some other assets, they can invest in options such as Provident Fund, Municipal Bonds, ULIPs etc. At maturity, your capital and interest both are tax-free.

If you're investing to save money on taxes, you should be aware that this legislation, or Section 80C, governs all investment conditions.

Under Section 80C, the investor can get a tax exemption of up to Rs. 1,50,000. Investing in life insurance, fixed deposits, ELSS (Equity Linked Savings Scheme), national saving schemes, PPF, and bonds might result in a tax exemption up to this maximum limit.

In addition, an additional ₹50,000 is deductible by investing in the National Pension Scheme.

Most effective tax saving investment choices 

Here are several Section 80C options that might be extremely useful if you wish to invest.

5-year bank fixed deposit that saves you money on taxes: 

The five-year tax-saving fixed deposit is by far the most risk-free tax-saving investment, and usually pays a slightly better interest rate than normal FDs.  If you have a bank account that is KYC-compliant and you have accessibility to online banking, you can simply invest in a five-year tax-saving bank fixed deposit. You can get a tax-deduction of upto ₹1,50,000 but the interest at maturity will be taxed as per your income tax slab.

ELSS (Equity Linked Savings Scheme) Mutual Fund: 

Investing in an Equity Linked Savings Scheme will result in a tax exemption of up to ₹1,50,000 (maximum limit) under Section 80C of the Income Tax Act. The investment in these mutual fund plans has a three-year lock-in term and some of the popular ones have given returns of over 15% over the last 5 years. The returns you make on these investments, whenever you do sell, are treated as capital gains and taxed accordingly. 

This is the government’s program to encourage people to save for their retirement. It usually offers an interest rate higher than Fixed deposits (currently 7.5% vs. 5%) and is classified as EEE - which stands for exempt, exempt, and exempt. This means that if you put money into a PPF account, you will be exempt from taxes on the interest and maturity monies. This is one of the reasons why it is such a popular tax-saving investment.

Under the Income Tax Act, this investment plan provides substantial returns over lengthy periods of time. This investment has a five-year lock-in term and investors have a variety of funds from which to choose. The fund's performance in the market affects the returns, and the insurance coverage is minimal. New laws now state that only policies with less than ₹2.5L premium will be tax exempt at maturity.

A national savings certificate, which is a government of India programme, is a fixed-income investment product aimed at small and middle-income investors who want to invest and receive good returns. It's a low-risk investment that's just as safe as the Provident Fund. Investors can invest according to their income and investment patterns.

The Senior Citizen Savings Scheme is an income tax saving programme for senior citizens living in India. The scheme, which is offered through banks and post offices, has one of the highest interest rates among the many savings schemes.

In addition to the returns the investments generate, don’t forget to add the tax you’ve saved from investing this year!  

How to save taxes by investing? - upsurge

Life is beautiful, but also uncertain. Whatever you do, no matter how intelligent or hardworking you are, you never know what life has in store for you. Is there anyway to protect yourself and your family against such sudden events?

Yes – by buying a life insurance or term insurance policy and insuring your life, where your family will receive a pre-decided sum in the event of your death.

Life Insurance is an agreement between the policy holder (you) and the insurance provider, where the insurance provider pays a certain sum to the insured individual's family in the event of their death. To avail this benefit, the policy holder has to pay a certain amount of premium annually. 

Consider "life insurance" as a protection plan for the future. In its most basic form, life insurance is being financially prepared for whatever comes your way. It ensures that your family and you are financially supported in the event that you are unable to generate the necessary money due to an accident, retirement, or untimely demise.

Simply described, a "life insurance premium" is the price you pay to your life insurance provider in exchange for protection. Life insurance premiums can be paid on a monthly/annual basis or as a one-time payment, depending on the situation. The payout (also known as a death benefit) is the amount of money paid to your family by the life insurance company if you suddenly died during the term period.

Why do you require life insurance right now?

The importance of having life insurance is to benefit from the "peace of mind" that it provides. Having enough life insurance, on the other hand, effectively relieves you of some crucial concerns, such as: 

How will my spouse and children manage their finances once I'm gone?

What will happen to my family's finances if I pass away?

How would I support my family if I lose my career due to an accident?

How can I be certain that I will be able to pay for my child's higher education?

Term insurance is the most common type of life insurance. It lasts for a set amount of time and then expires at the completion of the term.

It is, as the name implies, a policy that insures you until you reach the age of 99. That implies you'll be covered until you're 99 years old.

ULIPs combine investment and insurance to give you the best of both worlds. This is a sort of life insurance policy that includes both life insurance and investment options. Because most ULIPs have a 5-year lock-in period, they can be considered a long-term investing strategy.

Endowment plans offer financial security in the form of life insurance and guaranteed returns. If the policyholder lives until the policy's maturity date, he or she will get a lump sum payment.

A money return policy is a sort of life insurance that pays out money at predetermined intervals throughout the policy's term.


What is the best type of life insurance policy for me?

It's actually not enough to know what a life insurance policy is, and you must also determine which form of life insurance policy is best for you before buying any policy. Next, you should also decide the level of coverage you require and till what age you want to be covered. 

Life, as we know it, can be unpredictable. Surprises are okay as long as they are enjoyable. Rude shocks sometimes knock us entirely off our feet! To put it another way, think of life insurance as an income replacement for when you are gone or can’t earn professionally. 

A medical emergency, an accident, or a sudden death are all scenarios that you and your family should be prepared for at all times, which makes life, and health, insurance critical for families. 

What is Life Insurance? - upsurge

One of the most crucial parts of creating wealth and establishing a solid financial foundation is saving money. Many of us, on the other hand, have learned the value of saving money via trial and error, and, more significantly, experience.

We aren't taught about the significance of saving in school, and many of us are left to fend for ourselves as adults. However, there are ways to empower the future generation, beginning with promoting the importance of saving and investing in children at an early age. 

Here are six strategies to teach your children about saving money.

1. A piggy bank is a good place to begin.

A piggy bank is a wonderful method to educate your children the value of saving while also providing them with a simple means to do it. Tell your children that the goal is to fill the piggy bank with money and coins until there is no more space. Show how the piggy bank is used to save money for the future and how the more they save, the more their money grows.

Take your child to the bank after the piggy bank is full to start a savings account for them. Allow them to count the amount of money that will be deposited so that they may get a physical sense of how much money they have. Reiterate the concept of interest by showing them the final number.

If your children realize that their money will grow over time if they don't touch it, it can be an excellent source of encouragement for them.

Tell your kids that if they really want the newest item or a new action figure, they'll have to save up for it. Give them a jar for each of their chosen purchases and a weekly stipend in a denomination that motivates them to save.

For instance, if you give your child ₹250 every week, tell them that they can either save all of their money for one purchase or contribute to numerous "jars" for various savings goals.

Put a picture of their desired toy or item on the jar to urge them to save for their short-term objectives. This will serve as a visual reminder of what they are striving toward.

The concept of putting money aside over time might be difficult for children to grasp. To help them understand the notion, make a visible timeline so that they can see for themselves when they will attain their goal.

Get a piece of paper and a pen or marker to begin. Make a list of specific savings goals for the coming week, month, and year. Begin by making a list of the smallest amount. Increase the goal once they are comfortable and feel disciplined enough to save more, and it will take off from there. Children should not be pushed or made to feel obligated to save money for necessities such as school lunches or stationery, but instead be encouraged to save whatever amount they feel comfortable with.

Allowing children to learn from their mistakes is an important part of giving them financial autonomy. It's tempting to step in and save a child from making a potentially costly mistake, but it might be wiser to turn that mistake into a teaching opportunity. That way, they'll know what not to do with their money in the future.

The corporate matching contribution is one of the reasons people save in their employer's retirement plan. After all, who doesn't appreciate a little more cash? You can use the same technique to motivate your children to save if you're having difficulties motivating them. You may propose matching a portion of their savings. You may also give your child a prize when he or she accomplishes a savings goal, such as a ₹50 bonus for reaching the halfway point.

Yes, teaching children to save money may appear to be a difficult task. However, the secret is to make the material enjoyable and digestible from a child's perspective. Saving is the foundation of sound financial management, and now is the time to educate your children how to do it. Even if the money saved is insignificant, the activities are an investment in knowledge that will pay off in the long term.
 

How to Encourage Children to Save Money? - upsurge

When it comes to saving for the future, one of the most common questions people have is “How much of my salary should I invest?"

If this seems familiar, congratulations on foresight. Investing not only helps you grow wealth, but it also helps you retire without the stress of making ends meet. While you don't need much to start investing these days, it's important to contribute on a regular basis beyond your initial commitment so that you have sufficient money to grow over time.

But how much of your earnings should be put into investments?

The 50/20/5 rule is a guideline for how much you should save and invest on a regular basis.

According to this, 50% of your income should go into essential expenses (shelter, food, health care, transportation, childcare services, loan repayments), 20% should go toward savings and investments, and 5% should go toward short-term savings (like an emergency fund). This leaves 25% of your salary available for leisure spending, such as entertainment and dining out, or for additional savings.

"If young individuals struggle to meet the 20% goal right away, it's necessary that they save as much as they can and boost contributions by one or two percentage points as they make more money," says one expert.

While 20% appears to be the gold standard for how much to invest, the truth is that it all depends on your final goal.

It's always better to start a project with the goal in mind, and now there are plenty of tools to help you figure out how much you need to invest monthly/yearly to achieve goals you’ve set for yourself. 

If you think you can’t put away a significant amount every month here are a few examples to illustrate the power of compounding – 

If you invest ₹1,000 per month of 30 years, you would receive ~₹30,00,000 on your investment of ₹3,50,000 – almost multiplying your money by 10!

Similarly, a lumpsum investment of ₹10,000 today, will be worth ₹3,00,000 in 30 years – 30 times your initial investment!

The first stage in investing is to start with whatever you can put aside, and increasing that as you go along. It's important to keep in mind that investing is a marathon, not a sprint, and the more time you give your investments, the more compounding will grow them exponentially. 

Remember, even if you can't afford to reach the 20% mark right now, try increasing your investing contribution by 10% each year until you do. Another example – If you start your SIP at ₹1,000 a month and increase it by 10% every year, at the end of 30 years, you will have invested ~ ₹9L and would receive over ₹1 CRORE!!
 

How much should I invest every year? - upsurge

The term "financial freedom" is interpreted differently by different people. Some people consider financial independence to be the ability to buy anything they want, whenever they want. For many, it might mean not having to stress about how they'll pay their bills or deal with unexpected expenses. For some, it may simply imply becoming debt-free, while for others, it may imply having enough money to retire. All of these interpretations are right to some extent, but they are all half-baked.

In this blog, we'll discuss what it means to be financially free. More importantly, we'll go over some steps that can help you get there.

Financial freedom, as odd as it may sound, is all about control, namely power over your own finances. As a result, one of the better ways to define financial freedom is to have enough residual income to live the life you desire without worrying about how you'll pay your bills or deal with an unexpected expense.

To put it another way, financial freedom does not always imply being wealthy or owning a large sum of money. Instead, it's about being in charge of your financial present and future.


This includes knowing how much you make, the total debt you have, how much money you have saved, your monthly living costs, and so on.