Top 5 Ways to Get Fixed Monthly Income
by Abhishek K. Digital Business ExecutiveIf you want your
hard-earned money to work for you – then investing in the right financial plan
that fetches you returns is a must. However, it is advisable to research, learn
and benefit with thorough knowledge of such schemes before investing in them.
According
to the survey conducted on work-life aspects of young Indians in 2020, over 35
percent of millennials earning more than 100 thousand Indian rupees per month
expected their income to rise by more than 75 percent. Furthermore, only ten
percent of respondents earning the same income expected their salary to
increase by 25 percent. -Statista
With salary figures
slated to climb rather slowly over the next few years, ensuring that smart
investment for steady returns is a definite and safe option to enhance income.
This not only guarantees monthly inflows but also readies individuals to handle
planned or unplanned expenses in the family.
Options that help generate assured monthly income-
1. Savings accounts with high-interest rates.
Savings account grants free access to funds with the option to liquidate the amount at the individual's will. Usually, rates of interest for savings accounts are not as high but it is flexible and financial institutions today have begun to various benefits to customers with savings accounts.
2. Stocks with dividends.
Stocks pay a regular dividend over some time depending on the performance of the stock dividends fluctuate. The individual can study the performance of the stock and invest in one that has paid consistent dividends in the past. Normally a dividend yield of around 3 percent is good and some increased earnings per share (EPS) indicate the performance of the stocks.
3. Fixed deposits in banks and post offices.
Fixed deposits assure interest returns of an average of 8 percent and are an ideal secure means to generate income especially for those who are retired. It however does not allow liquidity benefit at will but attracts penalty on premature withdrawal. Interests are paid out monthly and this is a virtually risk-free option of putting one’s money into. Post office monthly income Scheme guarantees returns of 6.6% p.a.
4. Mutual Funds with monthly income plans.
The mutual funds invest mostly in debt instruments and the interest accumulated on this is distributed among investors periodically. The dividend distributed to the investors is declared only from the profits of the monthly income plan and this tends to be less risky than equity-linked funds.
5. Insurance coupled with a monthly income plan.
Today some institutions
assure monthly income to those who invest in a life insurance policy. Now, this
not only helps the insured get a guaranteed return for himself or his nominees
but also gives him or her to option of life cover in the event of a mishap (
which also can be chosen as a cause). The insurance policy not only protects
the insured’s life but also provides a host of other optional benefits that the
person can ask for as riders. Now, these may include accident and disability
cover, critical illness, etc. while also securing the family financially.
Conclusion
- Life insurance monthly income plan.
It is but a fact that
different individuals have different needs when it comes to finances and
investment. But one cannot dispute the fact that regular-income generating
options along with life cover benefits in ways more than one. Particularly for
the sole breadwinner of the family, steps must be taken to ensure an individual
secures his or her family if there is a day for them to cope in his/her
absence.
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Created on Oct 5th 2021 00:57. Viewed 460 times.