Generally, we used to plan our tax saving at the end of each financial year in February and March. It hampers our budget in those 2-3 months as we invest all our income to get benefit on tax. Insurance agents also get more active during this time as they easily found customer to complete their targets. Due to instant decision that we take, sometimes we invest our money in wrong investment scheme. It is also found that agents sell wrong policies to their customers during this period.
Due to lack of time and deadline that we have to submit our investment proofs, we never do much research on the available investment options. We just pay the premium, get the receipt and submit it as the investment proof. Many people do their entire investment during this time. So, they also borrow money from their friends and relatives. It unnecessarily affect their budget as they need to pay all these dues in upcoming months. The best way to avoid such situation is to start your tax saving from the very beginning of financial year.
Plan your investment at the beginning helps you to choose the best scheme of investment. You can bargain an agent on the premium while taking a life insurance or ULIP plan. Many agents offer you to pay upto 50% of your first premium at their own. But, they provide such offers only in initial months of the financial year as they hardly get customer to complete their targets. Starting your investment from the early age helps you to maintain your budget also. You can allocate a fixed amount of your earnings for saving purpose. With the small investments that you do every month, you can complete your saving needs. Doing so reduces your burden at the end of financial year.