Labor Day: 5 tips to protect your hard-earned money and make it grow

In the age of online fraud, even a split-second mistake can be very costly. With the rising cost of living, it has become important to earn more, but at the same time, protecting income and investing it in good plans is also important for financial well-being. This Labor Day, take a look at five tips that will help you protect your hard-earned money and keep it growing.

Watch out for fraud

Since most of us transact online, it’s important to be aware of the tricks used by scammers. The Reserve Bank of India (RBI) recently compiled a list of many new tricks fraudsters are using these days (read them here and here).

Experts say always follow safe banking practices to keep hard-earned money safe.

Invest in good plans

Investing money is necessary to increase wealth. But the big question everyone faces is: “where to invest”. Experts say that one must do proper research before making an investment decision. Government regulated schemes and regulators such as SEBI, PFRDA, RBI, etc. are generally considered safe investment avenues. Unregulated lucrative programs can disappoint you at times when you really need the money. (Read more about some investment options here)

Get insured

Life is unpredictable and full of risks. While everyone wants to earn more and get rich, not having proper health and life insurance coverages can make all your efforts go to waste. Life insurance plans can protect your family even when you’re away, while health insurance will help you easily meet unexpected emergency expenses. (Read more about how much health insurance you need here).

Don’t fall for the high claims

If something looks too good, it could be bad. You should always remember this before investing in any program or plan. From experience, we know that big statements about big returns often fall flat. It is therefore important to avoid risks, especially when it comes to protecting your hard-earned money. This does not mean that risky investments should be completely avoided. You can take calculated risks, but only invest the portion of your income in risky assets that you won’t regret losing.

Get in touch with a financial adviser

Learning about financial products is very important. One way to do this is to read up on the products. But it is not easy for everyone to understand everything. It is therefore always best to take advice from professional financial advisors.