Wealth Creation: Earn, save, invest and repeat!

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Palaces are not built in a day!!! Agreed, right?

Dreams do not become a reality until you nurture them with a plan, hard work, sacrifices and investments. If you have a dream, you ought to have a plan, and for that plan, you ought to have money in abundance. The truth is, not everyone is born with a silver spoon, and hence many of us have to plan wealth creation to make more money and achieve our future goals. Enough fundamental 😂, Let's get practical now.

Table of contents:

  1. 1. What is wealth?
  2. 2. What is wealth creation? How to do it?
    1. 2.1. Step 1: Earn ample
      1. 2.1.1. How to earn more money
        1. Be a master at what you do
        2. Ask for a raise / promotion
        3. Choose the right job
        4. Save tax
        5. Leverage your hobby
        6. Offer things on rent
        7. Start a blog
        8. Freelance
        9. Peer to peer loan
    2. 2.2. Step 2: Save bold
      1. 2.2.1. Go Minimalist
      2. 2.2.2. Analyze your spend behaviour
      3. 2.2.3. Budget and spend
      4. 2.2.4. Compromise with luxury
      5. 2.2.5. Build your safety net
      6. 2.2.6. Quit smoking
      7. 2.2.7. Stop taking debts
      8. 2.2.8. Stay healthy
    3. 2.3. Step 3: Invest smart
      1. 2.3.1. Fixed deposit (FD)
      2. 2.3.2. Public provident fund (PPF)
      3. 2.3.3. Unit linked insurance plan (ULIP)
      4. 2.3.4. Debt mutual funds
      5. 2.3.5. Equity mutual funds
      6. 2.3.6. Recurring deposit (RD)
      7. 2.3.7. National pension scheme (NPS)
      8. 2.3.8. Equity-linked saving scheme (ELSS)
      9. 2.3.9. Gold Exchange-traded funds (Gold ETF)
    4. 2.4. Step 4: Repeat and enjoy
  3. 3. But why is there a need to create wealth?
  4. 4. What is wealth? What is Income? What is Liability?
  5. 5. Benefits of wealth creation
    1. 5.1. Happy retirement
    2. 5.2. Child's education/marriage
    3. 5.3. Save tax in the wealth creation process
    4. 5.4. Tackle inflation
  6. 6. Conclusion

What is wealth?

Wealth is an abundance of valuable possession or money. In modern times, in financial verses, wealth is the net worth of a person. Your net worth is the value of all financial and non-financial assets in your possession minus your debt. Complex? Don't fret. Keep reading; we have a section dedicated to explaining this.

Wise are those who can generate money out of money. That is building your wealth through financial planning. In Indian households, majorly in the middle-income bracket, the concept of planning is taught at home. Children grow by watching their parents save and save, month by month and year over year. But what they do not see is the art of wealth creation.

Let us first see what wealth creation is and how can you attain it?

What is Wealth Creation? How to do it?

Wealth creation is a wise and continuous process of 4 easy steps: Earn > Save > Invest > Repeat.

Step1: Earn ample- Earn more than you spend or spend less than what you earn. You can always sharpen your skills to earn more.

Step2: Save bold- Live well, but save money wherever possible. Set a strict saving plan but being a miser is not at all recommended.

Step3: Invest smart- FDs, SIPs, ULIPs, Liquid funds, Direct equity, PPF, EPF and many more. Don't worry if you feel jargon-heavy here; we will make you 100% market savvy; keep reading.

Step4: Repeat & enjoy- Once you develop a habit of earning, saving and investing, you can slowly witness the wealth being built. And enjoy this satisfying experience. Easy Peasy!!!

This is simple to understand but can be challenging to follow. Please be disciplined enough to follow the steps, as it will decide the level of your future life's comfort. And believe! This will offer you a better return than "pachis din me paisa double" schemes.

We can not wait to see you get started towards your financial independence with the 4-step habit. Just comment "towards MY financial freedom" whenever you are kicking off!

Anyway, let's jump into the to-dos of the four steps now and explore vast possibilities where you can invest your money and fetch returns from it.

Step-1: Earn ample

Everybody on the internet is talking about "Grow your wealth", "Best plans with high return rates on one platform", and what not! And all of them are missing the fundamental step- Earn ample money to get started. Welcome to the other side! First question- Are you making enough money to save in the first place? Yes or no, the following will help!

How to make more money?

Your school never taught this, we know, right!

There are two parts to this: active income and passive income, plus one pro-tip

How to increase your active income:

Active income is equal to salary/ wage/ commission/ tip earned from a job. So how to do better in the job is the key to this.

  • Be a master at what you do: Honestly, this is a never-ending process. There is always a scope for improvement. And what are you waiting for? You have the world at your fingertips now, thanks to the internet and technology!!! Invest in the best e-learning platform and sharpen your skills. Wait! Read this blog first and then get enrolled; we know you can put yourself above everyone. 🙃
  • Ask for a raise / promotion: After you sharpen your skills, the probability of turning heads in your workspace grows. Prove yourself, get some good results and approach the employer to approve a raise for you. Wait for the right moment and play your cards right! You know what it means!😉
  • Choose the right job: Choose a job that you enjoy executing. This way, you are more likely to succeed in better performance and do better financially. Golden rule: Do what you love or love what you do!
  • Apart from these, you can explore tax saving options so that you get a bigger paycheck!

How to create/ increase your passive income:

In simple words, the income that requires not much of your effort and is independent of your active job is passive. To be real, it is not a magic money-making scheme that will make you rich without work.

  • Leverage your hobby: Hobbies like creating artworks, videography, photography, gaming, composing music, etc., can help you with some extra money. You just need to figure out a way to monetise it. Many online platforms offer you to open an online shop to sell your work.
  • Offer things on rent: If you have a house you do not live in/ a car you do not use much/ a camera gear that you use only on tours, do not hesitate to rent them out! These small amounts can add up to your pocket.
  • Start a blog: We are sure that when you leave a 20 minutes Instagram scrolling session, you don't feel good! Instead of seeking social validation and status, you can start a blog site around your hobbies, things you know, or black holes( 🤣). This opens up the gates to impressive incomes via affiliate marketing or selling ad space.
  • Apart from these, you can explore being a silent partner in a business or start peer-to-peer lending with interest, freelancing (Only if it does not affect your current job) and many more.

WARNING: Do not be naive enough to fall into the trap of many predator market models such as multi-level marketing, network marketing, pyramid schemes, etc., in the hope to earn more. Stay away from plans that feel too good to be true. Do not get riddled with promises of high return in a short amount of time.

Step-2: Save Bold

Saving money- where the game of wealth creation begins!!! If you have followed step-1, you must be earning good, enjoying life with the money you have but are you saving enough? No! What's wrong? Not able to count where the salary is draining? Is it the credit card or the weekend parties!!! Think before it's too late. Now calm down. Let's save some money before jumping into the investment part; remember, we told you initially: dreams require sacrifices. This, this is it!

How to save money?

  • Go minimalist: Figure out the resources you actually need to lead a comfortable life and only spend in them. Lead an optimal lifestyle, not a radical one. The essence is to avoid absolute unnecessary expenditure, such as impulsive shopping, expensive habits, etc.
  • Analyse your spending behaviour: You have a phone, right! Get a little tech-savvy and download an app that supports financial tracking. These apps are really simple and help you understand your spending habits. Once you know what you spend on the most and identify the expenditures that you really do not need, it's time to make a budget.
  • Budget and spend: Figure out your needs and wants of the moment. Please trim down your expenses where you can; emphasise more on necessities and less on wants. For example, if you drive your car to your office every day, try public transportation two days a week and save some. And right now, with the fuel price rising day by day, you must realise this is the zone you can save big. The mantra is to plan the monthly expenses and stick to the plan while opening up the wallet!
  • Compromise with luxury: Brew your own coffee than hopping Starbucks and CCDs, cook your meals instead of dining out, shop less to invest more. What if your cost-cutting reaches the bone and still you are not saving enough? Simple! Go back to step-1.
  • Build your safety net: You don't believe in future predictions, right? We never really know what is around the corner. So it is the hygiene that you build an emergency fund for unexpected times like health issues, loss of job, etc. Ideally, you should reserve cash three times your monthly budget and then plan to start investing. We suggest to insure your health and vehicles at least, to have more control over unfortunate times.
  • Quit Smoking: If you are a smoker, we are sure you must be spending more than Rs. 1800 per month or more. To be sure, keep smoking for one month and keep track of how much you pay at the paan shop. Then decide if the sum you spent is worth more than smoking and slowly killing yourself. Apart from the money you spend on smoking, there is more that the habit takes out of your pocket. You will be charged more in terms of insurance premiums for health and life insurance. You should know how to answer the question on "smoking" while filling the insurance form.
  • Stop taking debts: Debt is said to be the inner source of great unhappiness. Isn't that true? Debt can kill your savings if they are not brought into control. So avoid falling into debt traps. If you already have a loan payback, then plan to become debt-free sooner.
  • Stay healthy: Healthy habits can permanently save you money. When you are fit, you are less prone to attract any disease that can drain your wallet. You may think then, what is the point of health insurance that we suggested previously! If you have health insurance and do not claim the policy term, you can enjoy a discounted yearly premium resulting from your No Claim Bonus. You saved some, is not it? Also, keep your relationships healthy; you must not be unstable emotionally.

Step-3: Invest Smart

The game is on! You are working hard, earning good, living a comfortable life instead of a luxurious one, you can save a fair amount every month, you have a cash reserve for emergencies, what now? You are ready to make money from money. Let's get going and look into the investment options to build wealth.

Where to invest while building wealth?

Before we go into the details, it is essential for you to understand the goal tenure, return rates, tax benefits1, risk factors, liquidity, etc., before you invest the money you have earned and saved with many challenges. If you are a pro-investor, you can skip the following definitions.

  • Goal term- Generally, when you start investing, there is an amount set as a goal. The time that you need to invest to reach the goal or reap the maximum benefits of your investment plan is known as the goal term. This can be further categorized into short-term/ medium-term/ long-term.
  • Security- When you invest your money, you own some assets or security, broadly defined as financial instruments that hold a value that can be traded between parties.
  • Mutual fund- Mutual funds is an institution that takes money from people like you, who have a common interest to invest their money and creates a pool of funds. This pool of funds is then collectively invested in securities like stocks, bonds, money market instruments, to name a few. In this practice, investment experts/ professionals decide where to invest on your behalf to reduce the risk of losing money. "Mutual funds are subjected to market risk."- you must have heard this at the end of a "mutual fund sahi hai" ad. Yes, even when experts invest for the best return rates, there is always a market risk.
  • Market fluctuations- When stock prices rise or fall significantly without a prior projection suddenly and go out of the trend, the situation is known as market fluctuation. This is also known as the volatility of the market.
  • Market Risk- When you put in your money in any investment such as mutual funds, stocks, etc., they come with the market risk of losing your investment capital caused by adverse financial conditions such as changes in equity price, foreign exchange fluctuation, etc.
  • Risk appetite- This refers to your capability/ willingness to take risks to achieve your investment goal. Investment options with higher return rates often come with higher risk, so you must have the endurance to digest if the investment blows up and things do not work out as projected. So when you look at gaining more profit, you should have a high-risk appetite. If you have a lower risk appetite, then you can settle down with safer investment options. We will discuss all the investment options and associated risk factors further in this blog; stay tuned.
  • Rate of return- The total gain or loss generated from an investment over a period of time is referred to as the rate of return (ROR). The rate of return of any investment option is based on historical performance and many other factors. You must check the average rate of return before opting for the investment option.
  • Liquidity- This is the ease at which you perform a transaction on the security (such as encashing your asset/ selling your security) without affecting the market value. High liquidity funds allow you to withdraw at any time if you happen to face an urgent situation where you need money, instantly.
  • Tax treatment- When you invest money and gain profits from it, the profit income may or may not be taxable as per the Government rules in India. Tax treatment to an investment option clarifies the taxation part on the profit gain.

Now we think your financial fundamentals are sound enough to dive into the investment options.

Investment options in India –

  • Fixed deposit (FD):

    This is considered the safest investment option. Because you get fund security on your principal amount with this plan, and this investment option is independent of market fluctuations. So you get a guaranteed return. As this is a low-risk option, the return rates will be lower than other investment options.

    • RATE OF RETURN: 1.85% p.a. – 6.95% p.a.
    • LIQUIDITY: Depends on holding term
    • TAX TREATMENT: Section 80C deduction only on five-year tax-saving FDs. Interest income is taxed as per tax bracket; TDS applicable.
    • GOAL TERM: Short to medium term investing
  • Public provident fund (PPF):

    This is an Indian Government-backed investment option available to everyone. This is the easiest option to invest right now; you can open a PPF by visiting any bank or post office. For this, you have to lock in your investment for 15 years, and you can earn compound interest over the money accumulated. However, you can start partial withdrawal after the completion of 6 years. The best part is that it is 100% risk-free, and you can even use your PPF balance as security to take loans.

    • RATE OF RETURN: 7.1%
    • LIQUIDITY: Low maturity period generally comes after 15 years
    • TAX TREATMENT: Section 80C deduction till 1.5 Lakhs. Tax-free income
    • GOAL TERM: Long term investing
  • Unit Linked Insurance Plan (ULIP):

    This is the best investment option available in India right now; here is why- you can enjoy dual benefits of Investment returns and life insurance coverage. Under the ULIP plan, you have to pay a premium just in the fashion how you do for other insurance policies. A part of your premium is used to provide you with life insurance coverage. The remaining is invested in bonds, shares, stocks and other money-making instruments on your behalf so that you can reap a fat maturity sum. Being insurance product experts, we will vouch for this. The following section is dedicated to understanding the benefits of the ULIP plan; keep reading.

    • RATE OF RETURN: Upto 20%
    • LIQUIDITY: 3-5 year lock-in period
    • TAX TREATMENT: Section 80C deduction. Tax-free income
    • GOAL TERM: Long term investing
    • RISK INVOLVED: Moderate
  • Debt mutual funds:

    In this mutual fund option, your money gets invested in fixed-interest generating securities like corporate bonds, government securities, commercial papers, PSU and banking funds, treasury bills, etc. If you are interested in high ROI at a steady rate with a medium risk appetite, you must consider this mutual funds option.

    • RATE OF RETURN: 8.55%-12.82%
    • LIQUIDITY: Withdrawal at will
    • TAX TREATMENT: No Section 80C deduction. Short-term capital gain taxed at 15%; long-term capital gains exceeding this limit attracts LTCG tax at 10%
    • GOAL TERM: Short to medium term investing
    • RISK INVOLVED: Moderate
  • Equity mutual funds:

    This is a popular investment option in India among young investors. These mutual funds offer a higher ROI as compared to other available investment options. It has a 65%: 35% investment ratio under its portfolio. 65% of your money is invested in equity shares of companies, which means you become a partner to the company where your money is invested. So you become eligible to receive dividends issued by the company by the profit it makes; likewise, you have to bear the loss if the company is not performing. 35% of your money is invested in debt securities.

    • RATE OF RETURN: 15.7% - 23.83%
    • LIQUIDITY: Withdrawal at will
    • TAX TREATMENT: No Section 80C deduction. Short-term capital gain taxed at 15%; long-term capital gains exceeding this limit attracts LTCG tax at 10%
    • GOAL TERM: Long term investing
  • Recurring deposit (RD):

    This safe investment option returns a lump sum with interest generated at the end of the policy tenure. You just have to invest a small fixed sum regularly with the bank throughout the policy period. The name explains itself, right? You need to deposit systematically; that's it.

    • RATE OF RETURN: 4% to 8%
    • LIQUIDITY: Depends on holding term
    • TAX TREATMENT: Section 80C deduction only on five-year tax-saving FDs. Interest income is taxed as per tax bracket; TDS applicable.
    • GOAL TERM: Short to medium term investing
  • National Pension Scheme (NPS):

    This is an investment option initiated and controlled by the Government of India. Fundamentally this is a retirement plan that protects your financial life after your retirement. As this is a Government operated plan, there is no risk appetite. Under this plan, you can invest in government bonds, equity among other available options.

    • RATE OF RETURN: 8.7% to 11.5%
    • LIQUIDITY: Withdrawal/annuity at 60 years
    • TAX TREATMENT: Section 80C deduction. 40% of maturity tax-exempt
    • GOAL TERM: Long term investing
  • Equity-Linked Saving Scheme (ELSS):

    This is an equity fund where a significant portion of your investment principal is invested in equities and equity-related products. This way, you become a partner to a company in which your money goes in. Hence you get a higher return rate because of the company's profit component associated with the return. Keep in mind this comes at a higher risk of depleting your investment sum.

    • RATE OF RETURN: 17.5% - 25.3%
    • LIQUIDITY: 3 year lock-in period
    • TAX TREATMENT: Section 80C deduction. Tax-free income
    • GOAL TERM: Medium-term investing
  • Gold exchange-traded funds (Gold ETFs):

    This is also a mutual fund based on commodities. The majority of the fund pool is invested in assets like gold. This is a combination of both gold investment and stocks.

    • RATE OF RETURN: Upto 20%
    • LIQUIDITY: Withdrawal at will
    • TAX TREATMENT: No Section 80C deduction. STCG at a marginal rate
    • GOAL TERM: Long term investing
    • RISK INVOLVED: Moderate

Investment options, return rates and risk involved.

Investment Option

Return Rate

Risk Involved

Fixed deposit (FD)

1.85% – 6.95%


Public provident fund (PPF)



Unit Linked Insurance Plan (ULIP)

Up to 20%


Debt mutual funds



Equity mutual funds

15.7% - 23.83%


Recurring deposit (RD)

4% to 8%


National Pension Scheme (NPS)

8.7% to 11.5%


Equity-Linked Saving Scheme (ELSS)

17.5% - 25.3%


Gold exchange-traded funds (Gold ETFs)

Upto 20%


Top investment options in India with return rates and risk involved.

Read more: What are monthly investment plans and monthly saving plan?

Step-4: Repeat and enjoy

Consistency is the key here. Once you start, you must not stop, if you are serious about reaping the benefits. Sounds like a cult? Haha, you can call it discipline! Warning- Irregularity can spoil your investment portfolio.

Let us tell you; there is nothing like the experience of fulfilling your financial goals. We will not deny that money is powerful. When you keep building wealth, your confidence level rises. All the best for your wealth-building journey! You can always start small, but start today!

As insurance product experts, we promised to briefly explain the ULIP plan benefits while discussing the investment options, right? Here you go!

How is ULIP the right choice for wealth creation and safeguarding life?

Ekk Teer Se Do Nishane! - If you want to understand the benefits of ULIPs in five words.

These are a better option to safeguard your life as it is a package to provide you with life cover and investment safety. Though this type of insurance product is believed to entail risk, these are safer when you choose low-risk investment options.

The maturity of the product benefits you with sufficient fund value, which is based on the Net Asset Value.

Fund Value= Net Asset Value X Number of Units.

If you are in a mood to get benefits, you must invest for a minimum of 10 years. ULIPs often come with a lock-in period of 3-5 years. Thus you cannot surrender the policy before this time. After the completion of this lock-in period, you can make partial withdrawals for medical emergencies. In simple words, you have wealth ready because ULIPs keep you invested for the long term.

In the article above, you have read about different types of investment options. Out of all, ULIP is the most talked-about product. The type of product offers dual benefits that include savings and protection. With ULIP, individuals get options of insurance and investment.

Let us look into detail as to why is ULIP the right choice in wealth creation:

  • The flexibility of choosing the funds: ULIPs offer a flexible option to choose from different funds. This is the only type of insurance policy that allows the investors to switch between various funds. These funds can be debt funds, equity, and balanced funds. When choosing or switching between the funds, you can easily make three to four switches.
  • Perfect product that offers protection and savings: ULIP is the product that provides you with broader coverage. The product offers you safety as well as savings. The premium you pay towards a ULIP is invested into various funds, enabling you to build an investment portfolio. The minimum life cover you can get under a ULIP is ten times the annual premium you pay.
  • Tax Benefits1 under the Income Tax Act: ULIP fetches your tax benefit under section 80C of IT Act, 1961. A maximum of Rs.1,50,000/- premium is allowed for deductions under ULIP. But the investment amount can be higher under ULIP.
  • Guaranteed Capital Returns: When you buy a ULIP, its portion is invested in the market funds. ULIP are long term products in which you must invest for several years. After putting in the money for a long duration, you are bound to get higher returns. These are guaranteed capital returns. Your money is invested in market operated funds which assures you of higher returns.
  • Loyalty additions and wealth boosters: You get the extra amount as loyalty points if you stay with the policy course. This automatically becomes the wealth booster for you. This is how life insurance companies incentivise the policyholders to stay with them for the whole policy term.

You are welcome to explore: ULIP Plans from ABSLI.

Read more: Unit Linked Insurance Plans- All you need to know

But why is there a need to create wealth?

The lifestyle change has caused individuals to start financial planning with investment and not just savings. Now they do not just concentrate on saving money for emergencies; instead, they include planning for different stages of life.

People now think to multiply the income levels by investing the money in financial products like ULIPs, SIPs, mutual funds, stocks, etc., you should too.

Let us understand the concept of wealth creation with an example. Rakesh and Brijesh, two friends, started their jobs together. Brijesh had a mindset to take risks and invest a small portion of his salary. The idea for both of them was to save the money for their retirement. But each had a different approach towards savings.

Rakesh opened a bank account and then deposited Rs.2 lakhs for a fixed deposit. The period of the bank fixed deposit was 1 year which indicated that this money was blocked for this time. The rate of return on the fixed deposit when Rakesh invested was 9%. Gradually over the year, the interest rate declined to 4.1%.

Every year at the time of maturity of the FD, Rakesh invested some more money and then renewed the contract. This continued for years, and Rakesh saved quite a lot of money which amounts to Rs. 15 lacs to Rs.20 lacs approximately for another 15 years.

On the other hand, Brijesh, despite being in a job, invested quite a portion of his salary in ULIPs and mutual funds. These are market-linked investment plans where you pay a premium and get life insurance cover along with the option to invest in equities, debt funds, and balanced funds.

Brijesh paid a premium of Rs.1.5 lakhs annually and got a life cover for Rs.7 lacs. Over 15 years, Brijesh could collect Rs.2 crore after paying a premium for the whole term.

The intent of both Brijesh and Rakesh was the same, but the decision to invest money by Brijesh turned out to be better. You must explore the market and choose the wise option; also, being financially literate with time is suggested to analyse and make informed decisions lowering the risk factors. Wealth creation is more than just saving some money off your monthly salary; it's an art!

"Never spend your money before you have earned it."-Thomas Jefferson.

Suggested: Use wealth calculators to find out future wealth that can accumulate via regular investment. This can also help you to calculate how much you need to save to achieve your financial goal in a defined time.

Let us delve into the difference between wealth, income, and liability. It is essential to find out the distinction because you will save better when you realise the bits of your income and know what your liabilities are.

What is wealth? What is Income? What is Liability?

Income is the amount of money you make in your job or business regularly. Further, you can define income as monthly income after the exchange of labour or services. There can be different types of income that include wages, salary, commissions, interest, income from sales, investments, and gifts. When you make money through various sources, you know what could be your maximum spending capacity.

Every human being who earns money wants to take care of their expenses and save a large portion for their requirements.

Savings = Income - Liabilities.

Speaking of liabilities, these can be defined as the amount of money any individual owes. This implies that a person is bound to return the amount of money. Common examples for individuals as liabilities include loans, housing loans, education loans, or borrowed money.

When you are free from all the liabilities, you can set aside the money for savings that refers to wealth creation. So, wealth is the abundance of money you can use to manage your expenses beyond basic necessities. For example, if you invest your money in buying fixed assets or real estate, it is a part of wealth creation. But again, this can happen only after you have taken care of all your expenses.

Wealth Creation Formulae

Wealth = Fixed assets, property, possessions, and money purchased after savings.

Saving = Income - Liability

Wealth creation requires financial planning. If you are incapable of planning or have no clue about it, you can consult a financial planner. And we are almost in 2022! Self-learning from the internet and getting started with the investment have brought many individuals; you can do it too! Who knows, you may find a new hobby for yourself- Investing!!! And, slowly, you become a Guru! 😍

Benefits of Wealth Creation

"Creating wealth is not about having a lot of money, but it is about having a lot of options"-Chris Brown.

With wealth comes the Confidence to manage financial stress at different stages of life.

Over the years, creating wealth may mean owning property, gold, shares, bonds, stocks, and life insurance products. When you build these many assets, you lay the firm foundation of security for you and your family.

Life may unfold challenges for which money as an element plays a crucial role. In the end, when you will have a wealth bank, you will have:

  • Security and money for your future goals,
  • A steady flow of income when you will be left with no capacity to earn.
  • Financial liquidity when you are in crisis.

A bulk of wealth created for you will help you in these:

  • Confident retirement: You may get old after 20 or 30 years, but the earning capacity will decline by then. Your expenses will scale up, considering your age and health status. This is where your wealth will help you against the financial uncertainties. Suppose if you invest in ULIPs, you get the compounding effect on the money invested, which creates a reasonable sum of money for your liabilities at retirement age.
  • Child's marriage / education: Inflation has impacted the cost of living, which further shrinks the savings. Education is an essential requirement if you belong to a service class. You would want your child to get the best facility for which protection should be high. Hence, wealth creation gains relevance here. The next milestone for you would be planning your child's wedding, which takes away a considerable part of your savings over the years. If you think of not going overboard with expenses, savings seem to be the suitable alternative for creating wealth.

When you or your parents got married, the concept of a destination wedding was not popular. The total cost of a wedding about 8 years ago for 2 days would amount to Rs.20-25 lakhs. Keeping the inflation and culture in mind, the same wedding would cost Rs.40 lakhs in today's time. Arranging such a fund volume will be a task; hence you need to have a wealth bucket to cater to your expenses.

  • Save tax with wealth creation: It aches when the big part of the hard-earned money is deducted from your monthly income in the name of income tax. Though as a responsible citizen, filing taxes is one of your prime duties. But you cannot watch washing away your income, and hence you must plan your finances. Invest money depending on future goals and save taxes on it. Suppose you buy a life insurance policy; you will be eligible to save your money from income tax deductions. The maximum limits of deductions vary according to the different products. For example, you are allowed to put a maximum of Rs.1.5 lakhs in ULIP. This implies that the maximum tax deduction allowed under ULIP is Rs.1.5 lakhs; however, the investment can be made over this. Check the income tax deduction under section 80C for life insurance premiums, PPFs, EPFs, ELSS, ULIPs, NPS, etc.
  • Tackle Inflation: You understand the concept of inflation. You must have heard the elders in the family talking of savings a lot. It is because they have witnessed the impact of inflation on their saving capacity despite having comparatively higher incomes. Take an example that when you were young, an orange bar cost Rs.5/-. At that time, with Rs.100, your parents could have bought 20 ice creams for you. But today, the cost of the same orange bar is Rs.10/- which means that you can only buy 10 ice creams for your child. To buy another 10, you will have to shell Rs.100 more. This is how inflation eats into your savings. This is why you need to have better finances so that you get better returns to afford things.


Wealth creation is not a one day job. It takes years to draw the benefit of savings after earning for several years. They say saving should start as early as you begin with your journey of making money. To create your wealth on your own, you must know the quick tips like building an emergency fund, spending less, investing 1/3rd of your salary in creating a wealth portfolio, and spending less on gadgets and cars until it is essential. Your foolproof financial planning will save you from a free fall when you require money. The best art to multiply your money is to invest it in financial instruments like ULIP, stocks, etc.


1The tax benefits are subject to changes in the tax laws. You are advised to consult your tax advisor for the same.
The linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year from inception. Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the investment fund and factors' influencing the capital market and the insured is responsible for his or her decision. Aditya Birla Sun Life Insurance Company Limited is only the name of the Insurance Company and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document. The various funds offered under this contract are the names of the funds and do not any way indicate the quality of these plans, their future prospects and returns. The Past performance of the Unit linked fund(s) of the company is not necessarily indicative of the future performance of any of these Unit linked fund(s).
The Trade Logo "Aditya Birla Capital" Displayed Above Is Owned By ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) And Used By ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the License. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations etc. The insurance cover for the life insured (including minors) will commence on the policy issue date. For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws. For more details and clarification call your ABSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true.
Aditya Birla Sun Life Insurance Company Limited Registered Office: One World Center Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013.Toll free no: 1800-270-7000 IRDAI Reg No. 109 www.adityabirlasunlifeinsurance.com CIN: U99999MH2000PLC128110


Term Products

ABSLI Life Shield Plan

A term insurance plan that offers you the flexibility of plan options suitable for your family's non- negotiable goals and ensure they need not compromise on their lifestyle. UIN: 109N109V06

  • Choice of 8 plan options
  • Cover your spouse under the same policy
  • Longer Life cover till age 85

ABSLI DigiShield Plan

PROTECTING multiple life needs with one plan is now possible. UIN 109N108V08

  • 10 Plan Options to suit your varied protection needs
  • Flexible death benefit pay-out options
  • Life insurance cover for 1 year or till age 100 yrs

ABSLI Saral Jeevan Bima

A simple plan to protect your family’s financial future (UIN 109N128V01)

  • Simple & affordable plan
  • Flexible premium paying terms
  • Enhance insurance cover with rider

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