Different Ways To Reduce Tax Liability

It is that time of the year when we have to file our taxes for the year. It is not a task that many of us enjoy and we want to quickly get it done with. But in our eagerness to get it done with, we must make sure that we do not file the returns inefficiently as this would mean increased tax outgo and mismanagement of our money. We must make the best use of the different ways to reduce our tax liability and at the same time ensure that our financial plan is on course to achieve our goals.

What is the difference between health corpus and emergency fund? Do we need to build a separate corpus for each?

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While health consciousness is at an all-time high, the incidence of critical medical ailments has also surged. The rising cost of healthcare, too, has become a major cause for concern. To keep diseases at bay, people nowadays take all possible preventive measures, such as eating right, exercising and practising yoga and meditation.

Emergency fund

An emergency fund is money that you have set aside to specifically cover any unexpected expenses that may come up. An emergency fund may cover unexpected car repairs, medical bills or other emergency situations. You may also use an emergency fund to help pay your bills when you are unemployed. You should also prepare for unexpected events with a solid plan in addition to your emergency fund.