Mix 'n' Match

Adopt smart ways to align tax planning to financial goals and benefit from best of both worlds

- Shipra Sharma

Two heads are better than one. Teams tend to perform better than individuals and by the same logic, by aligning your financial goals with the available tax saving options, you are likely to benefit the most. For most of us, income tax is the first exposure to financial decision making even before one can start writing down financial goals. Although both these aspects of our personal finances could be treated independently, you will be much better off by combining the two.

At 26, Mumbai-based Mohnish Panchal demonstrates the maturity of a veteran financial expert by matching his tax savings choice with his financial goals to make the most of the tax savings. “I am using the tax saving windows to meet my financial needs, which allows me to align the two effectively,” he says. The choice of financial instruments to save taxes is plenty, but to derive more than just tax savings you need to match their benefits with your financial goals.

Building a foundation