Some of the most profound lessons in life are also the simplest. Money Today has driven home this point every now and then. For instance, we have explained why investing without a plan is like driving without knowing the route to your destination, or how disastrous it can be to have a mismatch between your investment objective and strategy, or why you should not confuse your salary with the total income. This issue’s cover story explains one more tenet of financial wisdom—that the composition of your salary can be as important as the amount. Most salary earners, especially those working in the private sector, are realising that they need to negotiate their salary structure as much as the total pay cheque. A minor change in the composition of your salary can reduce the tax outgo and, thus, increase your take-home salary.
More importantly, customising your salary intelligently can channelise spending, savings and investments in the right direction. Most salary earners know that there is a profusion of allowances and perks on offer. What they aren’t sure of is what exactly these allowances are, how they affect taxation and savings and, most importantly, what the scope for negotiation is.
The simple answer to these questions is that it all depends on how much your employer needs you. The bouquet of perks and allowances becomes bigger and more accessible if your skills are valued highly. What you need is an awareness on what is available and an understanding of what to negotiate. Our cover story will help on both counts. But remember, all this is of little consequence if you haven’t invested in developing your skills. This too is a message that we have delivered consistently, namely, treat your career as your biggest asset. If you have missed out on our coverage, log on to http://career.moneytoday.in for a complete lowdown.
Talking of careers, there is a new team leader at the helm. You will get to know him on this page in the next issue. I thank you for the support and faith you have shown through our journey to the 49th issue of this magazine. You will see Money Today reaching new areas and touching new heights in the future. What better timing for a new captain to take charge than the 50th issue.