Want to be financially secure? Here are six ways to get on track.

Step 1: Lower your taxes

If the government gives you some leeway, grab it. Make use of all the provisions to save on tax.

Start by checking out Section 80C in detail. Under this, you can invest up to Rs 1,00,000 in the investments mentioned in this section. The amount you invest will be deducted from your income when tax is being calculated.

Look at the Public Provident Fund and National Savings Certificate, which are mentioned under this section. Both give you an interest of 8% per annum. Read PPF vs NSC.

Also check out Equity Linked Savings Schemes. These are diversified equity mutual funds with a tax benefit. The only condition for investing here is you have to lock your money in for at least three years.

If you are an employee, the contribution to your Employees Provident Fund also gets added to this Rs 1,00,000 amount. Read PPF vs EPF.

Step 2: Get insured

There are two types of insurance that you must look at: life and medical.

Do you have any dependents? Then you must look at life insurance. Should something happen to you, then your insurance cover must take care of those dependent on you.

Let's say you are a 25-year-old male and you take a term insurance for Rs 10 lakh (Rs 1 million) for 15 years. Should you die during this period, your beneficiary will get Rs 10 lakh. The annual premium that you will be charged will just be Rs 2,890.

The premium you pay for life insurance is also eligible for a deduction under Section 80C.

If your company does not cover you and your dependents for medical insurance, take out a Mediclaim policy. A sickness can wipe out your bank balance. And the sooner you take it, the better. Because, once you get an illness, it will no longer be covered under your Mediclaim. So, the younger and healthier you are, the better for you. Read All about Mediclaim.

Step 3: Pay yourself first

Smart saving is all about being consistent and regular. Don't wait for a bonus or a gift.

Ask your bank if it has a recurring deposit. Then you can ask them to directly debit a fixed amount from your savings account every month and let it get directly credited to a fixed deposit.

Or, if you take a recurring deposit in a post office, you can give post-dated cheques or request them to deduct the amount from your post office savings account.

Similarly, you can even open a Systematic Investment Plan with a mutual fund. This way, you put in fixed amounts every month into a mutual fund. This amount can be directly debited from your savings account.

Do this before you spend the money.

Step 4: Start today

Let's say you had an amount of Rs 10,000 to invest at 9% per annum.  

A six-year delay (between four years and 10 years) would cost you Rs 9,558.

The more time on your side, the more the effect of compounding. Don't wait for the day when you have a fat bank balance. Start now, however small the amount.

Step 5: Not being too conservative

Don't just look at bank deposits, Public Provident Fund, National Savings Certificate and Kisan Vikas Patra. Some even view insurance schemes as investments.

Put some amount of money in the share market. If you do not want to invest in shares directly, then you can try mutual funds. A diversified mutual fund invests in shares of various companies from various sectors. You buy the units of a fund and, if the fund does well, the value of the units rises.

If you are still wary, try balanced funds. These are funds that invest in both, equity (shares) and debt (fixed return investments). They will give a lesser return than diversified equity funds but are also less risky.