Financial savvy decisions help you to utilize your money effectively and get optimal returns on the same. The financial moves you make now will determine whether you’ll thrive financially or have a financially secure future during the course of this year. Firstly, you need to set your financial goal according to your needs and resources and then take the financial moves to achieve your goals. Below mentioned are the top 5 financially savvy decisions to be taken this financial New Year:
Investing in PPF and VPF : Traditionally, fixed depths were considered as safe investment options. But with demonetization, the FD rates have dropped to 7 %. So it is better to opt for more lucrative options like investing in Public Provident funds and Employee provident funds (EPF) which are more secure and unlike banks, government cannot cut the PPF rates beyond a point. If you are salaried, FEPF is statutory you don’t need to bother about it, it will fetch you good returns. You can also use voluntary Provident Fund (VPF) to build up the debt part of your portfolio.
Gold: It is advisable to invest not more than 10% of your investment portfolio in gold as financial experts expect that gold prices may drop further due to uncertainties in foreign markets.
If you have taken a home loan, you might be paying a higher interest if you loan is linked with the prime lending rate or the base rate .While MCLR (marginal cost of lending rate) is lower than the lending rate.So if there lies a difference of 50-60 base points between your existing rate and new rate, then it is advisable to switch to MCLR by paying an extra conversion fee. This will help you to cut down on your EMI and in turn saving money.
Lastly, apart from the above mentioned moves it is always better to consult a financial advisor. A financial planner will help you achieve your financial goals by strategically utilizing your money to get optimal returns. Also remember that Financial independence largely depends on how well you use your money, thus you need to create a contingency fund that you can use in case of emergency .It is good to be self-sufficient and have a corpus amount for uncertainties rather than depending on others.
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