Financial planning can help you face unforeseen circumstances with confidence. It is important to know your options before you invest your money or borrow credit from unknown sources. The important thing to know is the difference between a quick and easy option vs. a well thought through option that provides you with transparent and convenient solutions for your financial challenges.
Here are some key financial options that will help you in managing your money better:
Investing in various savings tools available in the market may be confusing. Today, you have a variety of curated instruments to save money. Whether it is Systematic Investment Plans (SIPs) or E Gold (also known as Digital gold), you can afford to invest the smallest amount month on month to build a nest egg for your future plans.
So now that you have had a chance to relook at your finances, take a look at the gaps and keep away some of the money as savings – what’s next?
While your savings will take care of your financial goals and also help in investing in tax schemes, there could be times when you need money. A medical emergency or an unforeseen development may put you into a deep financial crisis. It is important that you are ready to face such a situation too.
Most of us tend to borrow from friends/family or worse from money lenders who charge exorbitantly high interest rates to lend money. Taking loans from formal financial institutions is still not an option for many Indians. However, it makes sense to keep this option open, when you face a cash crunch situation. There are reliable and regulated lending platforms such as MyShubhLife that offer various loan products from as low as Rs.3,000 upto 2 lacs and above. These loans are collateral free and provide transparent pricing on interest rates, processing fees etc. Whether you need Personal loans with flexible tenure, a line of credit or early access to your earned wages, all these facilities are available with numerous benefits!
Keeping a good credit score
It makes sense to understand how credit agencies work and how they evaluate their credit worthiness, so you can keep a healthy credit score. Online lenders also offer various types of loans that are quicker to obtain and offer more flexibility in terms of amount and installments. Being aware of various loan options will ease your stress when you have to borrow money. In some cases, taking a loan (for e.g. – home loans) may also help you in tax planning.
Once you take a loan, it is important to follow the timelines of repayment, so that you continue to have a good credit record. This will make access to future loans even easier
Another big part of your financial planning is health insurance, especially when planning for future contingencies. In case you have to take care of aged parents or would like to cover some medical risk there are various insurance products available today that can be customised to your needs too. At the time of a medical emergency, health insurance will prove to be extremely valuable.
This well-rounded approach we have discussed so far, towards finances – plan, save and evaluate options – will help in rounding up your financial planning for the year. This may sound like a lot of work and it definitely requires you to put some effort. But it is all worthwhile in your path towards financial freedom, this financial year.
To know how you can plan your financial wellness better, go here and explore more.