5 Personal Finance Rule can change your finance forever
When it comes to managing money, it is all about disciplines and Strategies. Wealth Management is all about protecting your assets and multiplying it with minimum Risk.
Here are some strategies which can change your finance forever
- Renting a home is better than Buying
Owning a house or renting it, it’s always a confusing and significant decision to make. Owning a house is a fulfilment, emotional and status attached with it. Having a home is always considered as good investment, but not always, considering as the Real Estate returns are not attractive and prices also sky rocketed.
Renting generally gives a feeling of lower liability. In metro cities you can rent a house worth Rs 50 lakh for only Rs 10,000-15,000 a month. At the same time, if you buy a home at the same cost, you have to shell out anywhere from Rs 30,000 – 40,000 as an EMI (equated monthly installment).
Renting does not overburden you with EMI payments, house tax and other legal issues that are part and parcel of property ownership.
- You Don’t have to be Rich to start your investment
One doesn’t have to be wealthy to start your investments. One can start with an amount as low as Rs 500 a month through SIPs in mutual funds. Whatever with your monthly surplus availability with consistency for the long term to build a sizeable corpus.
- Buy a Term Insurance
In an event of sudden accident / tragedy for the Bread Winner, will always leave the family with nightmare and how prepared are you to handle such situations. Having a Term Insurance will help you in securing your Future Earnings. Your family or your dependents will never suffer from financial loss. A health insurance is like a safety kit that you carry with yourself and no, you don’t have to pay a large premium
- Health Coverage for Family
Medical expenses tend to gradually increase as a person grows old. With the ever-increasing medical costs, it becomes vital to ensure that you have enough health cover that can take care of various unexpected medical expenses at old age. If you fail to procure an adequate health cover for your postretirement phase, you are more likely to end up using a major chunk of your retirement corpus for unforeseen medical costs.
- Having an Emergency Fund
A contingency fund ensures that you have enough to cover basic living expenses in case of a sudden lay-off or extended illness that prevents you from working full time. You can use your bonus to start your fund, or add to it if you already have one. The thumb rule is to have enough stashed away to cover 6 months of expenses, including loan EMIs and insurance premiums.
Finances should be handled stress free. Always people come with the excuses of not knowing and ignoring these basic fundamentals of life. The consequences of breaking the fundamentals are often costly.
Prosper and Happy Investing
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