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How To Plan Your Finances Better, This Dussehra

With these 3 tips, you can conquer and rid yourself of financial demons holding you back this Dussehra

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Financial Plans
So, read, research, understand, and then invest to reap substantial returns.

At some point of time in life, you may have created a budget, followed or earmarked investments and tried to take control of your finances. Often, even the most stringent of financial plans, fall flat because of several reasons, such as:

  • Lack of prioritizing financial security
  • Overwhelming amounts of advice
  • Unforeseen circumstances and sudden expenses

In order to streamline your finances, it is important to delve deep and understand what financial mistakes hold you back.

This Dussehra, take a look at the financial shortfalls you need to overcome, and pledge to walk the righteous path. Here’s a brief lowdown on the same.

Bid Adieu To Procrastination
Just sitting and thinking of ways to execute a financial plan is not enough. You need to stop day dreaming in order to act when the time is ripe. Experts believe that in order to reap great returns from the market you need to keep an eye on your investments and keep rebalancing and diversifying your portfolio.

Volatile markets, for instance, are a signal that you need to increase your investments in safe options like FD, commodities, gold, and real estate. On the other hand, you can invest for short-term gains in assets like shares when the market is highly bullish. The trick is to be aware and informed so that you can take the right action at the right time.

Overcome Ignorance And Financial Fear


Ignorance or a bad experience are the main reasons why you may be afraid of doing anything other than storing your money in a savings account. Well, now is the time to conquer this fear. Financial planning starts from the moment you outline your goals and pick and choose assets for your portfolio to achieve them.

Detail out your financial goals and plans like retirement, a world tour with your family, your child’s marriage, and more. Then start putting in money in different instruments corresponding to each goal.

However, in order to decide what assets permit growth, you will have to read about them. The right research will help you gain more knowledge about the varied options, which in turn will ease the decision-making process for you. So, read, research, understand, and then invest to reap substantial returns.

finanancial plans
Choose high interest assured return investments

Lay The Bricks For Your Financial Wellbeing Today
Instead of waiting any further, start your financial journey right now. To begin with, include both short and long-term options in your portfolio. Introduce investments that guarantee earnings to boost your confidence and enjoy your gains.

Choose high interest assured return investments like recurring deposits, pension plans and fixed deposits on the one hand. On the other hand, you can pick riskier high return investments like shares.

Out of all these investments, FDs bring a lot on the table. So, you can choose to invest in varied cumulative and non-cumulative FDs from trusted issuers like Bajaj Finance. These FDs are lucrative in terms of the benefits and the interest rate they offer on your investment. Awarded ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating, Bajaj Finance FDs are credible and assure you up to 8.85% interest on your investment. As you can start investing with a mere sum of Rs.25,000, you have no excuse not to begin.

Financial plans
In order to streamline your finances, it is important to delve deep and understand what financial mistakes hold you back. pixabay

Since applying online is easy and convenient, it’s time to get started now! Choose between a cumulative FD in case you want to enjoy the benefits of compounding or a non-cumulative FD to access the interest as a regular payout.

With these 3 tips, you can conquer and rid yourself of financial demons holding you back this Dussehra and celebrate your financial triumphs for years to come.

Next Story

Will The Budget Provide a Lifeline to Realty?

There is likelihood of bringing down the GST on construction material like cement to boost home affordability, paving the way for speedy revival of housing.

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Modi, India, Farmers
Indian Prime Minister Narendra Modi, center, is garlanded by BJP leaders on the first day of the two-day Bharatiya Janata Party national convention in New Delhi, Jan. 11, 2019. VOA

By Vinod Behl

In a way, this year’s interim budget, the last from the present NDA government before the Lok Sabha elections, is set against a similar backdrop as its first (albeit not full) budget of 2014-15 when the real estate sector was reeling under a major financial crisis. As such, it is expected of the February 1 budget to provide a liquidity lifeline to revive the realty sector, recently hit by the crisis in the NBFCs that have been a major source of its funding.

The Modi government’s first budget had contributed to considerably improving the investment climate by liberalising the FDI norms in the construction sector, besides injecting Rs 4,000 crore to the National Housing Bank (NHB) to promote affordable housing and introducing REITs (Real Estate Investment Trusts) with tax incentives to unlock a new source of financing for cash-strapped developers.

So, on the one hand, while that budget focused on boosting supply through increased investment, on the other hand, it provided a recipe to boost demand by increasing the home loan interest exemption limit by Rs 50,000 and raising the income tax limit by Rs 50,000. And now, five years later, in the wake of the real estate sector facing the initial disruptive impact of progressive reforms like RERA and GST, the sector is looking up to the government to provide it a similar budgetary booster dose, both on the supply and demand side.

India, Farmers
Interim Finance Minister Piyush Goyal, center, holds a briefcase containing federal budget documents with Junior Finance ministers Shiv Pratap Shukla, center right, and Pon Radhakrishnan, left, upon their arrival at the parliament house in New Delhi, India, Feb. 1, 2019. VOA

Though the key reforms undertaken by the NDA government have brought in the much needed transparency and fair play in realty transactions, yet the restrictive provision of maintaining escrow accounts under RERA to check misuse of customer funds has resulted in liquidity constraints for the developers, made worse by the crisis in the NBFCs.

Hundreds of housing projects across India are today stalled for want of funds, in turn driving down the real estate sentiment. It is in this backdrop that the sector is looking up to the new budget as a saviour to provide some kind of lifeline to the stalled projects. It is expected of the budget to create a stressed asset fund to take up incomplete projects.

The industry captains are also hoping that the budget may provide some incentives to stressed asset companies to encourage them to undertake stalled projects. And to further boost supply, the industry has on its budget wishlist a long-pending demand of introducing a structured single window clearance system.

The supply constraint can be considerably tackled by boosting flows from banks to the sector. This can be achieved through a policy initiative to grant industry status to real estate, though in the backdrop of NPA-struck banking, this looks unlikely, especially as the infrastructure status earlier granted to affordable housing has not brought in the desired results in terms of cheaper bank funding.

 

budget
Himachal Pradesh Governor Acharya Devvrat being welcomed by CM Virbhadra Singh and Speaker BBL Butail on his arrival on the first day of Budget Session of the State assembly, Flickr

Incentivised policies to promote rental housing and boost construction skills and technology are also required which may ultimately improve home affordability.

While the liquidity crunch has been adding to the supply side problems, the current crisis in the real estate sector has a lot to do with home affordability. As such, it is expected of this budget to follow the first budget of the NDA government in enhancing the income tax limit as well as increasing the home loan interest deduction limit.

And as inflation has shown signs of relaxation, going forward, the reduction in interest rates, especially subsidised interest rates for affordable housing, along with tax benefits in home insurance, may well bring home ownership within comparatively affordable limits.

Besides unaffordable home prices, the high transaction cost (12 per cent GST for standard housing and 8 per cent for affordable housing), in addition to 6-7 per cent stamp duty, has been playing spoilsport in reviving housing. The government may well bring down the GST to 8 per cent and 5 per cent, with input tax credit, to make it more or less tax neutral.

 

Also Read: With The Elections Coming Up, Indian Government Promises Farmers Their Income Support

Further, there is likelihood of bringing down the GST on construction material like cement to boost home affordability, paving the way for speedy revival of housing.

But the big question is: Will these high hopes from the interim budget materialise for the real estate sector, especially as due to poll compulsions, the government has a higher priority of addressing the rural and farm distress? (IANS)

(Vinod Behl is Founder & Editor, Ground Real(i)ty Media)