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Monday, June 11, 2018

Know how to Plan for Budget

It is rule of thumb to never quit a job unless you have another lined up. However, circumstances may arise where you leave your present employer without a job to go to. No matter what the reason was for leaving, one of the first things to do after you quit is upload your resume to various job portals. Once that is done, get down to the second thing, which getting your finances sorted.

Make a Budget

It is not easy to be unemployed, the mere feeling can depress you to a point of no return. However, remember, that it is something temporary and you’ll soon move past the situation. Calculate how much you’ll need for about a month, or two, taking into account not only the bare minimals but other expenses you might have as well. Figure out, how long will your savings can sustain you, without any other sources of income.

If you have a Home Loan on your shoulders, consider a Home Loan transfer option to a bank or NBFC offering the lowest Home Loan interest rate. Use a Home Loan EMI calculator India vouches for and calculate the EMI amount you’ll have to pay.

Cut down Expenses to the Minimum

No matter how much your savings balance reads, make sure that you spend only on the essentials. Forget about shopping, eating out, and partying, and postpone vacations. These are luxuries, something you shouldn’t spend your savings on, particularly when without a job.

Invest in Higher-return Instruments

Although you won’t be in a position spend mindlessly, you could look at investing in schemes with optimum returns in a short turnaround time. Some of the options you can consider are:

Debt instruments: These secure your capital and offer great results without letting market volatility affect them. You can expect returns upto 10.5%, making these a good short term investment option.

Large Cap Mutual Funds: Here, you can make investments in stocks of large business corporates selectively for greater returns in a short period of time.

Treasury securities: This is another good short term high return investment option that you can consider. It offers high liquidity, making it perfectly suitable for if and when you need fast money. The maturity period starts from 91 days.

Non-convertible debentures (NCDs): These are listed in exchanges and you can purchase from there.

Fixed Maturity Plans: Here you invest in money market instruments and debt. The tenure starts from 1 month, meaning you can liquefy it after a period of 30 days.

You can effectively utilise the benefits of tax savings on your loans as well. These tips can definitely help in making the journey between your last job and your next smooth sailing. Be diligent with your finances and you’ll surely be able to manage a comfortable lifestyle.benefits of tax savings on your loans

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