Todays’ India and Loan burden

There used to be a time when our forefathers used to tell their sons and daughters that never take “Udhar” i.e loan of any kind. Once you start taking loans then you are stucked in the vicious circle of loans.

The new India which is full of banks, Nbfc’s and various fintech companies , providing loans in just few mintutes. Gone are the days when people used take loan for purchase of property or for expansion of starting business. With entrance of companies like “home credit” and “Bajaj Finserv”, now loans are available for even consumer products like mobile phone, Washing machine, airconditioners etc.

Some type of loans have become necessity. I am talking about home loan. No one in this era want to pay rent on the house rather want to own the house. Even business men instead of taking credit from friends and relatives prefer going in official way by taking loan from banks, nbfc’s or fintech companies.

With the increase in average package of employees , they now a days prefer to have all luxuries and less of savings.

A middle class of India is stucked with paying atleast two emi’s like home loan , vehicle loan, personal loan , consumer loan etc.

Nowadays each one of us want to live with luxuries like car, Big Home, branded mobiles etc that can create that “Status symbol”.

Here comes financial planning in picture. We need to understand instead of going for loans for each and every thing, we can plan the things well in advance like family planning. Sip’s , Mutual funds, Fixed deposits , recurring deposits are some options that can be thought for loan burden. Ofcourse for buying a home or starting a new venture you necesarily require loan. But financial planning can help you in purchasing consumer products, securing child’s future, Daughter’s marriage etc

Rather than being in due its better to invest. Each one shall invest in RD’s , FD’s , SIP’s Gold etc through which we can reduce loans. Loans are always added with interst and burden of emi. So avoid loans and prefer financial planning.

Develop the Saving Habit...!!!

Savings...!!! As soon as you hear the word "Savings" you start thinking about how

to save, how much to save, and lot of more questions. Let’s today have a look on this. 

Whenever it comes to savings, people generally have the big excuse that their expenses are so much that they are unable to save any amount of their income. So first major step in new age is to spare the money to be saved first and then to adjust the monthly expenses out of the remaining amount. 

Second common excuse among people is that they are not rich enough to do savings. To be very honest, it’s not necessary to be a rich person to do savings. Whatever you might be earning low or high, it doesn’t make difference, it’s possible to save some amount of your income. Which then you can utilize for various purpose in life or keep it in various schemes & earn returns. 

Okay, so you now decided to do save some amount of your income. But then comes next question to anyone's mind is that how much amount one shall save from their income. In general it’s said that one shall save 30% of his net pay. To be more precise one shall save 30% of his income. This could be good amount of money that can help you to develop savings habit. 

Further then the question comes, where to invest this 30% of Income i.e. savings. There are 4 best options where you can invest this savings. A part of 30% you shall invest in RD (Recurring Deposits) which are available in all banks. Another part of Savings you can invest in SIPs (Mutual Funds). Another part of income you can invest in gold. And remaining part of income you shall invest in stocks which in long term will give fair returns.