Hirannya

Author: hirannya

  • How to pay of Credit Card Debt: 6 Steps

     

    credit card2

    Modern day financial systems rely on a structure that gives a line of credit to users based on their ability to make payments; often out of future earnings.  Thus, it is common practice for credit card holders to spend high, leaving the payment of the outstanding credit amount to future income or earnings. This could at times see the card holder spending more than what he should normally be doing.  Most people spend in the belief that there would be an increase in future income or that there is a readily available credit limit still on the cards.  At times, the credit card amounts would take up the entire earnings of a person just to keep paying the least money to roll over the line of credit.  With a significant amount of credit card holders facing some payment issues at some time or the other, laid out below are some basic norms to be followed to get out of an indebted situation.

    Pay in larger installments and clear the dues 5-6 months

    Instead of paying just the bare minimum to be paid each month, break up the total outstanding amount into four or five installments, to be settled one at a time each month.  Although just the minimum amount would keep the creditors happy, remember it comes at a high price and most card issuers end up with annualized interest rates of close to 40%. pa

     

    1. Utilise FD:  In case you have run up a big hefty credit card amount, it would be wise to break up some liquid source of income, say a fixed deposit or an investment in some equity or so.  The high interest rates that most card issuers charge would make it advisable to close out any outstanding credit card amount at the very earliest.  This could well end up costing the customer a good 2%-3% lesser on interest rates. 

     

    1. Get personal loans at lower rates to pay off credit card dues

     

    1. Interest charged on credit cards are usury, that means you will have to pay high interest  on the amount of credit taken.  If possible, it would be advisable to take a loan at much lower interest rates to pay off the credit card balance.  Most personal loans and loans that are offered by the financial institutions on gold as security would work out cheaper than the high interest rates charged by credit card issuers.

     

    1. Ask  for loan from friends and relatives

      1. Take a loan from friends and families to pay off the outstanding amounts of credit cards. At times, most employers would give an advance on a salary that could be used to pay off the credit card payments.  It does indeed help to have friends and relations that could be counted on to bail you out in times of need; the sum comes at zero interest.

     

    1. Request Credit card issuers to set EMIs for the due amount

      1. Most credit card issuers allow the outstanding amount to be converted to EMIs.  These can be suitably timed from 3 months to up to 3 years, thus leveling out the cash out flow or obligation.  Most interest rates charged on EMIs are lower than the high charges that credit card companies charge their clients; the customer could well save up to a good 5%  per annum on outstanding amounts.

     

    1. Get a new credit card

    There is, a credit transfer facility that most card issuers offer their clients.Here, a new card is issued to the customer and the entire credit amount transferred to the new card. when a new card is issued, there would be an period that applies to the new card for a few months at the very beginning.This can at times be helpful in reducing the payment that most debtors have to pay.

    All said and done; it is always advisable to live within means.  There are a whole lot of credit card issuers that thrive on the hard earned money of the customers.  After all, in the final count, it is the customer’s money that is at stake.

  • The Benefits of Education Loan

    Education Loan

    The Benefits of Education Loan

    Every child needs education as they are the future of the world. Every child is entitled to the education of every kind and anywhere in the world, irrespective of the class, status, caste or creed. The demands of the modern world are different from the past, and every child should be prepared to face the world in the true sense. There are a whole lot of benefits when a child gets his education. He educates not only himself to lead a healthy and wealthy life, but also helps to protect the environment, the society as a whole, help to make and also create the world that is beautiful and peaceful.

    Here I am giving some useful information about the Education Loan for the child education and its significance

    Education loan

    Yes, education is not cheap, and there are different education levels that can be seen, such as the primary, secondary, higher and post graduation. The higher you go, the more expensive education becomes. Parents today find it increasingly difficult to pay for the children’s education. However, with so many private and government banks providing loans for education, it has become quite easy and manageable for students to avail them and also repay them.

    Details about child education loan

    In India the limit for education loan is Rs. 10 to Rs. 20 lakhs. The interest rates on loan vary according to the bank, which ranges from 10 to 14 %. The total 15% of education should be funded by parents, and the balance will be in the form of the loan if the costs cross Rs. 4 lakhs. A third party guarantee is also needed in some cases or additional collateral. Such loans are generally for those who want to study abroad where the tuition fees, hostel accommodations, books, food, etc. are quite expensive. The payments are made directly to the college by the banks. Good performance in academics also provides plus points during the loan process and even the continuation of loans.

    Courses for availing loans

    There are several college courses within the country and abroad where you can get loans. Some of the courses are medical course, engineering, MBA, etc. These days the banks are unable to get the repayment of the loans and turns into non-performing assets. The scenario is very grave as there is unemployment in most of the sectors. That is why parents are considered for the repayment of the loan rather than the children.

    Considerations

    Parents should openly discuss the future plans for the children and also the loan and repayment. Most banks provide a pause period where the student can finish education and look out for a job during that pause period. The repayments of loans begin after securing a job or six months after completing the course. If during this period the student is unable to find a job, the parents have to start repaying the loan. Therefore, parents should also be ready for such circumstances.

    Benefits of loan for education

    There are several benefits if you get a loan for education Firstly, you can educate your child, even when you are in a financial crunch. Your child will get the best education and have a bright future as well. Secondly, you also get tax benefits on an education loan. Under section 80E, the interest paid on the loan is eligible for the deduction of tax on the income. The savings in tax can also decrease the cost of the loan. So the higher is the income, the bigger are the tax benefits. You also have to note that the tax benefits are only applied to you or spouse or children and not for interest paid on loans taken for relatives or even siblings.

  • Start Your Retirement Planning With These 6 Useful Tips

    Retirement 1

    Retirement planning is not for those who have retired, in fact, it is for the fresher who has just got a job and has started earning. Of course, the young people are a little apprehensive about planning for retirement and may laugh about it. They love to spend at this age, and there is no pressure of old age issues for them. However, one has to spend carefully, even at a young age where there are no pressures of any kind.

    Following are some of the tips that need to be followed for retirement planning which will help you live better and live happily without being a burden on anyone.

    1. Save 10%-20% of your income

    The very first thing that you should consider is to keep aside around 10%-20% of the income every month. This forced saving will further help you see a large amount during the retirement years. Suppose a 25-year-old person saves a fixed amount every month, the savings in five years will be 44% of total corpus when the person turns 60. The early you start, the smaller is the amount you need to invest. However, the older you grow, the amount will be halved as you need to save more with almost 20 to 25% savings of your income.

    2. Increase in salary means an increase in investment

    After a year, when your salary increases, you should also increase the saving or investment as well. Of course, you have to take into account the inflation and other factors too. Based on your needs and lifestyle, you will definitely have to increase the savings. If at the age of 28, the salary is around Rs. 50,000 and the saving is Rs. 5,000 per month, the total will equal to 92 lakhs by 60. So if there is an increase of 10% every year the savings should also be accordingly. This means by 60; the person has around 2.76 crores.

    3. Don’t touch corpus

    This is an important tip. Everyone thinks it is not necessary to keep aside such a large chunk of money when you really need it. When you withdraw any little amount, it will certainly have the effect of the compound, but the same amount can do wonders when you retire. Most people are impatient and reach out for the corpus, which can damage the retirement plan. Even when changing the jobs, you should transfer the PF and not withdraw them or use them.

    4. Education and retirement connection

    A parent always thinks of saving for their children instead of their own retirement. Of course, there are various  needs for their children to be fulfilled such as education, wedding etc. This also shows the picture that they are not really aware of their own needs and spend all of it on children. Dipping into the retirement fund for the needs of children is going to be risky. The best thing here is to get a education loan. Loans today are easily available for education . Even the EMIs are going to be easy to pay out. So instead of tearing the PF, get the loan.

    5. Get rid of loans

    Before you retire, you should get rid of all the loans and plan for it accordingly. You should not look at the corpus for repaying the loan. This will definitely wreck your entire retirement plan if you take out a large chunk out of the savings.

    6. Determine how much you will need

    Of course, it does differ but get ready for more. The inflation and other sudden expenditure will definitely affect the savings. So be ready for emergencies as well. Suppose your current age is 30 & your monthly household & lifestyle expenses is 25000 then your future value would be 190000 pm after 30 year. (assuming 7% inflation) So you need to accumulate total corpus of Rs. 5 Cr.at the age of 60.

    People usually fail to plan their retirement due to lack of financial knowledge and emotional biases in managing their own money. It’s strongly recommended to visit a financial planner to get a comprehensive financial plan made for you and your family.

     

     

     

     

     

     

     

     

     

  • What’s in the budget for 2016-17 ?

    budget

    Union Minister for Finance, Mr. Arun Jaitley announced the budget 2016-17 that seems to have brought some relief to the small taxpayers and the business owners. The budget also has no relief in the Income tax slabs or the 80C limits. The EPF withdrawal will also be taxed on 60% corpus. There are of course mixed reaction from people at various income levels and strata.

    The details of the budget

    The budget’s focus is on the rural economy and of course, the farmers were getting neglected for decades. There is tax relief for small taxpayers and has the affluent to pay more. There has been a push in the agriculture sector, the rural development, and the social sector. The push towards enhancing irrigation was also apparent. There will also be a good investment in public roads in the rural and urban areas.

    For the taxpayers

    We see no changes in tax slab or the 80C, although everyone was expecting the limits to be increased which never took place. Around 40% of NPS corpus will be now tax-free when it matures, and the rest 60% will be taxed if withdrawn completely. There is no tax on the annuity from the 60% corpus. The next is the EPF interest becomes taxable for the corpus of 60%. The EPF was an important point of discussion in the budget and is told that the only interest component is taxed during withdrawal and is applicable to the interest that will be earned after 1st April 2016. On the brighter side, the PPF still remains tax-free. The other one is the HTA exemption under the section 80 GG, raised from 24 thousand to 60 thousand annually. If you are a first time home buyer, you will definitely get Rs. 50 thousand deduction in the interest rate if the loan does not exceed 35 lacs and the total house value does not exceed 50 lacs. Get to know the Krishi Kalyan cess that have not added to the service tax and is applicable on all taxable services. The service tax will now see a hike from 14.5 % to 15%.

    Budget for startups

    The budget, this time, was interesting when the Finance Minister emphasized in the Prime Minister's visible campaign to boost investment and jobs with the ‘Start-up India, stand – up India’s plan. The budget says that the new manufacturing firms shall be taxed at 25%, and there will be no further exemptions. Companies with turnover of less than Rs. 5 crores will now be taxed at 29%. The startups will now get a 100 % tax exemption for the next three years.

    Banking

    A big boost has been given to the banking sector with almost Rs. 25,000 crore in the recapitalization of the public sector banks. Public sector banks have been focused on the current budget. There will also be ATM facilities in rural post offices for the convenience of the rural people. The general insurance companies will now be listed in the stock exchange.

    Education sector

    There will be Rs. 500 crore schemes for promoting entrepreneurship among the reserved calluses. Private and public educational institutes will be made world class. There can be an allotment for multi – skill development centers that will amount to Rs. 1,700 crore for 1500 centers.

    Others

    The focus will be on providing digital literacy scheme to be launched that will cover 6 crores to the additional rural household. The recent budget also announced the turnover of the limit under the Presumptive taxation scheme under section 44AD of Income Tax Act to  2 crores.

    The budget has been set keeping in mind the global economic crises and to strengthen the existing economic reforms in India.

     

     

  • Tax planning tools for Indian taxpayers

    tax planning

    Tax planning tools for Indian taxpayers

    Today, in the year 2016-17, the government has provided various schemes in the budget for taxpayers. Tax planning can be done according to the benefits and the schemes that are beneficial to save tax. Tax planning can be a good way of investing money by using the schemes provided by the government in various ways so that people can benefit from the schemes and also pay tax eagerly.

    Equity Linked Savings Scheme

    Compared to traditional tax saving instruments like Public Provident Fund (PPF), National Savings Certificate (NSC) and bank fixed deposits; the lock in period of an ELSS fund is much lower. While ELSS investment is locked in to 3 years, PPF investment are locked in for 15 years, NSC investment is locked in for 6 years, and bank fixed deposits eligible for tax deduction are locked in for 5 years. As ELSS is an investment in equity markets and investing in this for a long term can give you better returns compared to other asset classes over the long term. You can also get income from your investment amount in the lock in period if you opt for dividend schemes.

    Life insurance

    Life insurance policy is today, both popular and widely adapted tool for tax saving and also for life insurance. Various plans are available in life insurance policy as per the requirement of the individual. The government as well as private companies are participants in life insurance business. For saving taxes, the section 80C of the income tax act provides benefits like the deduction for a maximum of Rs. 1,50,000 from the total income of the person.

    Public provident fund

    The public provident fund or the PPF is another popular income tax saving scheme in the country and provides an investment that provides assured returns along with tax benefits. It is governed by PPFS and PPFA. The scheme is available to those who have their own account or has minor children. The maturity period is 15 years and can be extended up to 5 years.

    Residential housing property

    This scheme provides tax benefits of different kinds which are important. The maximum deduction allowed here is Rs. 1,50,000. It is available to individual or HUF. A tax deduction is available for repayment of the principal amount that has been borrowed in section 80C. The payment of installment due to the company or other institutions, in which the assesses is member, towards the cost of property that is allotted to him, Registration fee or stamp duty for transfer of property to the assessee. Deduction for interest on housing loan is also possible under section 24B where an amount of Rs. 30,000 is allowable for maintenance of house or the repairs.

    Sukanya Samridhi Account

    In this scheme tax deduction is an application for up to two to three girls in case of twins in the first case or second case only. Here one can get a maximum deduction of Rs. 1,50,000. The min. initial deposit is 1000 with another one hundred rupees thereafter with the annual ceiling of Rs. 1,50,000 in a financial year. The interest rate is 9.20 % w.e.f. the maturity is 21 years from opening the account. The period of deposits is made up to 14 years from the date of account opening.

    Children education

    Tax planning and deduction can be done through education of the children. One can get tax exemption on tuition fee of the children to any university or school or college or other institution in India for the sole purpose of education.

    Health insurance India

    The Medi-claim policy or health insurance in India covers the expenditure towards the medical treatment and the hospitalization. There are terms and conditions for the policies from different companies. The tax deduction available is Rs. 15,000 and on senior citizen it is Rs.20, 000.

    Considerations

    People are aware that they can save tax by investing and proper tax planning in various schemes. Investment should be made any time of the financial year. On the basis of proof, one can submit the income tax by the specified date. Those from a business background or professionals are liable to pay the tax in advance during the financial year. The salaried individual’s tax is deducted at the source directly from the salary itself. There are different taxes like fixed deposit, house property or the capital gain. It is you who will have to pay tax on these additional income taxes after doing a perfect tax planning.

     

  • Things that you should know about tax deductions

    Tax

    Tax deductions– Things that you should know

    A tax deduction is nothing but reducing the taxable income of individuals who pay income tax regularly. It helps to reduce the overall tax liabilities, and you save money, according to the type of claim that you make on the tax deduction type. The amount of deduction depends on the tax. You can claim the tax amount spent on the children’s education, medical expenses and also charitable contributions. Besides, one can also save tax by investing in several schemes like Equity linked savings scheme, PPF, Fixed Deposits ( 5 Year ), life insurance plans, national saving schemes and more. There are tax exemptions for several expenses that occur during different activities relating to social benefits.

    Get to know tax deductions better.

    Tax deduction details for those who pay income tax

    Section 80C is very useful for the people who are into jobs or into business. There is a reduction available in this section for up to Rs. 1, 50,000 whose gross salary is Rs. 2, 50,000 or more and are entitled to utilize Rs. 1, 50,000 limits. One can enjoy deduction of taxes when it comes to tuition fees of children and the principal amount that they have to pay towards a home loan that is paid during the financial year. The deduction is also available to those who contribute to employee provident fund or the public provident fund, accrued interest on the National saving certificate, Life insurance Premium, 5 years fixed deposits with banks and post office and equity-linked savings schemes.

    Tax deduction under 80C

    • Under section 80 CCD the individual who contributes in NPS can claim the deduction and the amount should not exceed Rs. 1,50,000.
    • 80CCC – the deduction is arising from the various contributions to LIC or other insurance companies of up to Rs. 1,50,000 is available.
    • 80CCD – the deduction that is related to the pension scheme from the Central Government can get a deduction of up to 10% of the salary.
    • 80CCF – in this section one can get a tax deduction of Rs. 20,000 for a subscription to the notified long term infrastructure bonds.
    • 80 CCG – deduction of Rs. 25,000 is possible when one notifies for an equity, savings scheme for those who are in the Hindu undivided family.

    Tax deduction under 80D

    Under this section, one can get a tax deduction for medical premiums for self and dependents but, by other means of payment apart from LIC or insurance providers.

    • 80D– you get the benefit of deduction of Rs. 25,000 is allowed to those who have paid health insurance policy for dependents as well as self. Another Rs. 25,000 deduction for a premium on health insurance policy of the parents is available. The limit is Rs. 30000 for senior citizens.
    • 80DDB – deduction is possible on medical treatment in illness like cancer, AIDS and neurological diseases of Rs. 40,000. For senior citizens, the deduction is available for up to Rs. 60,000 and for super senior citizen Rs. 80,000.

    Tax deduction under 80E, 80G, 80TTA, 80U

    • 80E provides for taking a loan for education from financial intuitions.
    • 80G helps when donations are paid but to a certain limit of up to Rs. 10,000.
    • 80TTA section provides a tax deduction to those in the HUF only. The interest earned around Rs. 10,000 from bank savings can be deducted from total income.
    • 80 U sections allow a 40% deduction for those who have a disability of any kind on Rs. 75,000 and in severe disability, there is a tax deduction of Rs. 1, 25,000.

    There are several other tax deductions under various schemes that should be learnt from the reliable offices of the government. it helps to save tax, and there are various benefits that the government provides for the taxpayers in various forms of a tax deduction.

    Our Tax calculator will make your income tax calculation very easy. Calculate income tax with our free income tax calculator, according to latest assessment year http://hirannyafinplan.com/income-tax/

     

     

     

  • 15 Things Your Financial Advisor can do for You – Part 3

    [Continued from previous post]

    (11) Keep you informed

    In good times and bad, your financial advisor will keep you informed of how market moves are affecting you and your portfolio and strategy. He or she will also let you know about important events that may affect your investments – including elections, global unrest, changes in tax rules etc. You have more important things to worry about than the state of your portfolio at any given time, but your financial advisor does not.

    (12) Teach your family basic concepts

    You can't do it alone. If your family is not on board with the plan – it will be more difficult for you to reach your goals. Your advisor should be able to explain basic concepts to your children so that they understand how to manage their money and your money. Good habits are best when begun early. And bad habits should never be allowed time to take hold.

    Financial advisor

    (13) Plan for your future

    As your circumstances change you will need to update the way your finances are planned. Your financial advisor should do this for you – make sure you are in the best shape to take the next step on your financial journey – from single to married to parents to new jobs, no jobs and even grandparents and retirement.

    (14) Offer you special investment opportunities

    Sometimes a financial advisor can offer investment opportunities which are not available to the general public. Those will be opportunities that you know will be appropriate to you and your circumstances. And you can rest easy that the offer will be made in your best interests. As a registered advisor – the code of ethics – bind your advisor to make sure that your interests are served before his own.

    (15) Connect you with experts

    Your advisor is a professional and is connected to a range of other professionals and specialists to refer you to for your various requirements. This might include a lawyer, an accountant or other. The advisor can also work with your existing professional relationships if you already have an accountant or a lawyer. The idea is they all work together and make sound decisions that will make your financial strategy more seamless to manage. 

    [Inspired and in part taken from JAS Wealth’s eBook of the same name]

  • Retirement Planning should be your Most Important Financial Goal

     

    retirement-planning-india-future

    We all need to and want to plan for our retirement. But, are we ready? Are we going on the right path and investing wisely? Well, these questions are sometimes very daunting and to top it all, we do get a lot of advice from various sources which can be taxing! Retirement plans are very crucial and should begin right from the moment one starts earning. Well, if it is delayed, never mind, there are still ways that can help you save and have a good retired life. But, are you ready for planning or are you still contemplating? One definitely needs to have a defined picture about it as to how and when and then figure out the right plan.

    Why retirement planning is important goal

    The times are difficult as we all know, and they are going to be difficult once you stop earning that is when you retire. Your expenses are not going to reduce just because  you are retired, or nobody is going to give you that kind of salary due to your age. There is the inflation, the interest rate, health issues, medicines, and the lifestyle that influence the expenses. The life span has increased and with it, there are several issues that need to be tackled. Are you retiring by choice or is it by force? That is if you are a government employee, you will definitely retire when you are around 60 or even less. Maybe you might take up another job, but, of course, the salary will be much less. Is there anyone who can provide you with finances if you truly need them? Do you own a house or live with your children? There are some questions like these that will help you get a clear picture. But, I must say, you must be realistic and think practically. You need a good retirement planning before you retire so that you are ready to retire and have a peaceful life without depending on others for your basic needs.

    Points to consider for retirement planning

    What is your income?

    Whether you are in business or an employee, you still have an income and also expenditure at the age when you cannot work anymore. So calculate and consider if you can save anything from it. How much do you spend? Calculate all this and check how much you can save today and how much you will be spending after retirement and what your expenses will be. Try projecting for around 5-20 years and more which can be impossible to track how much you will need in the future. Taking your present income and the expenses, the savings should be enough to suffice your lifestyle. But, when there is no income, things can be difficult. A plan that includes your income as well as expenses should be chalked out. Think of other expenses that you might need like a vacation, children’s marriage, education, house, car, other expenses like domestic and unknown.

    Best retirement planning

    The best retirement plan should be a mixed asset plan. Your portfolio should be based on the age of retirement and your income. It varies according to different income scales, and that is why there is no single plan. Every retirement plan is different based on the lifestyle and needs. There are various considerations and investment assets that can help you benefit right from the present day till you retire. The best way is to approach a professional financial planner who can prepare financial plan for you according to your income, expenses, liabilities and also how many years you will be working till you retire. 

  • 15 Things Your Financial Advisor can do for You – Part 2

    15 Things Your Financial Advisor can do for You – Part 2

    [Continued from previous post]

    (6) Keep you on track

    Think of your financial advisor as your Gym Instructor or Personal Trainer. He does not only create a diet chart and exercise plan for you, he also makes sure that you stick to it – day after day. So in other words your financial advisor is also your financial coach. Making a wonderful financial plan is futile, if it is not followed. Your financial advisor is supposed to guide you at every step here. Overspending, leveraging, easy credit, get-rich-quick schemes – traps are many. Contact you advisor at any such moment when your decision is going to impact your financial life directly or indirectly. 

    (7) Take care of your retirement

    Retirement is often considered as the single most important financial goal in your life. This goal is unique because accumulating required retirement corpus is just not enough. Equally important is to generate inflation adjusted income from that corpus – year after year. This requires prudent financial planning decisions coupled with efficient portfolio management skill. When you know that you are in safe hands, it always means a lot, even more after retirement. 

    financial-advisor

    (8) Protect your lot

    Building your assets is vitally important for your future, but protecting your assets is equally important. How much protection is enough? Ask your adviser. If something happens to you – or your partner – how will you continue the life you are used to – how much will it cost to maintain your lifestyle for the present and the future? If you don’t have enough insurance, your life may face drastic and unpleasant changes just at a time when this would compound other difficulties facing you. It is good to know that whatever happens, your life – or the life of your family – can continue as well as possible in changed circumstances.

    (9) Look after your Estate

    Families are at the heart of financial planning. Making sure that everyone is looked after when one member dies is something that can make a huge difference to the financial position of the rest of the family. A financial adviser can ensure that your estate is structured effectively so that when something does happen to you or a loved one – it will upset you but not your financial plans. This is even more important when a small business is involved.

    (10) Explain how things work

    If finance isn’t your specialty you can rely on your financial adviser to assist you through the jargon and explain simply financial terms and concepts and make sure you understand how it all works – Family Budgeting, Retirement Corpus, Laddered Annuities, Income Laddering, Asset Restructuring, Mortgaging, Expense Replacement, Debt Restructuring … the list goes on.

    To be continued…

    [Inspired and in part taken from JAS Wealth’s eBook of the same name]

  • 15 Things Your Financial Advisor can do for You – Part 1

    15 Things Your Financial Advisor can do for You – Part 1

    [Inspired and in part taken from JAS Wealth’s eBook of the same name]

    (1) Do you have a budget? Do you stick to it?

    It’s a simple statement which can be made using a pen and paper, an Excel worksheet, an App or anything similar you can imagine. The idea is to bring a pattern to a chaos named family budgeting. After checking out lots of tools – online and offline – we found one simple Excel sheet that you can use to maintain an account of your income and expenditure. Make a request using comment section below; we will mail that to you. Your adviser can and should work with you to develop a budget, one that suits you and your lifestyle and will set you on the right path to live the life you want now and in the future.

    (2) Put your debt to work

    There are different types of debt – good and bad. Your financial advisor can explain the difference and make sure that – where possible – your debt is working for you and your future. Sometimes at start of your career, when you do not have much of savings, you have to take a home loan to buy your house. But it is not as simple as that. Do you really need to buy one? If you are the only child of your parents and have a spacious house to live in; you may not need to buy a home just to satisfy your ego, or just because your friend has bought one. If you have moved to a different city for work and are planning to buy a house there – think. What if, you may again change your job and move to a different place? Is rent an option? If buying a home makes sense, then what should be the budget? If you get a higher loan amount sanctioned – does that mean that you should take a higher loan? Your financial advisor should guide you here.

    FA

    (3) Assist you with a savings plan

    The benefits of a good, regular savings plan cannot be stressed enough. How do you start? How much can you afford? What will your short-term, medium-term and long-term goals be? What will your savings milestones look like? As your financial coach, your adviser can help you develop a plan that will work for you and will also help you meet the goals you set together.

    (4) Invest your money

    Saving is one thing and without the discipline of putting something aside it won’t be possible to invest. Investing is something else – investing is making sure your money is working as hard as possible. Where to invest is difficult to know. Your adviser is qualified and has the experience to help you navigate the myriad opportunities available to give you the best options available for you.

    (5) Help you realize your goals

    There is a way to achieving your goals. First is to talk through and understand your goals. Next is to make a plan – the plan should be clear in showing how you are intending to reach these goals. The plan may change over time as your priorities change and goals need to adapt to changes of mind or circumstances. Your financial adviser will be able to work with you in adapting and reshaping your plan to meet these new goals. But without a plan in place reaching your goals will be much more difficult.

    To be continued…