Money Management in 2014
1) Fixed deposit or liquid fund
A short-term fixed deposit or liquid fund in an unexpected situation like a medical emergency or a loss of job will ease out the situation. It’s always wise stay invested in a fixed deposit or a liquid fund towards contingency.
2) Life-Risk insurance
Life is full of uncertainties. If you don’t have life insurance risk coverage, it’s the biggest fallacy. Assess your life insurance necessity and opt for a life-term plan. When you are not around, Life cover will protect your loved ones from financial crisis.
3) Medical Coverage
Medical coverage or health coverage with affordable coverage is more important for any group of people. Medical coverage should cover not only pre-existing diseases but also pregnancy, so that hard -earning income will not be eaten away for medical expenses. It’s better to have an additional medical coverage to the medical coverage provided by your employer.
4) Saving – A piece of a pie from your regular income
Saving a part from your monthly salary at the beginning of month will give you a good return and a good control of your expenses for the rest of the days. You will also realize the proverb “A penny saved is a Penney earned” with your monthly savings. Recurring Deposit, Public provident fund, and Pension scheme may work well for automated monthly savings.
5) Stay away from Credit card debt
Credit card users are making embarrassing mistakes by paying 20% to 25% interests. It’s essential to curb down using credit card when you pay credit card debt. Staying way from credit card debt will not hurt your pocket.
Getting multiple loans are quite easy today for purchasing a house or land, buying a car, and starting a business. If you have multiple loans with expensive interest rate, you will encounter more financial problems. So, you should be very careful in managing the debt from the beginning. Taking personal loan with higher interest rate and buying a land or house should be avoided. If you can manage your loans well, you can opt for housing and car loans.