Live the life King Size not with Loans

                                                 

     

Many of the Youngsters never think of the future and live the present including the newly married. You will not be able to sell any product except tax savers as they pay for all the bills in the first week and rely on credit card for the whole month. We can discuss here about these and make you to take a right decision. Don't wait for fat paycheck to start your savings or investments, start saving from your meager income itself, let us go through on how to achieve it. You would have heard many tips already and read through many articles on the same, so am not going to list down points to follow or prepare a excel sheet to make your budget for a month, let us do a common analysis and try to follow a simple exercise and see if it works.

Many of us dont even think about the interest part while taking personal loans, everyone of us are happy that we are getting money immediately and paying off in easy EMI's. Let that be buying home appliances, bike or anything we tend to buy things in easy EMI’s. Every last week of the month will be difficult to go through with less amount or swipe in credit cards which needs to be paid once the salary is credited to your account. This cycle continues and over the time we are not sure on how to get out of this vicious cycle.

Before going through ways to have a better financial life, below products should be touched upon only when it is really essential in your life and not in any other circumstances,

Credit card:

Credit card and its effects on our spending habit has been discussed in detail in our earlier article, thus it should be used only when it is essential and not more than 10% of your credit limit should be used for purchases. All credit card companies will lure with cash back offers and 0% EMI, but it is upto you to decide on whether to get it and spend. Interest rate of credit card is higher and many may tend to argue that you are paying your dues every month but the luxury can be limited and bought only when needed and can buy by paying in full.

Personal Loans:

Your pay slip and credit card in some of the cases are more than enough to get a personal loan and there are many people outside your companies offering these loans like vegetable nowadays. Many living the days with monthly salary tend to get things with these personal loans which are easy to get, many marriages and many important functions are happening with this personal loans. Though there are many positive things with this loan there are some options which can be explored if any careful planning or our search towards better financial life would have lead us to better path.

Unlike Home loans which can be used for showing for taxation under Section 80 C, this does not have any benefits. Though Tax saver mutual funds offer the best returns as well as can be shown for taxation.

To be continued in our next article....