Things You Must do to Ensure Financial Security of Your Family
Given the pandemic situation, mass layoffs and salary cuts have become rampant. The unemployment rate in India in April 2020 touched 23.5% which is up from 7.6% in 2019, according to estimates by The Center for Monitoring Indian Economy. There is no job security other than the ones in the government sector. At this uncertain hour, everyone wishes to protect their family financially.
Take a look at 5 suitable options to keep your loved ones covered.
Look for Subsidy Schemes
Whether you are looking to improve or extend your home, apply for PMAY online. This offers a subsidy benefit of up to ₹2.67 lakhs. To meet your housing demands, avoid breaking your fixed deposits or drawing from your savings or emergency funds. Instead, check the Pradhan Mantri Awas Yojana eligibility and get in touch with your nearest bank. Even if you cannot arrange for income proofs like ITR, the legal team will help disburse the loan.
Invest in Fixed Deposits
After clearing your housing requirements with PMAY, consider opening a fixed deposit account. This will help in future wealth accumulation and cushion your family against financial blows. The interest rates are independent of market fluctuations and can be paid monthly, quarterly or annually. Also, senior citizens are offered 0.25% higher rates for a comfortable retirement.
Build Emergency Corpus
Times are uncertain and we do not know what the future has in store. Therefore, make an effort to grow your emergency fund. This will help you cater to unforeseen large expenses caused by natural disasters or sudden medical treatments. There should be a healthy amount saved which should be easily available in times of contingencies. Even if you have a tight monthly budget, try to invest at least 10 -20% of your income in an emergency account. For this, you might have to cut down on unnecessary expenses.
Clear Your Debts Fast
You can take a mortgage loan, sell of unwanted stuff, pick an extra source of income and revise your budget to wipe off high interest debts. Once the dues are cleared, there would be no outstanding liabilities to worry about. In fact, having zero debts on your shoulders will render peace of mind and help you focus more on the future. So be it a home loan, personal loan or education loan to meet your needs, manage them well to improve your financial well-being.
Choose a Simple Lifestyle
To help your family be financially secure, shift to a simpler lifestyle. Calculate your income and spend as only much you can afford. It should not cause a dent in your savings or monthly budget. Identify the unwanted expenses like eating at expensive restaurants or making regular extravagant purchases. Follow the 50:30:20 rules in which 50% of your salary goes into needs, 30% to your personal wants and 20% to your savings account.
Having a solid financial plan will let you tide over crises. Try to accumulate enough funds to cover the expenses of 6 months at least, without compromising on basic necessities. Schemes like PMAY can help you achieve your dreams, even with limited budget.
