Skip to content
logo
  • Cryptocurrency
  • Finance Tips
  • Investing
  • Make Money Online
  • Work From Home
  • Quiz
  • About Us
  • Privacy Policy

How to deal with surplus cash judiciously?

Posted on May 4, 2022March 14, 2022 By Stuti Patni No Comments on How to deal with surplus cash judiciously?
Finance Tips

Financial planning is the process that provides you with a framework to achieve your life goals in a systematic and planned manner, avoiding shocks and surprises. It includes goals such as determining capital requirements, setting financial policies and ensuring that scarce financial resources are used in the best possible way.

How you deal with excess cash determines your future. If you don’t have a plan, you’re probably going to overspend. If you don’t have a plan, you’re probably going to overspend. This money could have been used to make it financially independent. In the context of inflation, everything becomes more expensive every year. If you don’t invest, your money won’t grow to fill the inflation gap. Otherwise, you may not be able to retire the way you want.

Investing

Investing can be a great way to channel extra money and offset inflation. It can be used to increase wealth and redirect it to achieve goals. The earlier you start investing, the better. Investing can be a bridge between where you are and where you want to be. Start by identifying goals like buying a car or planning for retirement. Categorize these goals into short-term and long-term. Goals that can be achieved within 1-3 years are essentially short-term. The goals that require a horizon of 35 years are referred to as medium-term goals that take more than 5 years to reach our long-term goals.

Once you have identified your goals and risk appetite, you can choose the appropriate investment haven. A risk seeker can opt for a diversified equity fund. A risk-averse short-term investor, on the other hand, can opt for a liquid fund or a mixed fund. Investment funds have developed into the most diverse investment paradise. You can start the Systematic Investment Plan (SIP) with a nominal sum of Rs 500 per month. With SIP, a fixed amount is withdrawn from your savings account and invested in the mutual fund of your choice.

Investing excess money wisely and regularly is always beneficial to your long-term financial well-being. It’s also good practice to spread your portfolio across different asset classes, including stocks, mutual funds, commodities, and real estate. Adequate insurance, be it life or health insurance, is also a must in your portfolio.

Often withdrawing money from your investments can become a complicated problem. In order for the money to flow back into your bank account, you need to make sure that the asset documents are in order and that you have met all regulatory requirements. Gaps often appear. Getting stuck at the checkout can be devastating when you need the money urgently.

Retirement

Retirement planning is important for everyone. A sedentary lifestyle makes you more prone to diseases like diabetes, high blood pressure and heart attacks. Healthcare costs are increasing every year. In the absence of a social safety net, you must have your own funds to fund all of these expenses. Like many others, you may think it’s too early to start planning now. At this rate, you start planning for retirement late and accumulate less than you could possibly accumulate. since it started early. This is due to the “magic of compounding”. It even allows you to retire early and live a stress-free life.

Tags: Equity Finance Tips Investing Personal Finance Stocks

Post navigation

❮ Previous Post: What are the different types of cryptocurrencies?
Next Post: The Inspiring life of Ratan Tata ❯

You may also like

etf
Finance Tips
ETFs to Invest in India for Decent Returns
December 9, 2021
Finance Tips
Tax Saving Bank FD Vs Post Office TD: Where Should You Invest To Earn High Returns?
October 20, 2022
Finance Tips
11 Best Term Life Insurance Companies in 2022
September 28, 2022
Finance Tips
Different Types of Tax Deductions an Individual can avail
June 21, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

You may also like:

  • What is RBI’s Digital Rupee?
  • Top Money Management Apps
  • Loan Settlement and How Does It Affect Your Credit Score?
  • How to avoid the Debt Trap?
  • Essential Tips for Money Management
  • Buy Now Pay Later vs Personal Loan vs Credit Card
  • Google Pay: Check Limit On Daily Remittance Across India
  • Tax Saving Bank FD Vs Post Office TD: Where Should You Invest To Earn High Returns?
  • Exhausted Section 80C? Here Are Other Ways To Save More Taxes
  • LIC IPO 2022
  • What is FIRE- Financial Independence/Retire Early
  • Beginner’s Guide: Decentralised Finance (DeFi)
  • How To Choose The Best Term Life Insurance Policy?
  • How To Buy, Sell and Gift Digital Gold Through Airtel Payment Bank?
  • What Elon Musk would do with Twitter
  • What Can You Do in Decentraland’s Metaverse?
  • Investing lessons from Raamdeo Agrawal
  • How to Calculate Your DeFi, NFT, and Airdrop Taxes for 2022
  • How to Become Eligible for Token Airdrops
  • Investing tips from V. Vaidyanathan
  • Cryptocurrency
  • Finance Tips
  • Investing
  • Make Money Online
  • Work From Home
  • Quiz
  • About Us
  • Privacy Policy