Retirement is obvious and so are the monetary requirements to live a successful life after retiring from work. What do you require to live a comfortable post-retirement life? Three to four times your current expenses! What does that call for then? Savings and lots of savings. In between, you will have goals like a wedding and a home purchase. The loans come into the picture. However, using financial products inappropriately will likely harm you. The role of financial coaches becomes critical as a result. On this auspicious occasion of Teachers’ Day, we emphasise how these coaches help put your finances on track.
What Do Financial Coaches Do to Empower People?
The financial coach may be known as a financial advisor, financial expert or any other. Whatever the nomenclature may be, the role remains the same – Financial Independence for its Clients. They do financial planning and analysis to ensure their clients stay on top of their financial well-being. These coaches can be seen expressing views on websites or even financial planning apps.
Financial Coaches Will Advise on Savings Accumulation
First and foremost, the savings you need to accumulate over the years leading to retirement. The best way to accumulate savings for the long term is by investing in top-performing mutual funds via a Systematic Investment Plan (SIP). Invest a predetermined amount every month and raise it every year using the step-up SIP option. This is the top investment advice of life and financial coaches share the same..
Accumulate Enough for Wedding Expenses
While saving, earmark money separately for separate goals. These include separate earmarking for weddings. However, there’s no harm in paring it up with a personal loan at lower interest rates to help meet the wedding expenses successfully.
Financial Coaches Will Guide You on a Seamless Home Purchase
A home purchase comes with EMI obligations for 15-30 years depending on the value of the house you purchase, the income you have while applying for a home loan, besides other factors. While the loan is available to buy a house, it is not financed fully. Banks and Housing Finance Companies (HFCs) offer home loans upto 75-90% of the property value. The remaining percentage of the property value is what you need to pay to the seller as margin money.
There can be a few more out-of-pocket expenses such as the processing fee. The advice from a financial coach would be to check your present income and the home loan EMI calculator before searching for a property within your budget.
Keep a Lid on Credit Card Purchases
Credit cards are a delight when used brilliantly with rewards, cashback and many other offers and privileges. However, when used irresponsibly by utilising way too much of the credit card limit, it pushes individuals into a seemingly never-ending debt trap. Credit card interest piling at the rate of 30-40% per annum on paying the due partially will likely tear your bank balance. In case you make the mistake of withdrawing cash from the ATM using a credit card, the interest will accrue from the point of instance, instead of the 45-day interest-free period applicable to credit card purchases. Financial coaches will guard you against such rampant card card purchases for the perils notified above.
Wrapping Up
It’s all about living a calculated life despite it being so unpredictable. Implementing the aforesaid tips that financial coaches share is instrumental in helping a successful life replete with the attainment of financial goals and the delight that follows. So, a financial advisor benefits many with useful tips. With that, we end our discussion for today. From all of us at zarooribaathai.in, we wish everyone a Happy Teachers’ Day.
