Amid a hectic life, it’s important to take care of yourself and your financial goals to live happily throughout. As a doting parent, you think about your kids’ education and wedding and limit your world around them.
However, the irony is that there is no guarantee that your kids will take care of you when you retire with no active income in place.
At that time, the savings you make for your post-retirement days will feel invaluable. Besides, in life, you will have different phases and different needs to fulfil. The way you prepare yourself financially will decide your success. What we can do here is share with you a list of financial tools to achieve your various life goals.
Here’s a List of Financial Goals and How You Can Achieve Them
While goals may differ from one individual to another, there’s still a commonality. Many would require adequate financial resources to meet education, wedding, home, car and retirement needs. Let’s talk about the resources you need to achieve these goals.
Education
Your kids’ education must attain a lot of priority. Their happiness and prosperity depend on their education. So, no compromise! Whether they want to do engineering, medical or even business management, they will require a hefty sum.
To calculate the sum, factor in a yearly inflation of 10%. See the education cost of today and add 10% to it every year. Check the end it reaches by the time your kid will enrol for higher studies.
To accumulate the required amount, think about building a savings reserve for them on a monthly basis. However, do consider education loans and personal loans too for the same.
Education loans are usually offered without any collateral for an amount of upto INR 7.5 lakh. The amount beyond that will have to be backed with collaterals such as fixed deposits, national savings certificates, bonds and alike. However, banks may deny offering education loans for candidates studying in an institute not on their list eligible for this credit facility.
At that time, personal loans can help you. It’s an unsecured loan that banks and NBFCs grant to individuals based on a credit score, income and repayment potential. A good credit score of more than 750 shows your strong repayment behaviour, assuring lenders of a smooth personal loan journey. Having the required income to service personal loan EMI payments will make the lenders confident about your repayment potential.
Compare interest rates, processing fees and other personal loan charges before choosing the right option.
Wedding
Weddings come with a host of expenses on gold ornaments, guest accommodation, food, decoration and several other rituals that happen in India. A typical middle-class wedding costs around INR 10–25 lakh in India.
Parents in India earmark a specific sum every month to buy gold ornaments at different points of time. However, to meet this and other necessities associated with a wedding, consider applying for a personal loan at the best interest rates.
Dream Home
Buying a home with the required amenities should be your primary goal. Living in a rental accommodation does not help with frequent switching and the expenses associated with the same. Applying for a home loan at lower interest rates is pivotal to realising the dream home we always look up to.
As a home loan is financed only to the extent of 75–90% of the property cost, you need to save periodically to achieve the required non-financed amount. Besides, you need to pay the processing fee amounting to around 0.25–1% of the loan amount plus GST.
A Shining Car
A car is a symbol of social esteem and comfort. Having it relieves you from the hassles associated with a public transportation system. Interestingly, lenders offer car loans to applicants based on a good income, high credit score and repayment capabilities. Car loans are offered upto 85–90% of the on-road price, which includes ex-showroom cost, registration charges, insurance, etc. Here also, you need to pay the margin money of 10–15% of the on-road price upfront.
Retirement
You deserve a good retirement life. The years of grinding out in the tough corporate arena should take you through when you have virtually no active income as you retire. Preparing for that glorious phase requires investing in the right financial instruments such as top-performing equity mutual funds. These funds will likely generate handsome returns as fund managers take charge, placing those smart stock bets to generate wealth for you. Investing in mutual funds from your very first salary is recommended to enjoy the benefits of capital appreciation aided by the power of compounding.
Summing Up
It’s important to enjoy each phase of your life no matter the situation you confront. All you need to do is inculcate the savings habit from the beginning of your professional life to accumulate enough to meet your goals. Of course, in an inflationary world, you cannot fulfil all your financial goals with savings alone. You will also need to apply for loans to ensure the same.
With that, we close this session. Thanks for staying glued to our update. We at zarooribaathai.in have more interesting stories to share with you going forward. Stay relaxed, stay happy!
