From interest rates on loan to Fixed Deposits, there are many questions that will set the tone for your personal finance management strategy. Here’s how to deal with them.
A new year is a perfect time to analyse how to handle your hard-earned money. It is thus quite natural to get bogged down by questions on how to spend, save and invest money. All these along with managing your taxes would have a significant impact on your personal finance in 2018.
In this article, we take a look at some important personal finance issues that may bother you this year and how to deal with them.
Will Interest On Loan Further Go Down?
The interest rate on a loan has a significant impact on your personal finances if you have a Home Loan or a Car Loan as any kind of revision could make a huge difference in your personal finance management. In the last one year, interest on Home Loan has fallen continuously, which makes it a good time to buy a home via loan.
You should not worry about the interest rate on loan to increase or decrease. Your debt decision should be based on your repayment capacity and as per your financial objectives. So, plan your debt in 2018 without fear of interest rate fluctuation.
Should You Put Money In Fixed Deposits Or Liquid Fund?
Fixed Deposits rates have come down sharply in last 12 months. In line with other debt instruments, the ROI from the Liquid Fund is also expected to come down accordingly. If you are confused between investing money in FD and liquid fund, then look at your investment tenure, liquidity requirement and how much return do you expect.
It would be best to consult your financial advisor before you take a call between fixed deposit and liquid fund as the present rate of interest on FD is not very attractive for the long term. It could be better to put your money in a liquid fund for the short term and wait for rates to increase to invest in the FD.
Which Mobile Wallet Is Best For You?
Indian economy is fast moving towards becoming a cashless and paperless economy. Mobile wallets are playing a crucial role in this agenda. Along with government’s BHIM app, there are many private players like Paytm, Mobikwik, etc, that allow transaction directly from the bank account.
If you are confused about which mobile wallet is best for you, then in 2018 you may find interoperability between them to be reality. Interoperability would allow you to use any wallet that you want, and later on switch to such wallet which provides you better offer and services.
What If You Don’t Link Aadhaar By The New Deadline?
It is very important to link your Aadhaar to all the requisite services before the final deadline of March 31, 2018. The deadline has been extended many times last year and there are chances that it may not be extended further. If you do not link services like your mobile number, PAN card, bank account, insurance policies, Mutual Fund investments, DEMAT etc., then you would not be able to avail these services.
If you have not yet linked all requisite services with Aadhaar, then you may get into financial trouble after a few months. Try to link all services as early as possible to avoid last minute rush.
Is Your Money Safe In The Bank?
The Financial Resolution and Deposit Insurance Bill, 2017 (FRDI Bill) created an uproar recently as it made public worry about their life-long savings. One of the clauses of the draft bill calls for using depositor’s money to bail-in a trouble bank/FI. The Bill is yet to be tabled in the Parliament.
As per media reports, the government of India has made it clear that they will take all the necessary steps to ensure the security of depositors. Another important point here is that RBI always keeps very strict watch on all the banks and if such situation really comes anytime in the future, then it is expected to use all its power to keep depositors away from all sort of financial risk.
You may face several tricky situations in 2018, you just need to stick to your financial objectives and review it from time to time to overcome all the financial bottlenecks.