3 Approaches to Help you Deal with Money Uncertainty
There is nothing that’s constant in lives. Be it the job, personal life and various other aspects, everything changes one after another or in some form or the other in some stages of life.
When nothing stays permanent and constant, have you ever tried to figure out the thing which stays constant and certain always?
You will be amazed to know that it’s nothing but the ‘uncertainty’ itself that remains constant in our lives and it includes the money uncertainty as well.
However, people don’t accept it sooner, or it is sometimes too much to take or handle them.
But, after having said that, the sooner you accept a money uncertainty it and consider it as a vital factor towards your monetary plans, the more you will be prepared to make amends.
Money uncertainty, especially when you don’t know about your job assurance could be a thing of concern. It may also lead to inevitable expenses such as healthcare and unplanned pregnancy.
Earning higher FD interest rates if you open up an FD account is a smart method to save money in the event of a money uncertainty.
In addition to a company fixed deposit scheme, let’s help you out with three approaches that could be of assistance.
Approach #1: Prepare for money uncertainty
The pivotal step in handling with money insecurity is to recognize it and include in your scheme of things. Add uncertainty to all your life goals that you have planned so far, especially the ones centered on big money investment.
For example – if you plan to mount up around Rs.50 lakh in the subsequent 20 years, you may need to have an action plan - how will you invest and how much.
To overcome this type of money uncertainty goal, you can invest in a company fixed deposit scheme.
How much you want to put is your choice!
Leading lenders will let you open an FD account with a minimum investment of Rs.25,000 on which you can earn FD interest rates between 7.85% to 8.10% as per your age and your candidature status with your lender.
If you lock the amount for a more extended tenor, you will be bound to receive higher returns on your investment.
You can utilize an FD calculator on a lender’s website free of cost to gauge your ROI depending on your membership status with the service provider and age.
Approach #2: Be Double Sure of your Expected Returns
Right from the rate of tax, equity returns or inflation; you should be dead sure about the expected returns.
You should know that due to some uncertainties in your life, these assumptions or numbers which you thought will return you better returns may not fetch you the same.
Thus, alter or modify the assumptions as and when the situation changes in your life by investing in FD, mutual funds, and other risk-free assets.
Approach #3: You can Initiate an Insecurity Fund
One of the simplest options will be to allocate some capital each month out of your earnings to face any money uncertainty. It may not be a big amount and maybe 10% of total savings.
Opening a bank’s recurring deposit for a flexible tenor of 3, 6, or 9 months will be a great idea.
Most banks let you do premature closure without penalties these days in case you want to utilize the funds instantly. You can open a recurring deposit account with your bank online.
The Bottom Line
What will be the smart things to do? If you are uncertain of concern about the security of your amount you can invest in different types of deposits like FD, RD, Mutual Funds.
Why? You never what future behold for you! It should justify that one should have a backup plan ready all the time!
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