I bet you’ve got fantastic plans on how to splurge it. I’ve got them too, with a better plan, but a necessary checklist I thought I should share.
I hope it helps you , here’s 7 Key Factors you need in your life.
Pay off debt: Student loans, Credit card bills, Vehicle or Home loans, you could have any of these. It might be a good decision to pay these bills and also set aside some money for any future loans you may be considering. I will minimize the principal amount you owe and you can save on hefty interest payments.
Build Retirement fund: Your retirement may be a long way off, but no one tells you it’s one of the first goals you should start saving for. Why? Look at the cost of living today. Start putting aside little by little with a Systematic Investment Plan in mutual funds to build wealth for your retirement. You can also invest in NPS and PPF for relative safety.
Build an emergency fund: You may lose your job, or your company isn’t doing well and can’t pay salaries, or for some reason, there is little or no income. It’s ideal to have at least 6 months of expenses saved in an emergency fund. Life is unpredictable. so, isn’t it a smart move to be prepared? Do not touch this unless it truly is an emergency. Consider a liquid fund for this. Frivolous purchases are not emergencies and can be planned.
Invest for longer term, big ticket goals: You’ve got a lump sum in hand, why blow it all up now? You may want to purchase a four wheeler in the future, make the down payment on a house, or even start a business. You can even start a SIP in mutual funds. Power of Compounding will work for you.
Get insurance: Ever considered who will take care of your family should anything happen to you? Get a term plan to secure your family financially in case you die. The earlier you get it, the lesser the premiums cost. Don’t delay this until next year.
Create your family health cover: Health is wealth, and when your bonus can help you secure your family’s health, why not? There could be a time when your employer’s health cover may not be enough to cover all expenses. Consider purchasing a family floater health plan.
Get financial freedom at a young age: Increasing your income – while keeping the spending levels constant or in check – is one of the fastest ways to reach financial freedom. This requires you to continuously work on advancing your career or your business.
