Once again, it’s that time of year!
Your manager was scheduling meetings to discuss the finer elements of your goals and achievements while you prepared documentation to show what you’ve accomplished in the past year. While this may have seemed quite a task, we are sure it was a source of renewed hope that perhaps, just maybe, this year you will be able to put down enough as a down payment for your house.
Now that your April salary has been credited with that extra appraisal amount, we have got some ideas about where you can use it.
Simply open an SIP with an Equity Mutual Fund . Not only will your money gradually increase over the years, this investment will require minimal involvement. It is a great way to put aside the extra money that you make and create wealth from it.
Pre-pay your existing loans
Burning your pocket paying high-interest EMIs, well now is the time to stop that and move on. You can increase your EMI amount every month or pay back a higher amount towards your principal amount. Either way- it can help you reduce your liability and financial stress.
Set aside an emergency fund
Emergency doesn’t come with notice and thus calls for you to be extra prepared. You can put aside the additional money you now make towards creating an emergency fund as a safety net. Just remember, the whole idea of an emergency fund revolves around its liquidity and instant availability.
Fixed Deposits, Liquid Mutual Funds, and cash are good ways to save for an emergency fund.
With increased income comes increased tax liability. You can explore using the full potential of 80C and save up to ₹1,50,000 if you don’t already. If your risk-appetite is low, you can increase your PF contribution or invest in NSCs (National Saving Certificates). Other avenues to invest can be NPS (National Pension System) or ELSS (Equity Linked Savings Scheme)
ELSS is a great scheme to invest in as it not only help you save taxes but also creates wealth in the long term
Live it up
Have some aspirations like a short weekend getaway with your partner or upgrading your phone, we say you do it! After all, you are working hard and you do deserve these moments of achievement and happiness.
Set aside a list of things and experiences you have been eyeing, prioritize them, and just use the extra money you now make towards achieving them.
There is so much you can do with the extra bonus that you will now bank, thanks to your appraisals.
Now that you have some idea of what you can do with your new and increased salary, what path are you going to take?
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