Top 5 implications of personal savings as a source of finance

In the world of investing, money markets represent short-term, highly liquid investments in interest-bearing debt. The money market is not a marketable security, but rather the segment of the financial market that trades money market instruments. A private investor can lend to Personal bankruptcy protection is available to individuals who are struggling with unpaid credit card bills, medical bills, foreclosure or other types of debt.

Top 5 implications of personal savings as a source of finance

August 5, 2: Whenever you borrow by taking a loan, you need to consider the financial implications of the borrowing on your current and future finances.

We earn to fulfil the necessities of life and provide a decent standard of living for our family. Let us discuss these in detail: Savings — How much should you save?

Savings are the starting point of your path to keep your finances on track. However, savings ratio would depend on your age and responsibilities on your shoulders.

You must save enough to build and maintain your emergency fund, which assists in tackling financial exigencies such as job loss or severe illness.

Top 5 implications of personal savings as a source of finance

This emergency fund should amount to at least times your monthly expenses. These funds can be parked in high-yielding savings accounts, since these are offering interest rates as high as 7. As your age and responsibility grows, the size of your emergency fund should also grow proportionately.

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For those who find it hard to resist the urge to spend impulsively, another way of saving is by setting up an automatic monthly deposit into your savings account from your salary account.

Or else, you may also consider investing in recurring deposits RD by asking the bank to apply standing instructions, which will result in automatic deduction of the set amount per month.

Moreover, one may consider their monthly targeted savings amount as a monthly bill which needs to be compulsorily paid, if that helps. Loans — How much should you borrow?

Borrowing through loans involves repayment of the principal along with various fee, charges and interest rate applicable. Therefore, even if you need funds, make sure you choose the loan amount, lender, loan tenure and interest rate as per your affordability.

Do not borrow more than what you can comfortably repay. Loan eligibility and EMI calculators available on online financial marketplaces make it extremely convenient for borrowers to check whether they are eligible to take the loan and show them the EMI payout as per their loan tenure, loan amount and interest rate.

Lenders judge your repayment capacity while evaluating your loan application. Your income, fixed obligation to income ratio FOIRcredit score, age etc. Investments — Where and How much should you invest? Make your money work for you by investing it to generate returns.

For investors looking to invest for a short to medium time period years to fulfill goals such as buying a car or planning for a vacation abroad, low risk investments options such as fixed deposits, recurring deposits or debt mutual funds can be availed, with returns as high as 8.

Equities have been, for long, outperformed peers for long-term returns, consistently generating inflation beating returns over the long period. Moreover, most households in our country still prefer investment in physical assets such as gold and real estate properties, even though both of these have often failed in beating the inflation costs.Consumption spending, however, was about per cent higher than thought.

The net effect means today’s estimate of personal savings in is around 15 per cent lower than before.

Top 5 implications of personal savings as a source of finance

“A debt-to-income ratio is a personal finance measure that compares the amount of debt you have to your overall income,” writes Jean Fogler on Investopedia.

“Lenders use the debt-to-income ratio as a way to measure your ability to manage the payments you make each month and . The Truth About Money with Ric Edelman is an institution in the world of personal finance radio.

The show has been on the air for 23 years and is heard in 69 markets.

One thing can lead to another, and before you know it your company is in need of a big financial clean up. Financial problems are the main downfall of any business that falls. 5. Travel When you travel for business, you can deduct many expenses, including the cost of plane fare, costs of operating your car, taxis, lodging, meals, shipping business materials, cleaning clothes, telephone calls, faxes, and tips.

Figure Use of savings and car finance/lease agreement to fund most recent car purchase, by type of car purchase, March A fifth used more than one source of funding Figure Number of sources of funding used to purchase last car, March

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