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An increment or hike in the salary is the reward that one gets for their dedication and hard work towards their employer. In these testing times too, most of the companies have been thoughtful and have announced salary hike in the capacity they are able to afford. One should do a well thought utilization of the hike that they are going to receive keeping in mind the commitments that they have, personal goals and financial objectives.
Some suggestions on how the increment can be allotted for utilization –
| Reduce The Debt | Increase Savings | Personal Goals |
| If one has any high interest debts, like personal loan, car loan, it is advisable to allot some of the increment to increase the monthly EMI and help reduce the debt which will allow you to exit out of the debt sooner. | Assuming one already has some financial investments going on, if one doesn’t then it is advisable to start at once. One can allot some money to increase the financial portfolio through SIPs which can be invested monthly and a direct debit from ones account | And finally it’s not always about repaying and saving! Some funds can be used to meet some personal goals that one may have like buying a car, going on a holiday or buying a fancy gadget or accessory. This will be rewarding for all the hard work and effort one put in throughout the year |
Here are some options that one can look at to increase their investment portfolio –
- Depending on one’s risk tolerance and time horizon, one can invest in Mutual Funds that invest in equity which are aggressive with greater return but at the same time greater risk and Equity for long term return. Investing through monthly SIP is ideal as the increment is received monthly.
- If one does not want to take a very high risk, they can invest in balanced Mutual Funds that invest in debt and equity.
- There are debt Mutual Funds, PPF, Fixed Deposits, NSC and other plans which are low risk with guaranteed return but with low returns too.
- One can also start a Recurring Deposit to meet certain personal goals for holidays, buying an expensive gadget, upgrading lifestyle, etc.
- One can also look at Tax saving investment options like life or medical insurance, ELSS or tax saving bonds.
- Ensure some money flows into your retirement fund/nest egg. Building this early on gives you time to increase the fund with aggressive investment plans and get the benefit of compounding.
How to go about using the salary hike entirely depends on the individual’s needs and desires. One needs to find a balance on spending and saving and when one has a plan, they should stay on track. But it is advisable that one should look at decreasing their liabilities and increasing their asset.
Start your personal wealth journey with us today!
Plan to Maximize Your Retirement Years
October 4, 2018
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An increment or hike in the salary is the reward that one gets for their dedication and hard work towards their employer. In these testing times too, most of the companies have been thoughtful and have announced salary hike in the capacity they are able to afford. One should do a well thought utilization of the hike that they are going to receive keeping in mind the commitments that they have, personal goals and financial objectives.
Some suggestions on how the increment can be allotted for utilization –
| Reduce The Debt | Increase Savings | Personal Goals |
| If one has any high interest debts, like personal loan, car loan, it is advisable to allot some of the increment to increase the monthly EMI and help reduce the debt which will allow you to exit out of the debt sooner. | Assuming one already has some financial investments going on, if one doesn’t then it is advisable to start at once. One can allot some money to increase the financial portfolio through SIPs which can be invested monthly and a direct debit from ones account | And finally it’s not always about repaying and saving! Some funds can be used to meet some personal goals that one may have like buying a car, going on a holiday or buying a fancy gadget or accessory. This will be rewarding for all the hard work and effort one put in throughout the year |
Here are some options that one can look at to increase their investment portfolio –
- Depending on one’s risk tolerance and time horizon, one can invest in Mutual Funds that invest in equity which are aggressive with greater return but at the same time greater risk and Equity for long term return. Investing through monthly SIP is ideal as the increment is received monthly.
- If one does not want to take a very high risk, they can invest in balanced Mutual Funds that invest in debt and equity.
- There are debt Mutual Funds, PPF, Fixed Deposits, NSC and other plans which are low risk with guaranteed return but with low returns too.
- One can also start a Recurring Deposit to meet certain personal goals for holidays, buying an expensive gadget, upgrading lifestyle, etc.
- One can also look at Tax saving investment options like life or medical insurance, ELSS or tax saving bonds.
- Ensure some money flows into your retirement fund/nest egg. Building this early on gives you time to increase the fund with aggressive investment plans and get the benefit of compounding.
How to go about using the salary hike entirely depends on the individual’s needs and desires. One needs to find a balance on spending and saving and when one has a plan, they should stay on track. But it is advisable that one should look at decreasing their liabilities and increasing their asset.
Start your personal wealth journey with us today!
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