Personal Finance Management – Smart Way To A Smart Life

There are two things that are difficult to get – time and money. These two things are in a way influencing the world every single day. We all know how hard it is to earn money and find time for leisure. Money, which can buy almost everything, needs proper management for its sustenance. There are a numerous methods that give a person to manage his income. Money if properly and wisely managed, can prove to be a great tool during any emergency.

Credit cards are very popular these days. The credit cards give the user freedom in purchasing needful at any emergency. Student today demand personal freedom on expenses made. For this, student credit cards come in very handy. These are issued by many banks with nominal rates of interest and increased limit. Students find it very useful to buy personal stuffs with the advent of student credit cards. There is no need to sun behind ATM centers for making any expense. Purchasing a home is for many, a dream and also a very good investment that can give good returns.

Today every bank provides its own home loan calculator which can tell us the limit of loans applicable to us based on our capacity. Home loans are very high values of capital and require many guarantees from the customer. Usually the loan term runs as long as 100 months. So, user needs to pay back the amount including interest every month as EMI.

The difference between banks offering home loans are mainly the interest rates and the guarantees required to get loans. Some banks charge enormous interest rates and some charge very nominal. Home loans require proper planning and saving money. The value of money saved is only felt when it is put to use during an emergency. 

Saving money is always the best way in finance management. A penny saved is a penny earned. To ensure fruitful returns out of savings, it is better to start a fixed term deposit where a particular amount of money needs to be deposited for a given number of months and after which the entire amount is given back with a large interest. The advantage of having such investment is large returns.

The banks on the other hands find the fixed deposit as a constant reserve of cash. The catch here is actually the fact that the money gets locked for a 2-3 years. If it is withdrawn between these periods, there will be a heavy slash of interest.

Insurance is one subject where the money spent should not be seen as an investment but as a protection of self and properties against any mishap. Insurance is recommended by all as it gives one a back-up in cases of any unfortunate events. Travel insurance covers medical expenses, financial losses incurred while travelling domestic or international. Travel insurance takes care of the risk involved while travelling which in many cases can be a mishap or monetary losses. Frequent travelers take up travel insurance in Bali to ensure a risk-free travel when flying between countries quite often.

Having all the methods around us to properly manage one’s finances, it finally vests on the individual to take care of oneself and decide how to plan and manage personal finance.