So, for the benefit for all those who feel that they cannot manage their funds well, we decided to put together a list eight money management moves that can be made in 15 minutes or less. Unbelievable? Read on to find out:
Pull out Cibil score: A credit score and a report from the Credit Information Bureau of India Ltd (CIBIL), India’s leading credit rating agency, is a record of a person’s credit history, his payments and outstanding dues. Lenders pull out your Cibil report and score before approving you a loan to get a perspective on your willingness to repay the loan. To get a loan at an attractive interest rate you need a score of 750+ (ranges bet. 300-900). Check your score atleast once a year to make sure there aren’t any errors or discrepancies even though you have been paying on time.
Start an RD: A recurring deposit (RD) account can be easily linked to your savings account. Banks can take a request for an RD on phone and you can start saving as low as Rs 1000 a month. Instead of spending money in paying interest on those products, which are available under easily available equitable monthly installment schemes, save up through RD, earn an interest and buy it.
Update your nominees: You have been putting away money to save for your wife, children or any other family member. If something were t o happen to you tomorrow, are you sure all your loved ones get exactly what you intended for them? It is always a good idea name your nominees in every kind of saving instruments; be it an insurance policy or a simple savings bank account.
Make a will: We love to believe that our children will not fight over property after we are gone. But the reality is different. It is important for us to create a will as we reach 35 years of age. I know of friends who started writing a will as soon as they had their children. The advantage of a will is that after we are gone, our near and dear ones know what exactly they get from what we have earned and saved. It also prevents any kind of misunderstanding among our children and results in easy distribution of our wealth. Ensure you make provision for your spouse as well. Once written it is open to any kind of amendments you want.
Update account passwords: It might seem a mundane task, but an important one. This helps in keeping your money safe and protected from phishing and fraudulent activities.
Plan your pension: Earlier our parents, most of them worked in government agencies. These jobs were not only safe but also promised pension after they retired. Since most of us are working in private sector these days, can you think of a regular income after you retire? Hence, it is important for us all to have a financial plan in place to fund our expenses during our later years.
Scan important documents: Your form 16s, house registration papers, insurance policies, savings instruments documents, fixed deposit (FD) certificates, vehicle ownership papers and all other such documents have to be safe. Scan and keep a soft copy handy and keep the originals locked in a bank locker. There are many apps available for you to download on your phone to help you scan these documents.
Identify saving goals: Yes, it can be overwhelming to save when half your salary goes in paying up mortgages, but that should not stop you from saving. You should always target to build a corpus continuously. For all you know, some day you decide to buy another house and you may not have to run from pillar to post for funding the downpayment.
The author is Co-Founder & Director, CreditVidya