Wednesday, April 23, 2008

Some Personal Finance Tips

personal finance
You should have a savings account to meet your needs. Save at least 10% of income in your saving account. It will be very helpful to your in case of an emergency. You can also spend this money on higher studies of your children.
Always save some money for emergencies. Keep this money in a separate bank account and don’t touch this money unless there is an emergency. This money will help you in emergencies like loss of job, sudden injury or medical emergency.
In some departments, a fixed part of salary of employees is automatically deducted to the retirement fund. This deduction plan is beneficial. Contribute as much as you can to your retirement fund and don’t touch this money because it is for your future. If you withdraw some money from this fund before retirement then various tax implications and early withdrawal penalties will reduce the principal amount.
If you have two credit cards then you should make all payments with that credit card which has higher interest rate. Suppose rate of interest on one card is 12 percent and on another card is 15 percent then you should make all the payments with credit card which has 15 percent interest before using the second card.

2 comments:

Unknown said...

Really great post. Really good advice too, on investing. I feel subscribing for a weekly or a monthly Personal Finance Newsletter can be helpful too because they provide latest news about the market on goings plus newly open investment opportunities.

prasanga said...

Brief comment but useful