Personal Finance

In the Modern Era of 2021, it is very easy to earn money. Lots of jobs are Enrolled at the Job portals and there is a lack of righteous people who can apply to those jobs. The Education system of India needs a change that can bring table-turning results. Due to the Rotting system, the students get a chance to attempt the unjust means and attain the degree that they are not even worthy to obtain.

Thus, there is a great correlation between education and finance. To earn is not a big deal but to maintain and spend wisely that earning is a task. And when it comes to personal finance the importance should be laid on the topic that the earning should not be associated with the spending without investment correlation. Personal Finance is the amount that a person gathers or keeps saved for personal use so that it might be helpful in the required unforeseen circumstances. Let us discuss in detail what are the factors that can affect personal finance accumulation.

Deteriorating Educational standards and Vacant Jobs:  Well-known and discussed that the Education system needs a change in India. Education has been turned into a business and when something is commercialized, the thirst to earn more makes the competition between the Ranked colleges and universities unhealthy. As we know a lot of colleges offer a degree in various aspects be it Graduate/Postgraduate / Ph.D. But the trend to solicit the students just like customers, lured by the offers and discounts and other materialistic things like assets is causing the risk to the Education industry. The Educational standards are decreasing and the Earnings of colleges are increasing. the Degree is sold these days and not earned. Else a student passing a graduate degree would never find himself so weak to apply to positions like Clerk in govt sector or even peon. Recent studies have shown that many Ph.D./PG/Graduates have applied to such posts just for the sake of the government job tag as the mob says but what is the reason behind it. The truth is that these candidates find themselves incompatible for the tests and other interviews where they are required competent communication skills or English as spoken language or maybe the subjective knowledge is too weak. thus, this might make you clear as to why it was important to discuss Education and jobs.

Earning Money: The Companies pay these days as per the capabilities of the candidate but as discussed above due to the decreasing standard of education the payouts have substantially decreased. It is tuff to find a candidate who is well equipped with the requirements of the company.

The packages have become so low that the candidates are compromised with the earning capacity, as this has become a trend. And the trend has made the necessity to save and invest furthermore tuff. Earning these days refer to the CTC offered by the company to the employees and that CTC includes the portion of statutory deductions in it. E.g., If the CTC is 5 lakhs, then statutory deductions may range up to 0.5 Lakhs. And the Deductions of taxes thereon make the in-hand salary vulnerable to cope up with the expenses that are required and difficult to save and invest.

Expenses and spends:  Managing the expenses and the spending for the general folks who are not cautious and do not care about the spending is a tuff job. One must note down the expenses or in fact, make the schedule chart or allocate the money earned into segments for the expenses that are fixed and recurring in nature like Rent/Emi Home, Electricity, Water, Food/Ration, Health and sanitization, and other mandatory expenses. Then comes the can be compromised items like clothes, watches, etc. Finally, the luxury items like Ac, Car, etc.  If a person learns to prioritize his spends can easily manage the money. Thus, Prioritization is a key factor for spending.

Investments:   A person after allocating the spending from the earned incomes should always focus on the Investments or we can generally say savings and as per the Blog we are discussing it as personal finance. Many institutions offer finance for various commodities but those all accompany some cost, and those costs are risky and can even upset the mental state of a person.

For Personal finance, one must allocate a portion of earnings into various portfolios like the Property investment or purchase of shares, MF, Cryptocurrency, investment in govt bonds, and schemes of savings.

These days many lucrative options exist to save like if we discuss Mutual funds that are in fashion these days and on market, it is the pooling of funds through experts into markets indirectly and making incomes out of it that are stable but though subjected to market risk, hence the old fashioned way of keeping term or fixed deposits have been outdated and the personal finance ways of MF have been taken up at large where it can be done in lumpsum or the SIP. These MF provide good exposure of money and returns accompanied. thus, Personal finance is something that everyone should focus on, and other govt bonds schemes as well provide an edge of income above the traditional ways of PF and TD/FD.

thus, investing smartly and gaining the advantages of effective personal finance. why ask someone for help when you can be your banker.

By: Ashish Kumar

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