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Personal finance tips that you can use


Personal finance tips that you can use

There are several personal finance tips and tricks that will definitely stand you in good stead all throughout your career and professional life. You should know that money/investment managers can leave the mutual fund/investment agency all of a sudden. This is one of the sudden situations which can leave you perplexed. The current scenario in the mutual fund space has witnessed the exits of several managers.

How should you operate in this situation? Many a time, investors will worry whenever their managers quit. However, one should not just leave the fund outright without taking the entire picture into account. You should always choose a fund based on your financial goals, the risk appetite, returns, investment allocation and so on. Before you quit the fund, undertake a review of how the fund is performing and which are the assets which are generating good returns for you. Rebalancing of your portfolio or reviewing the allocation of assets can be done at the end of pre-specified time periods like each year. The tax component should also be carefully analyzed in this regard.

When using a credit card, be careful that you do not end up overspending. The credit history that begins with a credit card for most professionals reaches the climax when they apply for home loans. Getting a home loan at a competitive interest rate is a major plus point. In case a credit card is used wisely, you can get a better deal on your home loan. Banks will always prefer borrowers who have credit scores of more than 750. In case you use your credit card prudently to purchase several items and repay within the due date without attracting interest, it will help you build up your credit score. If you have a good credit score, you might get a lower rate of interest on your home loan.

Always have a retirement fund plan in place. Start investing as early as possible and make sure that your investments are diversified. Refrain from putting all your eggs in one basket as the timeless adage goes. You should always ensure that there is minimal risk arising from exposure to various asset classes. You have to adopt a balanced approach towards investing for your retirement. Do not put it off until it becomes too late.

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