3 Things to do With Money Saved

During the lockdown, savings rates in India were higher than disposable income. Home quarantine has reduced a number of expenses including transportation, dining and shopping. Deposits in the form of savings, term and current deposits had significantly increased during the first phase itself, according to a research by the Reserve Bank of India (RBI). 

If you have accumulated enough money, explore options to spend them wisely. It will offer financial security, help take calculated risks and offer cushion against emergencies. You can either invest or spend, according to your needs. Here’s an insight into the best ways to manage your saved funds.

1. Buy a Home Loan

Home loan in India is calculated based on the EMI you can afford. If you have accumulated sufficient wealth; at least for down payment, getting your dream home is not a farfetched dream. The best home loans are disbursed quickly within 72 hours and the documents are verified on spot. This eliminates multiple bank visits and makes the process smooth.

You can also opt for a loan for under construction property, resale properties and for houses in cities, gram panchayats and regularised colonies. Even if you cannot arrange formal income proofs given the on-going crisis, no worries. Bank statements showing an impressive balance can help you get home loans online absolutely hassle-free. Contact the bank professionals to know the eligibility, documents and the charges involved before getting started.

2. Build an Emergency Fund

Having an emergency corpus helps you enable financial security for future. In case of unlikely economic situations, you can fall back upon them. Additionally, now that the times are uncertain, having saved money can help you take new risks without inhibitions. Online banking allows you to access your funds from anywhere in the world.

Be it a medical emergency, natural disaster, home repair or education expenses; this fund can cover everything. Make sure to cut down on discretionary expenses bit by bit to pool more in the bucket.

3. Clear Your Debts

Wiping off debts can take years or even a whole decade! Till now, you might have been compromising on your ‘wants’, opted for side jobs or have been living within a bare-bones budget. If you have now successfully accumulated enough money; try to clear your debts. Start with the high interest ones. This can reduce a lot of headache and you can work towards the smaller debts.
Consider paying more than the minimum amount so that the tenure is shortened. Be it student loan, car loan or prior home loan; rethink your payment strategies. Make sure you do not give up the extra source of income since it can act as a cushion against sudden financial needs. But do not pick up expensive habits even if you have enough money at your disposal after clearing your debts. This is a vicious circle and brings on more worries for the future.

With saved money, you might have overwhelming options to explore. However, given the sluggish economic situation, always consider making your financial condition secure before anything else.