Your finances this week: Know how to use your salary increment wisely

salary-increment

This is the time of the year when most companies hand out increment letters to their employees. You may have also your salary hike details in hand. It is one of the best feelings to be appreciated for the work you put in for your organization and given a handsome reward in the form of a decent pay hike.

However, a good salary hike does not really mean a signal to go on an extended binge when the extra money starts flowing in with your salary slip. Instead, you should redraw your personal finance based on the hike received and create a stronger and a more stable financial plan for your future.

Financial planners advice not to get carried away. “Making the right choices following a salary increase is the most important thing to do. Be careful not to let the immediate feeling of financial well-being can also go to your head,” says Anil Rego, Founder and CEO, Right Horizons told Moneycontrol.

If you are uncertain what steps you should take for that, we have some advice to use your increment wisely.

However, if you are among the many who have been either given a low increment or have been denied a hike altogether, you must be feeling miserable. But this is not the time to react in a haste. You need to ponder on how you can improve your performance to ensure a decent hike next year along with the best performers.

Amar Pandit, Founder & Chief happiness Officer at HappynessFactory.in advises not to react in a haste. “The first thing to do is not make any impulsive or rash decisions that could hurt you in the long run. Try to figure out why you weren’t given the raise you expected. Understanding the decision will help you understand what you can do to receive the increment next time out,” Pandit told Moneycontrol.

For all such employees, we have a few tips here on how to manage the disappointment.

If you are one of the risk-averse investors who like bank deposits as an investment option, you now have new options through offerings made by small finance banks whose FDs give you quite a bit more return than the bigger, more established banks. While bank FDs are give you returns ranging from 5 percent to 7 percent. However, some small finance banks have started giving higher returns of up to 9 percent on their FDs. Read our story to know the more lucrative bank FD offers in the market

Another risk mitigating instrument in the market is a personal accident insurance cover which is often ignored by consumers since they have no tax benefits and are not pushed by agents and brokers. However, it makes sense to have a personal accident cover in your financial portfolio to ensure that your family remains safe even in adversity. If you do choose to opt for such a cover, here are some things that you should keep in mind.

And if you are planning for your retirement, two of the best options before you are the Employees’ Provident Fund (EPF) and (NPS). Read here to know which one should you choose or whether you should have both to have in your portfolio to create a decent corpus for your old age.

To sum up, here is a story that measures the impact of GST if you want to sell your property. The seller will, however, have to pay stamp duty and registration charges that were in existence even before June 30. Both these charges vary from state to state.

Source: Moneycontrol News

 

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