The Global Economic Slowdown has a direct impact on the emerging economy like India.
The decades of coalition administration leave no room for major policy restructure. The Indian Rupee is falling continuously. The fiscal deficit is growing towards an unmanageable point. Now it is a question of survival. We have to learn from our old mistakes and reorient our financial techniques now.
The following few points come to my mind automatically when I think about it.
1.Stick to life insurance and medical insurance.
2.Invest some amount in less risky FD and debt funds.
3.Create an emergency fund that is at least 3 times of your monthly income.
4.It is advised for the retail investors to know the difference between equity and debt funding and stay away from equity. Because even the most celebrated and trusted stock market analyst report becomes wrong at the prevailing market situation.
5.Don’t make any major capital investment taking loans. At best keep your EMI up to 20% of your monthly income.
6.Invest in physical Gold or FD’s and funds related to Gold.
7.Refrain from unnecessary expenditures like buying vegetables from air-conditioned supermarkets. Minimize expenses and get some surpluses at the month end.
8.Try to utilize every hour of your free time effectively and add as much as to your income.
Conclusion : We have to correct our wrongs in a more disciplined and organized manner. All we can say this is not the end of the World and there will be a comeback of all the past glory or even more when we work systematically.
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