NINE SMARTER WAYS TO USE YOUR BONUS/EXTRA MONEY
Due to various reasons, we get surplus money in the form of bonuses. Since it is extra money from our monthly expenses.
So if u invest such money in the proper account, then in the 4-5 year, u can multiply your investment. I have explained 9 ways for such type of Investment.
1. FORM AN EMERGENCY FUND:-
Save bonus money in Bank as an emergency fund, which will be sufficient for 5-6 month expenses of Your Family. If u have any alternative source of income, then u can decrease your money limit of an emergency fund in the Bank.
2. REDUCE PRINCIPAL AMOUNT FROM LOANS:-
If u put Bonus money in Banks, it gives u 7-8 %. But if u have a personal loan for a house or car or regarding Credit Card then the interest rate will be from 11% to 35 % ( in the case of a Credit Card). So it is always better to reduce the principal amount of higher interest-bearing Loans/ Debt.
3. INCREASE RANGE OF INSURANCE:-
With all existing insurance, start a Medical Insurance also. Under Section 80D of the Income-tax Department, it will also give u tax relaxation. You can get 6-7 lacs coverage on 9-10K Rs annual scheme from any reputed Insurance company. IT saves ur money from any type of expenses due to medical emergencies.
4. INCOME TAX SAVING PLAN:-
You can save up to Rs. 50,000.oo in NPS, tier-II. As per the Income Tax Department, Section 80CCD1b, it gives you tax relaxation.
5. CREATE SHORT TERM UTILIZATION FUND:-
Some common types of expenses are in the family such as the marriage of any family members, Your family tour program, Admission fee of children in 12th, Engineering, Medical or any other academic courses.
All such type of expenses needs onetime payment. So it is better to plan for them in advance.
6. START SIP OR MUTUAL FUND PLAN:-
FD in the bank gives u 7-8 % interest on ur money. But in a SIP or Mutual fund, u will get a minimum of 11-20 % interest on ur deposited money.
7. PURCHASE REAL ESTATE NOT A CAR:-
Due to increasing population, the value of land & Flats is increasing rapidly. But at the same time, the cost of Cars will not increase in comparison to Real Estates. So at book your Flat or Purchase the Land instead of Car.
8. START INVESTING IN SHARE BAZAR:-
Open a Demat account directly in Bank such as SBI, ICICI, AXIS, Kotak Mahindra, etc, or through a Broking agency such as Angel Broking, Sharekhan, Bonanza, etc. If you have time to analyze the shares of different companies, then u can directly handle your investment otherwise, u take the help of any booking agency after getting registered with them.
9. INVEST ON YOUR PROFESSIONAL SKILL:-
You can also invest in enhancing your or your wife’s professional Skills such as any online certificate course, B.ED Degree, Correspondence course, or any short-term Training Classes. It will help u for getting a promotion in your job.