Managing personal finances well can be a key to success and prosperity. It is important for a person to plan financial goals and set targets for each year to achieve a stable, growing and emergency-ready economic status. Various ways in which one can manage finances efficiently for an upcoming year include planned investments in equities, bonds, commodities like gold, and currencies. Other useful means to manage one’s finances include switching to internet banking, which makes banking possible at the tip of finger, using UPI modes of payments, mobile banking. Opting from among various types of Personal Loans can help undertake expenditures with flexible interest rates and making big financial investments. Cashback and promotions on mobile applications like Paytm, PhonePe, expense management applications and other technologies can help save on our daily spending.
How can one manage finances and gain rewards?
Investment & Savings: For short and long-term financial management, one needs to invest wisely. Millions trust equities or stocks for their investments; these can be either short-term like intraday trading or long-term for 3, 5, 10 or more years. Other investment options encompass bonds, commodities like gold, and mutual funds. Investments are now possible inconvenient EMI type format or Systematic investment planning (SIP). Amounts as small as Rs. 500/month can be invested in mutual funds. Long-term investments can be helpful for distant goals like retirement planning, and child’s education.
Loans: Loans from banks are now available for various financial needs. Loans from premium nationalised and private sector banks like ICICI Bank can help manage significant expenditures and make considerate savings with their various types of Personal Loans. Credit Card debts can add to one’s financial crisis owing to their higher interest rates. Personal Loans may help an individual clear Credit Card due and may increase savings by disengaging the amount which was previously used to pay the minimum balance of Credit Cards. Also, the interest rates on Personal Loans are lower, which further helps reduce the burden of heavy debts.
Personal Loans help make heavy purchases like medical expenses, children’s education, vacations which in turn can be paid easily through EMIs with lower interest rates. Financing business investments with various types of Personal Loans can help generate business and begin an inflow of income while repaying the loan in equated monthly instalments at lower interest rates and longer tenures.
Personal Loans come with a limited tenure for repayment, and this lowers credit utilisation and helps diversify debt types which helps increase credit scores rather than lowering them.
Why is it wiser to choose ICICI Bank for Personal Loans?
Emergency or unexpected expenses like medical emergencies can occur at any time in one’s life. If you have plans for a grand wedding or a long vacation with your loved ones and have a scarcity of funds, you should explore the option of availing Personal Loans to meet these expenses. ICICI Personal Loan gets the dual benefits of easy access to funds and zero requirements for depositing a collateral security amount. Personal Loans have become a preferred way of financing spending that otherwise would be difficult with a regular income. Various banks offer Personal Loans to customers at different interest rates. Presently, ICICI Bank Personal Loan offers an interest rate of 11.25%, this may be subject to change and may vary as per the loan type availed.
Digital Technology: With measures taken by the government to promote digital technology, plenty of new modes of digital payment are now available, for instance; UPI (Unified Payments Interface), Bank prepaid cards, and mobile banking. Payments made through digital means are more convenient and flexible.
Banking cards are one of the most commonly used digital media for financial transactions being the most secure means of payment and carry the advantage of being used over multiple other digital modes of payment, these days transactions can be easily made through mobile applications with the help of bank cards or by card payment systems like Visa, RuPay, MasterCard.
UPI is a system through which payments can be made through UPI-based mobile applications through the customer’s bank account within a few seconds. Fund transfers can be easily made by Virtual Payment Address (VPA) without an IFSC code or an account number. The only required data is a registered mobile number linked to the bank account.
Mobile wallets are virtual wallets that can be downloaded as mobile applications, this e-wallet stores data like bank account numbers or debit/Credit Card information to allow secure payments. The main advantage of this method is that it eliminates the use of a 4-digit PIN or a CVV number. Mobile applications are handled by private firms like Paytm, FreeCharge, Mobikwik and many more.
Internet banking: Internet banking is also known as e-banking or virtual banking makes online fund transfers via NEFT, RTGS or IMPS.
Bharat Interface for Money Application (BHIM): This mode of payment is based on fund transfers through VPA as UPI transfers. One may link multiple bank accounts to BHIM including their account to make quick fund transfers.
Conclusion: Make the best of your financial decisions this New Year; make sure to invest a portion of your savings in mutual funds, stocks, commodities like gold, and properties. Investing in long-term reaps benefits faster which can be used in the future. Using digital modes of payment helps in earning rewards and cash back as company promotions. In addition, applying for Personal Loans can help you get equipped with sufficient funds for major purchases which can be paid through a Credit Card EMI scheme since they have lower Interest Rates Personal Loan, applying for Personal Loans can also help make investments or to start a business which can incrementally give returns to the applicant and make loan repayment easier. Proper management and correct decisions regarding finances can give fruitful returns and success.