Top Ways for CAs to Manage their Personal Finances Better
The number of practising chartered accountants is declining in India, with the current number standing at around 1.31 Lakh. By comparison, there are about a million doctors in India while a staggering 1.5 million engineers enter the job market every year.
The comparatively low number of CAs ensures that they are always on their toes. The high demand for their services offers them little or no time to manage their personal finances, which leaves them monetarily vulnerable during times of emergencies. Of course, most of these emergencies can be dealt with a personal loan for Chartered Accountants, but that’s no substitute for sound financial planning.
Start saving early
Given the commerce background of a majority of the CAs, this tip should not sound alien to them. The golden rule of thumb is to start saving 10% of total post-tax income at the beginning of one’s career and increase the percentage as the income goes up with time.
By the time an individual reaches the age of 35, he should be saving 35% of his post-tax income. The motto should be “Income - Savings = Expenses” and not the other way around.
Invest in diverse portfolios
An investment is a smart way to grow one’s financial assets. CAs should invest in a diverse range of options instead of putting all their eggs in one basket. There are numerous options available out there that one may consider.
Financial institution products
Commodity futures (gold, oil, etc.)
Depending on your personal disposition and propensity to take risks, you should invest in two or more of these options. Read the fine prints of all these types of investments, and choose the ones that correspond to your needs and financial condition.
Pay off debts
You may have taken a loan to complete your studies, buy a house or rent office space for your new practice or any of the thousand other reasons. It’s sensible that you pay off all your debts as soon as possible since multiple interest rates will bleed you through a thousand cuts.
You may consider availing a Personal Loan for Chartered Accountants from Bajaj Finserv to consolidate all your debts under one umbrella and settle them as soon as possible. Take a loan of up to Rs. 35 Lakh, if feasible, to meet various expenses and pay off any debt you may have. An advance comes in handy as the CA loan interest rate is quite reasonable nowadays.
To make the process even more approachable, Bajaj Finserv provides pre-approved offers on multiple financial products including personal loans, home loan and business loans. Not only does this simplify the process of getting a loan, but it also helps you save on time. All you should do to check your pre-approved offer is share a few simple details with them.
All these offers along with simple CA Loan eligibility criteria make such loans an ideal option to manage your finances and take care of any emergency expenses effortlessly. You can use the credit for various purposes other than consolidating your debt. Finance your CA firm, go on a holiday or buy something you have always wanted to.
Do not let money issues come in the way of your dreams and ambitions. Plan your finances well and steer clear of financial disasters.