Market in turmoil 5 options to protect you and your money
It is essential to earn and accumulate wealth, but in today’s unpredictable world, it is just as important to find ways to protect it. With the economic crisis of the recent past and predictions of upcoming recession, every individual must be aware of the steps they can take to safeguard their finances.
From classic advice like opening a Fixed Deposit account to important habits such as budgeting, here are five prime options you must keep in mind to protect your money:
Budgeting and financial hygiene:
The market might be out of your control, but do you know what is completely in your hands? Managing your budget. The most challenging financial situations can be avoided if you follow a strict budgeting practice for every week, month or quarter. Without budgeting and tracking payments, a major portion of your funds could be underutilised or splurged without you ever knowing about it.
So, make sure to protect your finances by following a religious budget and tracking all expenditures. Moreover, it is advisable to adopt a financial habit of keeping and regularly perusing important documents such as receipts, bank statements and investment details. In case a financial emergency strikes, you will be prepared with all the relevant files on hand and be in complete control of your finances.
As the wise old wisdom goes, “Don’t put all your eggs in one basket”. Make sure to realise the value of diversification whenever you choose to invest and explore as many avenues as you practically can.
A variety of investments in different instruments is worth far more than pooling all your money in a single investment opportunity. In case the market undergoes a downturn, the chances of your money being safe in at least a few of your more reliable investment avenues will always be high.
When your finances are in good health, it can be tempting to borrow funds and avail of loans to meet short-term financial goals. When money is easy to come by, the prospect of paying back all debts and loans looks promising. Make sure to do ample research and figure out the predictions for the economy before taking on any debt. If taking a loan or borrowing funds still seems necessary, plan out your future finances in a way that accounts for a possible downturn. This will help you keep track of your borrowings and prevent any money from slipping through your hands in an emergency.
The market is not the only unpredictable factor influencing your finances. The event that catches most people off-guard is often a medical emergency. With the rise in medical expenditures and hospital bills, medical emergencies can drain your finances. In fact, the worst possible scenario would be to experience a medical emergency during a financial downturn.
This entire possibility can be eliminated by a single tool: insurance. Whether it is health insurance or life insurance with rider options, make sure to protect your family and your finances with ample coverage for medical purposes.
Invest in a Fixed Deposit:
Generations of Indian households have sworn by the benefits of a Fixed Deposit account and for good reasons too. After all, one of the most effective ways of protecting your money from over-expenditure is to have limited access to it. Moreover, if there is an investment tool out there that can assuredly protect you from market trends and downturns, it is Fixed Deposits.
With high interest rates that Fixed Deposits are certain to offer, you can watch your deposit amounts grow over time without having to actively do anything. There is also immense flexibility in Fixed Deposits, since tenures for Fixed Deposit accounts can range from 7 days to 10 years. This makes it the perfect option for people with all kinds of financial needs and goals.
There is no investment tool out there that quite matches the benefits of a classic Fixed Deposit. If you too are on the lookout for the most flexible and profitable Fixed Deposit account in the market, you can use ICICI Bank’s Fixed Deposit calculator to determine the principal amount, tenure and interest rates perfect for you. Choose from a tenure ranging from 7 days to 10 years and watch your money grow with guaranteed returns and without any market risks.
Apply for FD, here.
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