April 2020: India is in complete lockdown and you’re quarantined at home, wondering how to feel productive. We list below some ideas to help you better manage your personal finance and to feel a bit more productive. So let’s get to it!
1. Ensure your Section 80C investments are in place
Section 80C lists all the deductions, available to individuals and HUFs, upto Rs.1.5 lakhs per financial year. It includes investments made in:
- Provident funds,
- Equity Linked Savings Scheme (ELSS),
- Life Insurance Premium Payment,
- National Pension Scheme (NPS),
- Sukanya Samriddhi Yojana,
- Tax Saving Fixed Deposits,
- National Savings Certificate (NSC),
- Unit Linked Insurance Plan (ULIP)
So make sure you have the requisite amount invested in the schemes before 30 June 2020.
2. Decide whether to opt for RBI moratorium or not
In case you have an ongoing term loan, personal loan, home loan or any other credit liability, then make sure you decide on time to opt for the moratorium. A friendly guide on whether or not to opt for the moratorium is available here: RBI moratorium: To avail or not to avail is the question
3. Invest in equities or start an SIP
With the stock market entering into a correction phase, now might be the good time to invest in equity shares. Remember to do your own research or consult an advisor before you take the plunge though.
Another alternative would be to start an SIP in a mutual fund scheme that seems attractively priced. To know more about SIPs, click here: What is SIP? What are its advantages?
4. Invest your idle Savings account money
If like most people, you haven’t yet invested the money accumulated from salary or income received in the past year, now might be the best time to invest. Transfer the funds to a fixed deposit account or to liquid mutual funds, in order to give you some time to think about where to invest.
5. Contributes to PM-CARES fund and obtain deduction
The PM-CARES fund has been given the same status as that of the PM national relief fund. Therefore all your donations shall be eligible for 100% deduction under Section 80G of the Income-tax Act, 1961. In other words, 100% of the amount donated shall be eligible to be deducted from taxable income. For example, if your taxable income during the financial year is Rs. 5,00,000 and donation made to PM-CARES is Rs. 1,00,000, then tax shall be levied only on Rs. 4,00,000. But, make sure to preserve the receipt generated after successful donation.
6. Read books on personal finance and growth
A good way to feel more productive is to read books on personal finance and money management. Rich dad, poor dad by Robert T. Kiyosaki, Think and grow rich by Napoleon Hill and 13 Steps to Bloody Good Wealth by Ashwin Sanghi are books that we would recommend as starting points.
Thanks for reading. Hope you’re staying safely indoors during these unprecedented times 🙂
