Even as many large countries worldwide brace themselves for a recession, India is on a financial climb. With a government focused on digital empowerment and the arrival and availability of 5G internet speeds, India is quickly gaining ground with Western nations and China as competitors within the global economy.
How is India growing financially?
Businesses in India and the general population are joining the ranks in the global e-commerce boom. Education has been a priority of the government for the past two decades. The use of the internet to advance those goals is evident.
Entertainment has become a big market for India. People use the internet for musical productions, live streaming, and to play international lotteries. With fixed odds betting, Indians can place bets on lotteries they never could before. Currently, a resident of India can access offshore sites and end up a Mega Million winner.
The promising upswing in India’s economy can also be attributed to include:
- Rising housing market
- Fewer bad bank loans.
- Corporations are reducing their debt.
- Better interest rates.
Of course, all of the items mentioned above make India a more attractive market for those with money to invest. It is expected that the spotlight of the global economy is shining directly on India.
Receiving a windfall
Perhaps you inherited a large sum of money from a lost loved one. Maybe you receive a large settlement in a case, or you come into money from selling a property. Or, perhaps you really did hit the jackpot in a major lottery. How do you ensure the money will sustain itself and allow you to improve your quality of life? You must understand that money will not regenerate unless you invest it in ways that make it grow.
Below, you will find some basic professional tips on how to begin your financial journey.
Your initial allowance
It is natural to want to splurge and spend money when you have a financial windfall. So, your very first order of business is to deposit 99% of the money you have received into an interest-paying account. If you can find an account that will not let you withdraw from the account for at least six-months, that is even better.
The 1% you left out is your allowance. It is a lot of money and you can spend it anyway you wish. Take the family vacation of your dreams. Buy clothes, a car, or a new house. Just remember, you are not touching the remainder of the money for six months.During that six months, you are making a life plan. Your money isn’t going to grow a lot in six months, but it will help recover the 1% you splurged.
Hire financial experts
You need to hire experts in the field. You want an experience and educated expert
Here are a few suggestions:
- Attorney for legal questions and government requirements.
- Financial advisors
- A quality bank insured by the government.
When you decide what you want to do with your money you may need other types of experts.One example is you would need a realtor if you are planning on investing in real estate.
Pay off all you owe
Pay off all your bills. Pay off your home, car, credit cards, student loans, and anything else you pay on. This improves your credit and puts you in better standing with banks you may want to work with.
Financial emergency fund
Determine how much money it takes for you to live your normal life for six months. Include everything. Be honest, this is not a budget. What do you spend on food, transportation, entertainment, clothes, travel, and medications. Once you have an amount, speak to your banker about depositing that amount of money into an account that pays a high interest rate.
There may be rules attached such as limits on what can be taken from the account and when. That is okay. This is your emergency fund. It is money that is not to be touched unless there is a true and serious emergency. If an emergency situation arises, you are comfortable for six months while you work through it.
Is your future secure?
Time stands still for no one. Take an honest look into your future. Do you have the funds to retire without worry? Are there education expenses coming into your life soon? Are you planning to relocate to a different area? Is your family secure in the event of your death? These are all points that you need to address and plan for. Your financial advisor can put you on the right track.
Take your time
Your goal is to have a comfortable life now, a plan of action for comfort in the future, and a structured portfolio that lets your money sustain itself. This is a journey. It will take time and things will change along the way.
Use the experts you hire to lead you, but always keep your head in the game. Be sure you understand what is happening, what it is costing you, and what the risks are. You will learn as you go.
Coming into a major windfall is a once-in-a-lifetime event. You can live comfortably off of your money if you make the right choices. Be wise, and let your money be a source of peace to you and your family.