We all know the meaning of stability, stability is to balance, to control and to defend against worst factor. Definition of "Stability" derives in several types of fields like mathematics, scientific, economical, logically, spiritually and financial.
➤ What is financial stability?
In the finance industry it defines that, one who balances between the profit and losses, one who had control over its capacity to spend and control on expansion for income sources and also one who has best strategies or plans implied against inflation or recession period.
The thought of “Financial Stability” of simple and common man is only that one who has excess profits in business or one who has lesser EMI or bills to pay with higher salary. But in minds of financial planners or an analysts they always has different definitions about “Financial Stability ”. Some analyst believes that a loss which does not affect operations of the business, are also financially stable to bear the loss.
Today I will discuss with about 5 weapon for how an individual will being financially stable that will make him rich.
➤ Credit card :
A credit card is a valuable financial tool that allows an individual to make purchases on credit. People use the credit cards for the business and personal purpose. Credit card in other it also be known as pre allocated overdraft given by bank or financial institute with given time period to pay (usually 45 days) with minimum amount to pay or full bill amount. If person fails to pay full bill amount it get charged by some fix finance charges. It is most liquid instrument to be used, due to offers and facilities which are been provided by banks and companies in purpose to increase their sales. If person has no control over the credit card usage it get charged by heavy finance charges and to repay that person had to loose all its saving. If it has been used smartly then it can become your best asset.
Today we are going to discuss about the financial stability that we are facing in a day to day life.
➤ What is financial stability?
The thought of “Financial Stability” of simple and common man is only that one who has excess profits in business or one who has lesser EMI or bills to pay with higher salary. But in minds of financial planners or an analysts they always has different definitions about “Financial Stability ”. Some analyst believes that a loss which does not affect operations of the business, are also financially stable to bear the loss.
Today I will discuss with about 5 weapon for how an individual will being financially stable that will make him rich.
➤ Credit card :
A credit card is a valuable financial tool that allows an individual to make purchases on credit. People use the credit cards for the business and personal purpose. Credit card in other it also be known as pre allocated overdraft given by bank or financial institute with given time period to pay (usually 45 days) with minimum amount to pay or full bill amount. If person fails to pay full bill amount it get charged by some fix finance charges. It is most liquid instrument to be used, due to offers and facilities which are been provided by banks and companies in purpose to increase their sales. If person has no control over the credit card usage it get charged by heavy finance charges and to repay that person had to loose all its saving. If it has been used smartly then it can become your best asset.
➤ Personal Loans :
Now days bank or financial institutions are providing the loans without any security up to some limited with higher interest rates at fixed tenures. Previously banks were providing the loans as per collateral system. RBI has powers to controls the monetary system in India, when RBI want to pull money from market then it publish the schemes like government bonds or it cuts the FD rates. Similarly when RBI wants to gives the money in market it cut downs the loans interest rates or it take backs the bonds. In order to get people money banks have introduced the instruments called "Personal Loans". This loans has been proven the best controlling tool of RBI over the years. Along with personal banks have now also introduced car loans, travelling loans, education loans and business loans. If a person fails to pay EMI then banks sends an immediate notice to pay, if person still unable to pay then banks can seized the personal savings or assets.
➤ Car / Bike loans :
Everyone has a dreams to have there own car/Bike in life. Before the 2005 to 2016 getting a car loans was as difficult as to pass the bill in parliament. But now banks and institutions are providing the car loans very easily by offering them an options to pay low EMI with long tenures. However nowadays people like to prefer travelling via OLA or UBER this is main reason for dropping sales of cars, that also results people prefers to purchase 2 wheeler instead of 4 wheeler. Today in India 2 wheeler are trending the market because youngsters love to ride the bike also small businessman get help to commit there home deliveries. I strongly recommend until its not required do not apply for huge car loans, or should buy a car or bike when you are able to pay EMI and maintain the vehicle on time. Nowadays there are various company that provide the used car on rent this can hep to reduce in your monthly EMI.
➤ Creditors :
Businessman take a credit or takes a Financial support from his business colleague or from others. An individual also take a credit or Financial support from his friends or relatives. In both the situations they has agreed mutual terms and conditions regarding for interest and tenures for repayment. I strongly suggest that if your liability is more than your income / Asset than pay off the liabilities as soon as possible because this create the bouncing attacks of tension to pay EMI. If the person fails to pay one EMI than it is very hard to maintain that liability due to cumulative of interest to pay. Also if you are unable to pay liabilities then your goodwill and your relations will lost forever which is much precious than life in our Indian society. If you pay off the liabilities by selling up the assets or losing your personal savings than it will your financial loss not moral lose. Remember "Goodwill" and "Relations" are moral and precious asset, you can earn properties again but not the moral assets.
➤ Unnecessary expenses or liabilities :
Indians always want to create money as faster they can but sometimes they choose such a path that take them to loss. For example If a person had no knowledge of stock market and invest according with his own judgment or on basis of media news. If a person know that to buying a such asset which is beyond his budget with thought that will cover up with loans (personal and home loans). If a businessman invest in project which give him a lesser income than his plan. This all situations is known as "Self Financial Crisis". If you don't know about market take help of financial adviser or planner or invest in mutual funds, if asset is beyond your budget don't buy it, if project is has a less return than expected then seek a merger with other companies or should sell the project in the market. Please to take such kind of steps consult with financial adviser or planners.
It is recommended to have financial plan or consult with financial planners to have a wealthy future.
If you want any suggestions regarding Accounting, Financial services and IT solutions please feel free to consult to "We Expert" you will get definitely solutions of your problem.
Stay Happy, Stay Connected :)
➤ Car / Bike loans :
➤ Creditors :
➤ Unnecessary expenses or liabilities :
It is recommended to have financial plan or consult with financial planners to have a wealthy future.
If you want any suggestions regarding Accounting, Financial services and IT solutions please feel free to consult to "We Expert" you will get definitely solutions of your problem.
Stay Happy, Stay Connected :)
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