Money Management and Financial Planning

Mastering finances involves understanding income, expenses, and budgeting essentials. Allocate income wisely: 50% for necessities, 30% for savings, 20% for discretionary spending. Adopt saving strategies like automatic transfers and goal setting. Explore investment options like mutual funds and fixed deposits, keeping risks and returns in mind.

Buying your first car can be both exciting and overwhelming. However, careful planning could significantly ease the process. You could start by thoroughly researching and budgeting for your purchase. Allocate approximately 10-15% of your monthly income towards the car loan EMI, while also accounting for additional expenses such as fuel, maintenance, and insurance. Selecting the right car is crucial; assess your needs by researching various models and reading reviews. Explore financing options such as car loans from banks or non-banking financial companies (NBFCs), which could cover up to 80-90% of the car’s on-road price. If opting for a used car, consider used car loans that might have slightly different terms. When choosing a dealer, visit multiple dealerships to compare prices, negotiate effectively, and request a detailed cost breakdown to avoid hidden charges. Ensure that you have all the necessary documentation ready and opt for comprehensive insurance for enhanced protection. After registering your vehicle with the Regional Transport Office (RTO) and finalising the purchase, conduct a thorough inspection of the car. Maintain the vehicle with regular servicing, familiarise yourself with driving regulations, and keep in mind the car’s resale value and depreciation.

In the realm of advanced budgeting strategies, several techniques can transform financial challenges into opportunities. Zero-based Budgeting ensures precise allocation of income, leaving no rupee unaccounted for. The Envelope System simplifies spending by allocating funds to specific expenses. The 50:30:20 Rule balances needs, wants, and savings.

India's culinary scene offers diverse dining experiences, each with distinct costs and advantages. Eating out spans fast-food chains (Rs.200-Rs.300 per person), casual dining (Rs.800-Rs.1,500 for two), to fine dining (Rs.3,000-Rs.5,000+ for two). Ordering food adds delivery charges (Rs.20-Rs.50) and taxes, making a Rs.800 meal total around Rs.1,000-Rs.1,100. Cooking at home incurs grocery costs (Rs.2,000-Rs.5,000 weekly for a family of four) and utilities. Despite expenses, home cooking offers control, health benefits, and familial bonding. Understanding these costs aids in making informed dining decisions aligned with budget and preferences.

The 2024 Union Budget, presented by the finance minister, outlines India's economic strategy focusing on 'Viksit Bharat'. Under this, it focused on nine key areas, including agriculture, employment, and infrastructure. It revised tax slabs under the new regime, potentially saving salaried employees up to ₹17,500. The budget also addressed indirect taxes, reducing customs duty on various items and exempting certain cancer drugs. The TDS rate on e-commerce was reduced, and long-term capital gains tax was revised to 12.5%. It allocated substantial funds for housing by expanding the PM Awas Yojana. Moreover, it introduced a free solar electricity scheme under the PM Surya Ghar Muft Bijli Yojana. New initiatives like the NPS-Vatsalya scheme for minors and enhanced Mudra Loans under the ‘Tarun’ category were also highlighted. The finance minister also gave due importance to support the MSME sector, aid in developing tourism in Bihar and Odisha, and bolster youth education. Major investments were also announced in state-specific development projects, particularly for flood-prone regions. These included Bihar, Assam, Himachal Pradesh, Uttarakhand, and Andhra Pradesh. The budget also addresses capital gains taxes, customs duties, and introduces new schemes for youth employment and skilling. With its multifaceted approach, the budget aims to boost economic growth, enhance social welfare, and promote inclusive development across various sectors.

The Union Budget 2024 introduces significant changes to India's tax structure, impacting salaried individuals and investors alike. For salaried employees, the new tax regime offers an increased standard deduction of ₹75,000 and revised tax slabs, potentially reducing tax liability. Consider the example of an IT professional Sunil, who earns ₹10 Lakhs annually. As per the changes announced in the budget, if he files his taxes in the new regime, he can now save up to ₹10,000 in taxes. The budget also modifies capital gains taxation on listed investments. Short-term capital gains (STCG) tax has been increased from 15% to 20%. For long-term capital gains (LTCG), the tax rate has been raised to 12.5%, but with an increased exemption limit of ₹1.25 Lakhs. So, if Sunil chooses to sell off his investments after earning a profit of ₹10,500 in 9 months, he will have to pay 20% tax or ₹2,100. Alternatively, suppose he holds on to his shares for 2 years and earns around ₹23,000. Now, he will have to pay LTCG tax. But since his returns are less than ₹1 Lakh, he is tax-exempt. The budget brings a notable shift in property taxation by eliminating indexation benefits for LTCG on property sales. Despite reducing the LTCG tax rate to 12.5% for property, the removal of indexation could result in higher taxable gains. These alterations could lead to increased tax liability on property sales, notwithstanding the lower tax rate. These changes collectively reshape the landscape of personal finance and investment strategies in India.