Make merry of salary hike post 7th pay commission implementation
While enjoying the hike in salary, ensure a long-term happiness and don't get carried away
Bhubaneswar/New Delhi: The 7th Pay Commission has increased the bank account of the Central government employees to some extent. May not be a bonanza as expected, but the increase in bank balance should be used carefully and in a smart way so that at the end of the day you shouldn’t be left with an empty hand, suggest finance consultants.
Here’s what should be your approach:
Be practical! Never ever think that the money would never run out and your bank account will always be that “fatty”. Rather it’s time to step back, avoid irrational spending or impulsive buying. Hold yourself back; give yourself a few days and think about your goals and objectives, say financial experts.
You can also draw up a balance sheet to get an overview of your financial situation. It will give you a detailed picture of your available amount and also give a better idea of your expenditure/investment.
Importantly, never be lethargic in your approach towards the issue and determine what’s most important to you or in other words- list your choices in order of priority.
- Try not to increase your routine expenses with the increase in income
- Prior to increasing any type of expenses, note down your short-term, mid-term and long-term goals and check if the expenses are any way helpful.
- Pay off your debt first, especially the one on your credit card.
- Pay off personal loans, if you have.
- Increase your EMI amount for the purchased items on installments. It will help ease the loan burden soon and make you the ultimate owner of the asset.
- You can go for fixed deposits or start another Systematic Investment Plan (SIP) even though if you already have one.
- If you want a car, go for it but ensure that you are giving extra down payment. Tangible things coming to home is always appreciable.
- Set aside a fixed amount as emergency fund.
On a lighter note, the experts believe that one must enjoy the hike in salary but don’t mar one’s future for the sake of present and vice versa. It’s always advisable to have one’s own retirement plan in place even though he/she will get a pension after retirement.