Personal Finance News
Practical news and updates on money management — from tax-saving strategies and insurance changes to loan rate adjustments and credit card offers. This section focuses on what directly impacts your wallet: new government schemes, changes in income tax rules, bank interest rate revisions, and tips on budgeting and building wealth. Whether you are planning for your first investment or optimising an existing financial plan, the updates here help you make smarter everyday money decisions.
Frequently Asked Questions
How much of my income should I save and invest?
A widely recommended starting point is the 50-30-20 rule: 50% for needs (rent, food, EMIs), 30% for wants (dining, travel, entertainment), and 20% for savings and investments. If you can push investments to 30-40% of income, you will reach financial goals much faster. The exact ratio depends on your income level, fixed obligations, and goals. The most important thing is to automate your savings on salary day so you invest before you spend.
Should I pay off debt or invest first?
It depends on the interest rate. High-interest debt like credit card balances (30-40% APR) or personal loans (12-18%) should be paid off aggressively before investing, because no investment reliably returns more than these rates. For lower-rate debt like home loans (8-9%), it often makes sense to invest simultaneously — especially in equity, which historically returns 10-12% over the long term. Always maintain an emergency fund regardless.
What insurance coverage do I actually need?
At minimum, you need a term life insurance policy (10-15x your annual income, pure term plan, not endowment or ULIP) and a health insurance policy (Rs 5-10 lakh base cover, preferably with a super top-up). If you have dependents, life insurance is non-negotiable. Health insurance is essential for everyone — a single hospitalisation can wipe out years of savings. Avoid mixing insurance with investment; keep them separate for better value.