Master Your Finances: A Step-by-Step Guide to Creating a Budget That Works for Beginners Creating a budget might seem daunting, but it's one of the most empowering financial decisions you can make. Whether you're looking to save for a major goal, manage debt, or simply gain control of your finances, a well-structured budget is your roadmap to success. In this guide, we'll break down the process into simple steps tailored for beginners. Let's get started! Step 1: Assess Your Financial Situation Before you can create a budget, you need to understand your financial standing. Gather all relevant information, such as: Monthly income: Include your salary, freelance income, or other sources of earnings. Expenses: Track all expenses, including rent, groceries, transportation, and discretionary spending. Debt: Note down credit card balances, student loans, or other obligations. Savings: Review your emergency fund and other savings accounts. Pro Tip: Use budgeting apps like M...
Securing Your Wealth: Understanding Sovereign Gold Bonds (SGBs) Benefits
Sovereign Gold Bonds (SGBs) is a government-backed security which was launched in November 2015 by the Indian government under the gold monetization scheme.
The government issues sovereign gold bonds twice a year at the current price of 24 karat gold to collect money for the capital expenditure required for the development and growth of the nation.
%20Benefits.webp "Securing Your Wealth Understanding Sovereign Gold Bond (SGBs) Benefits")
All About The Returns Of Sovereign Gold Bonds (SGBs)
*The value of the SGBs fluctuates with fluctuation in the world gold price and can be redeemed at that price after the lock-in period.
*The government gives 2.5% p.a interest on the principal amount invested in sub twice a year.
*As per Livemint,
Average returns yielded by SGB over 8 years has been 13.7%p. a comprising the 2.5 interest given by the government.
Advantages Of Sovereign Gold Bonds (SGBs)
1) No design and making charges which is usually in the case of investing in physical gold.
2) No Impurities - Usually the physical gold may have impurities to make it stronger such as other metals.
3) No goods and services tax (GST) and no security transaction tax (STT) in trading.
4) No capital gains tax after 5 years.
5) Can be used as Collateral for loans.
6) Is tradable on stock exchanges.
Limitations Of Sovereign Gold Bonds (SGBs)
1) 5-year lock-in period although is completely redeemed in 8 years.
2) Capital gains tax is applicable if traded before 5 years.
Minimum and maximum investment
The Minimum investment is 1 gram.
The Maximum investment 4 kilogram.
%20Benefit.webp "Securing Your Wealth Understanding Sovereign Gold Bond (SGBs) Benefits")
Ways to Invest In Sovereign Gold Bonds (SGBs)
BONUS TIP!!!
*If the current price of Sovereign Gold Bonds (SGBs) looks higher short-term fixed deposits can be used as a good alternative investment option for less risk-taking individuals and Sovereign Gold Bonds (SGBs) later can be bought through stock exchanges.
* When the government is issuing fresh gold bonds it is visible as an announcement in brokerage apps and on bank websites as well.
Comments
Post a Comment