Is Indian Economy Sinking ? It’s Impact on Common Man & Financial Tips

11. Per capita income projected to shrink

12. Increased Poverty and debt trap.

13. Fiscal Deficit of India.

14. Geographical immobilities during crises

15. Technological & Policy Change

16. Financial Hardships faced by citizens

17. Many other unavoidable reasons.

We also cannot deny there is economic and financial emergency in India caused by the severity of pandemic leaving everlasting effect on life cycle of common man ever witnessed in the history of India. World bank expects Indian economy also to contract by 3.2%  in current financial year.

 

What a common man should do ?

“10 Must Follow Tips” – For Financially strapped Individuals/Common man –

1. Deferment of Bill payments – Request the parties to wait for payments as much as possible.

2. Rethink the expenses and Re-fit your daily budgets:-

• Avoid cigarette smoking, wine intake and any health hazardous product to cut down the average monthly cost.
• Avoid unnecessary expenses like music system, landline phones, streaming and game recharges. Rethink do you really need it?
• Cut down your entertainment expenses.
• Avoid burden yourself with fresh loans.

3. Application for Student Loans for higher studies of children. This can help take care of immediate education expenses.

4. Office or House Rent Negotiation : Request the owners for temporary rent relief for 2-3 months or acceptance of partial payments or lowering the amount of rent. Negotiate as much as possible.

5. Smartly use your credit card for short term relief.

6. Rethink option to sell the jewellery for immediate cash inflows or to mortgage or loan against it.

7. Loan against FDs or Mutual funds securities if you have investments or have savings.

8. Rethink to Sell your unused Second vehicle (two or four wheeler) which is of no use from past 1 or 2 years.

9. In extreme emergency – Borrow from relatives, friends, business Associates.

10. Best utilization of Available assets like putting your personal car on rent, renting furniture, tools , machines, laptops , computers to earn a rental inflow.

CONCLUSION: 

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence. so “Don’t be pushed around by the fears in your mind. Be led by the dreams in your heart.”

Article by CA Jatin Rathor founder Jatin Rathor & Associates, chartered Accountants Vishrantwadi , Pune is a Financial & Investment Consultants, Tax advisors & Accounts Executives and global business service provider located at vishrantwadi, pune.