How to achieve these top 3 financial resolutions in 2020?

2020 marks the beginning of a new year, and a new decade, which is why it is also a great time to start new resolutions. In your list of New Year resolutions, you may consider including some financial to-dos as well. Financial decisions taken now, will help you achieve your goals in the future – be it buying a car, travelling overseas, or making a down payment on a home. Investing in a fixed deposit in 2020, for instance, can help you build a corpus for financial goals 5 years hence.

So, without further ado, look at these 3 financial resolutions you should consider making for 2020.

  1. Create a budget and make a note of all your expenses

If you haven’t yet planned your finances already, start by drawing out a budget. This would involve segmenting your expenses into different categories such as housing, transport, leisure and setting monthly limits for them. This exercise puts you in control of your finances from the word go. Following a budget for a while will also help you identify areas that are underfinanced or have an excessive budget. In turn, you will be able to identify pockets of funds that you can use towards investments and savings.

  • Secure your retirement with long-term investment avenues

With rising living costs, failing to plan for retirement is a very risky move. To meet these expenses, your savings alone won’t suffice owing to constantly rising inflation. What you’ll need is a vehicle that will give you returns that combat inflation effectively. Also, by planning for retirement early, you can enjoy the power of compounding. If you can tolerate some amount of risk at the moment, you should consider mutual funds to gain high returns. Other options you have include NPS and PPF. These are long-term investments that are oriented towards building a retirement fund and so are well worth your time.

  • Finance your goals effortlessly with Fixed Deposit

The benefit of investing in a fixed deposit is that you get a flexible tenor, generally up to 60 months, which you can use to work towards goals in a disciplined, targeted manner. In fact, when you choose to invest in Bajaj Finance Fixed Deposit, you can count on enjoying timely payouts as well. This is because Bajaj Finance holds the long-term issuer credit rating of ‘BBB-’ and the short-term issuer credit rating of ‘A-3’ as given by S&P Global Ratings. Further, its deposit carries an MAAA rating from ICRA and FAAA rating from CRISIL.

Alongside safety, you also benefit from significant returns as FD interest rates go up to 8.35% for senior citizens and up to 8.10% for regular customers. Moreover, Bajaj Finance Fixed Deposit has 0 unclaimed deposits and a book size worth Rs. 17,633 crores.

When you opt for payouts at maturity, here are the returns you can expect for various tenors.

Investor type: Regular

Deposit (in Rs.) Tenor (in yrs.) Interest rate (in %) Returns (in Rs.)
10,00,000 24 7.90 11,64,241
10,00,000 36 8.10 12,63,214
10,00,000 60 8.10 14,76,143

Investor type: Senior citizen

Deposit (in Rs.) Tenor (in yrs.) Interest rate (in %) Returns (in Rs.)
10,00,000 24 8.15 11,69,642
10,00,000 36 8.35 12,71,999
10,00,000 60 8.35 14,93,291

From studying these tables you’ll note that FDs greatly aid financial growth as they offer steady returns that peak when you invest for at least 36 months. In fact, with Bajaj Finance you can make your New Year’s resolution last longer by opting for FD Auto-Renewal facility. This allows you to remain invested for a longer term and enjoy renewal bonusses as well. Simply use FD calculator to forecast your returns before you invest to plan your finances better.

With efficient and disciplined saving and investing, you can make good on other resolutions such as:

  • Creating an emergency fund
  • Prepaying a home loan
  • Going on a family vacation abroad

In a nutshell, budgeting, planning for retirement and earmarking investments for your goals are crucial to your financial wellbeing and should be at the top of your list of New Year’s resolutions. If a safe investment suits your risk profile best, get proceedings underway by investing in Bajaj Finance Online FD today!

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