Extra money
After the announcement of no tax on income up to 12 lakh rupees, the extra money left with employees should be put to good use. If spent on surplus and non-essential expenses, it can lead to financial instability.
Maximize Your Extra Income From Budget Tax Breaks
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Money
Where to use the extra money
One should utilize the extra money to build an emergency fund, which can later help in unwanted situations.
Clear Debt
Primarily, those who are taking advantage of the new tax exemption from the recent budget should prioritize paying down their debt. Typically, debts carry an interest rate of approximately nine per cent or more.
Invest For Long-Term Growth
A well-balanced strategy combines 80 per cent equity and 20 per cent debt, utilizing the low correlation between these asset categories to enhance risk-adjusted returns.
Surplus money
Surplus money should be saved for short-term and long-term goals.
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