Whenever we think about investing, we have a specific goal
in mind. Our finances should be calculated so as to optimally meet those
demands. This means that if you need money to fund your child’s trip next year,
you can actually invest some spare money in a yearly fixed deposit and use the
interest next year for the trip. However, if you were to invest that money in a
10 year bond that will give you returns once every 5 years, you won’t be able
to fund the trip next year!
This is where a financial planning calculator helps. It helps you in determining how much amount on
money can yield what kind of results. Obviously, when it comes to something
such as buying shares or investing in a property, one can just estimate the
returns looking at the market condition. However, you cannot calculate the
exact results! Financial planningcompanies in india can offer you charts that have pre-calculated stats. The
stats include the amount of time that you can invest for, and the rate of
interest you will receive accordingly.
A financial calculator is important for other things apart
from investments. It is a handy tool when you’ve to calculate your loan
repayment! It will show you the amount of interest you have to pay at different
rates of interest, for different tenures. And by varying even one of these
variables, you can make significant changes to your repayment. Let’s see two of
these in some more detail –
1.
Rate of
interest: Rate of interest is the percentage of your loan amount that will
go as fee for taking the loan. The rate of interest if varied by even a single
percent can make a difference of lakhs of rupees every year! Try to get the
lowest rates of interest.
2.
Repayment
tenure: Repayment tenure is the amount of time that you’ve taken the loan
for. It usually depends upon how comfortable you are in repaying, and therefore
you take the loan for that much amount of time.
If you want more help, just Google My Financial Planner India!
