If you are a salaried person working in the private sector, then you are quite familiar with the word appraisal.
It is the annual event when your employer assesses the performance and rewards it by giving salary hike.
Other than giving salary increments, the fundamental purpose of the yearly assessment is to gauge the capabilities and competence of the team.
Have you ever done the same with your money?
Well, the concept sounds weird, but actually, it is not. When you do an appraisal to it, you know many things.
Experts say that the right time to do appraisal is the month of March because the financial year ends and you know about the latest changes in the rules and regulations.
If you feel any difficulty in assessing the income or calculating the tax deductions, then it is better to call an expert like Iplan.
There you get a team of financial advisors who would look into your income and expenditure statement and suggest what the best strategy is.
How does it help?
Well, you do not earn money just to meet the ends. You also need to think about creating a corpus for the future.
Unless you do not assess the situation on the ground, you won’t be able to do financial planning.
Appraisal of your money tells you about your income, expenditure, and savings. If there is any disparity, then it is the right time to make the necessary alterations.
Appraising your money makes you wiser, smarter and more systematic about your financial status.
Hence, it is critically important.
How do you do money appraisal?
It is not a very difficult exercise. You know your current earning levels and expenses as well. Also, you have a clear idea about your monthly (or annual) savings. It includes all varieties of savings; insurance policies, bonds, mutual funds, gold, equity, etc.
Ask yourself a few awkward questions.
Will you get a lump sum of money (say 100,000 rupees) immediately in case of some emergency?
Have you covered yourself by taking an insurance plan that will give a big corpus to your family in case of some unexpected event?
Have you started provision for the milestone events such as college admission, marriage?
Such in-depth analysis will give you a fair idea of your financial status as of now. Ask experts at Iplan if you have any doubts.