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5 Common Personal Finance Mistakes Students Make & How to Avoid Them

5 Common Personal Finance Mistakes Students Make & How to Avoid University life is an exciting chapter filled with new freedoms, and one of the biggest is managing your own money. However, without a proper guide, it's easy to fall into financial traps that can have long-lasting effects. Building strong financial literacy now is the key to a secure future. Let's break down the five most common personal finance mistakes students make and provide simple, actionable steps on how to avoid them. 1. The Mistake: Having No Budget (or "Wingin' It") This is the number one financial sin. If you don't know where your money is going, you can't control it. Simply " hoping " you have enough money left at the end of the month is a strategy for failure. How to Avoid It: Create a simple budget. You don't need a complex spreadsheet. Start by tracking your income (allowance, part-time job, scholarships) and your fixed expenses (rent, fees, phone bill). Wha...
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Securing Your Wealth: Understanding Sovereign Gold Bonds (SGBs) Benefits

Securing Your Wealth: Understanding Sovereign Gold Bonds (SGBs) Benefits

Sovereign Gold Bonds (SGBs) is a government-backed security which was launched in November 2015 by the Indian government under the gold monetization scheme.
The government issues sovereign gold bonds twice a year at the current price of 24 karat gold to collect money for the capital expenditure required for the development and growth of the nation.

Securing Your Wealth Understanding Sovereign Gold Bond (SGBs) Benefits

All About The Returns Of Sovereign Gold Bonds (SGBs)

*The value of the SGBs fluctuates with fluctuation in the world gold price and can be redeemed at that price after the lock-in period.
*The government gives 2.5% p.a interest on the principal amount invested in sub twice a year.
*As per Livemint,
Average returns yielded by SGB over 8 years has been 13.7%p. a comprising the 2.5 interest given by the government.

Advantages Of Sovereign Gold Bonds (SGBs)

1) No design and making charges which is usually in the case of investing in physical gold.
2) No Impurities - Usually the physical gold may have impurities to make it stronger such as other metals.
3) No goods and services tax (GST) and no security transaction tax (STT) in trading.
4) No capital gains tax after 5 years.
5) Can be used as Collateral for loans.
6) Is tradable on stock exchanges.

Limitations Of Sovereign Gold Bonds (SGBs)

1) 5-year lock-in period although is completely redeemed in 8 years.
2) Capital gains tax is applicable if traded before 5 years.

Minimum and maximum investment

The Minimum investment is 1 gram.
The Maximum investment 4 kilogram.
Securing Your Wealth Understanding Sovereign Gold Bond (SGBs) Benefits

Ways to Invest In Sovereign Gold Bonds (SGBs)

This can be done through commercial banks, Post offices and Stockbrokers like groww, Zerodha etc.

BONUS TIP!!!

*If the current price of Sovereign Gold Bonds (SGBs) looks higher short-term fixed deposits can be used as a good alternative investment option for less risk-taking individuals and Sovereign Gold Bonds (SGBs) later can be bought through stock exchanges.

* When the government is issuing fresh gold bonds it is visible as an announcement in brokerage apps and on bank websites as well.

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