Last updated on April 22nd, 2020 at 04:08 pm
6 Useful tips for NRIs to get their financial plan in place this year: The Non-Resident Indians (NRIs) are the mass of people who stay outside India for more than 183 days in a specific year. Indian law allows NRI citizens to have bank accounts in India. Moreover, traveling to India is a quite common phenomenon among NRIs. Thus, they might face hefty expenses. As a result, excellent financial planning is needful.
6 Useful tips for NRIs to get their financial plan in place this year
The people who have an NRI account in different banks of the country often need to execute excellent financial planning to ensure proper economic conditions for a longer time. Appropriate strategies can help in proper money management resulting in an NRI citizen to live a peaceful life.
Useful tips for NRIs to make the right financial plan
Here are some excellent tips for the NRIs that can ensure the right financial condition throughout the year. On being an NRI citizen, you can go through the following tips and try following them to minimize monetary burden and improve your stability:
- Pay the taxes on time
As an NRI citizen, you should always pay your taxes on time. The Indian Government provides a decent amount of tax benefits to the NRIs. If you come under the DTAA scheme, consider it as a responsibility to pay both the taxes on time. Timely payment of the taxes can help you to avoid any nuisance related to tax laws. Moreover, you can expect your financial reports to be outstanding. It can help you to get different types of loans.
- Have adequate emergency funds
It is very important to have ample emergency funds. You can start saving in this fund in a bank either in foreign or India. Remember that the emergency fund can be a convenient option to rely upon while you need to access money in emergencies. If the foreign country you reside in has a much worthy currency than India, try opening an account there. In the case of an emergency in India, you can avail the money for making necessary payments.
- Buy property abroad
A good strategy to plan up finances can be to buy a property in the country you stay in. If you are sure to stay aborad for a longer tenure, avoid taking property for rent. A rented property can be expensive as you will need to give a lot of monthly payments to the owner. Compared to that, the self-owned property will only need proper maintenance. Thus you can get the opportunity to save a lot of money.
Consider the purchase of the property as a long term investment, and you can also put your property on rent and expect to get decent returns.
- Dual financial plan
A dual financial plan can be the best if an NRI citizen is not sure of his permanent stay. As the Indian law allows all the NRI citizens to open the NRI account, you must find a reputed bank and open one. There are different kinds of NRI accounts that you can open in India. You will also get tax benefits on NRE, NRO and FCNR accounts. All these accounts have different criteria that you have to maintain. You can also open an account in a foreign country and start saving money with the expectation of getting a good amount of monthly interest.
As an NRI, you can also be able to open an FD account in India. On returning India during the maturity period, you can utilize a lump sum amount of money.
- Start a business abroad
It is always a good option to start a business abroad. If it gradually succeeds, you can earn an excellent profit from it. Thus, the economic condition can dramatically improve for you. There are specific types of NRI accounts that are provided by the Indian Government. You can easily bring back the money when returning to India. Thus, the strategy to start a business abroad can be outstanding.
- Invest in ETFs
As an NRI, you can easily invest some money in the Exchange Traded Funds (ETFs). These funds can fetch the owner with exceptional returns. You can contact a reliable broker who can guide you to make the necessary investments on stocks and bonds.
So, these are some outstanding ways in which you can make your financial plan in the near future. A proper balance between Indian and foreign accounts can let you manage your finances successfully.
While being an NRI, you must consider talking with the bank executives for the type of account that will be preferable for you. Always remember to choose a reputed bank operating in the country to open any variant of the NRI account. The knowledge about each kind of account is necessary. With the help of it, You can easily manage your stay abroad along with the family members who live in India.