Financial freedom this Raksha Bandhan – the best gift for your sister. The Raksha Bandhan 2018 just around the corner and I have the most perfect thing in mind to gift my sisters. No, it’s not sugar & spice and everything nice. In fact, she might not even like the gift. But, as brothers, we are obliged to do the right thing. Besides, the very purpose of Raksha Bandhan is to protect sisters from all kinds of evil in the society and all the problems she will incur later in life.
How am I so sure my sister will face issues in life? Well, I am just assuming, and I also know she ain’t no wonder women. So, I know life is not going to be easy on her and she will come across different problems in life: mental problems, financial problems, and family problems. Hence, keeping all the potential problems in mind, I have decided to give her the gift of financial freedom. I know the status is hard to achieve, but my gift will at least serve as a small step towards the goal.
Why financial freedom this Raksha Bandhan would be the best gift for your sister?
To answer that, I would like to take you back to the time when you were young, unemployed (maybe most of the readers are still in college – unemployed in other sense), lacking money to fulfil your small desires such as buy that recently launched McDonald’s burger, or bunk your college for a nice get together with your friends at the KFC, or maybe watching the new Shahrukh Khan film.
It’s okay! Life can be unfair sometimes, but now you can do that all because you earn. Anyway, your father taught you something – to be responsible – knowingly or unknowingly that doesn’t matter. But the point is, asking for money from your dad or any other person in your family was a little embarrassing and difficult because then he would go on to ask you the difficult question which you’ll hardly answer – why do you need the money? You say books, you get the money. You tell him you want the money to watch the new film, you don’t get the money and you get a few kind words for him as usual.
Now, as you can relate to the problem your younger sibling – your sister might be facing, you can save her from the embarrassment and the kind words. Also, you can help her grow up into a better person. Maybe not, but you can definitely help your sister manage her money. Instead of handing over the money just like that, invest it in an investment scheme.
You can use the following schemes to gift financial freedom this Raksha Bandhan.
- Fixed Deposit: Fixed deposit allows you to make lump sum investment and obtain fixed returns (principal + interest) at the time of maturity. The same is available in two types: Cumulative and Non-Cumulative. You can choose either of the two depending on why, how, and when you want your sister get the money. For example, if you want your sister to regular cash flow in her account, go for non-cumulative fixed deposit. If you want your sister to save the money for bigger tasks in life, go for cumulative FDs. Just for a gist, a typical FD investment doubles itself in approximately 10 years.
- Company Fixed Deposit: Company fixed deposits have the same characteristics as that of regular FDs except the fact that these FDs are offered by NBFCs. To name a few there is Bajaj Finserv, you have Tata Capital etc.
- Post Office Term Deposit: Post office term deposit or simply fixed deposits by Indian post offices, whatever you call it, is totally similar to Bank FD. Though the returns are higher and come with a lock-in period before which premature withdrawal is totally impossible. The investment is allowed in lump sum investments and in yearly deposits. If your sister is pretty young, like in 2nd or 3rd grade; you can deposit a small sum every year in a term deposit offered by post-office. By the time she grows up, she will have a huge corpus at her disposal.
- LIC schemes: LIC – the Life Insurance Corporation of India offers various schemes, especially when it comes to kids and women. You can find a suitable scheme and invest your money there. I remember investing in an annual deposit scheme for 10 years or 20 years (I don’t remember the tenor, my father keeps a track of it on my behalf) naming my sister as beneficiary. At the time of maturity, the investment will yield Rs 5 lakh. Pretty huge sum, isn’t it? If you need some help, let us know about it on our social media pages.
- Company Savings Plan: Lastly, there is an infinite number of non-banking companies in India, offering an equally high number of different investment schemes. You can choose a suitable one and start investing.
Things to keep in mind before buying financial freedom this Raksha Bandhan for your sister
- No need to take a risk with the money. You are doing it for your sister and I am sure taking a risk with the money is necessary. In short, don’t invest in market-linked securities. Go for the non-market linked securities or government securities.
- Invest just enough to justify it as an investment. If doing in a lump sum scheme, invest at least Rs 5000 or Rs 10000.
- Make sure to check the trustworthiness of the particular scheme. CRISIL rates the different securities in India, look for those ratings. Refer to Google for more info.
How can your sister use the financial freedom you gifted her?
- As soon as she grows up and gets off the age, she would be able to choose her career path on her own. She would be able to pursue her passion using the money even if the family doesn’t support her.
- If she is a wanderer, she would be able to travel across the country. Maybe not all of it, but she can definitely finance some of her budget backpacking trips using the money you invested for her. Backpacking is becoming a culture these days, so trust me, she would thank you someday.
- She can use the money to buy a scooter for her. A two-wheeler is an inevitable need these days, and given the rising inflation, your parents might not be able to finance a scooter for her. Well, she can use the money and finance it herself. This reminds me of the kid who collected Rs 62k; all of it in denominations of Rs 1, 2, 5 and 10 coins to buy a scooty for her sister on Raksha Bandhan. The news went viral. You can still find it on the internet.
- Last but not the least, she can keep re-investing the money and use it in her thick and thin after marriage. It can be for any reason at all.
In the end, just gift her a small chocolate along with the investment bond. It’s not a good thing to visit your sister on Raksha Bandhan empty-handed.
I hope you liked the idea. If you did, give it a thumbs up on the social media pages. Share it with your sister, and your friends. Thank you…