Your monthly expenses will be reduced after GST decreases
The government has given great relief to the common families by cutting GST rates on the occasion of festivals. After the new GST slab, which will be implemented from 22 September, the expenditure on grocery, clothes, insurance and many important things will be reduced. According to a report by money control, if your family spends around Rs 80,000 per month, then after the GST deduction, there can be a savings of up to Rs 1,600 every month. Prime Minister Narendra Modi announced this deduction from the Red Fort on 15 August, which is now coming into force from the first day of Navratri. This will not only reduce the expenditure on festivals, but will also show a difference in the budget of the people.
Real deficiency will come in monthly budget
According to the report, an average family spends around Rs 20,000 a month on grocery. After the GST deduction, this expenditure will be reduced to about Rs 18,750. Similarly, the expenditure on health and life insurance premium will be reduced from Rs 3,348 to Rs 2,837. The expenditure on the utility bill is likely to remain almost the same.
According to Vivek Jalan, partner of Rote Advisory, the GST slab of most items will decrease from 12 per cent to 5 per cent, which will save the families a lot of money. For example, if the monthly budget of a family is Rs 3 lakh, it will save about Rs 4,000. At the same time, this savings can reach Rs 11,400 for a family spending a monthly expenditure of Rs 10 lakh.
Invest the money saved money
Instead of increasing the expenses of the additional money in hand due to reduction in GST, it is being advised to invest in investment. Pankaj Mathpal, the founder of Optima Money Managers, says, “When you buy a thing of 100 rupees for 90 rupees, you can either buy something or invest from the remaining 10 rupees. It would be a better option to invest.” Regular imposition of this savings in mutual funds through SIP can prove to be a profitable deal. Especially options like equity funds, gold ETFs and international mutual funds can give better returns.
Spend wisely on festivals
Increasing spending in festivals is common, but this time it is necessary to take restraint on the savings received due to the deduction of GST. Brands and companies will bring attractive offers in the market, but should avoid spending excessively. Experts believe that a little investment will bring good profits for you in the long term. Investing savings according to the right asset allocation strengthens financial security.