Question

Develop a financial strategy for your personal finance and explain the importance of having a good credit rating

Answer 1

Financial strategy includes cash inflows, managing the available financial resources.

Financial strategy for my personal :-

1. Main source of finance to me is salary from my paartnership firm and other rental income from my properties. These are all the cashinflows.

2. Management of my financial resources are

A. Usage for my neccessaties and house hold purposes

B. Payment of insurance premiums for all family members.

C. Investments in fixed deposits in nationalised bank.

D. Investment in diversified portfolio in stock exchanges and also in mutual funds.

E. Payment of home and other loan installments.

This is my financial strategy.

Importance of having good credit rating.

1. Good credit score makes you eligible for loans

2. Easy availment of credit cards

3. Lower rate of interest for all loans availed by you.

4. Higher credit card limits

5. A good credit score gives you more negotiating power.

6. Better eligibility for insurance policies.

These are all the information required to solve the above given question.

If there is any clarifications required regarding the above provided answer, please mention them in comment box.

I hope, all the above mentioned information and explanations are useful and helpful to you.

Thank you.