In near term if you happen to get 50K either throughCompany Bonus, Inheritance/Gifts, Lottery, Onsite Opportunity, sellingyour old car etc etc, below are the 6 useful things you can do. 1. Pay down Personal Loan / Credit Card Loans / Home Loans: If you have taken 2 Lakh Loan at 12% for 5 Years, your EMI will bearound 4450/- , paying 50K will save EMI worth ~18 months If you have taken Home Loan of 20Lakh for 20 Years at 12%, EMI is22000/- , paying 50k will save 2 years and bring down EMI to 18 Years. 2. Add it to your Emergency Fund : 50k can serve 5 Months Emergency Fund for a frugal living Bachelor/Married person. If you don't have one, this can be your first contribution towardscreating 12 months Emergency Fund. 3. Term Insurance: Buy a term insurance if you don't have one. ( http://www.rediff.com/money/2007/dec/07table.htm). Buy 6-7 times of your Annual pay. 50K can serve 2 - 5 years ofAnnual premium. 4. Mediclaim: Buy a Mediclaim policy for your loved dear onces. On an average for 4 Lakh Sum Insured, for 2 Adults 19-45 Years willcost around 8K per year. So 50K will serve 5 - 6 years of annualpremium 5. Training/Improve your skills Invest in Certification/Training which will benefit your ProfessionalCareer. Some of the Certification / Trainings are Siebel, Sap, DBAs,peoplesoft, Correspondng MBA , CFA , Testing, Marketing Seminars ,Stock Technical Analysis, PMP 6. Investing: Diversified MF: If you are 25 Yrs and want to retire at 50 Yr,putting 50K in a Diversified MF one time and investing One thousandRupee every month will create 1.3 Crores. What a nice, if inflationis zero right !!
