What's there in the budget for me?!

The original plan was to publish the Evergreen Budget blog that we put last year. But one of my acquaintances told me - "Dei, Budget la enna sonnanganu oru blog ah ezuthi share pannu". Instinctively I told her, we have a evergreen budget blog and will share that. But as an after-thought, I took her comments as "God's" nudge and decided to write one. Afterall I was getting alarmingly lazy at writing and needed a good nudge. So here’s the Droplet's Budget 2023 Nugget. 

 Ahem! Oh hold on! This is not about the tax regimes and neither about non Linked Insurance payouts soon attracting tax payments. These are almost common knowledge now. So what's the bigger take away for us from this Budget. It is "Spending". I pretty well know most of us here are PhD's in spending and that too not by doing some theoretical course but by hard labors of actually Spending more than we earn and can barrow! So what can we learn from Govt's spending lay out this Budget? 

1. Where to spend 

2. How to maintain the Prudence

3. Creating future source of revenue. 

Let's talk about the Actual Budget now. If you Google - "Budget 2023", Majority of the headlines you get will talk about the Focus on Expenditure (spending) on Railways & Transportation Infrastructure. There will be almost nil noise on cutting out any subsidies (Freebies) that's been given out to the poor. So while focusing and spending on what is needed the most to fuel Economic growth now and create a infrastructure to aid future growth, the Govt has ensured that the basic support that is required to the dependents is not denied either. The Lesson- They are spending on where the growth is & by ensuring that these spends will abet revenue generation in future, there is hope of these spendings will turn out to be Investments. This all the while ensuring that most of the freebies provided remain intact. Talk of some prudence. 

When we speak to clients a constant theme that we get is - They don’t want to save up for uncertain future but enjoy today. So, enjoying today, is being prudent, in not giving up today's fun but we should also be mindful where we spend. If anything this year's budget lay out should teach us that one of our Spending should help us grow! Spend on learning a new course, learning a new skill, building something unique or at least treat your investments as "Spending" so that investment can create some passive income in future. Look the Govt has us Tax Payers to screw if they need more money. But what have we got? Nothing?!? No, you are wrong, we have the biggest advantage on our side that is - "TIME". Govts do not have time, they have just 5 years before they can prove a point but we don’t have that time limit to prove anything. Hence we should be smart, start early and use compounding to our benefit. Starting early does not mean starting when you are 20 or 25 or 30 years old, It is about starting today and not delaying the Budget planning to tomorrow. 

So while Govt has smartly increased its revenue through smart Tax policies and using the higher revenue to Invest in Growth & future income generation, we too should be smart and Invest "Ample Time" we have in our hands to build something that will help in our growth today and create future income all the while enjoying today that we have got in our hands. 

Praying for your and Nation's health, happiness & Growth. Jai Hind.

For financial planning and investment-related queries, write to us at dropletadvisory@gmail.com or call us at 9962399924 / 9551373455. 

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