Change jobs for right reasons

People often change jobs just for a higher income level so that they could meet their lifestyle demands. Instead, you should change jobs for reasons like giving a thrust to your career.

Mr. Sadagopan, director Ladder 7 Financial advisories and a certified financial planner says that even if a person's income increases by 10% year-on -year (YoY), the expenses increase by double and race ahead of the income.

Device a plan

If you are burdened with high debt, try to reduce your expenses and start paying off the most costly of al the debts. Simultaneously reconcile the other loans a cheaper rate for effective debt management.

You can pay off this costly debt by liquidating the investments which yield meagre returns. For instance, if you are holding a credit card which carries an annual interest rate of 50 percent. Since there is no other asset class that yields a return over 50 percent, it is better if you pay off debt. Though this will disturb your other investments but you can always compensate for them after paying off the expensive debt.