How to deal smartly with the draconian monetary shock: Demonetisation! ~ CEDRUS WEALTH PARTNERS

What is demonetisation?

Demonetisation is pulling out of old currency from the economy by the central bank. This move takes place to withdraw the current functioning currency notes of certain denomination from official mode of payment.

Demonetisation of currency notes is an attack on black money, on counterfeit notes, and projected as part of a broader push to plunge in the new currency in the economy which can be either tangible or non-tangible in nature.

Demonetisation took place twice in India, during the year 1946 and 2016.

How did it affect the economy?

In 2016 demonetisation government had the main goal of removing corruption and black money from the economy and making the economy digitalised. Demonetisation did provide a boost to non-cash payments in the short term but that effect may be waning. On the other hand it also had a hard hit on the large part of society.

There are chances that such monetary shocks may reoccur in future too.Keeping in mind the uncertainty of future we must take preventive measures to avoid even the slightest chances of such problems in future.

How to cope up with such a situation?

Safety is better than cure. Analysing such a circumstance lets go through some smart hacks to avoid any panic in future :-

Maintain accountability of the cash earned

Keep record of money earned through any source. Maintain its accounts and don’t hide your income from the government.

Avoid malpractices

Honestly earned income sustains in long run and makes you fearless and stress free of any possible adverse outcome. Don’t involve in any kind of malpractice such as corruption, black marketing, illegal activity, etc.

Filing income tax return correctly and on time

Be loyal to the government by paying off correct amount of tax and at the correct time.
Tax should be calculated on the total income earned.

Start using digital currency for transactions

Today there are many methods to carry on online transactions such as net banking,mobile wallet,card payment, unified payment interface, cheques, etc.

Invest money on assets, shares, bonds, mutual funds...

The investment of many to assure liquidity in such a situation helps in combating it. Cedrus Wealth Partners provides ideal financial services to families, new generation entrepreneurs and young aspiring individuals in wealth creation, management of risk and achieving financial goals.

Cedrus Wealth Partners works in a strategic team approach, thereby to solve any possible situation that you may have. It is a totally independent advisory firm and can provide access to numerous different investment options that suit an individual’s investment needs and objectives.

At your service round the clock.

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