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Cult of Financial Influencers: All of a sudden, there has been a new breed of celebrities that have captivated the social media. Especially since the past 2 years. Financial influencers are trusted so much so that It's said the people in the age group of 20–35 are five times more likely to seek financial advice on social media from financial influencers. Not that there's anything wrong with it.
Do not make this mistake! Under the old scheme of income tax, taxpayers were incentivized to save more for their retirement accounts, such as NPS and PPF, or to invest for their future, such as in ELSS, etc. But under the new scheme, the government has removed all such incentives and instead increased the basic slab rate. So now, you do not have to save and invest for retirement in order to save tax.
Why Close Your Demat Account!? From a little over 4 crore demat accounts in 2020 to over 11 crore demat accounts in just 3 years. People's interest in equity investing hasn't changed since much of it was a speculative bet. That's why it's estimated that almost 75% of the DEMAT accounts are dormant. So, it's time to close your DEMAT account and get rid of all the unwanted annual maintenance charges. For that, you must:
My Financial Advice for Indian Women 1. No matter what, invest your savings in your own account. Basically, you must be the legal owner of all your investments. 2. Don't sign for debt that's not yours. Avoid signing a surety for any of your family members' debt. It's not worth the risk!
Unit Investment Trust (UIT) UIT is a registered investment company that offers a fixed portfolio of stocks, bonds, and other securities. There's no fund manager, so the funds are not actively managed. Under UIT, an investor buys the units of the fund and holds onto their investments for either capital appreciation or dividend income, or sometimes both. Where the mutual funds are open-ended and actively managed. The UIT has no fund manager, so the funds are not actively managed.
When we talk about debt, the feeling is usually negative. In this sense, debt is a burden that we put upon ourselves for either pleasure, as in spending (lavish or not), and for meeting immediate expenses, as an emergency. But there is this other reason where we can take on debt and, in turn, use the debt for productive purposes. Such debts are called productive debt. For example, if our government takes on a debt to fund infrastructure projects such as building roads, tunnels, highways,
Reverse Mortgage and its Benefits A reverse mortgage is a type of loan specifically provided to Indian senior citizens who have home equity. The loan amount ranges from Rs. 3 lakh to Rs. 1 crore, with the tenure of the loan being 10 to 15 years. For example, if you are a resident individual aged 60 and above and own a home but do not have any steady source of income, Then you can mortgage your home to the bank, which in turn will pay you a certain amount of money for your monthly expenses.
Debt Restructuring vs. Debt Refinancing: What's the Difference? If you are unable to finance your debt burden, If you are unable to pay debt obligations then you are forced to debt restructure. Here, you are altering an already existing debt contract. So, when you restructure your debt, your debt limit or the due date may be extended, interest rates may be tweaked, etc. Remember, debt restructuring is a negative phenomenon where your credit score will definitely take a hit.
> People who live below their means enjoy a freedom that people busy upgrading their lifestyles can't fathom. It is also true that we must live as if we are going to live for the next year and save and invest as if we are going to live for the next 100 years! Finding a balance is crucial, and only you can do it. To maintain your freedom of lifestyle, it is suggested that you maintain a "rainy day" fund.
My Failing Marriage Cost Me Everything! | Talk To Your Fiancée About Your Finance! All the details shared are done so after due authorization. You can also Ask Anonymously! Do you have such stories? Would you like to share it with us? If yes, Then reach out via the attached Google docs (or) DM us the details. Let's analyse your situation and try to find a practical solution while educating others in the process.
Secured Credit card and its usage; It's a credit card issued against collateral. So, if you open an FD and that FD balance is set on your credit card such that you can use the credit limit throughout the month while also receiving FD rate interest income, it's called a secured credit card. It is one of the best ways to spend while improving your credit score. So, how to use it? 1. Use your secured credit card for all your expenses.
What does "haircut" mean? I know I need a haircut. But, here, we are talking about haircuts in finance. In this context, haircut means to accept less than what is due. For example, a bank lends you Rs. 1 lakh. Now, for some reason, you are unable to pay back the entire Rs. 1 lakh due. So you've declared bankruptcy, right? In that case, the bank will approach you with a discount. They'll say, "I'll let go of 20% of the amount you owe me, so pay back only Rs. 80,000 as a full and final settl
Prenuptial Agreements in India A prenup is an agreement between a couple about what will happen to their assets if their marriage doesn't work out in the future. But India has no law on prenuptial or postnuptial agreements. So, even if you draft a perfect prenup, it holds no value in the eyes of the law. First of all, instead of a prenup, talk to your partner and come to an understanding before marriage itself. Let him or her know what your financial stance is. In fact, this is the best opti
Is Your Online Lender A Fraudster? Every year, especially since the beginning of the Pandemic, we've seen various reports of deaths due to loan sharks. As per RBI findings, over 50% of these lenders were illegal. Some even have their bases in China. So, this is how you take caution against them! 1. Read the Terms and Conditions. Before installing the app, check the terms. And be sure that these terms are in line with the RBI. 2. Know what you are being charged. Identify the processing fees a
3 Big Personal Income Tax Changes in Budget 2023 1. Change in IT slab rates: As you see, this is the current slab rate under the New Scheme of Income Tax. The basic exemption limit has been raised to Rs 3 lakh, and for every Rs 3 lakh in income, you'll have to pay 5% extra tax. Remember, if you've opted for the old scheme, you'll continue to pay the same rates as you did earlier. 2. Rebate on Income; Earlier, Income up to Rs. 5 lakh had a rebate of Rs. 12,500, so effectively no tax had to b
How to Improve Our CIBIL Score In Part 1 of this video, I've explained the importance of the CIBIL score. So, how to improve them? These are the 7 timely steps to improve your credit score. 1. Pay Your Dues on Time. Any delay will cost you your credit goodwill. 2. Avoid unnecessary loans. Taking on one loan at a time is suggested. 3. Stay away from unsecured sources. Basically, stick with the bank and NBFCs alone. 4. Take debt within your limits. 5. Avoid Being a Joint Account Holder or
What is a CIBIL score, and why is it important? [Part 1] The CIBIL score is a 3-digit numeric report based on your credit history. The rating ranges from 300 to 900, wherein anything above 700 is considered good. The CIBIL score is the lender's first impression of your creditworthiness. So, keeping a high CIBIL score is crucial. The CIBIL score plays a very important role in your loan applications. Because this score determines whether you get the loan and, if so, at what rate. Yes, you hea
How much in Liquid Assets Should You Have? When We talk about Personal Finance, it is to have cash in hand that's sufficent enough for us to cover all our basic needs. But, holding cash is one of the worst forms of investment. So, holding as little cash as possible while also meeting all our immediate cash requirements is suggested. But, how much should we hold? For that, we have one formula, "Liquid Assets to Net Worth." As per this formula, Divide your Liquid assets such as Cash holdings,
Employees Deposit Linked Insurance Scheme To extend the benefits of life insurance to private sector employees, the government has introduced the Employees Deposit Linked Insurance Scheme (EDLI) in 1976. So, basically, EDLI is an insurance for all those registered under the Employees Provident Fund. EDLI is specifically mandatory for employees with a basic salary under Rs. 15,000. It has a minimum benefit of Rs. 2.5 lakh and a maximum benefit of Rs. 7 lakh. The registered nominee receives a
Gold is rising. How do I invest in it? It is estimated that the price of gold could breach Rs. 60,000 per 10 grams by the end of the year. The best way to invest in Gold is to invest in the metal itself. However, holding large amounts of gold can be risky at times. Right? So, here are the top 3 ways to Invest in Gold 1. Gold ETF: Investor accounts in gold ETF have increased ninefold since 2020. People are buying Gold ETF for their ease of access and liquidity. 2. SGB: Sovereign Gold Bonds a
Equity vs. Fixed Income Instruments: Where should I invest? Did you know that a simple FD gives you anywhere from a 6.5% to a 7.5% risk-free return? As a result, in order to create alpha returns, you must earn at least 6.5% plus the return that you earn for the added risk that you took in order to invest in Equity. Right? With equity, the rewards are high, but that is only because the risk is equally high. wherein FDs and other Fixed Income Instruments give you guaranteed returns. At times
The 3-6-3 Bankers Rule. Have you heard of it? It's a slang term used to refer to an unofficial banking practice. It goes something like this: 3-6-3, wherein bankers accept deposits at a 3% deposit rate, lend the same money at a 6% interest rate, and go play golf by 3 PM. Basically, the rule describes how bankers would give 3% interest on their depositors' accounts, lend the depositors money at 6% interest, and then be playing golf by 3 p.m. How can we, the retail investors, use this?
20/4/10 Rule for Fancy Purchases; Let me explain this rule using the purchase of a car as an example. Suppose you are planning to buy a car. As per this rule, you must have the ability to make at least 20% as a down payment for your purchase. And the term of your loan must be 4 years or less. And, because it's a car, we check: what is your total transportation cost? And what's your total maintenance cost? All amounts included must be less than 10% of your total monthly income. If you see
The Ayushman Bharat Scheme and Its Advantages: Ayushman Bharat is the world's largest health insurance program, provided by the Indian Central Government. Under this scheme, each individual in a family is eligible for Rs. 5 lakh worth of free treatment. Benefits are as follows; 1. The scheme covers close to 1,400 procedures, including the treatment cost, room charges, doctor’s fees, operation theatre, ICU, diagnostic services, surgeon charges, etc. 2. This scheme is available pan-India, wher