Get out of debt using the debt snowball method

With the recent economic crisis, mortgage crisis, high gas prices and rising costs of basic living, many people are finding ways to get out of their overwhelming debts. There are a lot of people who try their options to get debt free but ..... More »

Are you unaware of any THD/CBSD account reported on your credit report?

You might find an account in the name of THD/CBSD reported on your credit report. If you are not sure about this account, you must dispute this item with the credit bureau reporting it. THD/CBSD stands for The Home Depot / Citibank South Dakota. More »

Facts about the escrow account

Every year thousands of people make big purchases on their homes. These new homes come equipped with all the latest amenities like granite counters, new appliances, the fresh smell of paint and new carpet. Borrowers are very excited to move to their new furnished home. More »

How to recover from Bankruptcy?

If we have been through bankruptcy then maximum of us think that our credit is shattered and we will not be able to regain it, but not that all times, you can regain credit through some unique ways. After filing bankruptcy your goal or motive should be .. More »

Mortgage Fraud

Mortgage fraud has been declared as one of the rapidly growing crimes (named as white collar crimes) in the country. After analysis it has been found that every fraud has some kind of material misrepresentation, misstatement .. More »


How Does Wealth Creation Work and What Kinds of Plans are Available?

In economics, wealth is defined as the net worth of an individual, that is, the value of assets owned by the individual net of all liabilities owed at a given point of time. For a layman, wealth could simply mean being rich. Well, wealth is much beyond these two definitions.

Deloitte, the audit, tax, consulting, enterprise risk and financial advisory services provider defines wealth as follows:

Wealth is the ownership of valuable resources. Wealth creation involves the building of assets by means of careful investment, usually over a long period so as to achieve an income stream that will ensure a continuation of a high-quality lifestyle in the years beyond retirement.

In a nutshell, wealth creation should give you the financial freedom to do what you want to do. For the purpose of long term wealth creation you need to carefully invest your savings over a long period of time so as to ensure that you have a sufficient corpus to meet your financial goals at different milestones of your life child education and marriage, home, and retirement. Hence, a disciplined and systematic investment approach is necessary for wealth creation.

Now, the question is where to invest for wealth creation. The answer to this question really depends on various factors such as your financial goals, age, number of dependents and risk appetite.

There is no one approach for creating wealth but it depends on every individual circumstances and personal choices. Various factors such as financial goals, market risk, return on investments, market volatility should be considered while investing. Your investment is likely to fall in four major asset categories over your lifetime.

debt equity


Equity includes any money invested in direct equity, mutual funds, exchange traded funds (ETF) and unit linked plans. The value of equity investment fluctuates as per the performance of funds. They can give high returns in the long run, however, they are highly volatile too, especially in the short term. Moreover, you need to be an experienced investor to ensure you are picking up right equity funds.


Also known as fixed income funds, they mainly comprise of Fixed Deposits (FDs), Public Provident Fund (PPF), National Saving Certificate (NSC) and government bonds to name a few. They give a fixed interest every year, along with the return of the principal amount at the time of maturity. Safety of principal amount and the regular income are the two important features of investment in debt. While the returns are fixed and guaranteed, but they are not high enough to give you edge after discounting for inflation and taxation.

Real Estate

Investment in real estate includes every property that you buy residential, commercial or land as well as the real estate mutual funds. The gradual increase in prices gives more stability to investment. Moreover, regular income can be earned if the property is rented out and the returns on investment can be increased by renovations and repairs. While the real estate market is less volatile compared to the equity market, there might be phases when real estate prices experience volatility. Also, you need to make large capital investments in real estate and it is difficult to sell property quickly. The sale of property is subject to capital gain tax, TDS and some other taxes (depending if the property being sold is constructed or under construction), which eventually lower the net returns from real estate investment. This makes real estate investment rank lower on liquidity and returns on investment parameter.


Commodities include precious metals such as silver and gold in the form of coins, bars, ETF and mutual funds. Commodity investment is perhaps the easiest form of investment and can be bought or sold at any point of time as per your financial requirements. Over the long-term, investment in gold and silver can give high dividends and they can be easily mortgaged for availing loans. However, there are no tax advantages and fixed or regular income. Further, people have a tendency to stock up gold and silver rather than selling it. So, that makes commodities a less liquid investment.

Every asset category has its own risk and return profile, so does an investor. There are several investment plans to consider if you plan to invest in equity and debt instruments.

Mutual Funds

A mutual fund is an investment option in which money obtained from various individuals is invested in the securities like stocks, shares, bonds or commodities. Mutual fund schemes charge a small percentage of your investment as fees each year for professional and expert management of your investment. So your risk of losing money through investments is reduced in compared to if you decide to invest directly in the market without having the requisite expertise. There are different kinds of mutual funds such as equity, debt and balanced funds. So, you can accelerate your wealth management goal by investing in different mutual fund schemes depending on the risk you can bear.

However, returns on a mutual fund are by no means guaranteed as they are subject to the performance of funds. If you want to switch from one fund to another, there is no such option available. The only way to protect your investment is to completely exit by paying an exit load and then pay an entry load again if you wish to re-invest. So, if your investment amount in mutual funds is huge, the net returns will get affected.

Public Provident Fund (PPF)

One of the safest debt instruments, PPF investment currently gives an annual interest of 8.75% on deposit amount between Rs500 to Rs1,50,000 every year. The interest and returns on maturity amount is not taxable. However, the downside is that there is a lock in period of 15 years. The only option is partial withdrawal after after completion of 5 years from the date of opening this account.

Fixed Deposits (FDs)

FDs are a safe investment for a conservative investor since it provides a fixed rate of interest and can be easily converted to cash in case of emergency. But, the actual benefits or income from fixed deposit are annulled by the increasing inflation and tax cut. Let’s take an example here. You invested Rs 1,00,000 in tax saving fixed deposits five years back.

Principal Amount Invested (A)


Interest Rate (B)

10% per annum

Current Inflation Rate (C)


Net Interest Yield (B – C)


Though you will get returns @ 10%, effectively you will get only 4% after factoring in inflation. The final effective return would be even lesser after deducting tax.

Term Insurance Plans

A term Insurance plan is the purest and simplest insurance plan that provides a huge life insurance cover at a very low cost for the specified period of time. If the policyholder dies during the policy term, the death benefit (sum assured or life cover amount) is paid to the nominee. The premium as well as death benefit are tax-free. There is no maturity benefit, though. An investment in a term insurance plan is highly recommended for your peace of mind and to ensure financial security of your dependents after you are not around.

Unit Linked Insurance Plans (ULIPs)

ULIPs are a goal-based investment that provides the benefit of insurance protection with strong wealth creation opportunities. A part of money invested in ULIPs is directed towards your life cover and the residual portion is invested in equity, debt or balanced funds of your choice. Though the returns on your investment is market-linked, you have a control over it since you have the flexibility to switch funds from equity to debt or vice versa at no cost, as per your financial goals and market fluctuations.

ULIPs have given steady returns over the last few years. ULIPs with an aggressive fund allocation (50-75% of the portfolio in stocks) have risen to 28.62% from 9.73% in the last five years.



ULIPs have a greater tax advantage too. Under Section 80C of the Income Tax of India a deduction (maximum of Rs 1,50,000) from the taxable income of individual is provided for the premium paid on ULIPs. The capital gains, maturity benefit and death benefits are also exempted from tax under Section 10(10D). ULIPs from reputed private insurers like ICICI Prudential have proven performance and track record, thereby commanding a trust and respect of investors.

Ideally, your wealth portfolio should be a healthy mix of equity, debt, real estate and commodities. But, again how and where you invest depends on your wealth creation goals and risk-return trade-off you are willing to take off. What you must remember is that wealth creation is not an overnight phenomenon. You must be disciplined, systematic and committed in your wealth creation approach.

Is Financial Spread Betting Tax Free?

If you trade in the traditional markets, Stamp Duty and Capital Gains Tax can eat into your profits. In the UK, financial spread betting is not subject to the taxes that traditional trading is:

UK Capital Gains Tax

When you sell an asset the profit you make is liable to Capital Gains Tax (CGT). This tax is also levied when you sell securities on the traditional market. All profit over the Annual Exempt Amount (AEA) is liable to CGT. In 2015/16, the AEA is set at £11,100 for an individual.

For example, you sell £40,000 of shares that you purchased for £20,000 and make a pre-tax profit of £20,000. When the AEA is subtracted (£20,000 – £11,100), the amount liable to Capital Gains Tax is £8,900.

CGT is normally charged at two separate rates, dependant on your income:

Basic rate taxpayers pay the Standard Rate, levied at 18%, for individuals with a total taxable income and gains up to £31,786.

Higher rate taxpayers pay the Higher Rate, levied at 28%, for individuals with a total taxable income and gains in excess of £31,786.

Using the example above, as a Standard Rate taxpayer you would pay £1,602 of your profit to the taxman.

Assuming you are liable for the Higher Rate of CGT, you would pay tax of £2,492 on your gains.

If you placed identical trades using a financial spread betting provider you would usually be exempt from CGT and can keep the £20,000 profit.

UK Stamp Duty

As a normal UK taxpayer, you will pay a 0.5% rate of Stamp Duty at the point of purchase when you trade on the traditional market. In the above example you would pay £100 of your profits to the taxman by way of Stamp Duty.

In financial spread betting, because you never own the underlying asset, you would not be liable to pay Stamp Duty on your profits.

With Stamp Duty and CGT added together, in the above scenario you stand to lose £1,702 as a basic rate taxpayer, or £2,592 as a higher rate taxpayer. In financial spread betting, you can trade on the same markets but keep 100% of your profits.

Tax laws are subject to change and depend on individual circumstances, we encourage you to seek independent tax advice. If spread betting is your main income you may be liable to pay tax on your earnings.

Because your spread betting gains are treated as tax-free, your losses are not deductible against other income.

Risk Warning: Spread betting is a leveraged product. Losses may exceed deposits.

Financial Responsibility and California Auto Insurance

Like all states across the nation, California has regulations and laws regarding car insurance that relate to drivers and the insurance companies that insure them. California has minimum coverage laws regarding driver liability and property and casualty damage.

California’s car insurance laws are outlined in the California Insurance Code. These laws include requirements for drivers’ financial responsibility. Drivers are required to register their vehicles and provide proof of insurance coverage under California law. Drivers looking for auto insurance Downey CA can get same day insurance when they need it.

Driver Financial Responsibility

California’s financial responsibilities laws require that drivers on California roads have auto insurance. If a traffic accident happens, the driver must provide necessary financial responsibility.

Minimum responsibility is established with car insurance policy coverage or a deposit of $35,000 in cash to the Department of Motor Vehicles in California. The driver can also provide a surety bond of this amount and/or offer a self-insurance certificate to meet these requirements.

Drivers are most likely to offer an insurance certificate as proof of financial responsibility in California. The certificate may be requested on demand in certain conditions, such as when the police request the driver’s registration in a traffic accident. An authorized letter provided by California’s Department of Motor Vehicles is sufficient if the driver is self-insured.

Driver Liability

California requires minimum liability coverage of all drivers. Drivers in California frequently use car insurance to meet these minimum liability coverage amounts of $15,000 for a single person or $30,000 for two or more people. Liability and bodily injury cover pay for injuries or death that occur when one or more people are involved in an accident with the insured driver.

Property and Casualty Coverage

California law also requires minimum coverage amounts for property and casualty damage. This provision covers damages caused to other persons’ property when the insured driver is involved in an accident. California’s minimum property damage coverage per vehicle is $5,000.

Uninsured Driver Insurance

Uninsured drivers are a problem in California. The state does not require insured drivers to carry uninsured motorist coverage (UM) but certain limits must be observed when it is applied. Uninsured coverage amounts must be equal to bodily injury or liability limits carried by the insured. When an insured driver elects UM cover, California’s insurers limit amounts to $30,000 per person or $60,000 for two or more people injured by an uninsured motorist in an accident.

Under-insured Driver Coverage

Underinsured motorist (UIM) coverage must be purchased when the California driver purchases uninsured motorist insurance. Car insurers in the state of California must offer an equal amount of UIM insurance. The insurer may also offer UIM coverage that is higher than the insured’s uninsured motorist cover.

Making Workers’ Compensation Workable

As with most states, Iowa has implemented a Workers’ Compensation Act that is designed to help workers injured on the job. The basic idea of workers compensation is to ensure employees receive the care they need for certain workplace injuries. The situations covered by the Act include injuries on the job (section 85), occupational diseases (section 85A), and hearing losses attributed to occupational conditions (85B).

The law requires an employer to pay all medical care costs that are considered reasonable and necessary for the treatment of any injury. The types of compensation may include payment of lost wages and even a reimbursement for travel necessary to get the proper care.

An additional protection for every worker is prohibiting a medical care provider from seeking payment of charges for treatment while the claim is unresolved. Such workers’ comp claims may be contested over the total amount of the costs for care, the type of care, or the reasonableness of the care.

There are limits on the amount of compensation an employee is eligible to receive, currently 80 percent of total spendable earnings of the employee. This is normally understood to mean the net pay after deducting taxes from the weekly earning. The law provides a formula for calculating this amount, and it takes into consideration such things as total income tax exemptions and marital status. In addition to these factors, there is currently a limit of $1,498 weekly for PPD and a maximum of $1,628 weekly for TTD, HP, PTD and death benefits.

There are additional considerations and rules when it comes to determining the total disability payment a worker will receive, including whether the disability is temporary or permanent.

Under the law, employees must file a claim, and their situation will be evaluated by the staff of the Workers’ Compensation Commissioner. There are six different types of settlements that can be approved and awarded by the Commissioner, and the situation and facts of each case decides which type of settlement is appropriate. This process can sometimes be complicated and even intimidating, and it oftentimes takes a qualified workmans comp lawyer to help with the process.

For example, there are two basic Agreements for Settlement and Compromise, and the four other types of settlement are used in conjunction with these. Selecting and working with the right form of settlement will determine how much money is paid out and when, including the potential for a lump payment of funds to be received.

Who Needs To Buy Personal Accident Insurance

Personal Accident Insurance

A Personal Accident Insurance plan safeguards you and your family’s finances in the event of an accidental death or disablement, leading to loss of income. Your savings might face a blow in the event of such tragedies when you have to incur hospital expenses and medical bills, so it helps a lot to stay prepared.

Minor injury inducing accidents such as falling off a bicycle or slipping on a wet floor are valid enough reasons to claim financial support from your insurance company. You can buy a personal accident policy for any of your family members (spouse, children or parents) if they fall under the age range of 18-80 years.

  • The Ideal Personal Accident Insurance Candidate

A report by NCRB (National Crime Reports Bureau) illustrates that there’s been a staggering jump in accidental death statistics—from 13.6% in 2002 to 51.8% in 2012. Considering the significant population growth of India, it’s not difficult to imagine that a person dies in an accident every minute.

Kapil, an engineer at a major IT firm in Delhi recollects how his wife pushed him to insure his entire family against accidents. He says,

“I’d signed-up for all insurance plans except the Personal Accident Insurance, thinking that any medical bills would be covered by my health and life insurance policies. I was wrong.”

On his way to work, he remembers colliding head-on with a speeding car that left him hospitalized for weeks.

His wife’s idea of getting a Personal Accident Insurance helped in paying the medical bills, and also provided a steady source of income for the entire duration that he was hospitalized.

InsuranceYou can take a few things away from Kapil’s personal experience:

  • The Personal Accident Insurance gave leverage in ways other policies couldn’t
  • The financial burden on Kapil’s family was considerably reduced
  • Money was always at hand while Kapil missed work
  • If Kapil had faced disablement, his family would not face a financial crisis

Remember, even a bump on the head is enough to potentially cause death or disablement. It’s always better to be prepared—financially and emotionally— to deal with the situation no matter what the scenario is.

  • Personal Accident Insurance Coverage

The financial benefit covered under the Personal Accident Insurance policy can be availed by the beneficiary in case of any disability that prevents them from being able to work. In situations where the beneficiary passes away, the nominee receives the assured amount as benefit. Rediff suggests some concrete reasons to get a personal accident policy

Here are the conditions for welfare entitlement provided under the accidental insurance scheme:

  • In the event of an accident causing death, the Personal Accident Insurance provides 100% returns of the sum insured to the beneficiary or the nominee
  • Accidents such as loss of eyesight or loss of limbs that cause permanent disability to the policy-holder. In such cases, the entire sum insured is provided to the beneficiary
  • Accidents that include loss of eyesight in one eye or loss of one limb. Usually, a percentage of the entire insured amount is provided as financial support
  • Accidents that are temporary in nature, restricting the policy-holder from working and earning money, fall under this category. The total sum insured isn’t provided in such circumstances, but only a fraction of it is provided as one-time payment or as weekly/monthly instalments
  • Expenses paid as a result of hospitalization due to an accident
  • A fixed amount of money is paid as daily allowance to the insured individual to cover expenses of the medical aid provided at the hospital

As the beneficiary, you must always explore the technicality behind the term ‘disability’ before you sign the papers. Total permanent disability means losing eyesight in both eyes or losing both your arms and legs. Permanent partial disability, on the other hand, refers to losing a limb or an eye. Sit down with the insurance experts and ask them to explain everything detail before you decide to buy a policy.

  • Personal Accident Insurance Disqualification

Although the Personal Accident Insurance protects against deaths or disabilities caused due to accidents, not all deaths and disabilities make the cut for the insurance eligibility.

Following are the types of mishaps causing death/disability that disqualify your insurance candidacy:

  • A self-inflicted act such as an attempt to take your own life resulting in death or total/temporary disability
  • An injury/illness existing before the signing of policy papers
  • A disability or death as a result of consumption of liquor or use of drugs
  • Death or disability as a result of engaging into aerial adventure sport such as hot air ballooning or aviation other than as a passenger
  • A disease affecting the mental cognitive functionalities of an individual thereby causing death or disability or venereal diseases resulting in same
  • Any act articulated as a criminal offence against the law
  • A war, rebellion, insurrection, revolution, civil war, invasion, mutiny, arrests, restraints causing death/disability.
  • Use of radioactive material for diagnosis or treatment of diseases
  • Death/disability as a consequence of childbirth or pregnancy

You and your loved ones are surrounded by a dangerous environment, and the only thing you can do is be financially prepared, so that there’s always a continuous flow of money to pay for any situation that poses a threat to your or a loved one’s life. ICICI Lombard Personal Protect Plan provides customized coverage of INR 3 lakhs to INR 25 lakhs as insured amount, to help you and your family financially when you need it the most.

Is foreign investment the next step to improve your business?

Foreign Investment

Often a business can only grow so far under its own steam before it starts to look elsewhere for expansion opportunities. Sometimes, the best opportunities come from places that a business owner might not have considered before, such as those offered by foreign investors who are looking to gain a foothold in the business owner’s country.

The pros and cons

There are several advantages to wanting to attract foreign investment as a means of growing your business. The most obvious is the access to greater capital, but there is also the opportunity to create more jobs locally and as a result, increase the sales opportunities for suppliers in your area. Increased prosperity for the community in which you work is always good and has the added bonus of you feeling good about something that is beneficial for all concerned. In time, this may also lead to your work area being recognized as an attractive place in which to invest.

Then there are the direct advantages to your business. A foreign investor such as Fahad Alrajaan, a key and prolific investor in the Middle East who is always looking for business expansion openings abroad, will undoubtedly have access to a range of people whose skillsets are just what your business needs and which are lacking locally. They may also have the means of introducing your company to new technologies, as well as new exciting markets that will speed up your growth.

Foreign Investment

Global Business

However, just as there are pros to foreign investment, there are cons. Perhaps chief among these is the risk you run of putting your local or homegrown business associates’ noses out of joint. It is possible that suppliers and even customers will desert you if they see you sourcing foreign investment. Foreign investment may also drive down the prices of the goods you supply, so that you are able to provide goods to your customers more cheaply. This has a knock-on effect of forcing your competition to do the same, which may ultimately lead to job losses.

Then there are the internal disadvantages to you and your business. A foreign investor will naturally want to have some say and control over how their money is spent, and this will likely curb your freedom to act as you choose. Through expansion, they may take your company in directions you had not considered before and do not want to venture into. Moreover, while you may have a concern about acting in the best interests of your company and local community, they may not. They will want to receive a good return on their investment that may come at a price you are unwilling to pay.

Finding a foreign investor can be a difficult business and you will need a strategy to do so. You will need to target the correct industry sectors to find suitable investors who match your vision, as well as ensuring your business has the potential to grow. In short, your company needs to be just what a foreign investor is looking for.

Free Credit Scores in India now a reality

credit score

Credit and credit scores are becoming increasingly important in our lives. Whether it is access to loans, better interest rates or for job offers, CIBIL scores are being used in almost every sphere of our lives.

A common question that crops up is:

How do I get my CIBIL score ? Or from any bureau for that matter.

You can obtain a FREE credit score by following these simple steps:

  1. Visit Register by providing basic information regarding your name, E mail and current city of residence
  2. Provide your PAN number, Date of Birth and Aadhar Card number. In case you do not have your Aadhar number, you may upload a copy of any other address proof that you may have such as passport, ration card, rental agreement etc
  3. Validate your identity

credit scoreAfter you submit this basic information, your credit report and score will be generated. A notification is sent to you once the report is ready. All you have to do is login to the website to get access to the latest in the world of credit and credit score. You also get access to several savings opportunities which will help you to manage your credit and save money. Every customer gets access to a customised space on the website which has a wealth of information on a person’s credit profile, various financial tools such as loan calculators and score simulators, customised offers on home loans, personal loans and credit cards and the latest news, launches and product offerings in the world of finance.

Now, getting a credit report is no longer cumbersome. The entire process is completely free. No credit cards, no hidden charges, completely secure and you can opt out anytime.

It is to be noted that the credit report provided is from Equifax which is among the largest credit bureaus in the world and among the 4 licensed to operate in India by the Reserve Bank of India.

Written by Arun Ramamurthy, founder of which is India’s premier credit management platform.

Will Indian outpace China to to become the key driver of Global Economy?


On Thrusday(27.08.2015) Union Finance Minister Arun Jaitley said that, with a growth rate between 8 to 9 percent Indian can outpace China and become the lead driver of Global Economy.

In and interview, Jaitley told, “The world needs other engines to carry the growth process. And in a slowdown environment in the world, an economy which can grow at 8-9 percent, like India, certainly has viable shoulders to provide the support to the global economy,”.

The minister said that investors need not fear about any legislations to invest here as India has already laid down the “Red Carpet” for businesses looking for investing in India.

He added, “My message to the people wanting to do businesses in India is that there is a red carpet laid down for you. India needs investments, India invites investments and we are going to be one of the more investor-friendly destination.”Economy

India is projected a growth rate of 8-8.5 percent in the current fiscal year whereas in 2014-15 the GDP grew by 7.3 percent.

Arun Jaitley said, “In an environment where there is a relative global slowdown, India seems to be doing reasonably well. We finished last year with 7.3 percent growth rate, will probably finish this year with a slightly better growth rate than that and next year hopefully will be a little better.”

International Monetary Fund(IMF) estimates that in 2025-16, with a growth rate of 7.5 percent India will overtake China as the fastest growing emerging economy. And there will be a decline in China’s growth rate from 7.4 percent in 2014 to 6.8 percent in 2015 and a year after 6.3 percent.

Finance Minister Jaitley said, “I see this as a great opportunity. The Chinese normal has now changed. It is no longer the 9 percent, 10 percent, 11 percent growth rate. If we can continue to reform at a faster pace and really attract global investment, then our ability to provide that shoulder which the world economy needs will be much greater”.

“When the Chinese economy slowed down a little, it didn’t impact much. When the devaluation and the currency war started we did get somewhat adversely affected. When global markets fell, we also felt a huge impact in terms of currency and markets. But within a day we had recovered”, he said when asked about the slowed down of Chinese economy and the crash in the stock markets.

9 Ways of improving your financial situation and money-saving tips

Save money

1) Paying yourself every week : – this is perhaps one of the best way to start budgeting for yourself. You can do that on a weekly or a daily basis. Keep aside $25-$50 or any amount of your choice and put that in a safe place. This is an amount that you are trying to save from your budget and use it later. So you won’t touch this money unless or until there is some serious emergency and you are in dire need of money. This kind of saving money will also help to minimize or eliminate your impulsive spending habits. By saving $50 every week, you can actually save $200 in a month and $4800 in two years. Of course this is not including the interest, but still this is a good money-saving opportunity.

2) Minimize your shopping habits : – people who love shopping very frequently can actually save a lot of money every year if they minimize their shopping habits. Before you spend money on anything, you must ask yourself first whether you really need it or not. Many a times, people buy things that is actually not required urgently, and therefore it leads to wasteful spending. One pair of jeans, a sweater and one pair of shirts can be enough for a few months, so just buy what you absolutely need and pass on those items that aren’t necessary.

3) Use your bank’s own ATMs : – it is always recommended to withdraw money from your own bank’s ATM machines. Whenever you withdraw money from other bank’s ATMs, they will charge you a fee. This can build up to a good amount in a year, just in fees, which can be easily saved.

4) Keep an eye on your spending : – it is a good idea to track your spendings on a daily basis. Write down every single dollar you spend. This will give you a “birds-eye” view and see where your money is exactly spent on a regular basis. You can refine your spending habits seeing this list and essentially save more money from your regular expenses.

Financial planning

5) Keeping your credit card balances to the lowest : – On an average, most of the credit card companies charge 15% – %20 in interests and fees, if the outstanding balance is not paid in full every month. Therefore it is important to pay off those pesky credit card dues as soon as possible.

6) Using your debit cards regularly instead of the credit cards : – Get in the habit of using your debit card rather than using your credit cards. Debit card is linked with your checking account, so whenever you make any purchase, you are sure of having that money in your checking account. Using a credit card can be quite expensive if you are not able to pay the full amount within the due date.

7) Rolling over the 401K when you are in between jobs : – Whenever people are changing jobs, they will be in a situation whether to roll over their retirement funds or to withdraw it since it is a good substantial amount. It is always suggested not to withdraw the retirement funds because it is that money that can be used in your old age. Moreover you will have to pay fines and penalties for an early withdrawal and it will take away almost 40%-60% of your savings. This is like giving your hard earned money to a stranger for nothing.

8) Avoid getting too many credit cards : – People having multiple credit cards and if they are not able to pay the amount in full are getting charged in more interests and fees by different banks. A person having just one credit card is in a much better situation than another person who is having 5 or 6 credit cards because he is paying more money in interests and fees. It is good to have one or two credit cards because it will help you to build credit and used during emergencies, if these credit cards are managed properly.

9) Checking your credit report at regular intervals : – it is always recommended to check your credit report once in six months. In many cases, credit bureaus are reporting inaccurate negative information on consumer’s credit report. This can often hurt your credit scores. If you find any inaccurate information on your credit report, get it solved with the credit bureaus to improve your credit ratings. Many a times, people are not aware about the unsettled accounts, or accounts that are still open/active when they should be closed. Pay attention to these items when you are checking your report.

How To Manage Finances Like A Successful Corporation

Manage finance

The job of managing your personal finances can be time-consuming. You need to have some basic knowledge about finances, and review your situation periodically. If you make poor financial decisions, it can take years to recover from your mistakes. Use these tips from successful corporations to manage your finances.

Creating a cash reserve

Ideally, everyone should create a monthly budget. That budget should include a line item for savings. Everyone needs a cash reserve. The extra cash you accumulate can help you cover an unexpected expense.

Mohawk is an example of a company that maintains a good cash reserve. In business, the cash reserve can cover an expense or be used to take advantage of an opportunity.

When you create a budget, you can use whatever system works for you. It’s critical, however, that you put budget in writing. If you can look at a piece of paper or on a computer screen and see your budget, chances are you’ll make the effort to stick with it.

Create categories for each type of spending. You should label each spending category as either fixed or variable. Say, for example, that your monthly income is $4,000 after tax. You have fixed expenses (home loan, car payments) of $3,000 and variable costs (food, gas, entertainment) of $1,000.

Assume you want to save $150 per month. If you need to cut expenses to generate savings, review your variable expenses first. Maybe you can cut down on dining out and come up with the $150.

Diversify your investments

When your savings balance gets large enough, you may consider investing some of those dollars. When people consider investments, they normally think of stock and bonds.

Hamad Darwish Al Masah Capital explains that investors can now consider alternative investments. Alternative investments include real estate, commodities and other less traditional securities.

The important point is to diversify your holdings. If you diversify, you won’t be hugely affected by any single change in the investment markets.

Maintaining good credit

If you have a good credit rating, manage your borrowing so you keep that high rating. Make sure that you can afford the monthly principal and interest payments on any debt you incur. Ensure that your payments are on time, and that your credit report is accurate.

A high credit rating also provides advantages to a corporation. Standard and Poor’s (S&P) rates the creditworthiness of businesses. The highest S&P rating is AAA.  USA Today reports that only three US companies had a AAA credit rating in 2014.

Both individuals and companies with a high credit rating can borrow at lower interest rates. This reduces the cost of borrowing and makes loan repayment easier.

Borrowing alternatives

Sometimes, a business cannot borrow through a traditional bank. The interest rate on the bank loan may be much higher than the company wants to pay. Hamad Darwish of Al Masah Capital points out that investment firms can help companies raise capital through a loan or buy issuing stock.

Individuals also have choices if they cannot get a loan from a bank or credit union. Borrowers can find a company that specializes in loans to people with poor credit. You can get the financing you need, if you’ll willing to pay a higher interest rate.

Use these tips to monitor your personal finances. If you’re willing to invest some time and effort, you can improve your financial situation.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)


Highlights of the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) – for Life Insurance:

  • Eligibility: Available to all the people in the age group of 18 to 50 and must have a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
  • Premium:  Rs 330 per annum.
  • Payment Mode:  The premium will be auto-debited by the bank from the subscribers account.
  • Risk Coverage: Rs. 2 Lakh in case of death for any reason. The amount will be paid to the Nominee.
  • Terms of Risk Coverage: A person has to opt for the scheme every year.
  • Who will implement this Scheme?: The scheme will be offered by Life Insurance Corporation and all other life insurance company who are willing to join the scheme and tie-up with banks for this purpose.

Termination of assurance:

  • At the time of attaining the age of 55 years.
  • Closure of account with the Bank or insufficiency of balance for debiting premium.
  • In case of multiple coverage under the scheme, the cover will be restricted to Rs.2 lakhs and other insurance covers are terminated and premium shall be forfeited.

Application and claim FORM: