When you plan your goals or lay out your financial plan, it is essential that you consider the place for an emergency fund in it. Unexpected expenses and job losses can put severe pressure on your existing budget, which can be avoided by having a “Plan B” in place as we learned in this blog. Although we discussed what an emergency fund is and its need, the important question remained as to where one should park it. Where Is The Safest Place To Invest Emergency Fund? When parking and emergency fund you should keep in mind that the returns are secondary. …
Category: Financial Planning
Don’t Leave Your Child’s Education to Chance: A Guide to Planning and Investing
Every parent wants to give their child the best start in life; a solid education is a fundamental part of that. Planning for a child’s education can be overwhelming and confusing, with many options and decisions to make. And financing is a very crucial part of the various decisions you are likely to make as your child grows up. In this blog, we’ll explore the importance of education planning, how you can plan for your child’s education, and the various vehicles available to help you fund it. The importance of planning Some crucial points on why planning your child’s education …
The 3 most important decisions you can make for your finances in 2023
A lot of things can be on your mind on the eve of the New Year. Thank the internet and the media for flooding hundreds of things you can change and resolutions you can take. It can surely be motivating. To keep things simple and not overburden your mind, we have decided to list just three simple things you can do better about your finance. Yes, just three simple things to start with and make a material change in your financial life. Check your liquidity: How you will handle a financial emergency can say a lot about your financial fitness. …
5 Terms You Must Know About Your Health Insurance
Health insurance is the basic foundation of a sound financial plan. A health insurance policy can help you cover the costs of medical surgeries, expenses, and other procedures. With a comprehensive health policy in place, your overall planning can largely stay unaffected as unexpected medical bills can be covered or reimbursed by health policies. With the rising medical inflation, the cost of surgeries and procedures in India is rising. Hence, health coverage is a necessary step you should be taking toward your finances. Moreover, buying a policy isn’t sufficient if you do not give the time to understand it. Knowing …
When should one buy a life cover?
Have you bought life insurance yet? If yes, that sounds wonderful. You have made the best decision of your life. But why did you get it? Did you buy the policy because you were told it is the best thing one should do or something one should get early? Or was it the tax savings part that persuaded you? If not any of them, was it the “returns”? I hope your decision was not based on “returns” or tax savings. Life insurance is not and shouldn’t be bought for those reasons ever. In this piece, we shall see why you …
Three Investment Tips for Young People
With the increasing reach and volume of information readily available online, it isn’t very hard for youngsters to keep pace with the various investment opportunities available in the market. And even with the uninitiated, a general awareness of the benefits of investing or keeping a part of income aside is likely to be found. Investment Guide For Young People Contrary to popular belief, investing isn’t just about how many times you multiply your wealth or the colossal returns you are able to generate. Those are important considerations for any investor, but your investing experience is most likely to improve if you invest …
A Will is Willingly Necessary Right Now, More Like Yesterday
What is Will? Have you ever thought of the day when everything will be there but you? What will happen to the wealth you created for your family and loved ones in your absence? Would your family get the rightful share of your wealth per your wish, or will they have to fight a legal battle among themselves or others for the right to ownership? Make a Will beforehand to avoid unnecessary complications after your death and fair distribution of your fortune as per your wish. Will is a legal document left behind for the family and for one’s nearer and dearer. Through this document, a …
SIP – Small Steps towards Big Dream
The Great Albert Einstein once said, “The Compound interest is the eighth wonder of the world. He who understands it … earns it, he who doesn’t ….. Pays it.” Investment through SIP or Systematic Investment Plan can do wonders through the Power of Compounding. It is an investment mechanism through which you can create wealth over the long term. Like drops of water make an ocean, an SIP can also help you build long-term wealth without bothering about the market’s ups and downs. It allows investing a fixed amount (as small as 500/-) on regular intervals like weekly, monthly, quarterly, or …
5 major reasons you should keep an emergency fund
In this blog, we shall discuss one of the essential habits that make for good financial health– an Emergency Fund. Assuming that you budget and account for every expense diligently, have you given thought to what would happen if things were to go erratic for a bit? After all, we shouldn’t discount the possibility of something terrible happening. Similar to how a physician would put it– “Prevention is better than cure”. If not more, financial health is equally vital as physical and mental fitness. What is an Emergency Fund? An emergency fund is, like the word says, an emergency bucket …
Did you know you can save tax against interest paid on a home loan?
Buying a home is a dream come true for many aspiring Indians. It is an achievement! Most of them do so by taking home loans. If you are one of those paying home loan EMIs, you should know that you can save a substantial amount of tax. Home loan EMI has two components, and both are eligible for tax deduction under different sections of the Income Tax Act. Let’s see the exemptions available for principal repayment, stamp duty, and registration charges before we move into benefits available for repayment of interest. Section 80C of the Income Tax covers exemptions related to repayment …