Tag: Financial Planning

SIP – Small Steps towards Big Dream

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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 …

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5 major reasons you should keep an emergency fund

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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 …

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Did you know you can save tax against interest paid on a home loan?

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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 …

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Trust – When should you think about it?

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Trust – When should you think about it?

Do you find any of these your concern? Have a look. You take care of the family’s finances solely by yourself and your spouse does not take any interest to know how to handle those assets. The children are physically away from you and you do not like to burden them with the hassles of managing finance, but you are concerned about transferring the assets to them after your and your spouse’s life. You are single (or may become single at any point in life). You have enough money, but it concerns you, who may take care of you if …

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How can the 50/30/20 budgeting rule help you gain control of your finances?

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How can the 50/30/20 budgeting rule help you gain control of your finances?

Budgeting is the cornerstone of your financial well-being. If you are aiming for financial independence, the answer begins with a budget. Budgeting is not just about noting down your expenses. A sound budget helps you shed light on bad spending habits and work towards your long-term goals. In this blog, we discuss an important budgeting technique called 50/30/20 (also called the 50/20/30 rule) and how it can help you bring more control over your financial life. What is the 50/30/20 rule? The 50/20/30 rule is a budgeting technique that can help you easily prepare and manage your budget. The straightforward …

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Why link your Investments with Goals – here are the reasons!

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Why link your Investments with Goals - here are the reasons!

Mr. Saha, an Electrical Engineer, has worked in a Navaratna graded PSU for 20 years now. His level of income is sufficient to lead a respectable life in society. His children are brilliant and the elder one is already set on her path to archaeology. The younger one is now in senior school and aiming for going ahead with information technology. He has set in mind a few options for higher studies. Mrs. Saha took a break from her job 10 years ago, attributed to the transferrable job of her husband. Now the family is back in the city again …

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All you must know about Deductions under Section 80C

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All you must know about Deductions under Section 80C

If you are a taxpayer, it is important to understand the various tax deductions that you can claim. Knowing the various deductions, you are eligible for and claiming them appropriately can help you reduce your tax liability and save more. In this blog, we discuss the list of deductions available under the most common section most taxpayers are well aware of – 80C. What are tax deductions? Tax deductions help you reduce your taxable income by deducting eligible investments or expenses from your income. These deductions are specified under Chapter VI A (Section 80C to 80U) of the Income Tax …

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Writing a Will? Here are 5 Things to Keep in Mind

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Writing a Will? Here are 5 Things to Keep in Mind

I don’t need a Will.  Estate Planning is for the wealthy.  I’ll think about it after my retirement.  I have registered my nominees. Everything is set in place. My daughter/son/legal heirs are mature enough! These are some of the common myths surrounding estate planning. Contrary to what many people might think, estate planning is essential for all. We tread within the uncertainties of life. Preparing a Will is about how you would like your assets passed down in your absence. If a person dies intestate (Without a Will), their assets are distributed according to their religion. The critical point to note …

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Why is Risk Profiling Crucial in Financial Planning?

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Why is Risk Profiling Crucial in Financial Planning?

What do you usually think of before investing your money?  If you have ever sought financial advice, you would have come across the term risk profiling. Financial advisors are keen to dig out and examine this vital area. So, what is risk profiling all about? Why not just invest your money to generate the maximum returns? Things aren’t that simple. There is a limit to the risk you will be willing to bear for those returns. What is risk profiling? The objective of any investment is to generate an optimal rate of return. But every investment involves a certain degree of risk. If there is a higher risk, a …

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12 steps towards a happy married life

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12 steps towards a happy married life

It’s a wedding season. A lot of preparations are happening around if there is a wedding in the family. From shopping, beauty treatments, cooking classes, grooming classes to honeymoon, all may be there on the to-do list. If you are one of the grooms or the brides-to-be, did you plan for your post-marriage life, in terms of money? If not, you may start it today, taking your spouse-to-be in confidence. This would probably be the most important factor for your happy life. Last but not the least, all the above exercises must be jointly done with the spouse and he or she …

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