Financial Planning

Putting your Emergency Funds in to FD/s – now there is an option Key principal for putting money into FD is quick access to emergency: In India people are very familiar with FD’s as we feel, it is quick access in case of emergency, it is true in some sense, but now we have alternative to that, i.e. Liquid Mutual Funds or Floating Rate Mutual funds . Particulars Short Term FD’s Liquid Mutual Funds Emergency money planning : Not really as you can not break or withdraw It overnight : Yes – as you can withdraw it from any Visa ATM centre across the world. Easy Access : No. As one has to go to bank to withdraw the amount. : Access to all visa ATM* across the world, Online Access Tax : Interest will be clubbed into your income & will be tax accordingly. : No Tax to pay directly by Investor if opted for Dividend Reinvestment option. Penalty ...

HOUSING LOAN :- This is a must read article, if you already have a housing loan or you are planning to take a housing loan Breakup for EMI (Principal & Interest Explained here) EMI BASIC CALCULATION:- Loan is opted from a bank say for example (Rs. 35 Lacs for 20 Years of Term) you have to pay an EMI (Equated Monthly Installment) & when you pay your EMI, it consists of 2 major part, one is Interest on your EMI & second is Principal amount you have paid. By paying an emi, every month it reduces the loan by some amount as it goes towards payment of your principal out standing. With passing each installment every month, your loan amount decreses by some extent. You pay More Interest when the loan /Emi starts and pay less when you come closer to pay off your loan. The longer the period of loan….the component of interest is high. So one thing is pretty clear from the above sentence, your initial EMI goes majorly towards INTEREST on your housing loan, PRIN...

EMERGENCY FUND : - A very commonly given financial advice, but not so commonly implemented across. What is Emergency Fund? Easily accessible chunk of money for use, in case of any kind of emergency. It should not be used to buy a car/house/laptop/ or any other thing. How much Fund is enough for Emergency Fund? enerally, 6 to 8 months monthly total expenses/spending(total expense include all expenses including loans and credit cards payments, household bills etc.,) Why 6-8 months total expenses? If any emergency happens, one will be able to live the same life style for at least 6-8 months without taking any further stress. Why to have an emergency fund? If any unexpected expenses come up, you can use this fund as it will not affect your future cash flows. One can use the fund in case of some critical situation like Job loss or unexpected medical bills or any critical illness. How to plan for such a big fund of 6-8 months expenses? S...

PPF (PUBLIC PROVIDENT FUND) •       Eligibility- Individuals, individuals on behalf of minor •       Min- Rs 500 per annum in multiples of 5 •       Max- Rs 1,50,000- per annum •       Duration- 15 years, can be extended for one or more blocks of 5 years. •       Account can be discontinued but the repayment of subscription and interest will    happen only after 15 years. •      Rate of Interest – 8.70% pa, credited in the account on the 31st of march and calculated on the minimum balance between 5th Day and the end of the month. •       Loans – During the third to sixth year the account holder can avail the facility of loan of an amount not exceeding 25% of the balance standing to his credit at the end of the second financial year immediately preceding the...

Stop adding to your debt. Cut up the credit cards and throw away the checks so you can't bounce one. Do not sign up for any more credit cards or loan offers. Stay away from Loans. Remember - If you can't afford it today, you can't afford it tomorrow (meaning don't expect to pay tomorrow for debts incurred today at the gaming store) Admit you are in debt and start living like it . Did you know that most millionaires live in modest homes and drive used cars? That's why they are rich. Don't expect to eat out at fine restaurants. You can't afford it, get over it. You will be able to go someday soon but not now. Don't buy Expensive clothes for a while. There is nothing wrong with what you already own. Saving that money for a few months will help get you back on your feet. Total up your debt . Go ahead and face the music. You need to open all those unopened bills. Make a list of all your debt, big and small. Pay with cash only . Whi...

Financial Planning: Financial Planning: Why Plan Early For Children Ed... : "Financial Planning: Why Plan Early For Children Education :-: 'All Mom & Dad work hard to give best education to their Child.... We just..."

Financial Planning: Why Plan Early For Children Education :- : "All Mom & Dad work hard to give best education to their Child.... We just have to face the fact that in today’s challengin..."