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Personal Finance

Personal Finance

Are you making your money work for you?

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It’s not how much money you make, but how much money you keep, how hard it works for you. ~Robert Kiyosaki   Just as you work hard to make money, you must ensure that your money also works for you. Merely saving money is not enough, it should be invested properly so that it grows in value and helps you to realise your financial goals.   Why do you need to grow your money? Nobody needs to be told how unpleasant inflation is! It erodes the value of your money. As prices go up due to inflation, the same money will fetch you lesser goods. You cannot control inflation but you can beat the inflation by protecting yourself against it. That is possible when your money also grows in value at least equal to or more than the increase in the cost of living. Your investment should help you at least to preserve the purchasing power of your money.   Lifestyle Inflation But then, inflation is not the only devil.  When you make more money, you tend to spend more. Your and your family’s standard of living goes up and you incur more expenses to maintain that standard. The increase…

Personal Finance

Wealth Ultima – A New Age ULIP

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 By Somali K Chakrabarti In life, as in chess, forethought wins. ~ Charles Buxton The birth of a healthy daughter was a happy occasion for Rakesh Prasad and his wife Ravina.  Along with the couple, their respective parents were also ecstatic with joy at the arrival of the little one. By the time the child was barely 3 days old, the grandparents were already talking about what the little girl would be when she grows up. Rakesh’s parents wanted their granddaughter to be a doctor, Ravina’s father wanted her to be a lawyer, while her mother wanted the child to be a fashion designer. Rakesh was getting a little weary of all these discussions. Several thoughts began to play in his mind. In a time span of 20 years, his daughter will be ready for college. They would need to plan adequately for her future. He shared his thoughts with his wife, who was already thinking of putting aside some money into fixed deposits. Rakesh was more inclined towards mutual funds. Like any other well-settled young man, he wanted to gain from the uptrend in the market. Though he was financially savvy, the couple had a busy life, which left them…

Personal Finance

The insurance covers that you should opt for when you start your career

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By Somali K Chakrabarti Landing with a first full-time job is an exciting and memorable occasion, no matter who you are or where you live. You’re perhaps in your twenties, recently graduated or maybe you’ve done your masters, and now you have embarked upon the professional journey. The thrill of getting disposable income in your hand makes you want to spend it lavishly. You’re in an upbeat mood, and do not you may not want to be weighed down by serious issues. Things like insurance may not interest you at the moment, rather it may seem like something that can surely be put off for a later date. But should it be? Here are three reasons that tell you why you should buy insurance right at the onset of your career. Life and health insurance get increasingly more expensive with age. Insuring early in your life also means that you save money by locking in a lower premium amount for the rest of your life. In your twenties, your liabilities are comparatively less, and so it is easier to develop the discipline of setting aside a part of your income for the insurance premium. Insuring early in life makes you…

Personal Finance

What insurance covers should you opt for when you start your first job

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  Landing with a first full-time job is an exciting and memorable occasion, no matter who you are or where you live. You’re perhaps in your twenties, recently graduated or maybe you’ve done your masters, and now you have embarked upon the professional journey. The thrill of getting disposable income in your hand makes you want to spend it lavishly. You’re in an upbeat mood, and do not you may not want to be weighed down by serious issues. Things like insurance may not interest you at the moment, rather it may seem like something that can surely be put off for a later date. But should it be? Here are three reasons that tell you why you should buy insurance right at the onset of your career.   Life and health insurance get increasingly more expensive with age. Insuring early in your life also means that you save money by locking in a lower premium amount for the rest of your life. In your twenties, your liabilities are comparatively less, and so it is easier to develop the discipline of setting aside a part of your income for the insurance premium. Insuring early in life makes you financially savvy,…

Personal Finance

Dynamic Asset Allocation Funds – strive for growth, limit loss

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 Buy Low, Sell High Though, we all know that for generating reasonable returns, any investor should ‘Buy Low and Sell High’, yet, for an individual investor this is easier said than done.  It is not only difficult to track the market on a continual basis, while diversifying the risk, but it is also difficult to have the heart to buy beaten down stocks when market has fallen substantially and sentiments are running low. Besides, with increase in losses, the gain needed to break-even also increases. Moreover, for an investor, the pain of selling a stock at a loss far exceeds the pleasure of selling the stock at an equal amount of gain. Hence, the importance of containing the downside to the portfolio cannot be emphasized enough. That is where the expertise and knowledge of a fund manager comes into play – in selection of appropriate asset class at any given time while lessening the psychological pain of investors. Dynamic Asset Allocation Strategy Balancing exuberance with caution, a dynamic asset allocation strategy uses the market volatility as an opportunity for switching between asset classes to benefit from growth of equity market while reducing the volatility of returns. With the example of ICICI…

Personal Finance

Five small changes can secure your family’s future

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 By Somali K Chakrabarti Festive times are full of fun and frolic. These are the times when we cherish togetherness with our family, the most, and if we happen to be away from our family, we miss them the most. Just like festive celebrations, life too is incomplete without our family. From time to time, we realize that we must do everything in our capacity to secure our family’s future. Yet, we often tend to procrastinate in buying the insurance. If we start early, with a saving as little as Rs 535 / month (18/ day), we can secure our family’s future with an Rs 1 crore life insurance cover. Further, small lifestyle changes can help us to easily save to secure the future of our loved ones. If you want to find out more, please read the post FIVE THINGS YOU CAN GIVE UP TO SECURE YOUR FAMILY’S FUTURE on Life11.   Image credit

Personal Finance

Five things you can give up to secure your family’s future

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Festive times are the times when we cherish togetherness with our family, the most. If we happen to be away from our family during these times, we miss them the most. Just like festive celebrations, life too is incomplete without our family. From time to time, we realize that we must do everything in our capacity to keep our family happy and to secure their future. We plan for our children’s education, their career, we plan for our vacations, yet sometimes, we miss out on planning for a constant source of income for our immediate family in our absence. We know that we need to be prepared for such an eventuality, but we often tend to underplay its importance till something drastic happens that shakes us up. Then, we go for life insurance! The reasons to procrastinate are many – sometimes, we are not sure which insurance plan would suit us the best, at others we are not sure if we can afford to pay the premium for the policy or how much money do we need to set aside each month for it. But, believe me, it is not at all difficult. You can buy insurance online. Using the online insurance calculator, you can calculate the insurance…

Personal Finance

Factors to consider while buying a term insurance plan

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You don’t buy life insurance because you are going to die, but because those you love are going to live. ~ Unknown author.   A Term Plan is the purest form of life insurance that provides financial protection to your family members. It will help your family meet their financial needs arising due to household expenses and repayment of loans in your absence. When you consider buying a term plan, you need to be fully aware about the benefits provided by a term insurance plan and the required sum assured. The life cover you choose, when deciding on the term insurance plan, should help your family to maintain their current lifestyle, and take care of all your liabilities like repayment of home loan, EMIs, credit card bills etc., while keeping in mind the decrease in value of money due to  inflation.  

Personal Finance

BounceBack from a critical illness!

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 “Cancer does not have a face until it is yours or someone you know.”  – Anthony Del Monte I came across this quote somewhere on the net, and the truth in it struck me hard. Last year, two people whom I knew personally were diagnosed with cancer. Of them one person has recovered fully, but we lost the other person. A critical illness impacts not just the patient but the entire family. The entire family undergoes an emotional setback when any member of the family suffers from a critical illness. What hits alongside with the emotional pain is the financial burden to get the critically ill member the required medical treatment which is best for him/her. And God Forbid if one is unfortunate and does not have sufficient funds they are forced to wait for the next stage of the illness or lend money from their friends and relatives. Insurance to cover such unforeseen expenses due to critical illness becomes a must for every earning individual.

Personal Finance

Do your homework – Let your children dream

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We hurried off to the station. After dropping our daughter off at her college and helping her move in to her hostel room, it was time for my husband and me to leave. Getting into a college of choice is a big milestone in the life of a child.  At the same time letting go off your child is a strange experience, a little sad too for the parents. The thought that an ‘Empty nest’ awaits you can be upsetting. I prepared myself for quieter days ahead, with no nagging about food, sleeping late, clothes, cleaning, etc. After exchanging goodbye, we got on to the train, and in a while the train chugged out of the station. On my way back the memories of the day, when she first went to school swarmed through my mind. It seemed like it was only yesterday that we dropped our little girl to school for the first time. Fourteen years had elapsed in between. The little girl was now soon to be a young adult, rejoicing in her new-found freedom in the college, 2000 kms from home. Years seem to have passed by in a jiffy! Suddenly, I felt a sense of immense satisfaction of having discharged…

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