finance - Discover and Developer

October 29, 2020December 12, 2021

FINANCIAL LITERACY FOR KIDS

FINANCIAL LITERACY FOR KIDS

TEACH YOUR KIDS:

THERE ARE ONLY THREE THINGS THEY CAN DO WITH MONEY.

THEY CAN SPEND IT

THEY CAN SAVE IT

THEY CAN GIVE IT AWAY

BUDGETING:

TEACH YOUR KIDS, IF THEY CAN ADD AND SUBTRACT, THEN THEY CAN MAKE A SUCCESSFUL BUDGET.

GIVE YOUR CHILD WEEKLY POCKET MONEY. THEN ASK THEM TO WRITE DOWN ALL THE THINGS THEY HAVE SPENT IT ON.

50-30-20 RULE:

TEACH YOUR KIDS THIS RULE AS SOON AS POSSIBLE SO THAT THEY CAN CONTROL THEIR FINANCES IN LATER STAGES.

50% NEEDS

30% WANTS

20% SAVINGS AND INVESTMENTS

BASIC BANKING:

TEACH YOUR CHILD THE BASICS OF BANKING SERVICES LIKE A SAVINGS ACCOUNT, CURRENT ACCOUNT, FIXED DEPOSITS, RECURRING DEPOSITS, ETC.

POWER OF COMPOUNDING:

THEY DON’T NEED TO BE ROCKET SCIENTIST TO UNDERSTAND THIS. COMPOUND INTEREST IS THE EIGHTH WONDER OF THE WORLD. HE WHO UNDERSTANDS IT, EARNS IT; HE WHO DOESN’T PAYS IT.

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June 30, 2020

NEW ITR FORMS FOR AY 2020-2021

NEW INCOME TAX RETURN FORMS

ITR 1

FOR INDIVIDUAL

· SALARY INCOME, ONE HOUSE PROPERTY

· OTHER SOURCE

(TOTAL INCOME upto RS.50LAKH)

ITR 2

THIS FORM IS FOR INDIVIDUALS AND HUF’s NOT HAVING INCOME FROM PROFITS AND GAIN OF BUSINESS OR PROFESSION.

ITR 3

FOR INDIVIDUALS AND HUF’s HAVING INCOME FROM PROFITS AND GAIN OF BUSINESS OR PROFESSION.

ITR 4

FOR INDIVIDUAL AND HUF’s WITH PRESUMPTIVE INCOME FROM BUSINESS OR PROFESSION.

ITR 5

FOR PERSONS OTHER THAN (1)INDIVIDUALS, (2)HUF, (3)COMPANY AND (4)PERSON FILING FORM IRT-7.

ITR 6

FOR COMPANIES OTHER THAN COMPANIES CLAIMING EXEMPTION UNDER SECTION 11.

ITR 7

FOR PERSONS INCLUDING COMPANIES REQUIRED TO FURNISH RETURN UNDER SECTIONS 139(4A) OR 139(4B) OR 139(4C) OR 139(4D) ONLY.

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June 23, 2020

THE LEVELS OF FINANCIAL FREEDOM

THE LEVELS OF FINANCIAL FREEDOM

LEVEL 6 : ABUNDANCE

(INVESTMENT CASH FLOW >> ANYTHING YOU WANT)

LEVEL 5 : INDEPENDENCE

(INVESTMENT CASH FLOW = LIVING COST)

LEVEL 4 : SECURITY

(INVESTMENT CASH FLOW = SURVIVAL EXPENSES)

LEVEL 3: DEBT FREEDOM

(FREE OF DEBT & START INVESTING)

LEVEL 2 : STABILITY

(LIVING EXPENSES = INCOME) + EMERGENCY FUND

LEVEL 1 : SOLVENCY

(DEBT/LIVING EXPENSES = INCOME)

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June 10, 2020

4 BIGGEST FINANCIAL MISTAKES AND HOW TO AVOID THEM

4 BIGGEST FINANCIAL MISTAKES

YOU SHOULD AVOID MAKING THESE

AGE 20: NOT INVESTING EARLIER

AGE 30: NOT BUILDING OTHER INCOME STREAMS

AGE 40: NOT PAYING OFF DEBT EARLIER

AGE 50: NOT SAVING ENOUGH FOR RETIREMENT

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May 16, 2020

TIPS TO HELP YOUR FINANCIAL GOALS FOR 2020

TIPS TO HELP YOUR FINANCIAL GOALS FOR 2020

BUILD AN EMERGENCY FUND OF 10K

“Your emergency fund is not an investment, it’s insurance with one purpose – to protect you and your family.”

SAVE 20% OF YOUR INCOME PER MONTH

“Not wasting money is the best way to save money”.

READ 10 BOOKS ABOUT FINANCE

“When money realizes that it is in good hands, it wants to

stay and multiply in those hands.”

INVEST IN A STOCK PORTFOLIO

“Risk comes from not knowing what you’re doing.”

FIND A NEW SIDE HUSTLE

“Good things happen to those who hustle.”

TRACK YOUR FINANCES

“Beware of little expenses“.

PAY OFF BAD DEBT

“That’ll Make You Want to Cut Up Your Credit Cards”.

LEARN A NEW SKILL

“The beautiful thing about learning is that nobody can take it away from you.”

May 13, 2020

IMPROVE YOUR FINANCIAL STATUS

IMPROVE YOUR FINANCIAL STATUS

Track your expenses

Tracking your expenses helps you to see spending mistakes before they become disastrous personal finance problems. Tracking your expenses helps make you more mindful of spending in the moment. Tracking your expenses can kill financial stress.

Read books about finance

It makes the reader understand how very simple finance tips can help in managing your everyday finances while the “pay yourself first” money can help in wealth accumulation for the future.

Have a side hustle

A side hustle is any type of employment undertaken in addition to one’s full-time job. A side hustle is generally freelance or piecework in nature, providing a supplemental income. Side hustles are often things a person is passionate about, rather day a typical day job worked in order to make ends meet.

Always use coupons

People use coupons to save money. … However, coupons allow stores to also get business from people who have relatively more time on their hands (to find and cut coupons) than they have money, and would only make the purchase at the lower price offered by the coupon.

Find a mentor

A financial mentor is essentially someone who can help you plan smart strategies for how to spend, save, and invest your money. Money can get complicated and having a trusted financial mentor can bring clarity and context to your financial decisions and make things like investing and saving a little easier to manage.

Start Investing

Investing when you’re young is one of the best ways to see solid returns on your money. That’s thanks to compound interest, which means your investment returns start earning their own return. Compound interest allows your account balance to snowball over time.

May 9, 2020

Should you get ready for a lockdown tax ?

Tax

The protracted war against the corona virus is affecting government coffers, leading to states wanting to raise taxes as much as possible in an effort to offset some deficits.

Sealed borders

With each state’s borders sealed, the risks of smuggling have been ruled out, leaving the states free to drastically raise taxes.

Back to back hikes

For example, one day after the 25% hike in the state of Andhra Pradesh, the price of liquor was increased by another 50%. The new hike is expected to add an additional revenue of Rs 9,000 crore per year.

Fuel

As oil prices continue to decline around the world, governments have decided to raise fuel prices at a lower cost; For example, petrol in Delhi rose by Rs 1.67 per liter and diesel by Rs 7.10 per liter.

Other options

There are other hikes available to governments – entertainment tax, municipal tax and registration fees on local panchayat chess, cars and property – that can be enforced at any time.

May 3, 2020

Converting Credit Card Bill to EMI – Good or Bad?

Converting Credit Card Bill to EMI – Good or Bad?

Converting Credit Card Bill to EMI– Credit Card EMI is one of the most popular methods used nowadays for shopping. You might have seen an option on shopping site to convert your credit card payment to EMI. Converting a credit card bill to EMI means clearing credit card dues by EMI (Loan). You must be aware that there are two options to pay a credit card bill. You can either pay a full bill before the due date or you can pay minimum amount due. If you have difficulty in finding options to pay credit card bill, you can go through the article – 10 Methods to Pay Credit Card Bill Online and Offline. If you clear full fill before the due date you need to pay any interest. However, if you clear only minimum dues you need to pay interest amount.

EMI Conversion for clearing credit card due is another method. This method is used to attract the customer who is unable to pay entire bills on time. It is a convenient and easy option.

Man In Black Suit Holding Banknotes And Credit Card

How credit card bill to EMI option works?

In credit card EMI option you need to pay little amount every month. This option is similar to other loan EMI. Here you need to pay a portion of principal dues and interest component every month till the full amount is paid.

The option for EMI is available at the time of purchase or at the time of making credit card bill payment. Bank offers this option based on your card and credit behavior. At the first instance, you may find this option very useful as you can save yourself from paying a lot of money at a single go. However, you need to evaluate this option as a whole before opting.

How to convert Credit Card Bill to EMI Option?

The process of converting your credit card bill to EMI is very simple. You can use net banking, SMS or phone banking to avail this facility. Few banks also provide this facility via mobile app. The step by step method to convert credit card bill to EMI in SBI, ICICI is given below.

SBI Credit Card Bill to EMI

Through SBI Net Banking

Login to SBI Net Banking Account.
Under the Benefit Menu click on Flexipay.
Select the transaction which you want to convert to EMI.
Make selection of repayment period and confirm.
Your transaction will be converted to EMI.

Through SMS

You can also use method of SMS to convert your bill to EMI. You need to send SMS “FP” to 56767. You will receive call from SBI executive asking for detail about transaction which you want to convert to EMI. On sharing details your transaction will be converted to EMI.

ICICI Credit Card Bill to EMI

Through ICICI Net Banking

Login to ICICI Net Banking account.
Go to My Account and select credit card option.
Select Convert to EMI option from Menu.
Select credit card detail, EMI tenure and transaction.
On submission your transaction will be converted to EMI.

Through iMobile App

Download iMobile App and Register with your account.
Go to Cards section and select the credit card.
You will be able to see recent transactions.
Select the transaction and click on convert to EMI option.
Provide required detail for conversion.

Points to consider before taking credit card due to EMI option

You should consider following facts before converting your credit card dues to EMI.

Interest rate

The conversion to EMI is not free. You need to pay interest on the due amount. The interest rate range between 12-18% per annum. This rate of interest is lower compared to credit card interest rate which is in the range of 30-40% per annum.

Processing Fees

In order to convert credit card dues to EMI, you need to pay processing fees. The processing fees vary from bank to bank. Few banks do not charge any processing fees for the conversion of a credit card bill to EMI. The processing fees can be negotiated with bank.

Credit Limit Reduction

Once you opt for this facility your credit limit will be reduced by amount which you have opted for converting EMI. Your credit limit will increase by the amount you pay in EMI. Suppose your initial credit limit is Rs.150000 and you have opted for EMI facility for the amount Rs.40000. Your credit limit will be Rs.110000. It will increase every month with payment of EMI amount.

Over to you

Converting credit card bill to EMI is costly option as you need to pay additional interest cost on the goods purchased. It is recommended to use this option only in emergency when you are unable to pay your dues in time.