Employee Wellness Tips for a Prosperous and Productive Year

In the context of corporate history, the concept of keeping employees healthy and happy to increase productivity at work, is relatively new. The concept of holistic “wellness” rather than just focusing on physical health is even newer. In fact, as an HR professional myself, with an experience of more than 40 years, I’ve observed that productivity of an organisation’s employees improved tenfold after we implemented a few simple ideas and policies which focused on our employees’ wellness rather than squeezing more work out of them. Here are some tips which I found useful, to keep your employees happy, healthy and productive.

1.  Physical health

Taking care of your employees’ physical health may not be all there is to their wellness, but it’s certainly an important aspect of it. After all, someone who’s sick all the time can hardly be productive. There are multiple things you can do to ensure that your employees are taking care of their health, the first of which is to give them a good medical plan. Another thing you can do is keep regular workout or fitness sessions at the workplace to keep them in good shape.

2.  A culture of communication

People always work better in environments where they feel that their opinions and thoughts are valued. Keep an open culture in your workplace, where your employees are free to give feedback; and make sure their feedback is acted upon for the betterment of your organisation. Give your employees credit for their ideas and acknowledge the work they’ve put in. If they feel appreciated, they’ll work better.

3.  Work-life balance

As the saying goes, “All work and no play makes Jack a dull boy”. It also makes him unproductive and unwilling to put in more efforts. Give your employees time off to enjoy themselves, and let them have a life outside of work. Take them out for team lunch once in a while, and make sure you bond with your employees outside the meeting room. All this not only keeps them happy but also motivates them to work harder, because it shows you care.

4.  Retirement plans and financial management

Everyone thinks about the future, whether they are millennials or people on the verge of retirement. Offer good retirement plans to your employees, and couple it with financial advice and counselling to make them feel more secure about their future. Debt management services coupled with financial coaching also help your employees make their way towards financial success, and are especially useful for freshers looking to pay off their student loans.

5.  Legal insurance

You could provide your employees with a network of attorneys and legal professionals to help them out in case of any legal crisis like child custody during a divorce, a dispute with your homeowner or even all the legalities associated with buying a new house.

6.  Leaves of absence

One of the tenets of employee wellness involves making it easy for your employees to ask for a leave of absence as long as they have a good reason. They’ll breathe easier if they know they can take a leave when the need arises, without needing to jump through a hundred processes. You may want to give new parents good leeway when it comes to taking time off, and make it clear to them that they’re welcomed back to the job once they are through with their personal responsibility.

Having employees feel valued and taken care of certainly increases their output at work – and this isn’t one of those debatable concepts. Multiple studies continue to uphold what should honestly feel rational and logical. As they say – health is wealth, in case of employee wellness, their health is your wealth!

Top 5 Preschools in Pune: Give Your Child a Great Start

As a resident of Pune, your child’s long but essential education journey starts at one of the many preschools in Pune. As they take their first steps into the world, you want to make sure that these will be the right ones. This is why choosing the right preschool is crucial and there is no dearth of options in the city. 

This is why we’re here to help with our curated list of the top 5 preschools in Pune.

#1 – Vivero International Preschool (Kalyani Nagar)

The Vivero International Preschool is already established in over 5 locations in Pune – Kalyani Nagar, Magarpatta, Aundh, Kharadi and Wakad. The preschool in Kalyani Nagar is spread over a large 10,000 square feet. It’s also appropriately named – with Vivero translating to a place where life is nurtured in Spanish. 

Unlike most education setups across the country, Vivero’s framework, in its own words, “is not intended to provide strict rules about what must be taught. Rather, the framework provides guidelines for a holistic preschool education while giving educators the discretion to customise their curriculum according to the interests, needs and abilities of the children.”

Life skills find a pleasant focus in the learning process here, which is why this is one of the best preschools in Pune. It has activities like cooking, leadership programmes and even civic management. Open for children between 1.5 to 6 years of age, Vivero seems to be checking a lot of boxes for parents and the children!

USP: Vivero works on the Reggio Emilia Approach, which involves perceiving the environment as a third teacher. Thus, both its indoor and outdoor spaces are designed to encourage children to learn through experience.

#2 – Podar Jumbo Kids (Aundh)

Operated by the Podar Education Network, which boasts a 96-year history in the education sector with over 144 schools, Podar Jumbo Kids is already a trusted name. Its extensive experience ensures that its Kondhwa branch remains one of the best preschools in Pune:

  • The teachers are well-trained in contemporary techniques
  • Hygiene is one of their main priorities
  • With imported toys and modern teaching aids, the whole process remains safe, ensuring development on all fronts for children – physical and mental

USP: Podar Jumbo Kids focuses on a wide variety of themes for children. These range from carefully selected diets, physical activities, multiple styles of education and even parachute plays and aroma fresheners in its rooms.

#3 – Leapbridge International (Kalyani Nagar and Aundh)

Education brand Navneet forayed into schooling with its initiative Leapbridge in 2009 and it’s been quite a success. It is one of the best preschools in Pune and is already available at 4 locations across the city – Aundh, Kalyani Nagar, Prabhat Road and Pimpal Nilakh. 

These are all company-owned and do not operate on a franchise model, which ensures a tighter quality control and consistent culture. The curriculum is designed especially for children and Leapbridge has high hygiene and safety standards. The brand claims to have evolved its own “Holistic Learning philosophy”.

USP: With an adult-to-child ratio of 1:7, children get the required attention and focus they deserve.       

#4 – Kidzee (Viman Nagar)

Established nearly a decade ago, Kidzee has over 2,000+ established schools in more than 750 cities. Its Viman Nagar branch, one of the top preschools in Pune, and it operates on the brand’s pedagogy called PéNTEMiND, for its educational processes. 

With music, GK, and dance classes – it makes for an ideal start to what should be an all-round educational journey for children. The school also conducts regular workshops, ensuring parents are in sync with their children’s progress and development plans. The brand also boasts of multiple levels of security – an important aspect in today’s times.

USP: Kidzee’s pedagogy – PéNTEMiND seeks to nurture the ‘learning mind’ in every child, with a vision of creating lifelong learners.

#5 – HelloKids (Hadapsar)

HelloKids operates about 18 branches in the city of Pune. Its Hadapsar branch is one of the best preschools in Pune, as it regularly garners praise for its quality of education and approach. Accepting admissions in the age group of 1.5 to 5.1 years, it features a library, sports learning, regular communication with parents and a hygienic campus.

USP: HelloKids combines elements of eastern culture and western competitive standards to develop accommodative, caring and bright individuals.

You’re likely to observe a pattern in high-quality preschools in Pune. Nearly all of them tend to have a curriculum tailored for younger children, with an increased focus on all-around development. 

However, all of this may not come cheap, with top preschools in Pune often requiring large amounts in fees. Fibe’s School FeES is an offering that puts such schools within everyone’s reach. It allows parents to pay their children’s educational fees affordably and in instalments. With education easier on your wallet, you never have to compromise on the education of your child.

FAQs on Top 5 Preschools in Pune

What are the fees for preschool in Pune?

The total fees for some of the high-quality preschools in Pune range between ₹30,000 and ₹2 lakhs a year.

What is the cost of daycare in Pune?

The cost of daycare in this city varies depending on the location and type of service you choose. However, it can range between ₹1,000 to ₹12,500 in a month. 

What age is best to start preschool?

Some of the best preschools in Pune allow you to admit your child from the age of 1.5 years.

EarlySalary – School FeES

The way schools operate today can make finances a tad bit more challenging for the parents. This is because many of the top schools imparting the best education require them to deposit fees quarterly or semi-annually. Add to this the cost of books, uniform, transportation, etc. and the financial burden reaches new heights. So, what are you to do if you have to pay a hefty fee to ensure that your child gets the education he/she deserves?

Well, Fibe has a solution just for you!

Fibe School FeES

Fibe is a unique financial product that allows you to pay your child’s school fees and other related charges payable to the school for up to an entire year with an instant loan. You can then repay the amount in small and affordable EMIs. It’s simple, convenient, and not to mention, easy on your pocket too!

Why School FeES?

School FeES is designed to streamline the fee deposit process in schools and make it easier for the parents to pay the fees without delays. It works wonders because of its following features:

A Solution Like no Other

Not only is Fibe’s FeES facility one of a kind, but is also easy to avail. All you have to do is download the app and register with your mobile number. You can then raise the requirement for however amount of money you need and Fibe will submit the fees for you on your behalf. There is no paperwork and no tedious physical forms to fill.

It’s as simple as that!

Real-time Onboarding and Disbursal

Fibe allows for instant registration and disbursal of loans. Once you have created an account and uploaded the required documents, you can expect to get the personal loan in less than 10 minutes.

Extensive Coverage

You can obtain a loan as big as 3 lakhs INR to pay for your child’s school fees depending on your eligibility. This ensures that nothing can ever come in the way of your child’s education.

Flexible Repayment, No Prepayment Charges

Repay the fees in 3 / 6 / 9 EMIs as per your convenience. You can even prepay the full amount and there won’t be any prepayment charges.

Try it Today!

As a parent, there are all kinds of things that you have to plan and manage for your children. Fibe just wants to make sure that you have one less thing to worry about. So, you only need to care about your child’s wellbeing and happiness, and let Fibe deal with the finances!

To know more, click here

How to Get More Money Back from your Tax Returns

Did this year’s tax leave you baffled?  Did you feel like you paid way too much tax? Don’t blame the government or its policies, at least not yet! You may have overlooked a few essential things when filing your tax returns, which has resulted in low returns. Read on to what they are and steer away from them!

Taxes are a complicated thing all over the world and India is no different! The Income Tax department of India allows certain tax exemptions which can help you save money on your tax returns. These tax rebates are for tax payers from all walks of life like professionals, business persons, salaried people and independent earners as well.

With a little planning you can easily get more money back from your tax returns. Here is how you can do it!

# Make Tax-Saving Investments

The Government of India has made provision for tax exemptions on certain type of savings and investment that also encourages tax payers to save more money. An individual can invest in schemes under the Income Tax Act of section 80C, 80CCC, and 80CCD, which allows a deduction of up to 1.5 lakh INR from the tax.

Throughout the year, tax payers, like you, can invest or save money in schemes like the PPF account, 5-years fixed deposit, pension plan, mutual funds, employee provident fund, life insurance policy and national saving certificate. You can either opt for one or combination of these schemes to save more money on your income tax returns. But, remember that the maximum tax exemption allowed is only 1.5 lakhs INR.

# Medical Insurance

Income tax exemption is allowed on the investment towards the health insurance policies. Under the sections 80D, 80DD and 80DDB, you can buy a health insurance policy for yourself or family members and enjoy the tax benefits that come with it.

Under the section 80D, you can save up to 75,000 INR on the health insurance or medical treatment of your dependents like spouse, children, and siblings who have disability.

Under the section 80DD, an exemption of 30, 000 INR is allowed on the medical health insurance of senior citizens above 60 years of age.

Under the Section 80DDB, anyone who is dealing with specified critical illness, can claim tax exemption up to 40,000 INR. Senior citizens above the age of 60 can claim a tax rebate of 60, 000 INR and super-seniors above the age of 80 can claim a rebate of 80,000 INR.

Phew! Too many facts you think? These are need-to-be-known though!

# Tax Savings from Business Profits

If you are involved in any business, then you need to pay a tax which is a difference between the revenue earned and expenses. But, if you want to save on your taxes, then you can invest money in stocks!

Under the Income Tax Act, Section 35AD, enterprises can avail tax benefits if they invest in new ventures. Stocks are a great way to invest money based on your long-term goals.

# Save Money Through Home Loans

If you have a home loan in your name you can save money on your tax returns.

Did you read that right? Yes!

Under Section 80C of the Income Tax Act, an individual can claim tax exemption for settling the principle amount of home loans. Additionally, under Section 24, you can also claim tax-exemption on the interest paid on home loans.

# Tax Exemption through Education Loans

Education loans are also one of the best ways to save money on your tax returns. If you have availed an education loan for yourself or any family member, you are allowed tax-exemption on the interest of the loan.

Remember that the tax exemption is only allowed on the interest and not on the principle amount, and it is for the individual tax payers only and not for the Hindu Undivided Family.

# Long-Term Equity Shares

Again, the Government of India has made provisions for tax-exemptions of long-term equity shares to encourage people to invest in mutual funds and equity shares. If you invest in long term equity shares you can claim tax exemption on the money you earn over the years.

The Bottom-Line

With the government itself coming up with several tax-saving schemes and lending you a helping hand, what’s stopping you? Make wise financial choices, save more, invest more while enjoying various tax-saving benefits!

10 Investment Mistakes Couples Make

Investments are a very important part of retirement planning. This is also a very tense area that needs to be covered by couples. There are several studies conducted that show that bad investment planning is the reason for stress between many couples. For many, investment is just a monthly expense and they don’t feel the need to give it adequate attention. Hence, they are not treated as a priority by many couples in their early years. By the time they start, too many investment plans and options exist, and the stress of their management takes a toll.

To avoid such tense situations, we at Fibe have compiled a list of ten mistakes that are commonly made by couples.

Ten Avoidable Investment Mistakes by Couples

1) Playing the One-Man Game

Teamwork takes the top spot on this cheat sheet, it is the key to making a successful investment decision among couples. Usually, couples forget to share their investment plans and strategies with each other, especially when there is only one person who handles finances.

But always remember under unusual scenarios (like untimely death and accidents), leaving the other in the dark can lead to serious consequences. So, make sure both partners are aware and knowledgeable about it.

2) Missing Regular Review and Planning Sessions

Investments can turn complex if not reviewed frequently. Make sure you check your investment plan and update your accounts once every month.

This not only helps you to keep a check on your finances and find unnecessary blockages, but also creates a sense of trust with your partner. Make sure that both of you agree with the strategy to avoid future problems.

3) Skipping the Long-Term Goals Conversation

Discuss what you expect from your investment in the future and how you plan to grow them. Make sure both of you give in to your inputs and the other agrees with it.

Does your spouse plan anything for that money? Do you agree? Do you think there are better plans? Make sure you clear the air between you.

4) Accepting Each Other’s Spending Habits

Spending habits is a very common reason for fights between partners. Ensure that you give enough space to your partner, but there is no harm in advising each other if one tends to over spend.

However, constant nagging may lead to distress in the relations and also impact the financial health.

5) Giving Control to One Person

In most homes, finances are handled by the breadwinner of the family. But this could be a very irresponsible mistake. To understand it simply, can a relationship work if 100% power is in one hand? Nope! Similar rules follow for financial decisions, too.

6) Handling Urgent Money Needs

Urgent money needs are common. Unexpected scenarios can come anytime so be prepared for them in advance. Discuss them with your partner and make sure you both agree with the terms.

It’s always advisable to have a corpus of your 6 months salary as “Emergency Fund” locked up safely.

7) Not Having A Solid Plan

Planning saves lives and in this case money! Have plans for your investments and if you plan to expand your family in the future, you must discuss your investment strategy accordingly.

8) Not Diving Deep

Communication is the key here. Be good at communicating and do not skip the little details. Be transparent with your investments and make sure you both agree with them.

9) Having Insurance Cover for Only one Person

Do not miss your partner if you’re handling your finances alone. It is important that both of you are covered under proper plans.

10) Jointly Handling Personal Finances

Agreed, this is contrary to what we’ve preached until now. But it is important to understand what decisions must be done separately and jointly. If you know some financial decisions are going to cause problems, then avoid them.

Plan Your Investment Strategy

Investment planning is a very essential part of any relationship. It gives you a sense of security and help the partners trust each other. But it can turn messy if not given proper attention. Avoid these ten mistakes to have a truthful and successful investment plan with your partner.

Robo Advisors on the Rise in Asia

The world is seeing technology-led disruptions across the globe at a pace that is unprecedented. From payment banks to digital wallets and peer-to-peer lending, the traditional and often conservative world of finance is being turned on its head. These changes are manifesting not just in the developed economies (United States and Europe) but also in fast-growing markets like India and China.

One of the latest innovations in Fintech is the emergence of robo advisors!

What is a Robo Advisor?

A robo advisor is a self-service investment platform that users can access through their smartphones. Not only financial advisors but smart algorithms can now advise you about which investments you should make. This automates portfolio management and reduces costs drastically.

Robo advisors started in a rudimentary way close to a decade ago in the United States with investment companies like Betterment and Wealthfront leading the way. In the past few years, robo advisors arrived in the United Kingdom and the Western Europe too amid an onslaught of Fintech disruptions.

However, it is only recently that Asia has also woken up to this massive potential of robo advisors be it in Singapore, China, India or Korea.

Why are Robo Advisors on the Rise in Asia?

Asia is one of the fastest growing regions in the world with high amount of disposable income in the hands of people. There is great upward mobility and many people are now becoming a part of the middle class, the mass affluent or the HNIs (High Net worth Individuals).

Assets under management in Asia have grown at a fantastic annual rate of 18% in the last 5 years to reach an estimated $15 trillion in 2018. And this growth rate will continue to hold steady over the next few years.

This makes Asia one of the most exciting markets for financial advisory firms.

Added to this general buoyancy is the general consensus that many people in Gen X mistrust financial advisory professionals, having been through two major recessions. Combined with this is the “digital-first” approach of the millennials. A survey by Bain & Company shows that a whopping 75% of millennials are willing to buy a financial product from a tech company.

All these factors together mean that there is a huge market for robo advisors in Asia, and Fintech startups and traditional investment companies are both geared up to take advantage.

Despite the promise they show, robo advisors are still at a very nascent stage in Asia. Although incomes are rising and people are upwardly mobile, most of Asia remains highly value conscious. Large scale adoption of robo advisors will depend on how much cost reduction they can really bring about and if they can manage to lower the minimum investment amounts required. Security and safety of the transactions will be another major factor in the sustained growth of robo advisors in Asia.

Although growth may be a little slower than expected, due to the various complexities in the Asian market, there is no doubt that robo advisors have massive potential in Asia which will only increase with time.

Financial Wellness & Technology- HRIA Conference, Mumbai

In a world that revolves around money, many worry about meeting their financial requirements. In fact, money-related stress is the most widely reported form of stress at workplace. Financial stress can be detrimental to the quality of life leading to reduced employee productivity, and ultimately impacting business profitability.

In a session at the recently concluded HRIA, Mumbai Chapter; Vikas Sekhri, Head of Strategy EarlySalary & Founder of CashCare, spoke with two seasoned HR professionals – Satish Mohapatra, VP HR Siemens and Naresh Taneja, GPHR IRB Infrastructure on the importance of Financial Wellness. The knowledge filled session on ‘Financial Wellness & Technology’ featured several eminent HR experts discussing the role of technology and how it has provided organizations with an opportunity to enhance employee productivity through new age employee benefit products.

Understanding Financial Wellness

In Satish’s words, “Financial Wellness means that an individual understands their financial situation and is prepared for financial ups and downs. It’s more than reading an article about taxes or retirement planning, or even having an emergency fund. Being financially well means a person understands his or her financial situation in the context of their life and goals.” Having a financial plan that an employee can follow through allows them to feel confident, handle unexpected expenses, make progress toward personal goals, and be positioned to live the life they want to live.

There are hidden costs directly associated with lack of financial wellness among employees. Some experts estimate that these combined costs can total as much as 15% to 20% of a company’s total compensation paid to its employees. Reducing these events and their associated costs even by 5% can result in considerable cost savings, improved productivity, and increased profitability.

Naresh provided a refreshing perspective by emphasizing how financial education alone is not enough to change behavior when it comes to personal finance. “Choosing and implementing an authentic, effective financial wellness solution that is the best fit for both employers and employees is a win-win: when employees have a greater sense of choice and control over their personal finances, they are happier, healthier, more productive, and more likely to stay.” Explained Naresh.

Need for a Financial Wellness Program

Mismanaged finances, unchecked credit card bills & bank debts can lead to higher level of financial stress amongst employees. With a wellness program in place, these financial roadblocks can be avoided.

The increasing focus on financial wellness in the workplace is a natural evolution of programs employers have developed over past decades to support the physical and mental health of their employees. Effective financial wellness programs can help companies significantly reduce costs, attract and retain top talent, and boost employee productivity.

By planning and implementing a financial wellness program supported by technology and human guidance, this gap the industry is experiencing can be bridged, and this bridge helps everyone. Comprehensive financial wellness programs create new revenue streams and deeper relationships from advisors to plan sponsors.

The Role of Technology in Financial Wellness

As many solution providers seek to jump on the financial wellness bandwagon, choices among financial wellness and financial wellness technology solutions are proliferating. An authentic and effective solution provides more than just education to improve employees’ financial literacy, or calculators to track spending and saving—it should also promote behavioral change for employees.

Here are few up and coming Financial Wellness offerings discussed amongst panelists:

  1. Robo-Advisors: Robo-advisors are basically computer programs designed to give you a curated financial plan with minimum human interference. Robo-advisors are powered by complex algorithms that auto-allocate your investments. They are a great start for people with no experience in financial planning.
  2. Dedicated Vouchers: In today’s corporate world, most of the companies are giving their employees dedicated vouchers so they spend less money. These include food vouchers by Zaggle, Sodexo, etc. These vouchers are quite widely accepted but are used mostly for purchasing meals within office premises. This greatly impacts productivity, while also encouraging employees to invest the money they save through such coupons.
  3. Salary Advances: Salary advances can be described as paying a part of the salary in advance. Usually, if salary advances are the norm, 40% of the salary is paid by the 15th of the month, while the rest is paid on schedule. Salary advances can help employees create and stick to a budget, because they receive their income twice a month, instead of a single day of payment.

Fibe: Your Financial Wellness Partner!

Choose Us for Your Financial Wellness Needs!

As a company dedicated to helping improve the level of satisfaction people feel about their finances, Fibe is a technology platform that easily assists business owners and HRs in guiding their participants to achieve financial wellness.

Visit our website and find out more.

Making The Right Financial Choices Through Financial Literacy

The current workforce consists of a considerable percentage of millennials. It is estimated in a study by the University of North Carolina that nearly 50% of the workforce will consist of millennials by the year 2020. With such a large proportion being millennials, the big question that arises is whether they are equipped enough to conduct their finances wisely. Can they manage it better than the previous generations?

The Gen-Y, famously known as the millennials have lived through the infamous recession that crippled the global financial market a decade ago. It is safe to assume that living through the financial crisis have made them more aware of the tough choices and consequences they can face financially. But are they financially literate to make the right choices?

A report by the investment banking giant Goldman Sachs states that millennials are more adaptive to technology than the generation that preceded them. “So what?”, you might ask! The connection is that most financial instruments now provide services through mobile apps, reducing the gap between the young population and various financial aids. This allows the millennials to be updated with their monetary commitments, but does it make them financially literate? Access to cash goes hand in hand with financial literacy to make the right investment and the right choices.

Here are ways to stay financially literate and make the right financial choices.

  1. No further loans should be taken to repay what has already been borrowed

A debt trap is created when new loans are taken to repay older loans. The repayment of a loan must come from income.

  1. Place a curb on spending and usage of credit for consumption

Learning to live within means is not easy. Adopting a lifestyle that is in line with earnings, making sacrifices to ensure that debt is paid off, as a means to come back debt-free are all decisions that require determination. There are several instances of psychological damage that severe indebtedness can create, including depression and suicidal tendencies. It is important to take help before it is too late.

  1. It is important to see that debt can be reduced only by repayment

Deepening the crisis by borrowing more are not solutions. Debt incurred must be repaid and figuring how this can be done is what debt restructuring is about. Seek help before it is late.

  1. Seek help to restructure and re-organize existing loans

Many banks have a debt restructuring and advice facility that helps chronic borrowers. There are also external agencies that can help. Seek professional help to see what it is due, and how can be reworked. Credit card dues can be converted into personal loans; penalties can be negotiated for waiver; repayment schedules can be structured in line with capability of the borrower.

  1. Do not hesitate to put assets to use

Assets such as house, investments, provident fund balance and gold, can be pledged or mortgaged to raise money. Assets can also be sold to repay the loans. Many borrowers worry about saving face and social costs. With some help, they may be able to make decisions that have short-term costs but long-term benefits.

Keep Bad Credit at Bay: 5 Reasons Why

Credit Score is a numerical expression based on borrower’s credit history which is  record of borrower’s responsible repayment of debts. Having a good credit score is all that matters in today’s fast paced world, you may miss out on many benefits if you fail to maintain one.

Here are 5 ways a bad credit can negatively impact your credit score.

1. New Loans

Loans are the best way to get a huge sum of money in one instance. This attracts an interest rate that needs to be paid while repaying the loan. Failing to maintain a good credit score means you can kiss your dreams of buying a new house or studying abroad goodbye. Because when you apply for a new loan, your credit score will be one of the first few factors to be checked.

If a low credit score is found, then the loan application will either get rejected or you will be charged a higher interest rate. You may also need to show higher collateral in case of a low credit score.

2. Insurance Premiums

Insurance companies also check your credit scores. Timely repayment of loans and lower outstanding debts are what insurance companies are on the lookout for. And so a lower credit score will inarguably result in you paying a higher premium.

3. Renting a House

Renting a new house can also be very difficult if you have a low credit score. Yes, you read that right! Many landlords scan your credit score before they rent their house with excellent amenities and in prime locations to you to ensure a timely payment of the rent.

If you have a bad credit history, then the odds of getting a house are very slim. Landlords whose houses that have a bad infrastructure and that are present in areas where the demand is low may not check your credit scores. But you wouldn’t want to live anywhere like that, right?

4. Finding Employment

The competition to land in a job has increased exponentially in the recent times. And most employers make it a point to check your credit score.

In fact, as per the Society for Human Resource Management Report, 60% of the companies avoid hiring people with low credit score. They are of the opinion that a low credit score indicates lack of ability to manage your finances which can negatively impact your performance at the job.

5. Security Deposit on Utilities

Utility companies – electricity, phone, and cable – check your credit as part of the application process. If you have a bad credit history, you may have to pay a security deposit to establish service in your name, even if you’ve always paid your utility bills on time. The security deposit will be charged upfront before you can establish service in your name.

Save Yourself from These Problems by Keeping Your Credit in Check

Credit Score is becoming an important measure to assess your financial stability. Not having a good credit score could impact you negatively on various fronts as discussed.

Hence, it is advised that you keep your credit payments in check and maintain a healthy credit score. By doing so, you can reap benefits like quick loan sanctions, lower premiums, cheaper insurances and even access a better lifestyle. So get going to improve your credit rankings!

Give your Financial Goals an Early Start!

Getting your very first job is one of the most significant turning points of your life. You start making money, you start believing your dreams can finally come true. That’s wonderful! But are dreams enough? Hardly!

When you fail to plan your goals, you plan to fail your goals. Confused? Ask yourself how much money you need to make your dreams come true and that is when your dreams start to become an achievable financial goal. Wanting to own an expensive phone is a dream; planning to buy an iPhone X worth 1 Lac in 5 month’s time is a financial goal.

white spring notebook

Determine your cash flow

The starting point of any financial plan is to determine your cash flow or the difference between your monthly income and expenses. It is important to first differentiate which of your expenses are essential and which are discretionary and then to limit those discretionary expenses.

Estimate your financial goal time frames

Your financial goals should ideally be broken down into three categories; short-term, medium-term and long-term goals.

First, you need to calculate the inflation-adjusted price of the goal based on your time horizon. And when you have ascertained the goal cost, your monthly savings and the time horizon in mind, find out the tax adjusted rate of return (rate of return is the difference between the gross rate and inflation).

For a net return of 10%, tax slab of 20% and inflation of 7%, your gross return would be a handsome 22%! You also need to factor in long-term and short-term capital gains tax.

Where to invest?

Long-term goals (over 7 years) ideally should have an asset allocation of 100% equity or 80% equity with a 20% debt.

For medium-term goals (between 4 and 7 years), a ratio of 60% debt and 40% equity is desirable.

Short-term goals (below 3 years), could comprise entirely of debt or a 90% debt and 10% equity.

That is how calculative you should be from the very start!

Also, as investment options, long-term equity-based mutual funds, New Pension Scheme or Public Provident Fund can be considered. For medium-term, it could be balanced mutual funds or equity-linked savings schemes with debt. For short-term, the choices are liquid funds, recurring deposit, fixed deposit or short-term debt funds.

Know about tax-savings

There are certain statutory deductions available for tax-payers from their taxable income. Take a quick note of these too!

– Section 80C of the Income Tax Act allows deductions when you invest in Equity Linked Savings Schemes of mutual funds, New Pension Scheme (NPS), life insurance and so on. The maximum deduction is for a sum of up to INR 1.5 Lacs.

– Also, the Income Tax Act has a deduction for health insurance premiums paid in Section 80D with the upper limit being INR 25,000/- each both for you and your parents and INR 30,000/- if your parents are senior citizens.

Choose the right insurance

Insurance is meant to be a protective cover for you and your family. Investments help you achieve your financial goals. Both are not to be confused.

In today’s uncertain times, the best life insurance solution is a term plan which has no maturity value but provides high protection at a low cost. We might fall ill or need an operation. Hospital costs are very high, so a health insurance policy will also come in handy.

Keep an emergency cushion

Emergencies strike without a warning! A contingency fund equivalent to 6 months of your household expenses should be created with liquid funds or savings account or both. This should take care of a sudden job loss or illness.

Avoid a debt trap!

You fall into a debt trap when you don’t pay your credit card bills every month or take excessive loans or avoid budgeting.

So first identify your financial goals. Then begin with your saving and investment processes as early as possible. Be disciplined in your investments and then watch your financial goals being achieved!