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Learn Income Tax Return Filing For Any Income in India

If handling finances wasn’t enough, we have taxes in place too to give us gripping nightmares.
However tax payment and filing income tax returns are both crucial for achieving a financial stability in life.
ITR filing is mandatory is a person’s gross total pay exceeds 2.5 lakhs.
The basic motive for filling income tax return is to showcase accountability and to display that appropriate tax has been paid.

There are both online and offline ways of filing income tax returns. However the income tax department made it mandatory for individuals with an income of more than 5 lakhs to file their income tax returns through the online route only.
We will write down about ways in which you can go ahead with this.

The offline Route:
If you have an income of less than 5 lakh per annum, and you decide to go ahead with the offline process then you can easily download the forms from the income tax website, or you can collect it from an income tax office. You will have to fill in some necessary documents including the ITR form and acknowledgement form(This contains the summary of ITR). The stamped copy of the acknowledgement form is handed back to you.
While Offline is the conventional route, Online is the more convenient one.

The Online Route:
It saves time. With technology popping up from everywhere, it becomes easy for you to file the returns of income tax. You do not have to fill in bank related details (such as the PAN number) over and over, all of that is auto-filled for you by the software. Thanks to the digital era!
The software is considerate and helps you calculate the tax amount payable or the refund amount due based on your income and deductions mentioned in the income tax report. This again saves time, is more efficient and reduces fallacies.
While you have chosen the online route, you will be happy to know that there are many options to opt for while filing income tax returns.

Apart from the income tax department’s websites. There are other deputed websites to carry out the same work. Some of the popular websites are Cleartax.in TaxSpanner.com, Makemyreturns.com etc.

There would be variations in these websites in terms of the packages offered, the costs associated, the procedures involved . Also many portals provide the process of filling taxes for free. These are for people with the income below a certain level.
So while opting for a package, you usually choose a cheap package if your income is through your salary. The package choice may turn to a costlier one, if the income is from various sources(Business, Capital gains, House properties etc)
You need to also ascertain the service provider. These are your finances that we are talking about and hence we need to be careful. You will be filling in information like investments, savings, bank account details etc, and hence you need to evaluate the confidentiality and privacy policy of the portal that you choose.

You do not have to do much while filling it through the government website. You can fill the details online itself on the ITR form and upload the form directly.
After the upload and submit, an acknowledgement is generated. This would be emailed to you as well.

For most of service providers, there is already a system built in for filling forms with ease, that suits the need of the users. Some service providers even have a question and answer format for form filling.
Once the acknowledgement is signed, it is received by the tax department to assess the calculative errors, wrong claims or deductions filled in by the tax payer for that year.
After rigorous evaluation, when the data filled in by the taxpayer is matched with the in-house data, an email is sent to the individual which is termed as intimation under section 143(1). This is to notify the individual that the acknowledgement has been received and is ready to be processed.

Tax consultants
Apart from these routes, you have many tax consultancies too in place. These consultancies have expertise on tax .These consultancies help individuals like you by providing the know-how around taxes. The organization provides complete and intact information on how to file the income tax returns. Examples are H&R Block, TaxConsultantsIndia etc.

Now we believe that filing income tax should not be a formidable task for you. With so many options the ease around them, you do not have to ever worry about getting stuck anywhere.

Image Source:Charted Club

How Net Banking Can Save Time?

Let’s first have a conversation on what net banking is. In the simple words, we can monitor our bank account online and even carry out transactions with net banking.
This electronic payment system frees us of the task of physically going to a bank. We can carry out multiple transactions on the bank/financial institution’s website is with the click of the mouse.
Financial institutions and banks have their own websites, built up beautifully enhanced by user friendliness. These websites can be accessed with utter ease, and are fully secure.

Time is Money! Net banking actually saves a lot of your time and your money!

Benefits of net banking are endless. Be it starting a new account online, or starting a retirement account, or move money into a holiday savings account or applying for loans, everything is easy and accessible to us.
Many financial institutions also have live customer service through Internet chat.
Even Gifts and pre-loaded debit cards can be ordered through Internet banking services.
Ways in which Net banking saves a great deal of time: –

1. We do not have to encircle dates on the calendar for going to our local financial institutions.
Going to a bank, leads to a transportation cost. But with Net banking in place, Transferring funds, paying bills, all of this is managed from home.
With net banking, you will never have to stand in cues waiting for the other person to get done with his work. The moment you finish a transaction, the net banking system processes it.
2. Monthly bills can be made on time. Financial planning is much easier now. There is an option for automated payment as well. By setting up vendor information and choosing a monthly repayment date, you cannot possibly forget to repay.
3. The paper work is zero. Writing checks, cross –checking envelopes to be sent, filling forms manually will all be just not required.
4. When you have made all or most of the payments, you will need fewer checks. You will not spend time on ordering check books, and waiting for them too.
5. Net banking is available all the time for 24 hours. You would not have to race to the bank before it shuts down. You also would not be disappointed on a bank holiday.
6.Fund transfer from one account to another will also be a swift process. This happens within 24 to 48 hours depending on the bank’s policies. This saves considerable time, wherein you have to write a check from one account, and subsequently deposit into another account.
7. Net Banking can be carried out via NEFT, IMPS and RTGS. We will quickly explain what each of them stands for.
- a. NEFT – National Electronic Funds Transfer is usually used to transfer small amounts. The minimum amount could be Rs 1, but the maximum is 10 lakh. The transfer protocols are managed by RBI. In this process funds are transferred in batches.
  The operational hours are 8am to 6:30 pm on weekdays, and 8am to 12:30 pm on Saturday in hourly batches. Timings might vary a bit depending upon the different banks. Transactions carried out during this time slot are settled within the same day, and the ones carried out later are carried out the next day. So when a person transfers money from one account to another, it would not be instantly credited. It would be done in the next settlement cycle that happens at 60 minutes intervals.
- b. RTGS or Real Time Gross Settlement- Here the fund transfer takes place between bank accounts in real time. RTGS is a fast process, and is handled by huge organisations for real time transactions. So basically as soon as the transaction is processed the funds are credited to the beneficiary. Here RBI manages the transfer protocols. Here the minimum amount should be 2 lakhs, and the maximum amount would be 10 lakhs.
- c. IMPS stands for Immediate payment services. Through this mechanism, you can transfer money using the mobile phone. Numerous banks allow transactional transfer through this mechanism. It is also being extended through other channels such as ATM, Internet Banking, etc.
  Here the minimum amount is Rs 1 and maximum is 2 lakh.
There are different transactional charges involved too for transferring cash to and from the account in all of these cases.
We want you to direct your expenses better, and control your money in the most efficient and time-saving fashion.

Hope we have helped you in getting a better understanding of net banking.

Image Source:It’s all about Money

Education Loans

Quality and Quantity seem to come hand in hand. In present scenario, quality education burns a hole in the pockets of parents because of the huge quantity of fees charged for it.
Education loans offered by numerous financial institutions are a boon to the vast sea of students.
Students can breathe a sigh of relief with the numerous loan options served across to them, choosing their careers is easier now.
Parents also can be complacent about the fact that they have a monetary pillar to recline on.
However there are some factors that we need to be vigilant about.

1. Your educational institution is looked at with a microscope before a loan can be granted. The colleges that offer good placement opportunities are given a green signal. The educational institutions that are not well recognized are given low priority for giving out loans.
2. The CIBIL score for both parents and students is one of the key factors that leads to an approval or disapproval of the education loan. The credit history needs to be up to the mark, and there should be no traces of regular defaults. This holds integral for students, who have just entered college and also have started working. These youngsters might apply for various credit cards with a low repayment capacity resulting into a disrupted CIBIL score. For the parents who are the guarantors, it is imperative to have a good credit score.They are the ones who guarantee the repayment of the loan.
3. Your academic performance also one of the deciding factors for the lenders to grant you a loan. So if you do not fit in the eligibility criteria that the financial institution possesses, then your loan request might be rejected. The banks/financial institution thinks that you would fall in the category of a non-performer and not earn enough to repay.
4. The type of course that you have applied for ascertains the loan approval. If the loan is for a part-time course, then chances are that the bank might reject your loan application. Financial institutions/banks approve loans that are meant for a full-time course abroad or in the same country.
5. The income of your parents is a crucial factor that can turn the tables. Since your parents essay the role of guarantors, and if you fail to repay the loan, then it is on them to repay the amount. If it is fairly low, then the lending institution will not hesitate to disapprove your loan request.
6. Financial institutions do not rely on “Age No bar”. There is a certain age limit upto which loans can be approved and that is 30 years.
7. Whenever you take a loan of more than 7.5 lakhs, then it is necessary to have a collateral and joint borrower in place. If you are unable to provide these, then you might get the loan disapproved. Having a collateral in place, gives a sense of guarantee to the lending elements. They feel that they can recover the amount loaned in case of failed repayment. For an amount lesser than 4 lakhs, you are not required to have a collateral in place. However even such an amount necessitates the involvement of a guardian/parent.

Taking loans for education that is a step taken in many people’s lives. Hence we wanted you to be aware of the obstacles that might come in future planning and career decisioning. Being cautious will help you in better financial planning and control of money.

Image Source:Student Loan Helper

Important Tips to Consider Before Taking a Home Loan

Getting a home loan on salary offers a great way to finance the purchase of your dream home. The increasing real estate prices can make buying a house an expensive ordeal and accumulating the required wealth can take years. But when you apply for a home loan, you can get your dream home without any wait.

However, simply knowing how to apply for a home loan is not enough. You also need to understand the nuances of this borrowing to ensure you make an informed decision. So, read on to learn some crucial tips you should remember while getting a home loan.

Tips to remember before you apply for a Home Loan

Here are some tips to remember when you apply for a home loan online:

1. Stable income and employment

Firstly, to get a home loan, you need a decent salary and a secured job. You should be regular with income tax payments and filing of the returns. You should also get your Form 16 from your employer.

2. Maintain a healthy Credit Score

Having a good credit score while applying for a home loan is crucial. The financial institution may reject your loan request without a good credit score. You should pay your debt before the due date to maintain a good credit history, which can help increase your credit score.

3. Select a suitable loan option

You also need to keep a check on any other loans that you have applied for and taken. Financial institutions monitor your capability to repay. For example, if you have taken many loans that occupy 50% or more of your salary, you may find it difficult to repay them.

4. Get a mortgage banker

You need to get a mortgage banker involved in the process of selection of loans.

There are innumerable loan options that the lender provides and a mortgage banker helps make faster decisions with efficacy.

5. Provide documents and details

As mentioned, financial institutions evaluate your repayment capabilities. These are generally included in the list of documents required to apply for a home loan. The lenders also ask for your investment data. You need to share the details of your bank account/s, post office savings schemes, insurance plans, employment details, etc.

If you are a freelancer or self-employed, you need to give the details of your income, income tax return and balance sheets, among other documents.

6. Choose the right property

It is very important to assess the kind of property that you choose to get a loan for. It may become a little difficult to get the loan sanctioned if the property is a resale property of age 10-15 years. The financial institutions also evaluate the construction stages of the property.

7. Keep the down payment ready

While applying for a home loan, you need to be ready with the down payment. Most banks give an allowance for eighty-five per cent of your loan. You need to pay the remaining amount as a down payment. So, make the necessary arrangements to have the required amount ready.

8. Choose the right tenure

The repayment time is also an essential factor to contemplate. Most lenders allow you to choose the timeline to repay your loan. But while deciding the time limit, you need to consider the fact that a longer repayment period will lead to lower EMIs but higher rates of interest.

9. Involve a guarantor

The financial institutions do not press on the need to have a guarantor. However, having a sense of guarantee leads to an increment in your credibility. Also, there are cases where it becomes mandatory for you to have a guarantor.

The guarantor could be your friend or family and he/she takes guarantee in the legal space. Note that the guarantor also needs to meet the lender’s eligibility criteria. Remember, in case you become delinquent and are unable to pay back, then it is your guarantor’s responsibility to repay the loan.

10. Apply with your spouse

If you apply for a certain loan amount and it is not getting sanctioned, then you can choose to apply for the loan with your spouse. The chances of getting approval on your home loan increase this way as the lender will also consider your credit profile.

11. Get an appraiser

Having an appraiser in place helps all the parties aware that you are paying a reasonable price. The financial institutions arrange for an appraiser who essays the role of a third party. The appraiser evaluates and gives an estimate of the value of the house that you intend to buy.

Remember, at the end of the process, there is certain paperwork that you need to complete. It takes a few days for the lender to fund your loan after the completion of the paperwork. As such, the whole process can take some time and you should apply accordingly.

If you simply plan to get funds to renovate your home, you can get an Instant Personal Loan online. With Fibe, you can get a loan of up to ₹5 lakhs instantly with minimum documentation. Download the Personal Loan App or go to our website and apply for quick and hassle-free personal financing.

FAQs on Applying for a Home Loan

How to close a home loan early?

To close your home loan before tenure, you need to reduce your outstanding balance. For this, you can choose any of the methods:

Increase your EMI amount
Opt for a balance transfer
Reduce your loan tenure
Pay more than your monthly payment amount
Repay a substantial amount as prepayment

Remember, the lender may levy some charges if you plan to close the loan early. Be sure to consider this and other terms before proceeding.

How to get a home loan preapproval?

Banks offer preapproved home loans to customers based on their repayment capacity. Therefore, you must have a good credit score and a steady income to get preapproval on your home loan. You can check your offer from the lender’s website.

How to reduce home loan EMIs?

To reduce your home loan EMI, here are some points that you must consider:

Increase your loan tenure
Improve your credit score and request a lower EMI
Negotiate with lenders for better interest rates
Make a part payment or prepay your loan to reduce the principal amount
Get a home loan balance transfer

How can I get a loan for my house?

There are numerous financial institutions offering competitive home loans. You can choose one that offers the best deal for your current and future finances. Once done, you can apply online or offline, as per your preference.

How to Repair Your Credit Score?

Before conversing about fixing damages to the credit score. Let us talk about a good credit score.
We often ignore credit score while applying for loans, and many of us unaware of the low score, until the lender rejects our application and informs us.

We should not turn a deaf ear towards our credit score; instead we should monitor it regularly.

What is the Credit score and why is it so important?

So essentially a credit score represents a person’s creditworthiness when he/she asks for a loan.
A person’s credit score is determined by the person’s repayment behavior and credit history, and the creditworthiness is constructed around that. The credit agencies maintain a database of credit standings of individuals and commercial entities. The score ranges between 300- 900. Score of 750 and above is considered to be a good score.
There are four agencies that are permitted to maintain this database. They are CIBIL, Equifax, Experien, and CRIF highmark.

Why is the score so important?

With a huge array of financial institutions you might feel that money is easily accessible, but this is not the case. The risks associated with lending have always been considered high and it is necessary for the institution to ensure that it’s lending to right person. Hence, the financial instruments rely on criteria that decide whether you deserve the loan or not. Here is where Credit score shines brightly. It is usually the decision making point for lenders to give or to not give the loan to the borrower.
Hence it is important for you to maintain a good credit score, and work towards improving if it is low.

What makes a good credit score.?

The credit score, amongst many things, looks at these critical parameters:-

1. Repayment history
2. Loan enquiries and status
3. Loan to income ratio
4. Length of the credit history

There are no short cuts to improving credit scores. The best way is to administer and manage it over time. And gradually things will fall in the right place.

Let’s focus on some things that we can do to better our low credit scores

1. Stop asking for a new credit – If you are aware that your credit score is poor, you should not apply for a loan at multiple banks. The more inquiries the lender puts into your credit score, the lower it goes. You need to be patient till the time you obtain the suitable score.
2. Lessen the debt quotient in your kitty – You should meticulously chart out the credit accounts that you have out of your credit report. You need to stop using credit cards for this situation. Make a budgetary plan, and direct your expenses towards the higher rate interest credit cards first.
3. Keep your repayment balanced: Well it sounds quirky, however repayment does affect your CIBIL score badly. So in this scenario if you drastically pay off all your repayments at once, then this portrays instability in your financial records. Repayments as a process should take place gradually thus reflecting monetary stability and rendering positivity to your CIBIL score.
4. Set up reminders for Payment: We are so caught up in our routines, that we hardly have a breathing space. But we need to be alert, and sensible when it comes to financial planning and decisioning. Some financial institutions offer payment reminders through their online banking portals that can send you an email or text message telling you about the due date.
Also there are automatic payments through your credit cards, wherein if you enroll, then payments are automatically deducted from your account and gets received by the lenders.
5. Be vigilant of any sort of mismatches in your credit reports: It is advisable to leave no stone unturned.
Sometimes bank authorities can across erroneous entries to CIBIL. So in such case scenarios, you need to approach banks to rectify the mistakes. Also you need to make sure that all the data on positive and timely payments is recorded and submitted by your lender to CIBIL
6. Use your credit judiciously: Whenever you make use of your credit, then you should analyze the credit utilization ratio. This ratio is of amount of credit you have used to the amount if credit available as balance.
If you have numerous credit cards, and you use only one of them, then your credit score may get negatively impacted. Hence you need to be smarter and spread your spends over numerous credit cards and not just one.
7. You need to create credit history if you do not have one: For first-timers, there is an absence of credit history. Lenders might hesitate to give them a loan, owing to their zero credit score. So what you can do is open up a fixed deposit and take a credit card against it. And once you have one in your hand, then you can work towards it and improve the credit score.

We recommend you to check the credit score before applying for any loan to ensure that there are no issues in the credit history. Even if there are any, make sure you get them rectified by the agencies before applying for the loan.
Our aim for writing this out was to make you understand the importance of a good credit history, and we hope that you take smarter steps towards financial goals.

Image Source:Credit.com

Unsecured Loans Versus Secured Loans

One of the most common questions that we ask ourselves is “What kind of loan do I opt for?”
We take baby steps towards Loans. Loans are like those tricky questions in our exams, where we have to meditate hard to make the right choice.
Deciding upon which loans to take depends upon numerous parameters such as whether you want to take up a house or cater to your your child’s education or go on a vacation.

Taking loans is a financial commitment, and by agreeing for it, you are basically agreeing to pay a fixed part of your salary till your loan is repaid.
Loans can be majorly categorised into unsecured and secured loans. Sit back and read on further to know about these loans.

Secured Loans:- These loans are guarded by an asset or a collateral
Through secured loans, you can get a huge sum of money. Putting your house or your car is a good enough security against the loan taken. Secured loans offer lower rates of interests, higher borrowing limits and longer repayment terms as compared to unsecured loans. The lender has the right to take you asset incase you become delinquent. Also if the selling price does not cover the debt, then the lender can pursue you to settle the difference in amount.

Some examples of Secured Loans are
1. Mortgage wherein your house is taken as security against your loan
2. Auto Loan: Here your vehicle is taken as security against your loan

The perks of Secured loans:-
Cost:- Secured loans are less expensive as compared to Unsecured loans.
Easy Accessibility – Secured loans can be obtained even if your credit score is bad. The lender can seize property incase of failure in repayment.
Tax deduction on interest:– The interest paid on the loans such as mortgage is tax deductible.

The downfalls:-
Losing your assets – You can lose a valuable asset, however the lender loses zero.

Unsecured Loans:- Here you do not have to give the right to your assets to the lender. Lenders are more prone to risks here.
When you apply for an unsecured loan, the loan gets sanctioned by the user on the basis of repayment capability.
The borrower is judged on certain parameters such as credit history, capital, collateral , borrower’s current financial situation as well as prevalent economic factors) . His/her character is also taken into consideration to convert decisions to actions.

Some examples of Unsecured Loans are
1.Credit Cards
2.Personal Loans

The perks :-
Secured Assets – You do not lose assets, because the loan does not require a collateral backing them

The downfalls :-
Harder to get – Unsecured loans might be harder to get from the lender. You need to have a good credit rating, and if you do not have one, you might be considered risk worthy.
High Interest Rates – The interest rates may be higher.
Receiving the loan of Lesser value – Also you might not get the desired amount depending upon your credit scores.
Hope we have helped you to get a better understanding of loans that exist.

Be smart and take smarter decisions!

Image Source:Bizcash.com

Money Management Tracker Apps in India

Who doesn’t want a peaceful night’s sleep? But we do not always get what we want. We know for a fact that money matters, but money matters hound us in our sleep.

We have to essay the role of a smart money manager. Balanced budget is a must.
But it is not as easy as it sounds. With our minds and finances in multiple places, it becomes formidable task to keep a track of money.

Going through uncountable paperwork and doing mathematics on the receipts is a cumbersome task. This leads to a haywire budget management, and we dread the day of budgeting.

The ultimate resolve to this is going digital. Technology has embedded deeply in our professional and personal life. And it is Technology that helps us solve most of the obstacles in our lives.

The tech masters have devised several apps that aid in budgetary planning, and taking smart financial decisions

We will list down some of the coolest money management apps that fix the financial fixes.

MTRAKR – This app helps in managing wealth and keeping a track on what we earn and what we spend.
And as the name suggests, the tracking system here helps us to get rid of extensive paperwork.
You don’t have to fret over having more than one bank account. This helps in managing multiple bank accounts.
It is built beautifully, and has segregated categories of food, utilities etc.
People with no finance background or zero bank knowledge can also tap this app with ease. It is fully automated and does not ask for any sort of bank passwords.
My Tax India – Calculating and saving tax, taking into account investments and other deductions is a complex task. Here is where My tax India becomes your saviour. It systematically calculates the amount of tax that you need to pay, and you can try out various settings to figure out the optimum level of investment that we need to make.
It is user-friendly, and you do not need to be a maestro in finance to use it. So, at the time of tax filing you know what to expect, and you act accordingly. Otherwise you are left baffled with very less time to think through.
Wally – Wally is another expense tracker in the digital arena, it keeps a check on your expenses and keeps the spends stacked in categories.
One very interesting feature is that it uses your location and categorises the venue, leaving you with very little work. All you need to do is fill in the expenses.
Another feature is it’s ability to scan the receipts, relieving you of the stress to type in financial details . You get notified every time you reach a savings goal.
Money Management is a much easier task now. We can direct our expenses accordingly.
Mint – So Mint basically integrates all your card and bank accounts while keeping an eye on your earnings, spends and savings. This gives in an in-depth analysis of your finances. This is one of the coolest Money Managers in the digital space.
Officetime – This is an intriguing application. It is for office goers for whom time is money. It helps you in analysing how productive your time is, and how you can use it more efficiently. This also helps you keep a track on your spends, and generates invoices for expense reimbursements.
Homebudget– As the name suggests this application apart from having a beautiful look and feel, creates a beautiful balance in the finances for your family members. It helps you to split bills with your spouse or family members by coordinating efficiently . It also helps working professionals to keep a tab on their multiple income sources.
Splitswise – You like going out, partying, or having dinner with your friends? Then this is the app apt for you. This is extremely useful in splitting the expenses. Splitswise, divides the cost systematically if there is a group with joint expenses and it gets tough to split expenses.
This is a user-friendly app, and is very popular amongst youth.
Digilocker – This app is extremely handy to align and stack your financial documents Starting from your PAN card, Income Tax returns to other Bank documents, Digilocker manages all the confidential documents in an ordered fashion
In short DigiLocker acts as the superhero in disguise.

So what are you waiting for? Tap the app that suits your needs.

Image Source:telegraph.co.uk

How to Handle Finances Right After Marriage?

Youngsters before marriage find themselves perplexed when finances are being spoken of.

There is an absence of savings or a very much required emergency fund. Since their money management habits are haywire,it becomes essential that they get improved and systematic after marriage.

If the financial loopholes are not taken care of , then these become one of the biggest obstacles for both the individuals.

We would want to talk about some simple yet essential measures that can help you out during this phase of your life, Hence,we have jotted down some significant points of financial management after marriage. Have a look.
Some ways to handle finances after marriage:-

1. Plan for the uncertainties: – Even if you are stable in your careers and have a good salary, you both need to have a structured financial element in mind. Emergency won’t knock the door and come. Couples today are not really equipped to combat these emergencies, and are under constant stress. Unexpected illnesses, accidents, layoffs can cause a great deal of pain, and hence it is advisable to save a share of your salary over a period of time. This certainty helps to deal with the uncertainty in a much better way.
2. Smart Spending and Smarter Investing : When you are married, you both need to be accountable for what you spend and invest. Spending is inevitable, as it is the simplest answer to both necessities and wants. You cannot blame the other person for the spending. The bottomline is both of you spend, but on different things, and hence there is a need to set a budget.It is required that both of you get on the same page, and focus clearly on the lines of investment. Be it Investing for next year or for retirement , investment planning is the need of the hour. There are many ways of investment for long and short run both. Seeking professional advise also helps.
3. Set achievable financial goals: Having a foresight helps. Deviate from your monotonous life for once, and give considerable thoughts to life after 5 , 10 or 20 years. Anybody can earn money. But judicious usage of money is an art to learn. You just don’t want to walk on a path, there has to be set destinations.
You should chart out your career dreams, lifelong goals, financial expectations together and set time to achieve and fulfil them. Summarising the important and less important ones and then prioritising them is the right course of action.
4. Combining or Not combining accounts: So while planning finances, the question of having a joint account or a separate one arises.Both the options are working models. Let’s talk about them in detail.a)Separate accounts: – When you keep money totally separate, everything(rent, mortgages, necessities etc) has to be split . Also you need to evaluate what you spend, be careful of not spending too extravagantly, as the entire monetary responsibility shifts its weight towards your partner. Also, you need to plan to spend from each account to gain the tax benefits on Home loans, EMI, Investment Proof etc.
b)Joint Account – In this case, you would put money in a single basket, and use it to pay off and spend. However this requires financial coordination and a mutual agreement on expenditures. You need to get to the common grounds of spending, because if there is a lot of deviation in spending patterns, then there is a lot of room for monetary imbalance and arguments.
5. Checking Financial history – It is important for you to discuss financial history with your spouse and vice versa. Being aware of the financial history, such as the use and number of credit cards, credit scores, way of spending paints a clearer financial picture. So in case one of you has a poor credit score, then having a joint account becomes is not a smooth decision to make. So decision making is highly influenced by financial arrangement of both individuals.Managing Debts and Saving: It is good to combine accounts when the debts are cleared off in single or both accounts.Saving after the wedding is definitely a good idea, but saving before is essential too. We suggest you to open up a savings account before marriage for setting money goals beforehand and having a vision of future expenses. Both the individuals should invest a portion of their combined income after marriage, and let the account grow.
I hope we have helped you in making better decisions. Happy Wedding !

Image Source:listenmoneymatters.com

Wise Investment

Investing your hard earned savings seems a difficult task , but in reality it is not. You you don’t have to be rich to start investing. The key principle is to Start small and start early.

If we focus on the right path to investment, then we would be amused to see the amount that we save in a very short time. It is mind-boggling to see everyone around me spending a considerable time before buying a mobile phone, car or even grocery. But when It comes to investment , the most significant decision of our lives(financially), we just go about it without giving much thought to it.

Hence we want to talk about how investment can be prioritised in the right fashion, and we have the following to explain just that.

7 pillars to build a wise long term investment portfolio:-

1. Put up a road map together: and answer two significant questions:
a) How long do want to remain invested for?
b) What’s your risk appetite?
2. Diversify your investments: The investors falling in the category of high risk takers, also plan investment by diversifying their portfolio. This is important not to invest everything into a single basket or instrument class.
3. It is imperative to Plan for long term and avoid the temptation of short term gains.
4. Never invest in something that you do not fully/partially understand. Research well to understand and then invest accordingly.
5. Invest to save tax : You can save tax by investing under section 80 C. The maximum amount that can be invested is 1.50 lakh, and this means your income gets reduced by this investment amount. So you are exempted to pay tax on this amount. Also the invested amount increases in a period of time. So it is a win-win situation for you.
6. Investment should be your first priority, and it should begin with the initial sum of money, and not with the leftover amount. Practicing this as a habit will help you clearly evaluate the difference, and you will be surprised to see the funds that are actually available for you to spend.
7. Every Rupee costs: don’t let go off a single rupee. Do not fall fall pray to exotic schemes and keep your portfolio very simple. Try to look for the extra yield that many banks offer such as the superior returns on saving as compared to others that don’t.
Saving is as simple as spending. If you intend to do it then just follow it like you follow your daily rituals.

We are listing down some wise saving options for the young working population:

ELSS: (Equity Linked Savings Scheme) is a diversified equity mutual fund which is qualified for tax exemption under section 80C of the Income Tax Act. ELSS is a good option to invest in, because the investor has the opportunity to invest in equity markets as well apart from getting benefits of tax deduction.
Also, ELSS has the shortest lock- in period of three years as compared to other tax saving options.

Mutual Funds: Mutual funds are diverse in nature.. They are broadly divided into Equities, Debts and Balance funds. Here the money is pooled in by investors in many bonds, stocks and other types of investment. It also gives you the access to investment professionals who expertise to manage your funds in the best way possible
So owning shares in a mutual fund instead of owning individual stocks or bonds the risks get spread out.
Diversification ensures that a loss in a particular investment gets nullified by gain in another

ULIP’s: ULIP or Unit Linked insurance plan is a life insurance product that provides the risk cover to the policy holder accompanied by the option to invest for long term.
Recurring Deposit : The concept is fairly simple. You can allocate a fixed amount of money every month as deposit with a bank for a period that you specify. This will push you to save and invest on regular basis thus securing your future.

PPF :- The Public Provident Fund has been established by the central government.
Any individual can open a PPF account with any nationalised bank or its branches that handle PPF accounts.
The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 100,000.
The entire balance can be withdrawn upon maturity i.e after 15 years of the close of financial year . The rate of interest is decided upon the government every year. Currently the rate of interest and principle is exempted from tax at the time of deposit and withdrawal.

We hope that this article helps you out in thinking better and planning wisely. Happy Investing!

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How do I allocate my Salary?

salary

Being at the point of time in our lives, where we finally feel financially able is enthralling. However, it is imperative to not go overboard on spending, and channelize our monetary resources.

We make numerous mistakes during this phase of our lives like we spend more than we earn.
This pushes us in a deep pit of financial fixes.
Hence, a steady income needs a steady management.

Striking the right balance between what we earn and what we save impacts our future positively and reduces the possibility of cash crunches.

But the most common question is “ How do we go about it it? How to distribute our salary for expenses and save?”
So having a financial plan in picture is a always a good sign. Below is one such plan that can help us in resolving the issue.

The Boon of Budgetary Planning: –

Having a well-schemed budget is as necessary as breathing and it is just the half battle won.
Our pockets empty faster than they fill. They forever bear the “Low on cash” Tag

This efficacy of the plan lies in how we divide our expenditure into duties, obligations and splurges.
At the end of the day, we earn to spend but we need to spend right.

So we should draw a plan that broadly classifies our division of expenditure into the following: –

Savings:-
Having a foresight for the future helps us guard our money better.
The maestros of investment suggest that “Do not save what is left after spending, but spend what is left after saving”

We should dedicate 20 percent of our salary towards investments for future.
Also savings should not be just confined to the walls of emergencies, savings can also be for planning our future better. This holds true, especially when the tax rates surge higher with passing time.We do not want to be like the sitting ducks to the taxing alligators. Regular and planned investment, eases the financial burden over a period of time, Gradually with this scheme of action, you won’t even realize the substantial chunk of funds that are left in your kitty.

Routine lifestyle expenses: –

Allot a good 50 percent towards your household finances. These finances are unavoidable and necessary. From rent to electricity bill, timely payment is essential. Plan your lifestyle in a way such that the expenses towards it do not surpass the allotted percentage.

For example: – Going overboard with the usage of electrical appliances or unnecessary wastage of power can render mammoth sized bills. So it is advisable to monitor and regulate the use.

Food and Clothing

Both of these fall in the “can’t live without category”, so we cannot really compromise. However what is in our hands is wise spending.

If we invest cautiously , we can have a good share of funds to choose from our favourite brand of garments.

Debt/Loans

Repayment should be one of your top priorities. Dilly-dallying the repayment, will only increase the burden on your shoulders and make them droop to the monetary pressure. Also, it spoils the credit score which in turn reduces your chance of accessing loan in the future.

The debts and dues need to be dutifully cleared. So a 25 percent should be allotted for this.

Recreational Purposes:-

Now you will still be left with some money, you can pamper yourself with some shopping sprees , binge eating and partying.

Because who wants a life filled with blues and greys . We believe “Jab jeb ho full toh Life Colourful”