Top 10 ways to waste your money
1. Carry a credit-card balance
2. Buy on fancy
3. Pay to use an ATM/Petrol bunk Swipe
4. Dine out frequently
5. Let your money sleep
6. Pay too much taxes on investments / earnings
7. Waste Electricity
8. Pay banking fees (for maintaining min balance/cheque returns etc)
9. Buy things that you don’t use
10. Not reviewing your insurance features
Saturday, August 8, 2009
Monday, August 3, 2009
25 lakhs here, what you will do?
Friends,
Many friends of mine usually saying that “if we were having 25 lacs in hand, we no need to work or worry about the jobs”… I used to wonder really what kind of plans they have in their mind with that 25 lacs?, so here with I have charted down my plan with 25 lacs. Pls share your plans as well
Note: Based upon our risk category we need to choose the below ones. If you need any help in choosing pls do let me know
(Asset Class) (Amount) (Expected Return Percentage) (Amount)
1. Fixed Dep/NCD 250000 11.50% 28750
2. Liquid Fund /
Short term funds 500000 8.00% 40000
3. Gold 125000 10.00% 12500
4. MFs
(Diversified Equity/Balanced) 1000000 15.00% 150000
5. Shares 500000 20.00% 100000
6. Cash on hand 125000
Total 2500000 10.75% 331250
Monthly Income (approx) 27604
Many friends of mine usually saying that “if we were having 25 lacs in hand, we no need to work or worry about the jobs”… I used to wonder really what kind of plans they have in their mind with that 25 lacs?, so here with I have charted down my plan with 25 lacs. Pls share your plans as well
Note: Based upon our risk category we need to choose the below ones. If you need any help in choosing pls do let me know
(Asset Class) (Amount) (Expected Return Percentage) (Amount)
1. Fixed Dep/NCD 250000 11.50% 28750
2. Liquid Fund /
Short term funds 500000 8.00% 40000
3. Gold 125000 10.00% 12500
4. MFs
(Diversified Equity/Balanced) 1000000 15.00% 150000
5. Shares 500000 20.00% 100000
6. Cash on hand 125000
Total 2500000 10.75% 331250
Monthly Income (approx) 27604
Mutual Funds – An Intro
Mutual Funds – An Intro
Buying shares based upon the market mode and creating a share portfolio is a cumbersome task which needs lot of work and needs a professional management on every day basis, as a popular say “leaving the job to the right people”… MF houses is the right one which will take care of all this problems
Affordable
Almost everyone can buy mutual funds. Even for a sum of Rs 1,000 an investor can invest in a mutual fund.
Professional Management
For an average investor, it is a difficult task to decide what securities to buy, how much to buy and when to sell. By buying a mutual fund, you acquire a professional fund manager who manages your money. This is the person who decides what to buy for you, when to buy it and when to sell. The fund manager takes these decisions after doing adequate research on the economy, industries and companies, before buying stocks or bonds. Most mutual fund companies charge a small fee for providing this service which is called the management fee.
Diversification
According to finance theory, when your investments are spread across several securities, your risk reduces substantially. A mutual fund is able to diversify more easily than an average investor across several companies, which an ordinary investor may not be able to do. With an investment of Rs 5000, you can buy stocks in some of the top Indian companies through a mutual fund, which may not be possible to do as an individual investor.
Liquidity
Unlike several other forms of savings like the public provident fund or National Savings Scheme, you can withdraw your money from a mutual fund on immediate basis.
Tax Benefits
Mutual funds have historically been more efficient from the tax point of view. A debt fund pays a dividend distribution tax of 12.5 per cent before distributing dividend to an individual investor or an HUF, whereas it is 20 per cent for all other entities. There is no dividend tax on dividends from an equity fund for individual investor.
Buying shares based upon the market mode and creating a share portfolio is a cumbersome task which needs lot of work and needs a professional management on every day basis, as a popular say “leaving the job to the right people”… MF houses is the right one which will take care of all this problems
Affordable
Almost everyone can buy mutual funds. Even for a sum of Rs 1,000 an investor can invest in a mutual fund.
Professional Management
For an average investor, it is a difficult task to decide what securities to buy, how much to buy and when to sell. By buying a mutual fund, you acquire a professional fund manager who manages your money. This is the person who decides what to buy for you, when to buy it and when to sell. The fund manager takes these decisions after doing adequate research on the economy, industries and companies, before buying stocks or bonds. Most mutual fund companies charge a small fee for providing this service which is called the management fee.
Diversification
According to finance theory, when your investments are spread across several securities, your risk reduces substantially. A mutual fund is able to diversify more easily than an average investor across several companies, which an ordinary investor may not be able to do. With an investment of Rs 5000, you can buy stocks in some of the top Indian companies through a mutual fund, which may not be possible to do as an individual investor.
Liquidity
Unlike several other forms of savings like the public provident fund or National Savings Scheme, you can withdraw your money from a mutual fund on immediate basis.
Tax Benefits
Mutual funds have historically been more efficient from the tax point of view. A debt fund pays a dividend distribution tax of 12.5 per cent before distributing dividend to an individual investor or an HUF, whereas it is 20 per cent for all other entities. There is no dividend tax on dividends from an equity fund for individual investor.
Survival
Survival
“SURVIVAL” is the most important word/talk today in this tough economic situation. All corporate companies are charting out plans how we can survive in this tough economy. Of course this is more important for an Individual as well.
Since We are in the IT industry I am taking our job nature and scenario as role model to write this blog…
Replace you
As long as your depending fully yourself for your regular income there is a risk in your earning and it will always leaves you unrest. So do you really wanted to work 50 – 70 hrs per week until your retirement?
So you have to generate another income stream to get yourself from these financial blues. So you need to remove yourself from being directly involved in generating the income stream for your family
Passive Income
Try some other innovative ways to making money, which requires less of your time to generate.
• If you are good in physical fitness and related activities write an aerobic/gym tips book and get the royalty
• If you are a good photographer, auction your photographs in online
• Invest in your friend/relative business and get some margin money out of their profits
• Use your accrued capital to invest in some MIP (Monthly Income Plans) to generate return or buy a rental property
• Rent your property and get some good returns
There are ‘N’ number of ways… use your analytical knowledge to leverage more… if you need any help hope I can assists you in finding a good choice for you
My simple suggestion is don't depend on single income for your life in this kind of tough economic situations
“SURVIVAL” is the most important word/talk today in this tough economic situation. All corporate companies are charting out plans how we can survive in this tough economy. Of course this is more important for an Individual as well.
Since We are in the IT industry I am taking our job nature and scenario as role model to write this blog…
Replace you
As long as your depending fully yourself for your regular income there is a risk in your earning and it will always leaves you unrest. So do you really wanted to work 50 – 70 hrs per week until your retirement?
So you have to generate another income stream to get yourself from these financial blues. So you need to remove yourself from being directly involved in generating the income stream for your family
Passive Income
Try some other innovative ways to making money, which requires less of your time to generate.
• If you are good in physical fitness and related activities write an aerobic/gym tips book and get the royalty
• If you are a good photographer, auction your photographs in online
• Invest in your friend/relative business and get some margin money out of their profits
• Use your accrued capital to invest in some MIP (Monthly Income Plans) to generate return or buy a rental property
• Rent your property and get some good returns
There are ‘N’ number of ways… use your analytical knowledge to leverage more… if you need any help hope I can assists you in finding a good choice for you
My simple suggestion is don't depend on single income for your life in this kind of tough economic situations
Top 10 ways to waste your money
Top 10 ways to waste your money
1. Carry a credit-card balance
2. Buy on fancy
3. Pay to use an ATM/Petrol bunk Swipe
4. Dine out frequently
5. Let your money sleep
6. Pay too much taxes on investments / earnings
7. Waste Electricity
8. Pay banking fees (for maintaining min balance/cheque returns etc)
9. Buy things that you don’t use
10. Not reviewing your insurance features
1. Carry a credit-card balance
2. Buy on fancy
3. Pay to use an ATM/Petrol bunk Swipe
4. Dine out frequently
5. Let your money sleep
6. Pay too much taxes on investments / earnings
7. Waste Electricity
8. Pay banking fees (for maintaining min balance/cheque returns etc)
9. Buy things that you don’t use
10. Not reviewing your insurance features
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