5 things to teach your kids about money

5 things to teach your kids about money

Children, these days, are much smarter and more informed than their parents at their age. They seem to be much in touch with what’s going around them. Then why leave out money management? The biggest gift that any parent can give their child is to teach them how to handle money and sadly enough this isn’t a part of the curriculum at most schools.

On this Father’s day, we bring you 5 simple actionable tips on how and what to teach your kids about money. 

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6 easy ways to reduce loan EMIs

6 easy ways to reduce EMIs on loans

Loan borrowers have had to deal with tough situations induced by the Covid-19 pandemic since 2020. The 2nd wave of Covid dealt a bigger blow, many are left with huge medical bills, prolonged illness, loss of an earning member of the family, etc. With an influx of lockdowns across states, cash flows continue to remain majorly impacted, and this is making regular loan repayments more challenging than ever before. 

Borrowers with high EMIs may be unable to deal with this challenge and must therefore look for ways to reduce the EMI payments. Here are some tips that loan borrowers can use to reduce EMIs and deal with the present scenario.

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Covid health insurance claim

How to ensure your Covid health insurance claims are passed?

The COVID-19 pandemic has unexpectedly transformed the health insurance landscape in more ways than one. Many people who never believed in health insurance are now taking it seriously. Today, health insurance policy sales are skyrocketing as more individuals and businesses are investing in tailor-made health covers as a preparation to combat the COVID-19 pandemic. Insurers are of the view that this new trend may continue post the COVID era too. This is primarily why insurance companies are launching custom policies to cover hospitalisation and treatment costs pertaining to the novel coronavirus. There is also a new trend of opting for home care insurance.

Even after buying a health insurance plan, does an individual get a guaranteed benefit in case of hospitalization or death because of Covid-19? How does one ensure that the Covid policy claims are passed by insurance providers? Here are the answers to your questions on Covid-19 insurance claims and how to ensure that the same are passed.

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Best investment options for NRIs

7 best investment options for NRIs in India

As per statistics, there are nearly 3 crore NRIs and PIOs from India who live in different parts of the world. NRIs are always on the lookout for various investment options in India because of the increasing potential that the Indian economy holds. Many NRI investors believe that investing in their home country can help in wealth creation while also providing a boost to the country’s economy. 

As the Indian political and economic environment remains stable, foreign investment continues to flow into the country. The world too keeps a close eye on the movements in the Indian market because of the estimated scope for growth. Here, we will provide an overview and guidance on NRI investments in India, along with discussing some benefits to be availed from the same.

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Security precautions for digital transactions

Measures you should adopt while carrying out digital transactions

Digital transactions can be conducted through different mediums such as credit cards, mobile wallets, bank NEFTs, etc. These are increasingly being preferred by consumers considering the convenience and ease of conducting transactions. Digital transactions have become all the more important with the current situation where everyone is working at home and looking at carrying out all transactions online. 

Digital transactions also tend to have some risks, including data breaches, security risks, thefts, and the likes. Therefore, consumers must ensure to take extra precautions while using digital mediums for monetary transactions.

Although online transactions offer cashless modes of transferring funds and making payments, an increasing number of cyber-attacks are proving to be a challenge in maintaining financial security. Today, cyber-attacks are commonplace and bank robberies are conducted digitally. 

To help users carry out digital transactions safely, we have listed here some of the precautions that you can take. (more…)

What is portfolio rebalancing?

All that you should know about portfolio rebalancing

Risk management plays an important role in setting up an effective portfolio irrespective of an investor’s style or approach towards investment. Many investors take risk management seriously and proactively realign their portfolios to prevent the significant impact of market fluctuations. This is when portfolio rebalancing comes into the picture as it plays an extremely important role in the investment approach of an investor.

Here, we will explore the concept of portfolio rebalancing and unravel some of the important aspects surrounding it. This will help investors to learn the concept and also implement it in their day-to-day portfolio construct.

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Be money-ready during the pandemic

How to be money-ready as the pandemic rages on

At the dawn of 2021, India almost started believing that Covid-19 has passed over us and life can slowly start getting back to normal, just like the pre-Covid days. Little did we know that the new wave would come back stronger and with a magnitude that very few had imagined. This has gotten all of us worried about our health and that of our loved ones. As we brace ourselves for a potential impact on our health, a lot of us also worry about how it could hamper our financial planning. 

In 2020, people were worried about job losses as they directly affected their income. This year, however, the scale of worry has risen because of the cost of hospitalisation and other medical needs that a large number of the younger population is incurring. With this two-fold impact of Covid, we must revisit our financial planning. Here’s how. (more…)

Monthly Income Plans

With taxation on EPF interest should you move your investments to mutual funds or NPS?

What is the first investment option that comes to the mind of any salaried person? It is undoubtedly EPF. Employees Provident Fund (EPF) has long been a preferred investment option of the salaried class in India.

Multiple benefits like tax exemptions, building a corpus fund for retirement benefits, etc. and easy deductions from the salary of the person make it a very lucrative and easy investment destination. Another important advantage of EPF is that it belongs to the  Exempt-exempt-exempt (EEE)  category where the contribution made, the interest earned and the amount received at the end of maturity is not taxable under the Income Tax Act, 1961. 

Recent amendments to EPF in Budget 2021 and its impact on investors

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8 charges in ULIP you should be aware of

ULIPs – 8 charges you should be aware of

Insurance has been traditionally considered to be an essential part of a person’s portfolio. While it provides you with a safety blanket in any unfortunate circumstances like the death of your loved one, it cannot be treated as an investment that yields returns. Hence, for many young investors, insurance does not become a priority in their youth when ideally it is the perfect time to get it. This is where ULIPs come into the picture. ULIPs or Unit Linked Investment Plans are unique investment products that combine the benefits of insurance and mutual funds under the same roof. The returns of ULIPs are based on market conditions and are also subject to tax benefits.

However, there are many charges associated with an investment in ULIPs. Some of the charges are discussed below to give you a fair idea of what to expect.  (more…)

Tips to get out of the debt trap

7 smart tips to get out of the debt trap

There are multiple loans and lenders available today to meet one’s financial obligations. However, these loans have to be repaid duly as non-payment of dues has many repercussions like an unending cycle of debt or even jail time. This unending cycle of debt is known as a debt trap where essentially you borrow more to repay existing loans. It can eventually wipe out all your life savings or assets and it still may not be enough to settle them. It is therefore essential to make an effective plan to get out of a debt trap as soon as possible. 

We bring you some smart tips which you can use to make your way out of a debt trap.

Tips to get out of the debt trap

There are some basic measures that can be taken to avoid falling into a debt trap. Some of such measures are mentioned below.

1. Get an exact idea of the total amount due

The first and foremost step in repaying any dues is getting an exact idea of the amount to be paid. If you stuck with too many loans which you do not have a clue about, this should be your first step. Getting an idea of the total amount due will also help in better planning for the payment of such an amount and understand the gravity of the situation.

2. Prioritise and ensure timely payment of debt

Another important step is to prioritize the repayment of your dues. Ensure that the liabilities having a higher cost (interest cost) are repaid first. For example, credit card dues or personal loans charge interest at a higher rate. This will not only help in reducing the overall burden of debt but will also help in lowering the interest cost.

Another benefit of paying the dues on time is keeping your credit score healthy. A good credit score will ensure that you get timely credit to meet your financial needs. It is, therefore, advisable to periodically check the credit score to ensure that there are no errors and all the debt closed is duly reported to the credit rating agencies.

3. Consolidate loans

When there are multiple loans of different tenure and interest payments, tracking them and making timely payments can be difficult. Consolidation of loans will also help in reducing the interest cost from high-cost debt to low or medium interest debt. By opting for consolidation, you will get to consolidate all loans under a single bigger loan Hence, it is advisable to approach the lender to help you consolidate your loans. But bear in mind that, your existing loans will get closed, but you will still have a bigger EMI to pay depending upon the rate at which you get the new loan. 

You could also try balance transfer of loans from high interest to low-interest ones.

4. Reduce expenses and increase income avenues

If payment of dues is difficult to meet in the current income level, the only option available is to make room for such expenses in the monthly budget. This can be done by reducing the monthly expenses wherever possible at the same time finding new income sources that may eventually generate sufficient income. Drawing up a budget and sticking to it will be immensely helpful.

5. Liquidate assets to pay off loans

Having loans spiral out of control can be a cause of great mental stress. When you are in such situations, get out of the debt by any means would be welcome. If you have any assets, you might want to sell them off and clear off your loans. But, you might want to try this only after a clear assessment of the situation and the debts at hand. 

6. Get protection against unforeseen circumstances

Insurance is an essential tool to safeguard yourself against any unfortunate circumstances. It may be natural disasters or any other event like job loss, disability due to an accident, etc. Insurance will help in meeting the financial obligations in such cases and will save you from further falling into a deeper debt hole.

7. Avoid settlement of loans

Banks offer a settlement of loans when the borrower is consistently not able to meet the EMIs on time or has defaulted in such payments. This settlement is for an amount lower than the total due. This may seem like a good deal but you should opt only as a last resort. Settlement of loans will reduce the loan liability but will negatively impact the credit score. A lower credit score will have long-term repercussions and the borrower may not be able to get any future loans or credit cards. 

Conclusion

A debt trap is one of the most harrowing experiences that can take away your peace of mind for good. While taking loans to meet your needs is a better option than draining your life savings, the important point to remember is to take only as many loans as per your repayment capacity. When there is an imbalance in these two, it will invariably land you in a debt trap, and getting out of it will definitely be a huge task.