Wealth Management 101: Why starting early is the key to a healthy investment

Your early twenties are the most memorable years of your life and also are the most crucial ones. Especially when it comes to money.  For most 20-somethings with a steady job and economic stability, managing their finances is one of the biggest hurdles that they have to overcome. With the bad habits of both procrastination and ignorance, quite often people don’t pay attention to their wealth management till they are in their 30’s.


Do Not Drain Your Cash:
For much of the younger generation, the fear of missing out is a very real thing. And this fear drives a lot of them to spend money that they do not have just to be able to keep up appearances. Racking up debts over the student-loan debts that they are already buried under. Putting off responsibilities like investing to the future or deeming saving as “boring”, they wait far too long. Being debt-free is a big part of being financially independent. Learn to live on a budget and once you have done it for 3-4 months you will come to the realization that your expenses can very simply be divided into three categories:a) Essential b) Discretionary and c) Entertainment. The goal should be to reduce the spending on entertainment and to exercise more discretion. You should also have a sum of money set aside for emergencies.


Do Not Be Intimidated:
The thought of investing in stocks makes a lot of young people quite nervous. They do not make an effort until they are much older and that leads to investment choices that are faulty, resulting in portfolios that are flawed and economic insecurity in the later years of life. You can opt for an SIP(Systematic Investment Plan) that will let you invest a fixed amount each month in a mutual fund, typically an equity mutual fund scheme. A target date mutual fund is also a good option. Much like the name suggests, you invest until a certain year in a combination of stocks and bonds. You need not be a whiz at finance to consider investments. Keep it simple and watch your money increase.


Be Patient:
When you are young you have the luxury of time and when it comes to wealth management, time is most definitely on your side. The interest that you will incur on the amount of money you have invested will be compounded over the years and you can then reap the benefits of it. As much as you want to use what expendable income you have on luxuries and amusement, in the long run it will only harm you and your bank balance.


You have worked hard for the money that you have earned. You need to be smart about how you manage it. Start young when you can afford to be aggressive with your investments. You need not be afraid of the future when you can craft it yourself.

What are the perks of credit card you can take advantage of?

We live in a world where credit cards come in handy to make payments and keep record of our purchases. Issued mostly by banks, credit cards offer money or credit which need to be repaid within an estimated period.

When we think of the benefits or perks of using a credit card, we mostly think of rewards and low-interest rates. But apart from these, the best credit cards come with additional benefits which many of us may not be aware of. Taking advantage of these perks can help you get more out of your credit card and also save you some money in this process!

• Price protection
Often it happens that you purchase an item at a given price and see its price go down in the next few days. Don’t you feel cheated? Well, if you used your credit card for purchasing the item, you would be able to get the price difference refunded through your credit card’s price protection benefit.

• Purchase protection
What if you purchase an item and later have it damaged or stolen? In case of such a situation you would be eligible for a purchase protection policy if you bought the item with your credit card. All you need to do is provide a receipt and the credit card statement showing records of the purchase. In case of a theft, you’ll be required to show a police report.

• Car rental insurance
Best credit card networks provide car rental insurance for which you must charge the entire expense of the rental to your credit card. You must decline the rental company’s loss damage waiver/ collision damage waiver in order for your credit card company to agree to cover you.

• EMIs
If you’re making a big purchase, like a TV, laptop or refrigerator, you can easily convert it to affordable monthly installments in the form of EMIs.

• Cash back and bonuses
While reward cards earn you points for spending money on certain things, cash back cards pay the money back into your account. These cards help you save money depending on your monthly expenses, and amount refunded is based on the credit card’s cash back rate. Many credit cards offer lucrative bonuses for signing up with them, such as large amount of bonus points, complimentary flights, lower fees and reduced interest rates.

• Grace period
You can use your credit card to defer your payments till your bills are due. Contacting the credit card company and asking to change your billing cycle date could buy you another week before interest is charged. Banks usually offer a maximum of 50 days grace period for paying the dues.

In today’s world easy availability of credit card is a boon. If you pay your bills on time, they’re actually a free short term loan.

What are the reasons you would need international travel insurance?

Most people plan their holidays with much anticipation and enthusiasm. Be it for the purpose of leisure or for work, people travelling by air are very common these days. But what about the uncertainties that life brings upon you? Insuring your trip in case of an unforeseen event is probably one of the best ways to make sure that your holidays aren’t ruined by expensive emergencies bills or sudden expenses.

International travel insurance policy offers coverage to medical and financial emergencies that may arise when travelling abroad. While your date of journey remains fixed, accidents and mishaps may not be.

Here are a few reasons why you would need to invest your money in buying a good international travel insurance policy.

• Support in medical emergencies
Your health insurance policy won’t cover you in a foreign country if you encounter a medical emergency that requires hospitalization or immediate medical attention. International travel insurance covers these eventualities.

• Coverage in remote areas
If you suffer an accident or sudden illness in a remote area where there are no medical facilities available, or the expense of being admitted to the hospital is quite high, the international travel insurance comes in handy because it covers all your expenses.

• Reclamation of cancelled and rescheduled flight fees
If your flight gets cancelled or delayed due to bad weather conditions or technical issues, or if you miss your connecting flight because of a strike or some other reason, your international travel insurance can compensate by covering these expenses so that you won’t go over budget before you set off on your journey.

• Stress free accommodation
If you fall sick or get injured while holidaying at your favorite destination, the international travel insurance policy can recompense you for any emergency accommodation until you’re able to fly again.

• Stress free car hire
If you hire a car and get involved in an accident, it may cost you more than what you’d expected and could ruin your entire trip. International travel insurance takes care of these unexpected expenses.

• Replacement of stolen or lost luggage
In case you lose your luggage or have them stolen, this international travel insurance policy helps you deal with expenses such as paying for replacement of your passport or buying new clothes.

• Coverage for the whole family
International travel insurance policy provides coverage to your entire family- dependent children travelling with adults, children up to the age of 21 years, spouses and elderly people. If you’re involved in an accident where you find yourself legally responsible for someone else’s injury or damage to their property, the insurance can cover you up to the amount specified under your plan.

Smart people protect themselves and their families with travel insurance because it is useful in terms of a wide a range of unforeseen events like medical emergencies, flight cancellations, emergency accommodation and vehicle accidents.

Loans for professionals and why you need one today

No collateral loans are those that do not require the borrower to deposit a security with the bank. In case of collateral loans the asset which the borrower deposits with the bank works as security. In case the borrower fails to repay the loan within the tenure, the bank or lender takes possession of the asset.
Professional loans do not require the borrower to deposit a security with the bank. A professional loan can prove to be a great boon to self-employed or practicing professionals like doctors, journalists, engineers, architects, lawyers etc. Here is how a professional loan can help you:

• You can use it to expand your business
• You can use the loan to make foreign trips pertaining to your work
• You can use the loan to buy new apparatuses for your business.
• Professional loans can also be very useful if you want to renovate your office or expand it. 

Professional loans can be easily availed by anyone belonging to any profession. You will be able to get a loan for professionals if you have two years of trading experience, if you are a licensed practitioner and if you are between 21 to 65 years old. You simply need to provide documents like PAN/Aadhar card, ID proof, address proof as per the guidelines of the bank and you can get professional loan hassle-free.

You need to get a professional loan over other types of loans because of the following reasons:

Credit protect insurance plan: Many banks offer a credit protect insurance plan along with a professional loan. Here you simply need to pay a nominal premium and your loan gets covered. In other words, if you unfortunately pass away within the loan tenure, you do not leave your family stranded and indebted, at least financially. The premium that you paid in the beginning would be used to pay off a significant part of the loan.
Flexible tenure: Professional loan is a good option because it allows flexible tenure, which lasts from 12 to 60 months.

Reasonable interest rates: If you modify your current loan into a professional one, you get to reap the benefits of interest rates as low as 12.99%.

It is easy: You can get up to 50 lakhs INR on a professional loan, depending on your credit history, the success of your business etc. And, you can use this money to give your business that extra boost that it requires.

Bank Loan: Do you really need a bank loan?

Money plays a vital role in shaping our lives, turning our dreams into reality. While some may be capable of achieving their goal without having to make any sacrifice, others may find it difficult to walk the path due to lack of finances or a stable financial background. However, one quick solution that bridges the gap between what we want and what we get in life is opting for a personal loan from the bank.
Bank loans in India account for a major portion of all loans taken, mainly on account of the ease of availability and flexible options provided. Let’s take a look at the various needs that would urge you to take a bank loan.

• Medical emergency
Life never goes according to our plans. We never wish for medical emergencies to cross our path but they are inevitable. A health insurance may be helpful in dealing with such situations but may not cover the additional expenses. Or in case you do not have a health insurance policy, the best alternative to meet the crisis is to opt for a bank loan. The money you borrow from the bank can be used for a medical surgery, hospital bills and healthcare facilities.

• Wedding ceremony
Weddings are expensive affairs, but you certainly do not want to miss out on anything that may ruin your big day! Most people start saving up for their wedding for a prolonged period, but here’s what you can do instead. Availing a bank loan can offer a quick and simple solution, and ensure that everything is done smoothly during the wedding. Banks usually provide such loans depending on the income of the borrower, and sanction loans up to Rs.25 lakh in certain cases.

• Higher studies/ education
Opting for higher education through courses is expensive, with quality education coming at a premium rate that is often beyond the reach of many people. Bank loans are usually offered for the purpose of higher education where the amount of loan and the interest vary from one bank to another.

• Home renovation or personal purchase
Bank loans can also be sanctioned for your personal purchase or home amenities. If you wish to renovate your home and interiors or purchase a new house, banks offer their customers home loans.

Bank loans are easily available for those who need it, keeping in mind that the money has to be repaid with interest after the tenure in monthly installments.

Forex Services: 3 factors you need to be aware of

Forex is the short term for foreign exchange services that can help you convert your foreign income into the domestic currency. For instance, if you have a lot of US Dollars in hand in India, you can take advantage of the forex services to get them converted to INR. However, the forex services rely on a lot of factors.
If you use forex services frequently, you should be aware of the factors that can positively or negatively impact the rates that you get from such an exchange.

1. Inflation rates
The inflation rate determines the price of a country’s currency. A country where the inflation rates are consistently low will be wealthier and have a higher priced currency. However, a country that suffers from high inflation rates will have a currency that is worth much lesser. For instance, the inflation rate of US is lower than that of India, which is why a dollar is worth more than a Rupee. This is an important factor is all foreign exchange services.

2. Interest rates
Any change in the interest rates will affect the inflation rates of the nation, which in turn will determine the forex rates that a service offers to clients. When the rate of interest increases, the country will be able to extract greater amounts of foreign currency through trader and debt payments. Therefore, with increase in interest rates, the value of the currency of that country will also go up.

3. Balance of payments
The value of a currency and hence all forex services also depend on the balance of payments maintained by the nations. For instance, if the cost of imports exceeds the profit from exports, the country’s currency will likely depreciate. However, the opposite happens if the gain from the exports outweighs the cost of the imports. This can have a serious impact on the forex.

Aside from the factors affecting the rates, you should also keep in mind certain factors that you need to consider prior to selecting an exchange service.

• Firstly, consider the fee that the company offering the exchange charges for each transaction. For some, this charge may be less, while for others the charge may be higher.

• Check the review for the service online and see what past customers have to say about the company. Pick a service that is fast and reliable, so that there is very little delay in the exchange.

Effective Fund transfer: 5 tricks to keep in mind

There was a time when transferring funds from one place to another required a lot of time, resources and good amount of cost. But due to the global markets working seamlessly, money transfers have taken a new shape in our lives.

With the help of Electronic Funds Transfer (EFT) services money is transferred from one bank account to another either within a single financial institution or across multiple financial institutions through computer based operation without any direct intervention of bank staff. Here are a few tricks you need to keep in mind when talking about effective fund transfer services:

• How to transfer
Online transfer options usually include e-transfers and power transfers while the most common offline transfer options involve cheques and bank drafts. If you’re remitting money across international boundaries, make sure your bank has listed its correspondent banks while opting for offline mode. When it comes to sending money abroad, quite a few online options do not fit the bill as per RBI guidelines.

• Speed of disbursement
Online fund transfer option is more appropriate at the time of an emergency. While NEFT usually takes 24-36 hours to transfer money, IMPS transfer money in real time. Offline transfer mode, on the other hand, takes time. If the cheque is issued in a foreign currency, there can be a delay of 7-15 days since the bank would have to verify the deposit before the holder can lay his hands on the money.

• Coverage offered
All fund transfer options may not be available at every location. While the offline mode of transfer is available at bank branches, online mode is available mostly in urban places. While transferring funds from one country to another, you have to check with the currency- if your bank offers coverage to the currency you want.

• Cost of service
There is an inverse relationship between the transfer speed and the cost associated with it. According to a RBI survey, SWIFT which is an international wire transfer system, is more expensive than drafts and cheques. This is simply because they offer more specialized services and have better access to people.

• Convenience
Apart from speed and cost of fund transfer, the factor that matters while transferring money is the convenience. If either the parties is not comfortable using online transfer modes, offline method is a better choice.

These tips will surely guide you through while choosing the most effective fund transfer methods.