“Oh the 80C limit has increased. I’ll have to increase my investments to save tax”!!! This is the most talked about thing on office desks and dinner tables these days. Tax saving is something that most of us are very serious and concerned about and hence we do every possible thing to reduce tax liabilities to minimal. But what is it that you are buying for??? Are you buying it just to save tax or save tax and fulfill financial goals such as retirement, kids planning etc.? The answer is “we want to save tax and save for our future as well”. But the fact is most of us just end up investing recklessly in a hurry to save tax and hence the financial goal takes a backseat. This is the story of first three months of every year where there are people who are selling and people who are buying. Continue reading “Tax Saving and Financial Goal Connect”
Month: January 2015
Managing Money is a Kids Play
I have often reiterated that money management is no rocket science and 99% common sense. But is it??? To most of us it isn’t and we are often worried about what needs to be done next to make sure we are managing our money the right way. The concern stems from the reason that we were never taught money management lessons and even if we were they were too theoretical and boring. Recently I encountered my young daughter playing “Monopoly” which reminded me of my childhood days. This board game taught me the most important lesson of my life – The Money Management Lesson. And believe me it’s still as insightful as it was then. Let’s see what it teaches!!!! Continue reading “Managing Money is a Kids Play”
Innovations and Complications in Term Insurance
Few days back I got a call from a friend and she asked me that she wants to buy a Term Insurance of XYZ Co. as it would give her a life cover till 75 as against ABC Co. which insures her only till 65. I asked her why she insisted on getting insured till 75. She said, “What’s the harm in getting yourself insured for 10 more years, it’s always better to have more”. I went on to explain, “It’s good to have protection when needed.” But having something that’s not needed might make you compromise on the things that you need. Continue reading “Innovations and Complications in Term Insurance”
Debts that can derail your finances
Today it is possible to get almost everything on credit or through loan whether it is something as small as grocery or as big as a car or a home. People can even take loans to fund their education or fulfill their personal needs. Sometimes, in order to avoid debt people either do not buy what they need or they use their investments to buy it. While it’s possible to live completely debt free, but it’s not necessarily a very smart move.On the other hand there are people who buy even the smallest things (grocery or mobile phones etc.) on credit or on loan. Continue reading “Debts that can derail your finances”