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Do light lamps of financial freedom this Diwali!

Shitanshu Kapadia
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Do light lamps of financial freedom this Diwali!

Financial Freedom

Diwali or Deepavali is popularly known as the “festival of lights,” is a five day festival which starts on Dhanteras, this is the time when everyone wants to buy new cloths, gold, electronics, sweets and other items. In this festival with lots of joys and happiness we decorate house, light lamps and fire crackers.

Essence of lighting lamp/diyas on diwali is illuminations of this lighted diyas bring the supernatural brightness and joy with the hope of finding light in darkness, achieving knowledge where there is ignorance, and spreading love.

This diwali let us try to light the lamp of financial freedom which will bring real light and happiness in your life for years to come. We at moneyexcel.com advise you to start working on at least following four personal finance essentials from this Diwali in order to step forwards towards financial freedom.

Insurance of life and all other assets:-

Each of us is driven by a common goal, providing a safe and secure future for our loved ones. It starts with giving them the necessities and luxuries of life and protecting them from any financial losses. Insurance helps us do that. It’s a medium to protect us from the risk of any uncertain loss that may occur. It does not protect us from the damage but will help recover the financial loss faced by us. It works in a fairly simple way wherein we pay a premium to the insurance company in return of a promise by them to recover losses faced by us if any.

There are two types of insurances, Life insurance and general insurance. Life insurance is meant to protect and provide for the family members in case of untimely death of the earning member of the family. Life Insurance is a must for anyone with dependents and must be high on the priority list. General insurance is meant for homes, vehicles and other assets wherein any loss to the asset will be compensated for by the insurance company. Hence anyone with dependents they want to protect or assets which they have bought with their hard earned money must ensure that insurance is on the top of their list of priorities.

Investing for Life Goals:-

The life of each individual is marked with specific times for specific events like marriage, purchase of a house or vehicle, children’s education and their marriage and finally retirement. Each of these is goals which have to be planned for well in advance. Every individual decides upon a certain amount to be invested into the event. So to achieve our goals we invest. However each of our investments must be directed keeping in mind a certain goal and its time horizon. This enables us to ensure that we have adequate amounts of funds in times of need.

Debt Reduction & Management:-

Nowadays, debt isn’t a dirty word. But like the earlier times it still brings unimaginable burden to the family. Debt allows people to buy items that they couldn’t have otherwise been able to afford. However sometimes repayment of unsecured debt may become a problem. In such cases debt management schemes can be employed where a third party organization assists the debtor to repay his debts by re-negotiating the interest rates with the creditors.  It proposes re-negotiated interest rates after taking into account all the priority payments. A debt consolidation method can also be used in order to manage debt wherein, one can take a secured loan in order to pay several other unsecured loans. In case of this method, a reduced or stable interest rate provides the debtor with relief.

Estate Planning:-

Over the years one saves and accumulates funds to own assets, namely property, cars, jewelry and even retirement investments. Each one would want the assets to be properly given off after their death. Hence an estate plan should be in order. It ensures the accumulated wealth from over the years goes to the intended person and is not wasted away. It also ensures the family has less bad blood amongst them as assets are shared as per wishes of the deceased person. However it does not mean that only wealthy people should have an estate plan in place. Anyone who has a family must make sure he has a will, an attorney who will take care of the affairs and also appoints a guardian for his children as lack of it will pass over the custody of your children in the hands of the court. An estate plan will ensure your life earnings are not wasted and will be passed over to your family to help them feel protected and secure.

So do work on these four financial plan essentials to make sure you move forward to financial freedom and bring upon our families the happiness they deserve.

Remember financially secure life is a happy life.

What Super Mario Game Taught Me about Money

Shitanshu Kapadia
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What Super Mario Game Taught Me about Money

mario game

Are you a 80’s or 90’s kid? If you are, then you KNOW that Mario games were the best. Simple concept, somewhat hard, and addicting! Mario Games are a ton of fun to play. Many of us had played this game for fun but along with fun this game taught us following lessons about money.

1. Every Coin Counts

In Super Mario, golden coins are everywhere. There’s so many of them that they’re easy to ignore. “I don’t need that coin on top of the pipe,” you tell yourself. “I’ll get more later.”

But every single one of those coins matters. If you collect 100 coins in the game, you earn an extra life. And that extra life could mean the difference between beating Bowser’s Castle and starting back at the first level in the game.

The same holds true in real life: every penny matters. You never know when you’ll need that money for something important, so grab all the coins that you can.

2. Don’t Gamble Your Life for a Little Money

There are plenty of coins in the game that look impossible to get. They’re suspended in air off the edge of the cliff, taunting you. Of course they’re technically reachable (they wouldn’t be there if it was impossible to get to them). But there’s a pretty good chance you’ll fall right off the ledge if you try to grab it.

On the one hand, every cent matters. But on the other hand, don’t go risking your life to earn an extra buck. In real life and in the Mushroom Kingdom, every rupee has an opportunity cost, including what it takes to earn it. And sometimes, it’s not worth the risk.

3. Be prepared for change

In Super Mario at every level you have been assigned with separate set of role and responsibility. This concept teaches us that we have to be ready for every type of changes. Remember that No job is always secured so we should diversify our skill set to fit in ourselves for different hats.

4. Keep Your Eye on the Prize

It’s easy to get caught up in the little tasks during the game. Grab the mushrooms, collect the coins, stomp the Goombas… You’ll often feel like you’re in survival mode, just trying to stay alive until you can reach the end of the level and walk through that castle.

But remember you have a bigger purpose. Remember your ultimate goal: to pass the level and save the Princess. So when times get rough, when you don’t think you can make it past the flying fish and fire balls, or when you get distracted by the hundreds of shiny coins in the air, think about the Princess, the reason why you’re going through all of this hassle in the first place.

Like in the real world, it’s easy to get distracted by the short-term goals and obstacles in front of you. Stay motivated and focused by keeping you eye on the prize.

Besides, money is useless unless you have someone you love to share it with your princess.

Super Mario Infographic:-

super mario

Do share your opinion  learning from this game.

Lessons to Your Kids on World Savings Day

Shitanshu Kapadia
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Lessons to Your Kids on World Savings Day

Kids Lesson Money

Today is world saving day this day is devoted to the promotion of savings all over the World. We all accept western culture and celebrate days like valentine day but unfortunately we don’t even remember World Savings Day in our country. This may be due to we are very busy or may be least interested in day like this.

In some country World Savings Day is always a day of great excitement, when Banks distributed free piggy-banks to children, and inspired them to set savings goals, instilling a sense of financial responsibility into their young minds.

Handing personal finances is a great life skill at any age, and kids that are taught to be financially responsible are generally better equipped to make better financial decisions later on in life, as well as establish good savings habits. Here are some ways to get your kids started on October 31st with some World Savings Day activities that will pay off big time for them.

Encourage your children to have a piggy-bank:-

We recommend encouraging your children to use piggy bank from the child hood. This will serve multiple purposes.

  • Your children will enjoy putting spare change or part of their pocket money into their piggy-banks.
  • It may be visual incentive to them of how much money they are accumulating.
  • It will cause good saving habit in to mind of child.

Open a savings account for your kids:-

Although your child is minor candidate you can open saving bank account on your child’s name. Ask your child to spend some time to visit bank and deposit small amount like 500 rupee every month in to this account.  Just keep them motivated to build up good bank account balance apart from depositing money to piggy-bank.

Tech them finance through Games:-

Game is best way to teach children’s. To teach finance you can go with same concept by playing related to finance. Games like “New Business” concept of dealing with money in this game will help children to grab attention over finance.

Teach them that reducing expenses makes goals come faster:-

Set goals in front of your child and teach them how to achieve it if you teach them about savings goals, they’ll probably learn this lesson on their own. It’s common sense, and kids are smart enough to figure it out: if I want to get to a goal faster, I have to save more … which means spending less on other stuff.

But it’s worth reinforcing with a discussion about spending and saving, and by talking to them about the decision they’re making every time they spend money.

Teach them how your money can make money:-

Teach your child that money placed in piggy bank will not grow but money placed in saving bank account will earn interest and can grow. Teach them about investment and show them how they can put their money in certain investments, and how those investments will grow over time.

Teach your kids what a budget is:-

Teach your kids what it means to budget by breaking it down to a level that they will understand. Maybe they buy lunch at the canteen two or three days a week? Set a budget for their lunch money, and demonstrate to them how spending less will add in to saving. Ultimately money saved is money earn.

Make it simple and easy, so they don’t grow up thinking that budgets are hard and onerous (like many of us grew up thinking). If they get into the habit now, it’ll pay off huge when they grow up.

Teach them about the dangers of debt:-

This probably isn’t a lesson they can understand when they’re 6 years old, but when they’re teen-agers, they can grasp the concept. You’ll need to discuss things like loans, credit cards and other debts.

Teach them that earning more money gets them closer to their goals:-

If you have a savings goal, you can reduce your expenses to get there faster … and you can also earn more money. They can start learning this lesson at a young age, by earning extra money. May be by doing small job part time of may be giving tuitions.

With a little imagination, and lots of positive reinforcement, your kids will soon be well on their way to becoming financially responsible, and learn a life skill that they will value for the rest of their lives.

So on October 31st, while you’re handing out candy to the kids, don’t forget to hand out some good savings advice too.

Best Way to Invest Your Diwali Bonus

Shitanshu Kapadia
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0
Best Way to Invest Your Diwali Bonus

Diwali bonus

Mr. Rakesh, 30 Years old works with MNC has just received Rs 1,00,000 as Diwali bonus. Rakesh don’t want to waste this money he wants to invest this entire amount in to some value adding investment but he is confused about where to invest this money. So if you are confused like Mr.Rakesh we are here to help you to guide with best possible way to invest this bonus amount.

Best Way to spend Diwali Bonus:-

First thing you can do with this amount is you can reduce your liability, so if  you have loans like home loan, personal loan or loan against security than I advise you to simply pay this loan first.

Check if your life insurance & medical insurance need is fulfilled or not, if not you can use part of bonus amount for this and rest you can keep as Emergency Fund.

If you don’t have any liability than you can use following chart to decide your investment avenue according to time horizon, tax bracket and risk appetite.

Diwali bonus Investment

Remember your investment decision should also take into account your overall financial portfolio. If you have low risk appetite you can invest in fix deposit bur remember interest from this fix deposit is considered as your income and bank may deduct TDS. If your income does not exceed the tax exemption limit, you can get back deducted amount by clamming refund but it is better to submit a declaration under Form 15G. Senior citizens should submit Form 15H to Bank to avoid TDS deduction.

If you are investing for the long term, go for equity only if your allocation allows you to take that kind of exposure to the volatile & risky asset class.

It is always advisable no to invest lump sum amount directly in equity so you can plan to invest this money systematically.

You can also think of investing this money in Gold or Silver in systematic manner.

Please share how you are going to spend your Diwali Bonus?

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