Category: Finance

Want to earn 50k extra income every month without any effort and risks?

While every one wants to get best out their hard earned money, not many people know enough expertise and knowledge to increase their monthly income. One of the best ways to grow your with minimum risks is through mutual funds.

if you are urban dwelling youth between the ages of 24-36, you know that 50k per month is minimum amount you need to lead a basic level comfortable life. What if you can get this amount every month without having to compromise your goals and passions?

The answer is through mutual fund investments

So

To draw a sum of Rs 50,000, a person should be clear on time period of investment.

If you are looking for an immediate income, you need to invest around Rs 1 crore to draw an annual income of Rs 6 lakh per year. This is assuming an annual return of six per cent. Equity schemes are recommended to create wealth over a long period. To draw regular income, debt schemes or debt-oriented hybrid schemes are better. These schemes are relatively stable than equity schemes.This type of investment is called lump-sum.

But what if you don’t have 1cr right now to invest ?

Then the best option available for you is SIP. SIP investments can also earn higher long-term returns as compared to lump sum investments. You can still invest a lump sum amount in a debt fund, but SIPs are the way to go when it comes to investing in equity fund.

Why should I invest in SIP?

If we start with an investment of around Rs 5,000 per month. One can opt for either a fixed amount every month or with a long-term plan or with a step-up SIP where monthly contribution increases by a few per cent annually.

In the step-up plan, if one starts with a monthly investment of Rs 5000 and increase it by 10 percent each year –Rs 5500 in the second year, Rs 6050 in the third, and so on. In the final year of 20-year plan, the monthly contribution would rise to Rs 30,500. This may appear a lot today, but in the next 20 years the investor’s income will also rise substantially, along with erosion in the value of currency due to inflation.

Therefore, stepping up has great deal of advantage for an investor to have better results.

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New Baby On The Way? Simple Money Saving Tips

How to have a newborn for less.

When you have a new baby on the way money can be a stressful topic – newborns are expensive right? In reality, if you don’t want to spend a fortune on your new baby then you don’t have to. They will be just as happy and healthy if you’ve managed to keep the costs down low and so will you if you don’tneed to find loans for people with bad credit or need a guarantor loan. To help you do it here are some simple money saving tips for anyone with a newborn on the way.

  1. Borrow what you can’t afford. Friends, family and new mum networks online are a great place to find big items that people are looking to hand on to others.
  2. Use cloth diapers. If you can’t face this every day then use them when it’s convenient, for example, when you’re in for the afternoon.
  3. Breastfeed as long as possible (a tip for new mums). If you want to and if you can. There’s no doubt that you can save a lot when it comes to what your baby needs to consume if you’re not constantly buying formula.
  4. Look for items that convert. For example, if you have a baby crib that can later be converted into a toddler bed then you can save yourself the cost of the upgrade.
  5. Buy in bulk wherever you can. There are lots of opportunities to buy in bulk when it comes to baby kit, from diapers through to kitchen roll and wipes. All you need to do is make sure that you have the space to store it all.
  6. Don’t bother with fancy toys. Your newborn will have no concept of complexity or cost so there’s really no need to spend out on expensive toys. Don’t be the parent who spends hundreds on a toy only for your child to end up more entertained by the box…
  7. Avoid buying a changing table. There are much cheaper alternatives to this kind of kit. For example, put up some shelves and use a changing matt on top of a surface like a dresser.
  8. Make your own baby food. It’s much cheaper and tends to be more nutritious too. Plus, it’s really simple to make – all you need are vegetables and a blender.
  9. Reach out to friends and family. Paying for childcare and babysitters is often one of the biggest expenses for new parents. If you have close friends and/or family who are willing to help to give you a break then give them the chance to do it.
  10. Don’t buy everything in advance. Give yourself the time to figure out what will work for you and for your baby so you don’t waste money on items you don’t really need.
  11. Shop online. Grocery shopping with a new baby can be incredibly stressful. The result? You may come home with everything that you don’t need. Shopping online will give you the opportunity to identify the biggest discounts and make sure you get the items you want and avoid stress buying.
  12. Start to budget. If this isn’t something that you already do then now is the time to start. Budgeting helps you to keep track of what you’re spending and identify where savings can be made.

Budgeting Tips for an Awesome Wedding

You don’t have to break the bank to have a memorable day.

The average cost of a wedding has been spiraling over the past decade and now sits somewhere around $35,000. For many people that’s a frighteningly large number and one that can make a serious dent in carefully acquired savings. Most venues, caterers, performers and cake makers will instantly double or triple their prices as soon as they hear the word “wedding.” So how do you have a wonderful wedding without spending a fortune?

Find an unusual venue

Traditional wedding venues are pricey and this is often one of the most significant costs in a wedding budget. More unusual venues offer the chance to pay less, as well as have a much more memorable setting for your nuptials. From your old high school, through to a friend’s field be creative when you’re researching venues and find somewhere that means something and costs less.

Spend what you have, not what you wish you had

Getting into debt for your wedding can leave a very sour taste in the mouth, especially if you take out high interest loans for people with bad credit such as no credit check loans. And, as finances are one of the main reasons that couples argue and split, is that kind of pressure really worth it as newlyweds? Create your budget early on in the wedding planning process and make sure it’s realistic. What can you actually afford, right now without borrowing or saving more? A wedding day should be wonderful and memorable but avoid the unrealistic “best day of your life” way of thinking, as this can lead to some very reckless spending.

Get your family and friends involved

Some of the best weddings are often those where people important to the bride and groom have contributed to the big day in a big way. So, perhaps your mother in law has made all the bunting, your sister has created a wedding cake and your best friend made the invites. Maybe the Best Man’s cousin does the photos and the musicians are all friends from university. Not only can you save a lot of money by doing things this way but you’ll find that suddenly all the little details mean a lot more too.

Pick the right day

You can save up to 50% on the cost of a wedding just by choosing the right day. A summer wedding on a Saturday is likely to be the most expensive option but if you go for a Monday in June or a Saturday in October then the prices drop significantly. Be savvy about your timing – why pay more for the exact same florist, venue, caterers or photographers just to have the wedding in a particular season?

Curb the guestlist

It is often the size of the guestlist that ends up sending the cost of a wedding sky high. So, be smart when you’re making choices about who to invite and stick to the people you’re really close to. Extended family you’ve never met or friends that you haven’t seen in years shouldn’t make the cut if you’re going for a wedding on a budget.

Overview of an Overdraft Facility

Over draft facility is somewhat similar to credit card facility issued by banks. In credit card though we pay money regularly, we will use more money less than available in our account. As we know the fact that, we keep on maintaining credit card facility as an option where it is quite helpful in shopping malls, hospitals and now everywhere due to smart cards popularity existence throughout the world. Similarly this overdraft facility functions the same where the banks allow the user to withdraw more amounts of money and sometimes which is not had in our account to withdraw depending on credit limit issued by banks. This kind of situation is termed as cash line facility also. This overdraft facility in Malaysia also determines the same functionalities like it acts as a kind of demand loan where a loan is issued by banks to lenders when they might require repaying it at any time intervals instantly.

Actually this facility clearly determines the essence of issuing loans to lenders and subsequent banks will decide complete total overdraft amount depends on terms and conditions that are applied to. It means the calculation amount that is decided where also the overdraft limit depends on the discretion of banks only. For suppose, if you pledge a property of RM 5, 00,000. Then the banks decide calculated over draft amount of 50%.  That means it is up to RM 2, 50,000. This process of pledge by banks will make you sure that your property value will be based on the credit limit of your account decided.

Consider some of the banks that provide overdraft facility in Malaysia; it includes CIMB Credit Line Secured Overdraft, HSBC Personal Overdraft (cash line facility) and May bank Overdraft (Cash Line Facility) etc.

Some of the crucial things to be concentrated while applying for an over draft facility. It includes, you are necessarily requires a bank account where you are offered with this facility. If there is a case that your existed account does not have this facility, you may request your banker to know the availability of this option.

The Advantages of an Overdraft facility:

  • Flexibility: This option provides you a predominant freedom in deciding how to make your repayments with the absence of your desired repayment schedules you are essentially needs to deserve to. You have an option of deciding your payment schedule and work on it sequentially that specifically suits you and along with the interest and the principal amount when you are interested and wants to settle for an overdraft.
  • You have even provided with an option of paying interest for where you use its facility. It means you will be charged with interest on the amount you use from this overdraft option. It also means the interest charge will not be inculcated to the remaining amount that was not used by you from the overdraft facility issued by the bank.

Disadvantages: Moreover this facility provides you plenty of useful options for payments or repayment purposes. But there is only one drawback associated with this facility is increase in higher interest rates. This is the reason why banks grant you this demand loan easily and allows you to use as required and more than required and pay or repay whenever you want to pay and gives you complete freedom of using it. But they simply ask you to pay more interest rates when you do not pay during repayment schedules decided by banks. These interest rates will be fined with more charges depends on amount of overdraft you used.

Summary: The essence of overdraft facility is awesome in its features when you pay accordingly on a prescribed period of time intervals only. You can pay anytime and you will be charged with interest only for the used amount of overdraft only.