Financial Planning

Today's young generation is completely hypnotized by the latest gadgets, new clothes and accessories to maintain their fancy lifestyle amongst their group. Thanks to the improving Indian economy which is helping the youth to fetch decent salaries which they usually spend for their status war with peers. Well, this could be the reason, the majority of today's generation is paying more EMI's as compared to their monthly savings.  In addition to the above, personal loans, home loans, car loans and consumer durable loans are adding a burden to their pockets.  Let us take an example, Mr. A & Mr. B wishes to buy dream house & opted for identical loans for their houses, but Mr. B simultaneously started with a SIP in Equity Mutual Fund.  Mr. A & Mr. B (Loan EMI) Loan Amount (Principal) Rs.30,00,000/- Tenure of the loan 30 years Monthly EMI 23,600/- Total Interest Paid 55,00,000/- ...

Janmashtami is a festival which is celebrated across India with a lot of zeal and devotion. And the most eye-catching aspect of this festival is the Dahi Handi event, which is done to enact the legend of Krishna stealing butter as a baby from a hanging pot. In this event, young men from the community form a human pyramid and attempt to reach out to a pot hanging high and break it. The pot often carries the prize money/reward for the participants. And, to be able to carry out this act successfully, the pyramid formation needs to be strong and strategic. Plenty on practice, focus and coordination go into it. Parallels can be drawn to our financial planning, and inspiration from this pyramid formation can be taken to build our path to legacy. Everyone wants to attain a state of contentment when it comes to building wealth and live a financially trouble-free life. This requires a strategic step-by-step approach replicating a pyramid. Let’s look at the layers in detail: 1. Save: A...

Raksha Bandhan is a symbol of the bonding between brothers and sisters. It is that time of the year when brothers renew the pledge of protecting their sisters. It is celebrated by the sister by tying a symbolical ‘Rakhi’ on the brother’s wrist, who in return showers her with gifts. So, why not give her some real security this Raksha Bandhan that may not only prove to be financial asset in future, but also carries the potential to multiply? It may not sound as attractive as a fancy gift neatly wrapped, but it will surely keep your sister in good stead and will also guide her to be on a smart saving/investment path. Let us take a look at five financial gifts this Raksha Bandhan that your sister will treasure for a lifetime. LIQUID FUND Apart from FD, a liquid fund is another low-risk investment product that you can gift to your sister on this Raksha Bandhan. If your sister is unsure about how she is going to use the fund or if she wants to use the money for a near-term need such ...