When I consolidated my finances and started my investments in mutual funds, I opted for a Systematic Investment Plan (SIP) but the SIP-debits came from a lumpsum that I already had in my savings account. I think a better option would have been to park the lumpsum in a Systematic Transfer Plan (STP) and from […]
In a recent issue of Outlook Money, I came across Debt Doctor — a debt consolidation program. Outside of India, Debt Management Programs are a lucrative business. But given the local psychology, my question is: [polldaddy poll=3669598]
Paying off debt is a great feeling, but it takes a few months for â€œthe switchâ€ to really sink in. â€œThe switchâ€ is the cross-over point where you no longer pay interest, but begin to earn it. Of course, you quickly discover that it much more difficult to earn interest than to pay it. Source: […]
I absolutely hate it when someone simply says, “In the long run, equities have given better returns than any other asset class,” without specifying a context whatsoever.
Because we haven’t yet seen a need for having one. But most personal finance advise that you read online suggest having a joint savings account with your spouse (especially when your spouse is working which means you can share household expenses and such) — I doubt if these apply in an Indian context. We were […]
I guess emergencies come in bunches. First it was the rainwater harvesting project and soon after that the rear left tire on my Swift shredded — I had parked at a friend’s place and while reversing, construction debris in the form of a sharp iron rod tore right through the tire wall . I had […]
A couple of weeks back, I had to dip into my emergency fund for complying with the rainwater harvesting norms (and once the construction/installation was over, the deadline was pushed further — again!). But it had to be done sooner or later and also came as an unexpected — and hence unbudgeted — expense. That […]
When it comes to buying term life insurance, most discussions that I have had with friends and readers and that I have read online lead to a single question: “Can I really trust the insurance company to honor its commitment at the time of payout given that quite a bunch of them have a high […]
Suppose you start at the age of 30. You save the maximum possible (currently, Rs 70,000) each year for the next 30 years. Then, [polldaddy poll=3647752]
SNR recently wrote to me — in a context unrelated to personal finance — saying, “It’s not the ‘planning and being organized’ that brings to you success in life. Rather, it’s how you deal with ‘uncertainties’ that moves you ahead in life.” But with personal finance, it’s definitely the planning and being organized that helps […]
A must-read personal finance interview. I am in the third stage of personal finance. The fourth stage — financial independence — is the real challenge now. If you share the same goal, how are you going about achieving it?
These days, most cell phone stores try and push an “insurance cover” — an extra cost — for your cell phone. At some stores, the “insurance premium” is built into the price — they don’t give you the option to opt out. But, is it necessary, in the first place, to insure your cell phone? […]
When youâ€™ve paid off your debt, saved for emergencies, and set aside money for retirement, whateverâ€™s left over is yours to do with as you please. Source: bit.ly/csLAIk
If your organization has a policy of paying out a bonus (sometimes called as performance-based pay or simply variable pay), you need to ensure that your salary offer mentions this fact. While most salary offers do mention this fact, you need to watch out especially when you’re given a salary increment — your increment letter […]
Wishing all my readers a meaningful Independence Day. On this delightful day, I’d like to share a milestone: I am debt free. I closed the only loan I had — that on my Swift. Though my original plan was to close the loan only in December, I threw whatever I could — including my free […]
If you and your partner are not in agreement with your long-term plans, actions on behalf of those long-term plans are useless. Source: amzn.to/bMo6qk D and I have a long-term goal: Financial Independence.
When D entered my life, one of my plans for this blog was to write about aspects of personal finance as a couple. I didn’t get a chance to really work on this idea until now — and that’s a good thing because it’s been nearly an year and a half since I met D […]
This post had me thinking. And when you’re in the highest tax-bracket, it makes you think even more.
I’ve previously written about how to cover for your household expenses in advance especially if you’re not paid on the last working day of the month. This technique also proves useful in a few other situations: When there is a delay — for whatever reason, be it salary processing, bank holidays, and such — from […]
While transacting on icicibank.com: Hum [has rahen] hain na?