From an ad by HDFC Mutual Fund: How to choose a mutual fund. Step 1. Check past performance Step 2. Check past performance Step 3. Check past performance The ad then goes on to say, Past performance may or may not be sustained in the future. How’s that for a catch? It’s as good as […]
The prevalence of mark-to-market accounting, credit-default swaps, and other tools of modern finance allow risk to be repriced quickly as conditions change. This rapid repricing, paradoxically, tends to aggravate short-term instability. But drawing attention to problems as they emerge forces managers to restructure troubled portfolios or entities before dangers can reach explosive proportions and threaten […]
Highlights: Overall expenses down 10.80% compared to June, 2007 and continues a declining trend (see figure titled “Expenses: 7-month Trend”). July, 2007 was the first month where I tried adhering to a budget. The overall result is quite positive: I spent 4.09% less than my estimated budget. I think that’s one small step in the […]
A pure term-insurance plan. Don’t throw your hard earned money at any of these: endowment plans, money back plans, whole life plans, children plans, special plans for men, women, or whatever, and unit-linked plans. These schemes try to make a monkey out of life insurance by attempting to invest (and at times, gamble) on your […]
Highlights: No credit card expenses for the second month running. There’s no outstanding balance on the credit card too. Thanks to PayPal, I could do a direct $15 transfer to my web host and avoid picking up a credit card tab. Overall expenses down 18.92% over May, 2007. Although I am not budgeting at the […]
Summary: Miscellaneous expenses account for nearly one-third of overall expenses primarily due to a car service bill. The service was long overdue and had to be done. Hopefully, May will see a drastic cut in this category. Used my credit card for booking airline tickets to Mumbai and back (for my graduation). May should see […]
One of the best resources I have ever found on the Internet is the Corporate Finance lecture webcast by Aswath Damodaran, a Professor of Finance and David Margolis Teaching Fellow at the Stern School of Business at New York University. I had Financial Management as part of my curriculum and it was one of my […]
The Reserve Bank of India (RBI) has been taking initiatives by creating appropriate technological infrastructure to enable migration from paper based payments to electronic payment systems such as Real Time Gross Settlement (RTGS) System, National Electronic Funds Transfer (NEFT) System and Electronic Clearing Service (ECS). While doing so, RBI has been adopting international best practices […]
From a recent RBI circular: Rounding off cheques to the nearest rupee Banks are advised that all transactions, including payment of interest on deposits/charging of interest on advances, should be rounded off to the nearest rupee; i.e., fractions of 50 paise and above shall be rounded off to the next higher rupee and fraction of […]
Public Service Announcement From a recent RBI circular: Guidelines on Fair Practices Code for Lenders Earlier, Banks/FIs were advised that loan application forms in respect of priority sector advances up to Rs. 2.00 lakhs should be comprehensive and should include information about the fees/charges, if any, payable for processing, the amount of such fees refundable […]
Of late, my mobile bill has been on the rise. In Mumbai, Hutch had a wonderful Rs 501 recharge option that was perfect for a month (and often longer, when I had opted for a special scheme). In Bangalore, my AirTel bills are already touching the Rs 800 mark. That’s way too much, given the […]
Highlights for March, 2007: Total expenses up 32.86% from February! The main culprits: Used my credit card to book airline tickets Two slightly expensive road trips Received my first stipend, but expenses were 4x times that amount God save me from these EMIs! In management theory, it is said that “what you can measure you […]
The statistics for February are finally out. Here’s a quick summary: 3.05% increase in overall expenses Zero credit card charges! Loans constitute 40% of cash outflow No income. I am still a student There is one financial advise I’d like to give: “Try your best to have an EMI free life.” EMIs suck!
If you haven’t already started on a long-term savings strategy, you could begin on one this April with a Public Provident Fund (PPF) subscription. I believe that the PPF was started by the Government of India in lieu of social security. (I doubt if a Government can ever provide social security to a billion plus […]
Here’s an expense tracking template (Microsoft Excel workbook) I have been fiddling around with since January, 2007. It’s very simple to use and allows you to track your expenses to the rupee. Fill in the “Sources of funds” section whenever you draw cash from an ATM or bank, make a payment from your savings account […]
One of my new year’s resolutions was to keep a tab on my spending. I have followed that to the letter. The statistics for January are quite revealing. EMI payments constituted a whopping 41% of my total cash outflow! Not a good sign when you are a student and have no source of income. Let’s […]
Getting your PAN was a headache. Now you need to get a MIN too. It’s time to bring out the Aspirin bottle. Why can’t we make it simple on ourselves and use our PAN as our MIN (or whatever!). While the policy makers slug it out, if you badly need your MIN, here’s how you […]
There are principally three ways by which you can pay for petrol at a gas station: Cash, Credit Card (plain or co-branded), or Pre-Paid Petro Card. There are advantages and disadvantages in each option, mainly depending on your spending or budgeting beliefs. I always prefer paying in cash for all my expenses, except for airline […]
If you happen to be a salaried employee claiming House Rent Allowance (HRA) from your employer, you are eligible for an Income Tax exemption under Section 10(13A) of the Income Tax Act. How do you calculate this exemption amount? Simple. Find the minimum of the following three options: Actual house rent allowance received from your […]
What is the EMI I have to pay on a 20-year Rs. 20 lac housing loan at 9.5%? By how much does the EMI change if I opt for a 14-year housing loan at 9%? What is the toal interest amount I end up paying over the term of the loan? How is the EMI […]