Saving Money
5 Simple Tips to Educate Your Children to Save Money
May 16th
A lot of kids and teenagers nowadays do not recognize the cost of earning and spending money. They are not oriented that investing is necessary even if they are still pretty young or students. As parents, we play a critical responsibility in this subject, especially in today’s global climate, the importance of this cannot be stressed more.
You must be able to tutor your kids on how to save money. They ought to be able to understand the idea of money and investment as early as childhood. This will prepare them to be trained true money management, as they grow up. Continue reading “5 Simple Tips to Educate Your Children to Save Money” »
Google launches TipJar money-saving advice site
Mar 13th
Google has created TipJar, a new website where people can share money-saving advice and vote on how useful they find the information. Advice is divided in to several categories, including at home, at work, travel, shopping and family.
So far, more than 4,879 people have submitted 3,730 tips. Users have cast more than 54,230 votes about the usefulness of tips. The voting system means that the most useful tips will get greater prominence on the site.
Among some of the tips shared so far this one is what I personally believe in (and follow too):
“Master the thirty day rule. Whenever you’re considering making an unnecessary purchase, wait thirty days and then ask yourself if you still want that item,” shared by The Simple Dollar.
TipJar is an example of generating ideas through “crowdsourcing”, said Google.
“Google believes that people working together can help one another through even the most difficult times, tapping collective minds to find answers on how to make small changes that save the pennies,” said a spokesman. “We’d like to put these beliefs in to practice. So go ahead: Take a tip. Share a tip. We’ll all be a little bit richer for it.”
Public Provident Fund In RED
Nov 8th
The PPF is one of the best indicators of household savings trends. It is also the most robust long-term savings instrument in the economy with a 15-year tenure; its ease of liquidity, unlike term insurance plans, makes it a favorite with the middle class.
However it isn’t only mutual funds and non-banking financial companies that are facing redemption pressure. The government-run Public Provident Fund (PPF)—the single-largest fixed-income scheme in the country—has also suddenly registered a spurt in withdrawals. PPF deposits have shrunk by over Rs 6,700 crore in September alone. Contrast this with the deposit inflow of Rs 5,072.39 crore for the first five months of this fiscal.
Power of compounding
Sep 22nd
photo by orangeacid
Investment experts keep advising us to “invest for the long term,” mainly so that we may benefit from the power of compounding.
Take an individual who decides to invest Rs. 50,000 for 20 years. Assume that he earns a constant return of 8% per year. In the first five years, the Rs. 50,000 invested grows to Rs. 73,466. (see table) This means, he gains Rs. 23,466 in absolute terms in the first five years. Continue reading “Power of compounding” »
What if I gave you 100,000 bucks?
Aug 30th
Imagine if you had Rs 100,000 and had the full freedom to decide where to park (invest) it — where would you put it? Rewind — last quarter of 2007, no doubt it would’ve been the stock market calling your money. But hey, considering the bearish sentiments in the stock market today you’ve got to carefully evaluate your investment decisions.
Here’s how you could look at investing the amount:
CASH IS KING
With the inflation rate at 12.40% (approx as on Aug 28, 2008) you’re gonna have higher outflows in your monthly home budget. Make sure you have about 3-6 months of your living expenses set aside in either:
(1) A savings account that’s linked to a fixed deposit. This ensures you enjoy a slightly high rate of interest (as compared to a normal savings account) along with the liquidity of a Savings Account. And hey, you don’t even pay any penalty to access your funds which otherwise is the case when you access your funds in a normal Fixed Deposit account. Continue reading “What if I gave you 100,000 bucks?” »
Key To Financial Freedom: Save Money
Feb 25th
Saving Money is the key to financial freedom. Unfortunately, talk about savings and most people’s eyes start to glaze over. Inside many people simply feel that life is for living now, not for sometime never in the future and anyway they already contribute to a retirement fund.
This is a big mistake and many people make it; believing that savings are only about retirement. Retirement planning is important but it is not the only or the most important reason for saving. Continue reading “Key To Financial Freedom: Save Money” »
