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Finance

How to Overcome the Habit of Over-Spending

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You kick-started the month by spending only on your essential utilities. You did not buy anything during the major sale going on at H & M, Zara or Adidas. But, then when you got to know about the next season sale and you couldn’t resist this one… then it all went downhill from there.

Do you know why this happened?

Well, simply because you could not resist the pull of spending money on clothes. Honestly, this is not considered to be a good habit because it disrupts your entire monthly budget and you end up feeling guilty, even if you do get to feel fab for a few hours in your new outfits.

In order to surpass this situation triumphantly, you can follow the tips mentioned below:

#1-Write down your triggers

There are several psychological and emotional triggers which can compel you to spend on shopping. If you can pin-point and reduce them, you definitely can avoid this trigger.

This could be during a particular time of the day, may be free delivery or 10% off offers on fast food before lunch time. Apart from timing, your surrounding environment also plays a significant role. If you have friends, co-worker constantly talking about the recent Zara sale or how beautiful H&M collection was then you surely will be tempted to shop for something.

Besides, your mood can also trigger you to shop. For instance, if you visit the mall with an upset mood with an intention of getting it uplifted then baby you are wrong!

In fact, you will end up buying something or the other for yourself.

If all these or any of them trigger you then probably prepare a list so that the next time you are tempted, you can put it at the back of your mind.

#2- Track your spending

An additional expense of new dress can also disrupt your entire month’s budget. This is one key reason why you should keep a constant check on your spending habits. Take into account your fixed monthly expenses like rent, grocery, bills, etc. and then make room for some additional expenses.

Based on these, you can save the rest of the sum. You can maintain a journal to keep track of your expenses. If you are not good with this, you can install an app which can calculate on your behalf. If you are absent-minded then set a reminder for bill payment so that you do not skip its due date.

Constant delay in bill payments can affect your credit score which does not give away a good impression. Besides, it is important to keep a check on policies you are paying for, if any.

If you note sudden increase in charges of the policy, you can always contact the financial institution and clear your doubts. Individuals these days are getting their old policies checked by applying for free PPI check just to assure that unknowingly they are not a victim of the mis-sold scam.

#3-Minimise the use of credit cards

It’s easy to swipe your credit card for the new dress that you just liked but do you regret doing it two days later? A major loo-hole with credit card is that you do not keep account of the swipes and end up shocking yourself on the last day of the month when the bill arrives.

However, if you make cash transactions the probability of landing in this situation reduces. For a month you can try not using your credit card and then result would be right in front of your eyes.

All you need to do is not swipe your credit card for next 30 days. Calculate an estimated amount that you probably will need for the month, go to the ATM and remove that sum.

Make use of this particular sum for the entire month if and only when you feel that you are running out of cash then go to ATM to remove additional cash.

#4-Prepare Short term financial goals

Goal setting may seem like a fascinating task, but it is equally important to set effective goals. One way to set effective goals is to set SMART goals which includes specific, measurable, attainable, relevant and time-bound.

This can be a motivating task and you do not get easily distracted considering that you have put in so many efforts.

Specific goals could be decreasing the number of times you eat out, go for parties or clubbing, weekend trips, etc. Start saving small amounts and you can gradually increase the amount to save significant sum, to a point that you save 10% of your income.

#5- Every little counts

As every drop is essential to build an ocean similarly every pound counts when you are on a saving spree. Keep tab on every pound that you spend and make sure that you have optimally used it.

Bridge a gap between your desire and wants as this way you can avoid spending additional pounds on your desires. If you can walk to your office then do not waste money on cab trips. Instead, wake up early and walk down the street as you will save money and maintain your health at the same time.

To avoid late bill payments because you are broke at the end of the month, make it a habit to pay your bills right at the start of the month.

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Finance

Buy Health Insurance Plans Online

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Health insurance is an absolute necessity for everyone. It not only saves a lot of hassle in the event of any health ailment for you or your family but also helps you save money in taxes. Though there is an increase in awareness on the necessity of having a health insurance policy from a young age, not many of us give a second thought on what kind of coverage we would get out of it and where we buy it from.

This might mean that you didn’t get the best deal with respect to the payable premium amount and the policy features. If you are reading this blog, it ideally means you are trying to educate yourself on the various aspects of health insurance and how it would profit you. Here are few pointers on how your health insurance can benefit you.

How Health Insurance Saves Your Money?

Buying your health insurance policy online can be really beneficial to you as you have the leverage of comparing scores of policies online and reading their reviews before investing in one. Read on to know how a good health insurance policy can help you save money.

#1. Cuts Medical Expenses

With the recent advancements in medical sector, the cost of treatments and surgical procedures has gone up manifold. It is, thus, no way possible for a salaried person to manage the entirety of the medical expense without depleting his savings completely. However with a health insurance policy in place, you would be able to afford your hospital expenses and treatment charges without cutting a hole through your pocket.

#2. Tax Exemptions

Most of our investments have a component in it to save on taxes, right? Your health policy also helps you do that. Health insurance premiums paid for you and your immediate dependants are exempted from tax under Section 80D. Thus, your health insurance can get you a minimum of INR 25,000 as tax exemption.

#3. Retirement Planning

When you buy a health insurance plan, you are not securing your current financials but have also planned for your retirement. Since most of the health plans come with a lifelong renewability feature, you can rest assured that by timely renewal of your policy, you will be covered in case of any medical contingencies post-retirement. This would also ensure that at a time when your income is low and the probability of medical emergencies is high, you don’t have to risk depletion of your entire savings.

Easy Ways to Calculate Premium

Before we actually understand how to calculate the premium for your health insurance plan, we need to know all that goes in the said calculation. There are various factors that determine the premium amount for a given health insurance policy. Some of the common factors are:

#1. Age of those insured

The younger you are while buying the policy, the lower is your premium amount as the liability attached to a younger person is lower than that of an older person.

#2. Health Condition

This also affects the premium amount for your policy. The healthier you are, the lower is your premium. On the contrary, if you are diagnosed with any pre-existing disease or are susceptible to any disease in the future due to your lifestyle preferences (smoking, obesity, alcohol, etc), your premium amount goes up.

#3. Location

Due to the prevalence of bad lifestyle, excessive pollution, and a relatively higher medical cost in urban cities and metros, the premium value of those dwelling in the cities tends to be higher than those in the villages and rural areas.

Here is how you calculate your premium using an online premium calculator:

  • Go to the online premium calculator on Coverfox.com.
  • Enter the age details of all the dependants you wish to insure.
  • Enter the pin code of your dependents.
  • Click on “Yes, I need to declare diseases” if you have to declare any pre-existing health conditions for you or your dependents and select from the options that come up.
  • Click on view plans and select from the list or opt for a call from an insurance expert to help you with your specific needs.

An Afterthought

Buying a health insurance policy requires careful scrutiny and careful comparison. Ensure that you have compared all the available health insurance policy options on Coverfox.com before investing in one.

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Finance

Personal Loan: All You Need to Fund Your Dream Vacation with Family

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What is the use of living if we are unable to experience the little joys of life? Are we working for a living or are we living for working? The answer to this question is what we all are trying to tackle.

We might be working too hard to provide for our families but is that enough? Don’t they have any wishes that deserve to be fulfilled? They have been with you through all your ups and downs,and it is time that they are rewarded for their dedication and persistence. It is time that you take them on a dream vacation to their desired location, wherever possible.

Money is the last thing that should stop you from going on a dream vacation with your family. With a large number of financial institutions giving Personal Loans offers online for funding your dream vacation with your family, it is now very much possible for you to realise your dream of going on an exotic vacation with your family. And a not only vacation, but Personal Loans are also available for a wide variety of purpose such as education, home renovation, medical treatment, and so on. So now fulfilling your dreams and aspirations are within your reach.

Can Personal Loans be Used for Vacations?

Personal Loans are unsecured loans that are offered by banks and NBFCs (Non-Banking Financial Companies) to eligible individuals to spend on their vacations to a foreign country as well as within India. Personal Loans are available from a large number of financial institutions, with an upper limit of Rs. 50 Lakhs.

The process and eligibility for a Personal Loan for vacations is similar to any other form of a Personal Loan with lenders offering Personal Loans Online Approval as well. Once your application is approved the amount is directly transferred to your bank account,and you are free to use it any way you like. But you must make the payment towards the personal loan EMIs (Equated Monthly Instalments) on time.

Eligibility Criteria for Personal Loans for Vacations

Although the eligibility criteria for a Personal Loan for a holiday may differ from lender to lender, there is still a primary criterion that is similar for all the lenders. You must note this down and prepare your loan application accordingly:

  • Financial Documents: You must have your financial documents ready with you. Lenders will require your salary slips, income tax returns, net worth statements, ownership proof, and so on. So, you must keep these documents prepared in advance and if you do not have the documents with you make sure you obtain them before you proceed ahead with your application.

  • Banking Statements: You need to have your savings bank statements ready with you and if you do not have the same make sure you obtain up to date statement from your bank. Your lender would require that you maintain a healthy balance in your account and there must be no cheque bouncing, or EMI returns. You must ensure that your last one-year bank statement reflects you in good credit standing.

  • KYC Documents: You must keep your and your family’s KYC documents such as Aadhar Card, PAN Card, and other documentsreadily with you. If you are applying for a Personal Loan for a vacation abroad, then you should also have your and your family members’ passport ready with at least six months of validity remaining. All these documents will be required in support of your application.

  • Good Credit Score and Credit History: As Personal Loan for vacations is an unsecured loan, lenders would want you to have a good credit score and a decent credit history. This is to prove to them that you are a responsible borrower and would repay your EMIs on time. If your credit score is below the specified threshold, your application might be rejected.

  • Supporting Documents: You must keep the supporting documents to accompany your application handy such as travel insurance policy, salary slip, net worth statements, and any other documents that may substantiate your case. In case you do not have collateral, you should keep anyone of your acquaintances ready to be a guarantor for you.

Process for Applying for a Personal Loan for Vacation

Following is the brief outline of the process you need to follow to get your Travel Loan application approved:

  • Identify the suitable lender to Apply for a Personal Loan online.
  • Fill in the application form and upload the necessary documents.
  • For any other documents, the lender will contact you.
  • Provide all the documents at earliest to the lender as and when required.
  • If all your documents are in order and you meet the credit score threshold, you would receive a Personal Loan online approval, and the amount would be transferred to your account after you sign the agreement.

Loans for a vacation is an excellent opportunity for you to take your family on their dream holiday. But remember to take only as much amount as necessary and do not splurge. Remember what has been borrowed needs to be repaid with interest.

Also Read: Consequences of Defaulting on Your Debt

To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.

Talk to our Loan Specialists toll-free at 1800 103 4004 to know more about our products and offers.

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BusinessFinance

Six Things Retail Investors Need to Consider Before Investing in Alternative Finance

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As we all know, the alternative finance industry has been experiencing an amazing growth in recent years. But have you given it a thought as to why there is a sudden rise in the popularity of alternative finance industry?

Well the answer is pretty simple. The alternative finance firms not only help the multinational organisations in funding their growth strategies, but they also help small businesses and start-ups in sustaining their finances for stability.

Over years, the alternative finance firms have been providing loans to the UK SMEs at lower interest rates and have yet managed to maintain a strong position with healthy net returns. When the UK government saw the positive effects this new industry has got on the country’s economy, it decided to step in and increase awareness regarding this new source of securing funds.

Today, with the UK government alongside, the alternative finance industry is flourishing more than ever. More and more UK SMEs are option for this option over traditional banking institutions.

In the light of this, we are here to help improve the trust and understanding of this sector. Many retail investors are now looking forward to invest in alternative finance. However, there are few things that they need to take into consideration before doing so.

We have come up six things retail investors need to consider before investing in alternative finance. Following are six questions retail investors need to ask themselves before planning an investment in alternative finance.

1: Can I trust the platform?

Transparency is the key to gain trust. What retail investors can do is to check track records of each platform they have come across. If they observe any dips in performance, they can then question why and what was done to prevent it from happening in the future.

Figure out what comprises a loan default. There are various platforms that do not recognise late payments as defaults once they have been repaid. In fact, since the alternative finance industry is been put under huge regulatory speculation is only a good thing for investors. However, it is still your responsibility to conduct an informed research before making any decision.

2: Is the business model sustainable?

You need to make sure whether the business model is sustainable or not. Assure whether the platform is on the road to profitability and whether it has any financial backings to attain future growth.

Any business’s ability to achieve success is very straightforward, but is an essential consideration for any retail investor. Remember that the alternative finance industry has not entirely spread across the UK in the same way as other investment options. This makes it even more important for retail investors to have a complete understanding of their chosen platform.

3: Am I covered by the investor compensation scheme?

The regulators help rectify any structural weakness the sector has. Additionally, they willingly make sure that the underwriting, business model and capital adequacies are improved. However, the downfall here could be that the existing regulations are not yet substantive enough to address these issues.

The FSCS lately announced that they will readily help investors with £50000 if they received any unsuitable advice regarding investing in the sector. But this rule is yet to be issued legally.

4: Do I have a diversified portfolio?

Once you have narrowed your list down to the platforms you wish to invest in. You then have to look for any specific or potential risk that you may face. In other words, it means analysing a range of loans. Once this is done, you need to keep refreshing your portfolio continuously to maintain diversification.

5: Should I invest through a fund?

For the retail investors that do not want to spend valuable time managing their exposure to this asset class, there is a potential alternative that they may like. You can wrap your alternative finance assets in a closed end fund structure where the assets are managed and liquidity is provided through funds instead of the underlying assets.

When you invest in a fund, it helps you process the required due diligence on each platforms and loans for you. However, you need to spend time to choose your fund wisely.

6: Should I invest?

Although there are risks involved in this investment options, they come with a reward. There are variety of different strategies adopted by platforms and several opportunities for platforms and funds to actually add value for the investor.

Last but not the least, it is solely the investor’s choice to trust their due diligence that the platform or funds that they are planning to invest in is the right choice and they are well aware of what they are doing with their money.

It is important for them to have complete understanding of their choice so that they know they are making an informed decision on both investment risks and returns.

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