Balancing Spending & Saving to Enjoy Life Without Feeling Guilty

I used to have a complicated relationship with spending money. Buy a concert ticket? Guilt. Order takeout? More guilt. Meanwhile, watching my savings account tick up brought this weird satisfaction, even while I was missing out on experiences. Sound familiar?

Here's what took me embarrassingly long to learn: the point of money isn't just to have more of it. But is that you create a life you enjoy now and later. Balancing today's happiness with tomorrow's security shouldn't feel like solving a calculus problem while walking a tightrope.

Let me share what actually worked for me after years of swinging between extreme saving and impulse spending.

The "Future Me" Versus The "Present Me" Fund

Instead of one giant pool of money with competing purposes, I separated them completely. Each payday, money automatically splits between accounts with different jobs. My "future me" gets fed first - retirement, emergency savings, big goals. Whatever's left goes to "present me" - and here's the crucial part - I spend it guilt-free.

When I separated those purposes, the mental shift was incredible. That ₹2,000 dinner wasn't stealing from my retirement anymore. It was coming from money specifically allocated for current enjoyment. The guilt evaporated.

My friend Priya took this even further. She uses what she calls her "joy budget" - a specific amount each month that must be spent on things that bring genuine happiness, not just distraction or convenience. Some months, it's concert tickets, others it's fancy cooking ingredients. The rule is that it cannot roll over to the next month. It must be spent on joy.

This forced her to actually think about what truly brings happiness versus what's just a momentary distraction. Turned out that most of her online shopping fell into the latter category, while experiences with friends consistently delivered more lasting satisfaction.

The "Hell Yes or No" Rule

The other game-changer was adopting the "Hell Yes or No" rule for purchases above a certain amount. Unless something makes me think, "HELL YES!" it's a no. This eliminated the tepid, lukewarm purchases that neither brought real joy nor contributed to future security - the worst of both worlds.

Happiness Per Rupee Calculation

That ₹5,000 gadget that will sit in a drawer after two weeks? Low happiness-per-rupee. That ₹500 book that I'll enjoy for hours and maybe read again? It's a much better value. This isn't about being cheap - it's about being intentional.

Invest In Relationships Without Going Broke

The hardest lesson is learning to invest in relationships without going broke. No matter what financial gurus say, sometimes spending money on people you care about is worth more than what that same money could earn in an investment account. My grandmother's 80th birthday celebration wasn't the most financially optimal use of money, but the memories we created were priceless.

Finally, I built what I call my "no regrets" guidelines:

• Will I remember this purchase/experience a year from now?

• Will this bring me or someone I care about genuine joy?

• Does this align with who I want to be?

• Can I afford this without compromising my non-negotiable financial goals?

If it's four yeses, I do it without guilt. Three yeses, I sleep on it. Anything less is an easy pass. The balance between saving and spending isn't about mathematical precision. It's about creating a sustainable relationship with money that serves both your present happiness and future security. When you align your spending with your values and separate the purposes of different money pools, both saving and spending become acts of self-care rather than sources of stress.

And isn't that the whole point of getting your financial life together? Not just to have more money but to have more life.

How Multi Risk Home Insurance Protects Against Natural Disasters

Natural disasters can hit without warning. They can cause big losses for homeowners. Multi risk home insurance helps protect your property and belongings from many dangers. This type of cover is key for Canadians who face changing weather and possible natural disasters all year round.

Multi-risk home insurance gives you peace of mind. It covers many hazards, from fire and wind damage to water problems. Multi risk insurance brokers can help you choose a policy that fits your needs. They can make sure you're covered for risks in your area.

What is multi-risk home insurance?

Multi risk home insurance covers many dangers that could harm your home or things. It's also called comprehensive home insurance. This type goes beyond basic cover to protect against natural disasters and other surprise events.

Multi risk insurance brokers can help you understand what's available. They'll work with you to make a policy that suits your needs. These experts know about risks in different areas. They can guide you to pick the right level of protection.

What natural disasters does it usually cover?

Natural disasters are truly gruesome events. They wreak havoc on communities and leave lasting scars. We all hope they don't occur too often. Governments usually act quickly to measure risks and prepare for such disasters.

But what can you do to protect yourself? Your best bet is to buy insurance that covers natural disasters. Multi risk home insurance often provides this crucial protection. It typically shields you from a range of catastrophic events, including:

1. Fire and smoke damage

2. Windstorms and hurricanes 

3. Hail and ice storms 

4. Lightning strikes 

5. Falling trees or objects

Most standard policies include these. But it's smart to check your policy details with your broker. Make sure you have enough cover for common natural disasters in your area.

How does it protect against water damage?

Water damage is a big worry for many homeowners. Multi risk home insurance typically covers water damage from:

1. Burst pipes 

2. Leaking roofs 

3. Overflowing appliances 

4. Sudden and accidental water damage

But be aware: standard policies may not cover flood damage from outside, like overland flooding or sewer backups. You might need to buy extra cover for these risks. Ask your broker about your flood risk and what cover you might need.

What about earthquakes? 

Most standard policies don't include earthquake cover. But many insurance companies offer it as an extra. If you live where earthquakes happen, talk to your broker about this cover.

Your broker can help you figure out how likely earthquakes are in your area. They can tell you if you need this extra cover. They'll explain the costs and benefits to help you decide.

How does it handle storm damage?

Storms worry many homeowners across Canada. Multi risk home insurance usually covers damage from:

● High winds 

● Hail 

● Lightning 

● Falling trees or debris 

These protections help guard your home against severe weather. Your policy may pay for home repairs, replace damaged things, and even cover temp living costs if you can't stay in your home after a storm.

What other cover options should homeowners think about? 

Multi risk home insurance covers a lot, but you might want to consider: 

● Sewer backup cover 

● Overland flood insurance 

● Identity theft protection 

● Home-based business cover 

Your broker can help you look at these options. They'll think about where you live, what you own, and how you live to suggest the right extra cover. 

How can homeowners get the most from their insurance? 

To make the most of your multi risk home insurance, keep a few key things in mind. Review your cover often as your home's value changes. Make your home safer with alarms and detectors. This can lower your costs. Keep up with home repairs to avoid big problems. List what you own, with photos and receipts. This helps if you need to claim. Know the risks in your area to pick the right cover. These steps help ensure you're well-protected and getting good value from your insurance. 

Why use multi-risk insurance brokers? 

Multi risk insurance brokers offer many benefits when you're looking for cover. They know insurance well and can explain it simply. Brokers can make policies that fit your needs and budget. To find the best price for you, they will look at different options depending on the insurances. When claims occur, brokers can help you through them. They can also help modify your cover as your needs change over time. By using a broker, you not only save time but also money while ensuring that you have adequate protection. 

Feel safe with multi-risk home insurance

Natural disasters can badly damage your home and belongings. This can cause money stress and upset. Multi risk home insurance gives you a safety net. It protects you from many dangers and helps you feel secure. 

Working with skilled multi risk insurance brokers ensures your policy fits your needs. They can help you understand complex insurance terms and find a policy that balances protection and cost. 

Remember to stay informed and check your cover often. Natural disaster risks can change, and your insurance needs might too. Keep in touch with your broker and be proactive about your cover. This way, you'll be ready for whatever nature throws at you. 

Get multi risk home insurance today. Protect your most valuable asset against nature's surprises. You can face the future confidently with the right coverage. You know you're protected against many possible disasters.

Here Are 05 Things to Avoid While Getting Home Loan in Canada

A home equity loan, or HELOC, is an advantageous method of utilizing the worth in your home as influence to acquire cash. With HELOCs, you get access to a lot of cash and you pay a low loan rate. Their generous reimbursement terms also make them very appealing.

Since HELOCs are obtained via a significant financial resource - your home - they can supply these benefits. Since you can only acquire cash equal to your home's value, you should theoretically always be able to retain the HELOC in full. You should simply sell your home.

So, like with Visas and various obligations, if you have a HELOC, it is easy to get caught in a snare. In case you're considering taking out a home loan, here are five mistakes to avoid while you're getting a home loan in Canada:

1. Never Use a HELOC to Bury Obligations You Don't Expect to Recoup

Moving your MasterCard debt to a HELOC shrouds it away, far away from you. HELOCs only require the interest payment as a base installment, so you may feel like your obligation has disappeared when your base installment drops from $600 to $74. You'll be less likely to be tense about your credit cards once you think they've been paid off.

Making a plan to handle the balance prior to transferring to a HELOC can prevent you from falling into this trap. Maintain your monthly payments as you normally would. Additionally, if you imagine a situation in which you're at risk of piling up a lot of Visa obligations once more, consider dropping your MasterCard or asking your supplier to lower your credit limit. Consider making some lifestyle changes if you need to in order to avoid spending more than you make.

2. Don't Use a HELOC to Pay for Investment-Related Expenditures

HELOCs are good for home improvement because they are linked to the value of your home, like a home loan. In many ways, using a HELOC to boost the value of your home is similar to using a home loan to buy it.

Similarly, getting a HELOC to pay for a vacation isn't much different from getting a home loan to pay for one. You're responsible for taking care of the cash somehow: it comes from somewhere. What's more, if you can't, your home is in danger. Therefore, set aside ahead of time for large expenses.

3. Never Fall into the Snare of Making Interest-Just Installments

At the point when you take out a HELOC, your base installment is just whatever interest you owe. Even when you can get $100,000 and just pay $371 per month - that's just to cover the interest. Don't fall into this trap. Even if you make your monthly payment consistently for 10 years, you'll still owe $100,000 - and you'll have paid nearly $45,000 in interest.

4. Never Forget the High Arrangement Costs

Although HELOCs can be a helpful way to obtain large amounts of money, they're not easy to establish. Unlike credit cards or unstable credit lines, which you are generally approved for in under a day, HELOCs require more work to get approved.

A home loan application is similar to that of getting a mortgage. You will need to provide proof of your pay, resources, and obligations. The bank may charge you for evaluating your home (usually around $300). Additionally, since the credit will be enlisted as a subsequent mortgage, you will need a land lawyer to set it up (normally around $1,000).

By combining all your expenses, you're looking at spending a minimum of $1,300 setting up the HELOC. The cycle can take a little while. To get some quick money, you should consider other options besides a HELOC.

5.Never Forget to Shop Around for Best HELOC Rates

Regardless of what bank you use most or who your essential loan provider is, the HELOC can be obtained from any moneylender in Canada.

It doesn't matter who you work with to manage your account, or which specialist helped you with your first mortgage. You can get a HELOC through any trusted source. So, search for the lowest rate and compare it to other offers. On HELOCs, each loan specialist offers somewhat different terms and rates, just like in contracts. To arrange a HELOC, consider working with a home loan specialist.

Conclusion

Imagine your HELOC like a subsequent home loan (since it actually is). Be sure to pay off the cash owed on your HELOC, and try to do so in lockstep with your mortgage.

A HELOC may be a decent way to support your remodel - especially if it will increase the value of your home. A kitchen or bathroom remodel can yield an excellent return on your investment. If you spend $20,000 on a kitchen remodel, you can reasonably expect your home to gain $15,000 in value. Additionally, you will benefit from a new kitchen.

If setting goals in your Personal Finances doesn't work for you, try this !!

We often spend a lot of time evaluating what has happened in our finances and planning what we think will happen in the short, medium or long term. As we have said here before, and as Dwight Eisenhower said, we know that in preparing for battle plans are useless but planning is indispensable. That is why we insist so much on that action: planning, planning.

However, since we are expert planners and poor executors, since many of us go through life without anticipating events a bit - that's when we have extra income and we don't know what to do with it, or we have an emergency and we don't we are prepared for it– and since we are too busy to plan, we set out to investigate what alternatives there were to make the process a little easier and increase its effectiveness. The solution? Focus less on goals and objectives - something we insist on as financial planners - and focus more on building systems.

This stems from a book by Scott Adams, made famous by a cartoon called Dilbert. A couple of years ago he wrote How To Fail At Everything And Still Succeed: Kind of Like My Life Story - a title that could be the story of our financial life.

In his book, Adams suggests that when we view our lives as a sequence of goals and objectives we are faced with a state of continual near-failure, and he gives three reasons:

Thinking only about our goals reduces our happiness because we are convincing ourselves that we will not be good enough, or we will be happy until we reach the goal. That is, happiness and success are achieved after reaching a goal and are not an integral part of the process of achieving it.

The problem with the objectives, Adams suggests, is that once we achieve what we set out to do, we stop doing what we had to do to achieve it : since we have already achieved it, that goal no longer motivates us to keep saving - for example. This yo-yo effect, in which we have to permanently seek a new goal to be able to do what we should be doing permanently, can harm us in the long term - such as having enough money to retire, or buy our first home, for example- .

Goals suggest that we have control over things in which we have little or no control: it is a fact that we cannot predict the future , and staying alone in the goal is to ignore that there are situations that can deviate us from the path.

Exercise to turn your personal finance goals around

Creating systems , this applies to everything: for example, instead of focusing on losing 10 kilos, learn to eat healthily - the 10 kilos less should be a natural consequence of the system. Adams defines a system as something we do on a regular basis that increases our happiness in the long run, regardless of the immediate outcome.

Adams' proposal makes a lot of sense for our personal finances: it is about shifting the focus from the goal to the process and being aware that improving the way we use our money is something that we have to build on a day-to-day basis. . There are many cases of people who go to their financial advisor, manage to organize their finances, and months later they are in the same situation as when they went to him; part of this has to do with the lack of a system to manage our money.

Now, a system is nothing other than habits and principles that will help us guide our decisions on a day-to-day basis, let's see:

An example of how it could be applied to our finances could be that, instead of expecting to save 3,000 pesos a month, we create a system to save every day; for example, keeping the coins that are in our pocket when we get home every afternoon or every night. Another could be to commit to using our credit card only for those purchases that we can pay for at a fee and always defer them to that term; If we are not sure how much that could be, we can set a purchase limit, for example, up to a maximum of 5,000 pesos per month.

In short

So let's think about what could be the system that each one can create for their finances in the next month. Of course, objectives are important because they give us direction; This time, let's give ourselves permission to focus on the things we can control , which is solely up to us, and not the unpredictable outside world.

A good system must be an action or a set of actions that we can do every day, or at least very regularly, that is a process, that has no desire for immediate results, and that allows us to realize our progress (for For example, when we feel the weight of the piggy bank where we deposit our coins every day). Now, nothing happens if we find it interesting and we do not take action: having objectives or a designed system can be very important for our finances, but committing ourselves and acting in the process of our own financial well-being is what really makes the difference. Let's do it!

What are the money-saving tips for twenty-somethings?

If you are one of those who don't have a lot of self-control when it comes to money and you are always willing to spend it in one night out even if it means you are probably going to be hungry tomorrow, don't you worry. You are definitely not the only one.

Saving money demands some changes and if you are ready for them, you will save some money for sure! We offer you some tips to get there easily.

Plan your expenses!

Youth is fun and careless until you start thinking about your future and realize you are probably going to be broke in your 30's. That is why you have to think ahead.

Self-control is always the key factor. When buying little stuff, think twice before you do it and ask yourself ''Do I really need that?'' and sleep on it. Tomorrow you will be smarter.

Bigger purchases like buying a house are somewhat different – we might call this debt a good debt. Taking control over your finances and planning on what major steps you are ready to take might lead you to do the best changes for your adult life.

Safeguard your debt payment with PPI - your Payment protection insurance.

Define your goals!

Always have in mind what you are saving for and how much you need to earn. Keep yourself motivated!

Open a saving account and name it – that way you will stay focused and you won't allow yourself to spend money from ''Buying a house'' account on something else.

Another part that might be helpful is an emergency fund for your unexpected costs and unpredictable events. Maintain the amount of money in your emergency fund on the same level.

Keep saving!

Your debt might increase your stress and prevent you from pursuing your life goals. However, you need to keep your eyes on the prize. Even sometimes it can be very hard to keep going, in the end, it will all be worth it!

Be prepared for the future – that way you will avoid all the stress and successfully resolve any problem that might get in your way.

Challenge yourself!

Set your daily, weekly and monthly goals – sacrifice some things that you don't really need and put aside the money you would usually spend on them.

Setting a goal can keep you focused. Start a 365 days penny challenge and on a daily/weekly basis put some extra pennies in your piggy bank.

Small changes make the difference!

Things like grocery shopping and preparing your meals can be a big step forward. When thinking about what to eat or what groceries to buy, be smart and reduce their amount to the minimum.

Go to the supermarket once a week with a list of products that you need. That way you can help impulsive shopping and avoid unnecessary expenses!

For any additional information, Team in Manchester is at your disposal, giving you a special individual approach that will resolve every confusion you might have!

Personal Finance and Budgeting: How to Create a Budget that Works

Are you new to the concept of budget for your personal finances? Creating the first-ever budget can turn out to be quite overwhelming. However, it is all worth the effort. When you tend to develop a proper budget for your personal finances, it helps in leading to building wealth in the long run while also helping you to get rid of all debts & expenses.

Whether you are looking forward to making a personal budget or just getting a hold on money management, personal budgeting can help you out. Creating a budget with a proper template every month can help you in feeling control of your finances while allowing you to save money for your long-term goals. The ultimate key is to figure out a proper way for tracking your expenses that would work for you.

Here are some essential personal financing and budgeting tips by the experts:

# Note Down Your Net Income

The first step in the process of creating a personal budget is identifying the amount of money that keeps coming in for you & your family. However, it is also important to know that it can be highly convenient to overestimate what you are able to afford in case you would analyze that your salary is something that you can spend. It is important to remember subtracting the deductions –including taxes, Social Security, account allocations for flexible spending, 401(k), and others when you are creating a dedicated personal budget worksheet.

The final take-home pay amount is regarded as the net income. This is the amount that you should consider while creating your personal budget. If you happen to be working as a part-time or full-time freelancer, then also you should know about managing your irregular income. Moreover, if you happen to have a specific talent or hobby, then you can come across some additional way of earning income. When you have an extra source of income, it can turn out to be immensely helpful in case you end up in some emergency situation.

# Track the Overall Expenses

It is immensely helpful when you are keeping a track of while categorizing your overall spending. This helps you to be aware of places or situations wherein you need to ensure adjustments. When you do so, it will help you in identifying on what you are spending the most money and where it can be possible to cut short your overall expenses.

You can start by listing all your possible expenses. These would include monthly bills including mortgage or rent, car payments, payments for utilities, and others. It is highly unlikely to cut short your expenses on these essentials. However, when you know how much of your income these expenses are taking up can turn out helpful.

Then, you are expected to list down all your variable spending –the ones that keep changing from one month to other –including entertainment, groceries, gas, and others. It turns out to be an area wherein you might come across opportunities for cutting back your expenses. Bank statements and credit card statements are regarded as great places to start over. This is because these help in itemizing or categorizing the monthly expenses.

# Set Specific Goals

Before you start going through finance-specific information that you have collected for yourself, it is advised that you should prepare a proper list of the respective financial goals that you wish to achieve –both on the short-term & long-term basis. The short-term goals that you have should not be taking more than one year to be achieved.

On the other hand, long-term goals –like saving for your retirement or financing the education of your child, might take several years to be achieved. It is important to note that it is not important to pave your goals in stone. However, as you identify your priorities before planning your personal budget, it is going to help immensely. For instance, it can become seamless for you to cut the overall expenses when you are aware of the short-term goals. One such way can be reducing the debit limit of your credit cards.

# Make a Proper Plan

You can make use of both fixed as well as variable expenses that you have compiled for allowing you to obtain a sense of what you will be spending in the coming months. With the help of fixed expenses, you can look forward to predicting accurately how much budget you are going to have. You should also analyze the past spending habits that should serve as the ultimate guide for predicting your variable expenses.

You can consider breaking down your overall spending even further. You can categorize the same between what you are required to have and things that you wish to have. For example, when you are driving to work on an everyday basis, gas expenses are going to be counted as your need. However, a music subscription on a monthly basis can be regarded as your want. Analyzing the given difference is important when you wish to achieve some basic adjustments.

# Adjust Habits When Necessary

Once you have implemented the important steps, you will have all that you need for creating your personal budget. As you have already documented your spending and income, you can start observing where you have money left over and where you can consider cutting back. This way, you can always have money that you wish to put forward towards achieving your goals.

The expenses that are under the category “want-to-have” are the primary areas that you should look into when you wish to cut spending. Is it possible for you to skip the movie night while watching the same at your home? You should aim at adjusting the given numbers that you have tracked for observing how much money gets freed up. In case you have already made adjustments with your expenses on wants, you should then analyze your overall expenses on needs.

All You Need to Know About Cashe Short Term Personal Loans

Personal loans have been growing in popularity over the past few years and part of the reason is how easy they are to obtain. However, when applying for a personal loan from a bank, there are a number of criteria that one is required to meet. Furthermore, most banks have a minimum amount that their customers can borrow, which is often a much larger sum than the borrower is looking for. Another requirement when applying for a personal loan from a bank is that they have a minimum loan tenure of 12 months. For someone who is looking to borrow a smaller amount, this is not the most feasible option. This is where short-term loans can come in handy. To Know more about the personal loans Visit Bankbazaar.com.

Short-term loans

Short-term personal loans, as the name suggests, are loans that have to be repaid in a shorter time frame as compared to regular personal loans. Most short-term personal loans come with repayment tenures that are less than 12 months. Additionally, some lenders also provide loans for amounts as low as Rs.5,000 that can be repaid in EMIs.

• Features and benefits

The following are the features and benefits of short-term loans:

o Short-term personal loans are instant loans that are disbursed almost immediately after the application is approved.

o The loan amount that one is eligible to borrow depends on their credit score, monthly income, and any existing debts.

o The loan repayment tenure can be as short as 15 days and the maximum tenure is usually less than a year.

o Short-term personal loans can be availed by individuals who do not have a credit history or have bad credit.

o The application process is usually very simple and quick and requires minimal documentation.

Cashe short-term loans

There are a number of lenders that offer instant short term loans, one of which is Cashe. Cashe is an app-only, online lending platform that provides applicants with instant personal loans. The app uses the Social Loan Quotient (SLQ), a proprietary predictive algorithm, in order to create credit profiles for prospective customers. The SLQ is a dynamic, social behaviour-based credit rating system that evaluates a customer’s credit-risk via their social media footprint. This method is quite a contrast to the methods used by traditional lending agencies that still rely on credit scores and repayment history. The following are some of the features and benefits of Cashe:

Features and benefits

• Loan amount

The minimum loan amount that can be availed on the Cashe app is Rs.5,000 and the maximum amount is Rs.2 lakh. The loan amount and repayment schedule is chosen by the borrower on the app when applying for the loan.

• Loan tenure

The loan tenures on the Cashe app differ based on the amount borrowed. For an amount between Rs.5,000 and Rs.50,000, the loan tenure ranges between 15 days and 30 days. For loan amounts between Rs.19,000 and Rs.1 lakh, the longest repayment tenure that one can choose is 3 months. For loan amounts between Rs.25,000 and Rs.2 lakh, the maximum repayment tenure that one can choose is 6 months. However, Cashe also allows borrowers to make prepayments on their loan.

• Interest rate

The rate of interest charged varies based on the loan amount and the loan tenure chosen. All borrowers receive a 7-day grace period if they cross the scheduled repayment date. After the grace period, an additional interest rate is charged on the EMI. The table below illustrates the rate of interest charged on the lending app:

Loan tenure	Interest rate
	Flat rate	Additional interest rate
15 days	1.75%	4% +2.5%
30 days	3.25%	3%
90 days	2.75%	3%
180 days	2.50%	NA
1 year	2.50%	NA

• Processing and disbursal

Once Cashe receives the applicant's documents and verifies them, the loan amount is disbursed immediately.

• Processing fee

The processing fee charged varies based on the loan tenure chosen and the amount borrowed. The table below illustrates the processing fees for Cashe loan products: 

Loan tenure	Loan amount	Processing fee
15 to 30 days	Rs.5,000 to Rs.15,000	Rs.500
	Rs.16,000 to Rs.30,000	Rs.750
	Rs.31,000 to Rs.50,000	Rs.1,250
90 days	NA	2% of the loan amount
180 days	Rs.1 lakh	Rs.1,250
	Rs.1.01 lakh to Rs.1.49 lakh	Rs.1,750
	Rs.1.5 lakh to Rs.2 lakh	Rs.2,250
1 year	NA	Rs.1,000 or 3% of the loan amount (whichever is higher)

• Application process

The entire loan application through Cashe is carried out via the mobile app. In order to apply for a loan, you will have to download the Cashe app and complete your profile. You will also be required to submit all the documents requested including your bank statement, payslips and KYC documents. Once the documents are verified, the money is disbursed to your account after deductions towards the processing fee and the flat interest rate.

Cashe provides customers with the advantage of availing a personal loan despite not having a credit history or a credit score below 750. Additionally, once customers create a profile on the app, they have the benefit of availing another personal loan without having to carry out the application and documentation process all over again. Perhaps one of the biggest benefits of the Cashe app is that the loan amount is disbursed almost instantly and is extremely useful in cases of emergency.

Why Freelancers Should Hire an Accountant

Many freelancers only talk to accountants at the end of the financial year to get help with the tax returns, which is fine in itself. However, if you are serious about your freelance business then an accountant can be a valuable asset all year round.

Accountants can look at any number of areas including helping to identify potential tax deductions, advising on any trends or patterns in your finances and supporting you with business growth if you need to take on staff in the future.

Here are a few key reasons why freelancers should hire an accountant:

1. They can advise you all year round

If you only take your books to an accountant at the end of the tax year, all they can do is make sure they are in order and complete your tax returns. They can’t advise or suggest ways to do things differently because you have already completed that year.

If you employ an accountant all year round they can offer ongoing advice and point out different ways to organise and run your finances which might save you money and reduce your tax bill so they are worth talking to early in the year.

2. Work out your taxes properly

As an employee you never had to think about taxes before so starting out in business can be a real shock as you have to pay a tax bill at the end of your first year. An accountant can help you work out what your taxes are likely to be as the year goes on, helping you to plan and save.

Working with someone all year to calculate your taxes properly and knowing exactly how much you are likely to owe, early on, means you can avoid the problems of suddenly experiencing a large tax bill which you then can’t afford to pay.

3. They can advise you on business finance

An accountant can offer valuable advice and insight to a new freelancer, looking at the business as a whole and advising on different approaches. They can look at trends and advise you of any potential problems before they cause your business major issues.

Having an accountant on board means you have someone to talk to about any changes in tax law, or plans to borrow to grow your business, or whether you are in a good position to think about outsourcing some other aspects of the business now.

4. They can save you a lot of time

Dealing with the financial management of a business can become incredibly time-consuming as you have to prepare all your invoices, keep track of payments coming in, sort out staff payments, deal with taxes and record all your expenses.

While it might only be a simple spreadsheet when you first start out, as your business grows and becomes more complicated the financial management side can get more and more time-consuming leaving you stressed out and overworked.

By employing an accountant, you can make sure all of your finances are managed for you and as your business grows you can be confident your accountant can handle that for you. It means you have a lot more free time to focus on actually running the business and delivering your services to clients. You can even try services by companies like Crunch that gives you access not just to accounting but to other finance services.

5. You are not a finance expert

The chances are that you are not a finance expert so why take the risk and try to do it yourself? If you get your figures wrong, or leave all your receipts in a pile in a shoe box, or pretend the tax bill will just go away you could end up in serious financial trouble and it could spark the end for your business.

The chances are that dealing with all of the finances is actually your least favourite job and can end up causing you stress and sleepless nights, so why carry that entire burden on your shoulders when you don’t need to?

You pride yourself on delivering a professional service to your clients, so likewise you should respect and make use of the professional services of an accountant to help support you in your own business.

These are five good reasons why every freelancer should employ an accountant to support them within their business but there are many more. An accountant can become a valuable asset to your business, offering advice, support and help throughout the year, not just when it comes to filing taxes. 

If you have plans for business growth and to take on staff then your accounting will become far more complex than you are used to but having an accountant on your side will make the whole process far simpler and straight forward.

Accountants can save you money, save you time, and reduce all of the stress that comes with dealing with numbers so the real question is why wouldn’t you hire one?

3 Golden rules to follow while taking out loans – Don’t miss any one of them

In an ideal situation, everyone would have enough funds to pay for all their needs but the reality is far different from that. Majority of us have very few funds left in our bank accounts and hence the only option for us is to borrow money from lending institutions. Considering the banks and other lenders, this yawning gap between the consumer’s income and expenses seem to be their biggest opportunity on carry on their business. In fact, the lenders are already carpet-bombing the customers with loan offers that they send them through SMSs, mails and also over phone calls.

With the changes brought about by technology, you can not only get payday loans online but all sorts of lenders are available online waiting to meet your needs. They will just take 10 seconds to disburse a loan amount to their customers through net banking. But before you opt for loans, here are few of the golden rules that you need to follow.

Golden Rule #1: Borrow only an amount which you can pay back

The foremost rule of smart borrowing is something that the older generation has been advising us since years – ‘live within your means’. Make sure you take out a loan that you can repay easily. A thumb rule that you should follow is that your car loan installments should never surpass 15% and the personal loan instalments shouldn’t account for 10% of your net income that you make in a month. The total monthly income that you make towards all the loans shouldn’t be more than 50% of the monthly income.

Golden Rule #2: The loan term should be as short as it should be

The home loan tenure that is provided by few of the major lenders is 30 years. You have to understand the calculation that the longer the tenure is, the more will be the payment towards interest rate. However, it is always better to take out loans with shorter time period so that you can pay less on interest rates. On the contrary, if you take out short term loans from online sites like PaydayMe.com, you will get high interest loans for a short span of time as they don’t have any collateral and they offer loans to people with poor credit as well.

Golden Rule #3: Ensure paying back on time

As long as repayment of dues is concerned, you should be on time while repaying debts. Whether it’s a short term loan like a payday loan or a cash advance loan or a long term loan like a car or a home loan, you should never forget to make payments on time as this will lead to accumulated interest rates which will lead to debt. Also take care of your credit card payments as they carry the highest interest rate.

Therefore, when you’re wondering about the ways in which you can take out a loan and yet stay in financial peace, make sure you follow the golden rules mentioned above.

Advantages of Opening Your Savings Account with Leading Banks

Savings account is a traditional investment option that’s much conservative in nature. It helps you store your extra funds with a banking institution as it’s safer than keeping the funds at home. Compared to the checking account, savings account yields more benefits like the interest that you earn on the funds. Unlike other liquid investments, your savings account helps you obtain an easier access to your money as and when you need it. With much lesser risk involved, your savings account actually provides numerous financial benefits. You must consider it while checking out options for protecting your funds.

Check Out the Major Benefits that Come with Your Savings Account:

Interest on the Funds Deposited

For all the funds deposited with your basic savings account, you’ll earn interests. This is the most important benefit associated with any savings account. The interest that you earn with your savings bank account is arrived at by multiplying the rate of interest by the value of funds deposited and maintained in the account. The rate of interest will even vary from time to time.

Simplified Access to Funds

The money that you deposit after an online saving account opening can be brought out easily in the event of an emergency. The funds that you deposit can be withdrawn for covering any unforeseen financial obligation. With a majority of banking institutions, funds can be accessed over the internet for 24 hours a day. Linking your savings account with your other financial accounts is a possibility with most banks just to ensure a smooth flow of funds. The most important benefit of maintaining your savings account is the quick access and mobility of funds that it supports.

Automatic Transfers

You might find it tough to save money out of your daily expenses and obligations. However, your savings account yields another benefit to resolve this issue. You may set automatic deposits with your account on a weekly or monthly basis. The amount of saving will then get transferred from your checking account on the date specified every month. This way, you won’t need to do the math of extracting money from your monthly budget.

Liquidity

Liquidity is certainly a major benefit associated with your savings account. All the money entrusted with your savings account can be accessed without any prior notice. Also, you may withdraw your funds as frequently as you need by availing facilities like the bank teller, internet banking, and ATM. However, you’re entitled to enjoy up to 6 electronic transfers each month as per the government regulation. In case, you need more funds, you may achieve it through an online transfer and it hardly takes a few minutes to get it processed. It’s much easier than taking your funds out of any certificate of deposit, government bond, and stock that charge a substantial amount as penalty.

Opening your savings account and operating it is much easier than your other modes of saving. You may achieve a few interest advantages with banks that bridge your savings packages and checking facilities. You may even choose to avail lower initial deposit with some of these banks.

Credit reports versus credit scores: What’s the difference?

Remember the day in school, when teachers declared the results. The class teacher would come with a file containing our performance in the recent exam. In that file would, there would be that one piece paper that depicted our performance in the last exam. Each subject would be graded by a specific teacher and in the end, we would have a grade or a score.

You must be wondering why are we reminiscing about our school days and those dreaded report cards? Well, back in the day we knew the difference between a report card and the marks scored in a subject as well as the total.

However, in the world of loans, many borrowers become confused about credit report and credit score.

Before you feel aghast about this, you should know that not knowing the difference between the two can hamper your chances of availing a business loan.

Now, don't worry we will tell you the difference between a credit report and a credit score. So, that all-important loan for a business is never too far for you. Read on.

What is a credit report?

A credit report is a report, simple. Each credit report lists loan/credit-related information for a particular individual.

In India, there are 4 major credit bureaus– TransUnion CIBIL, Equifax, Experian and CRIF Highmark. If you are a credit taker, then it is quite likely that there will be a separate report produced by each of those companies. Think of a credit report as a detailed report of an individual's, in this case, your credit history.

What is inside a credit report?

Like your report card in school/college, your credit report will contain all the relevant information pertaining to credit history.

Listed items fall into the following categories: personal information (name and address, PAN card details, known business address, and phone number), open and closed credit accounts, credit inquiries, and others.

In most Indian credit reports, there is a credit account summary, a current credit balance amount summary and a credit enquiry summary that lists all the enquiries that have been for new credit such as business loans.

The information contained may pertain to credit card payments, and various loans such as automotive loans, business loans, home loans, and student loans. A credit report also contains the status of those loans such as doubtful, settled, closed, days past due, etc.

A credit report uses records reported by financial institutions to show how you as a borrower has kept up with payment agreements with various current and previous creditors. All this information helps creditors, like Tata Capital, form a credit picture of you. Simply put, they tell a story of the way you use your money especially credit/loans. So, the credit report gives lenders a total view of your credit journey.

What is a credit score?

As you can understand that a credit report is a compilation of your credit information. If there are 100 million borrowers, everybody will have tons of information. This is where a credit score comes in. A credit score is usually a 3-digit number that falls on a scale from bad to good. Usually, the maximum score is 900, while the minimum score that somebody can score is 300. Any credit score above 750 is usually taken as a good by all lenders.

How a credit score is calculated?

The exact formula for calculating credit score is proprietary knowledge. However, it is enough to know that a credit score is calculated based on information listed in a particular credit report or reports.

There is a possibility that one individual may have a different credit score. This is because the credit scoring formula is slightly different for different companies. However, your credit score will not greatly vary. For example, while applying for a loan for business, you may find that your Equifax credit score is 800, and 730 in Experian. But there is little chance that your credit score in one credit bureau will be 800 and becoming 500 in another credit bureau.

It is very unlikely that a good borrower in the eyes of one bureau will become a bad borrower in another bureau's assessment. While you may have several different credit scores, at the core of the idea is something simple: to provide a quick snapshot on how good or bad you are as a credit taker.

Credit score importance

A credit score has become so important because it helps financial lenders use the three-digit score to decide personal or business loan approvals, interest rates offered and other credit-related decisions. If they need greater detail, they can go through the credit report.

Do remember that a credit score as a number and a credit report as information are historical in nature. They only show what you have done in the past.

Focus on having good credit habits i.e. not over-borrowing, paying your bills on time, and keeping your word when it comes to credit agreements. These habits will help you in getting the best interest rates and deals for business loans when you someday need funds to set up or scale up your dream enterprise.

Endowment or Money Back – Which of These Plans Will Protect Your Interests?

There are times when you may feel confused about the types of investment plans you should buy. This article is intended to clarify your doubts while attempting to compare and pick money back and endowment plans. It takes a lot of researching for you to determine which insurance plan matches your long-term investment goals.

Initially, you may feel confused due to the presence of so many investment products launched by insurance providers at a time. Intermediaries can make certain features seem more confusing while offering a savings plan there by causing more of miss-selling.

Need to Choose the Right Insurance Plan

Most investors tend to choose orthodox plans for acquiring good returns on savings from time to time. This, in turn, will help them achieve savings that can meet both their long-term and short-term financial goals. Money back and endowment plans are among all traditional plans that have grown popular of late. You might get confused about choosing the right investment option when you have certain shaded areas on your policy benefits and returns. An endowment ora money back policy has a certain blend of insurance and investment component. The period of time that lapses between the releases of sum assured proves to be the basic difference of these plans.

Benefits Receipt Term

Money Back Plans:

A certain percentage of the sum assured is paid to the policyholder periodically and the remaining bonuses and sum assured are met on the maturity of the policy term.

Endowment Plans:

Once the policy term is survived by the policyholder then upon maturity all applicable bonuses and agreed sum assured are paid to him.

Buying Criteria

You may accumulate considerable savings by investing in endowment plans if your primary objective is to look for long-term savings goals. It will help you create a fund for managing your retirement years, child’s marriage and other financial obligations. A money back plan is ideal for you when your regular income suffices your short-term requirements only.

Death Benefits

In the event of a policyholder’s death during the terms of his endowment and money back policy, both policies will pay him his applicable bonuses and sum assured. Money back plans will yield income regularly after a specified period. You’ll need to go through the policy paper very carefully while signing up.

At the end of the initial 5 years, you’ll be entitled to receive a survival benefit worth 20% based on your basic sum assured. Likewise, at the end of the 10th policy year and the 15th policy year, you’ll receive survival benefits worth 20%. But at the end of the 20th policy year, you’ll receive 60% of survival benefits alongside the vested bonus. So, that yields a benefit worth 120% for you in total.

Final Words:

You’ll need to be sure of your investment goals prior to choosing your money back or endowment plans and then pick them accordingly. While narrowing down on your chosen plans, you must check out the riders and policy benefits very carefully. In the end, both plans chosen by you are good; in order to achieve a fruitful investment, you must base your decisions on the nature of your investment goals.