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 The funds that you deposit can be withdrawn for covering any unforeseen financial obligation.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.

Make Your Cell Truly Smart with These Apps

Smartphones have made life so much easier for us. This small and compact gadget has opened us to a world of experiences. Gone are the days when you would be amazed at discovering that your phone came with an inbuilt torch! A smartphone has tons of cool features!

Today, the expectations from smartphones have increased manifold. We do not want them to be just phones; we want them to manage our busy lives. Until now, these gadgets have impressed us greatly!

The average smartphone user depends on it to listen to music, order food, shop, book a cab, and even invest in mutual funds online! We have access to a wide variety of mobile apps that offer different services depending on our requirements. We are all familiar with popular apps like Facebook, Instagram, WhatsApp, and Twitter.

Here are five lesser-known but highly useful apps that will make your phone even smarter!

1. CamScanner

No need to invest in a bulky scanner when you can simply download CamScanner.It is a document scanning and sharing app that lets you scan and store documents easily. The app even lets you crop unwanted edges and enhance the color and text quality of the document. The app is very easy to use – scanning a document requires you to click a picture of it on your phone. The scanned file can be stored as a JPEG or PDF file and shared as an attachment or a web link. CamScanner is truly a revolution in the office management and data sharing space.

2. Runtastic Running and Fitness Tracker

A fit body is not just a dream, but can be a beautiful reality, when you have Runtastic on your phone. Runtastic is a fitness-tracking app that allows you to set running goals and track your progress. You can save your workouts, get analyses, onlinecoaching, and compare your performance with friends! Not only can you track your running routes via GPS tracking, but you can also get a report on the distance covered, timetaken, speed maintained, and calories burnt during the workout. The Runtastic Running and Fitness Tracker app is quickly rising through the ranks among fitness apps available and is a highly recommended addition to your app collection.

3. Scootsy

A few years ago, most restaurants required a minimum bill amount if you wanted food delivered to your doorstep. Ordering food was a genuine hassle earlier, but today it is an extremely easy process. Scootsy, the premium delivery app is here to save the day for you! Scootsy lets you order food, books, toys, gifts, and more right to your doorstep. The app allows you to track your order and set a delivery time. The best feature of Scootsy is that there is no minimum order amount. If you lead a busy life and want to have your food, books, and gifts delivered on time,Scootsy is a must-have on your smartphone.

4. Angel Wealth – Mutual Fund Investment and Advice

We are starting to recognize the importance of investing money and are willing to invest but often make bad decisions because of poor advice. If you are looking for a reliable money management app, your search has ended. The Angel Wealth Mutual Fund Investment and Advice is a one-stop money management app that lets you manage your money smartly. You can track your income and expenses, evaluate and analyze different investment options, invest in mutual funds online, and manage your portfolio using a single app. If you are a first-time investor, you can start investing in mutual funds by opening an account in less than five minutes! Angel Wealth uses a proprietary ARQ investment engine that gives you customized investment recommendations after processing over a billion data points. The ARQ engine uses advanced algorithms, cognitive technology, and market insights to create tailor-made recommendations designed to maximize the value of your portfolio. The Angel Wealth Mutual Fund Investment and Advice appis rapidly gaining popularity as the money management appamong investors because of the sophisticated technology it uses.

5. Ridlr

If you have ever used public transport, you would know the pain of standing in never-ending queues to buy tickets. It is frustrating and a massive waste of time! Ridlr is an app that lets you skip the queue! This is the go-to app when it comes to intra-city commuting. You can buy bus and metro tickets, renew monthly passes using the app, and pay online through this app. It also shows timetables for the metro, local trains, publicbus service, and more. The app serves a number of cities like Mumbai, Pune, Delhi, Kolkata, Chennai,Bengaluru, and others, and is expanding its presence rapidly. For every public transport user, Ridlr is necessary!

So,do not wait anymore,and unlock the true potential of your smartphone with these handy apps!

How Has SEBI Made Mutual Fund Investment Easier and How Will it Affect You?

Indian investors have started opening up to the idea of investing in mutual funds (MFs), thanks to the investor awareness campaign undertaken by the industry. You can conveniently buy funds online and track the performance of the scheme you select.

The problem, however, arises when you have to choose amongst the various investment schemes. At present, there are almost 2,000 schemes to choose from, which make it much harder for you to choose a suitable option. Looking at this huge number itself would discourage you if you were a novice investor. In order to address this issue, the Securities and Exchange Board of India (SEBI) came out with a circular on 6th October 2017 defining the various categories under which MF schemes must be classified. At present, this categorization is only applicable to open-ended schemes.

This initiative aims to reduce confusion among MF investors and encourage them to buy mutual funds as investments.

Categorization of mutual fund schemes

As per the circular, asset management companies (AMCs) will have to classify their offerings into the following five categories:

• Equity Schemes

• Debt Schemes

• Hybrid Schemes

• Solution-Oriented Schemes

• Other schemes

The AMCs will be allowed to operate only one fund in each of the aforementioned five categories. These categories have further been divided into sub-categories, which will refine the scope of various mutual fund investment schemes as follows:

1. Equity schemes (10 sub-categories)

Large-cap, sectoral or thematic, multi-cap, Equity-Linked Savings Scheme (ELSS), small-cap, focused, dividend yield, large and midcap, contra, and value

2. Debt schemes (16 sub-categories)

Overnight, corporate bond, dynamic bond, credit risk fund, gilt, gilt fund with 10-year constant duration,banking and PSU, floater, ultra-short duration, low duration, money market, liquid, short duration, medium duration, medium to long duration, and long duration

3. Hybrid Schemes (6 sub-categories)

Balanced hybrid, conservative hybrid, aggressive hybrid, arbitrage, equity savings, dynamic asset allocation/balanced advantage, and multi-asset allocation

4. Solution oriented schemes (2 sub-categories)

Children benefit and goal of retirement.

5. Other schemes (2 sub-categories)

Exchange Traded Funds (ETFs), Index funds, and Fund of Funds (FOF)

You may buy mutual funds from 36 sub-categories as defined by the SEBI circular.

How does this help you?

SEBI’s move to consolidate the number of schemes in the market will make it easy for you to compare schemes with similar features. After comparing the schemes, you may choose to buy mutual funds online. This initiative will help you cut through the complex clutter of schemes and make the investment process faster and smoother than before.

Fewer schemes will also mean that fund managers will be able to focus more effectively on operating a smaller number of funds. Imagine that there are 50 mutual fund schemes in the market managed by five fund managers, i.e. an average of ten schemes managed by each fund manager. If the number of schemes was reduced to 30, the average number of funds per manager would go down to six. This means a sharper focus on schemes and more efficient management of your mutual fund investments.

After the classification of the schemes, you will still be able to choose from a large number of options to invest.Depending on your risk appetite and investment objective from the sub-categories specified under each main category, you may choose to buy mutual funds online. For example, the equity schemes category is divided into 10 sub-categories as discussed above. This categorization means that you have the choice to decide exactly where your monies are invested.

The categorization of MF schemes does not mean that existing schemes would be discontinued. AMCs will amalgamate various schemes to adhere to the revised norms. This may mean that if the new scheme does not match your risk profile and investment strategy, you may have to shift your mutual fund investments. Depending on the type of scheme, you may be liable to certain taxes. Another effective manner of knowing which schemes are suitable according to your risk appetite and financial capacity is by downloading the Angel Wealth mobile app. The technology-driven ARQ investment engine will help you in determining the accurate scheme to invest in, that too without any human bias.

SEBI has endeavored to reorganize the structure of the classification of MF schemes, while at the same time, offer a healthy variety of schemes to investors. In the circular, SEBI also listed out scheme characteristics that fund managers would need to adhere to.

For example, in case of large-cap equity mutual fund schemes, a minimum of 80% of the total assets must be invested in equity securities of large market capitalization companies. Similarly, for large and mid cap funds, at least 35% of the assets need to be invested in equity securities of large market capitalization companies and at least 35% of the assets in equity securities of mid-cap companies. These characteristics have been designed to ensure that fund managers stick to the objective of the primary asset class, as suggested by the name of the scheme.

While SEBI’s circular created some concerns among mutual fund operators, this move has been welcomed by industry professionals as it would streamline the currently crowded MF market and boost investor confidence in these investment products.

Vital Steps For Protecting Your Family’s Future

When you become a parent, everything changes in a split second. Your entire world is turned upside down, and the way that you see every aspect of life is forever changed. Your child and your family become your priority, and because of this, you are willing to do everything in your power to protect them. The world is not always a nice place, and sometimes bad things happen to good people, which is why it is so vital that you take every step available to protect yours’ and your family’s future.

Bearing that in mind, below is a guide to the steps that you should take to secure your family’s future, and ensure that whatever happens, your family is left in a good place.

Take out adequate insurance

If you don’t already have adequate insurance in place, then now is the time to invest in it. The fact is that you cannot always stop bad things from happening to you and your family, but what you can do is take out adequate insurance to ensure that whatever happens, you have the financial support that you need. Whether that is taking out life insurance via TrustedChoice.com, or it is taking out health or personal injury insurance, it doesn’t matter, all that matters is that you get all of the adequate protection that you need. That way, no matter what happens, you can ensure that you and your family are covered, and have all the financial support needed.

Avoid taking out loans

One of the worst things that you can do for your family is take out a loan, or multiple loans, for that matter. The fact is that getting into debt is never a good idea, as it will mean that you owe people money, which is not something that you want to have hanging over you. Of course, if it is a loan for a mortgage or it is a reputable credit card, that is different. When we say don’t take out a loan, we are referring to the bad types of loans, the high-interest loans, such as payday loans, for instance.

Put funds aside for a rainy day

If you are in a position to put money aside for a rainy day, it is a good idea to do so. By opening a savings account and paying a set amount of money into it each month - around 10 percent of your paycheck is a good amount to deposit - you can ensure that whatever life may throw at you, it doesn't matter. Be it dismissal from work, an illness leaving you unable to work, or anything else, for that matter, you have some funds to fall back on. A savings account is always a great buffer to have, and can make yours’ and your family’s life much easier in difficult times.

There you have it, a guide to everything that you need to know about the vital steps that you should take to help protect yours’ and your family’s future. The fact is that no one knows what life will throw at them, but if you are smart about it, you can prepare for almost anything.

How Can You Save Tax with Mutual Funds?

Investing in mutual funds results in the higher availability of capital, which is vital for the success of businesses. Therefore, the government provides various incentives when you invest in Equity Linked Savings Scheme (ELSS). Under section 80C of the Income Tax (IT) Act, you are allowed to claim deductions from your taxable income on these investments.

Before discussing the tax benefits that are available on ELSS investments, let us understand these plans.

Equity-linked savings schemes (ELSS)

So, what are ELSS funds? They are a type of equity diversified fund where you enjoy both capital appreciation and tax benefits. While an investment in ELSS funds does not guarantee returns, the best-performing funds have earned huge returns over the long term. Fixed income tax saving investments like Public Provident Fund (PPF) and Fixed Deposit (FD) are unable to provide such effective earnings.

You may invest in an ELSS either as a lump sum or as a systematic investment plan (SIP). An SIP enables cost averaging and prevents from investing during market highs. However, you must remember that each SIP installment is considered as a new investment. This is crucial when you calculate your tax liability at the time of redemption.

Tax benefits of investing in mutual funds

• ELSS are also known as tax saving mutual funds. This is because you can claim deductions from your taxable income on your investment as well as earn tax-free returns. Under section 80C of the Income Tax Act,you may claim up to INR 1.5 lakh per annum as a deduction from your gross income during the financial year.

• ELSS funds’ investments are principally in diversified equities and thus the returns are closely tied to the performance of the markets. This is a type of mutual fund with a lock-in period of three years from the date of investment. In case you start an SIP in an ELSS, then each of your investments will be locked in for three years from the respective investment date. The returns on the investment made in ELSS funds are also tax exempted after the completion of the three-year lock-in period.

ELSS funds, the best option for tax saving

• As compared to other tax saving instruments such as PPF, which has a lock-in of 15 years, National Savings Certificate (NSC)and FDs; the lock-in period in ELSS is lower.

• Since ELSS is an investment in equity markets, staying invested in the same over a long term earns better returns as compared to other fixed-income instruments.

Things to avoid when investing in ELSS

1. Starting tax planning late and making hasty decisions

The detail working of mutual funds is complex and requires a lot of research on past performance, fund managers, and investment approach. There are several mutual fund schemes available in the market, ranging from high-earning funds to high-security funds. Give yourself sufficient time to analyze the options and complete tax planning because you cannot exit your investment for at least three years in case of an inaccurate choice.

2. Relying on short-term performance and returns

When analyzing past performance, look at a minimum period of five years. Furthermore, while returns are important, it is not the only deciding factor. You must determine if the fund philosophy matches your goals. Take the time to understand all the different factors before making your decision.

3. Investing only for tax savings

ELSS plans offer several tax advantages but these are still equity-oriented funds. Therefore, investing in these plans is risky though rewarding. You must consider the risk and return profile and not focus only on the tax benefits while making an investment decision.

4. Redeeming your holdings after the lock-in period

ELSS investments have a minimum lock-in period of three years. You must not immediately redeem your holdings at the end of this time. If the fund performance continues to be healthy, it is better to remain invested. It is recommended you have an investment horizon of five to seven years at the time of investing to maximize your returns.

5. Switching between funds every three years

You must never switch from one ELSS plan to another at the end of three years as a habit. This is often done when the other fund performs better than your plan. Before making the switch, analyze the reasons for the performance. If the fund continues to under perform even in a positive market, you may consider switching.

ELSS has several benefits. It not only offers better returns but provides tax benefits. However, accumulating too many investments in the product is cumbersome and makes portfolio management difficult in the longer period. It may result in over-diversification and monitoring becomes difficult. Gain a balance to maximize tax benefits while ensuring your portfolio is easy to manage and monitor.

The Road to a Financially Secure Future

Finances are a troubling concern for the majority of people in the world. This is because our finances determine our livelihood (most of the time) and can seriously affect our future. As a result, a lot of people are now building towards a financially stable future where they don’t have to worry about money. With a combination of outside help, smart saving and even some investments, it’s possible to live comfortably in the future without having to worry about being in debt.

Lifestyle Changes for Frugal Living

The first major hurdle to overcome is living frugally. Unless you have an incredible amount of savings or income to work with, then you’re most likely saving money, trying to cut down on unnecessary expenses and stretching pennies. This is the proper way to go about obtaining a financially secure future. You need to be able to get by without all the luxuries and you need to understand how to save money on necessary purchases. Keep in mind that there’s a difference between being cheap and being frugal and you always want to lean on the side of being frugal as opposed to cheap.

Living a Life Without Debt

Debt is one of the scariest things that could affect our financial freedom. Eliminating debt is important for a variety of reasons, but the main focus is to ensure you don’t owe anyone money. Plenty of people in their senior years are still paying off old mortgages for their house, and that’s a situation that doesn’t seem to be getting any better. Unless you want to be making payments for things that you bought decades ago, clear your debt as soon as you can.

Building a Credit Rating

Clearing debt is also a fantastic way to build a credit rating. Assuming you make payments on time, your credit rating will continue to increase and this makes it easier for you to get a mortgage in the future to buy a house. It also helps with future loans for emergencies, and it’s much better than having a low credit rating and desperately trying to climb out of that pit.

Emergency Funds and Savings

Saving your money is important for many reasons. Firstly, it’s great to build up an emergency fund for you to use in drastic situations. For instance, if your car breaks down, then you’re going to need some funds to help you repair it in order to get to work, ferry your family around and so on. By using a finance advisor, you could also make better use of your savings by investing them back into the economy. This means you beat the possibility of inflation and it means your wealth continues to grow. Money sitting in a bank is pretty much useless because it’s not going to any use, which is why many people turn to wealth advisors in order to get the most from their money.

Summary

Those were just a few tips on how you can secure a financially stable future, but they aren’t the only ways. It all comes down to honest saving and spending of money and living within your means.

Why You Should Get Help From a Finanical Advisor

It is usually assumed that people who employ the help of a financial advisor must have a lot of spare money in their bank accounts, so much money they just don’t know what to do with it. This is not always the case. And in fact, it shouldn’t be the case that taking advice about your finances is only considered by those who are wealthy. Taking on a financial advisor can help you make smart decisions about how to invest your money, which can help you have a more stable life now and in the future. Let’s discuss some ways they can help you:

Mortgages

Even if you tend to avoid other loans, there is every chance that you will take out a mortgage at some point in your life. A bank can benefit from your lack of knowledge, and you may end up with a deal that isn’t as lucrative as an advisor can broker. A problem that can arise when taking advice though is to ensure they are independent, such as the help you can get at carnegieinvest.com. If they Financial Advisor is not independent, they will be getting fees from the mortgages and investments they recommend, so again you will not end up with the best deal out there. A mortgage can be upwards of 35 years these days, it is the biggest money-related commitment you will make, so it is key you end up with the right one for your circumstances.

Putting money away for retirement

Although you will probably be taking part in your employer's pension or retirement scheme (or have your own setup, if you are self-employed), there is a lot of expenses that come with retirement that you will need to take into account. It is likely that these won’t all be covered just by your 401(k) or 403(b). Investments made today, such as real estate, can help generate a yearly revenue for you in your twilight years. Even if you decide to stick to just your work based plan, some companies offer slight flexibility about where you can direct your funds; it can be useful to get proper guidance on which out of the options given to you is the best. You should estimate your yearly expenses for retirement and start planning accordingly.

College funds

Similar to a mortgage, college funds are another common expense, and continuing with the similarities, to get the most out of your 529 plan you should consider some external help. Of course, a 529 plan is not necessary, but the tax breaks that come with it mean it is an appealing choice for saving tuition fees - they are exempt from federal taxes and quite often have state tax deductions also. The money can also be withdrawn tax-free as long as it is going towards college tuition. This is the biggest start in your child's adult life, so obtaining sound financial advice on how best to save is paramount.

So there you have it, three very important areas in life that you should consider some financial advice. And all three are issues are ones people face no matter their income.

Life’s for Living: Having the Cash to Enjoy Your Retirement

You’ve spent your whole life working hard. You’ve bought your home, been putting enough away during your working years to have a sizeable savings pot, and your pension is coming in too. Yet, still...you’re beginning to think that maybe this actually won’t be enough for you to do all the things you want to do in your golden years. This is your time to enjoy yourself and you don’t want to go back to full time work, so how do you find the extra cash you need to tick off those bucket list items? Below, we explore a few of the options that’ll give you the money to travel the world or whatever it is you want to do.

Downsize Your Home

If you raised a family, then there’s every chance they’ve flown the nest and you currently have more space than you need in your family home. So instead of trying to fill those empty rooms with more material items, why don’t you consider selling your large home and trading it for a smaller one? You can free up a large amount of money by trading your four bed house for a 2 bed house, for instance, and you’ll probably feel more comfortable in a smaller home anyway. Leaving the family home is not always the easiest thing to do, but it is sensible and will reward you with even more memories when you’re spending the cash.

Use Your Home’s Equity

If you don’t want to move home, then you can look into getting a reverse mortgage. This enables you to take equity out of your home in the form of a loan, but without having to ever make a repayment unless you sell your home. It was designed to help older people get a lump sum of cash against the value of their home. If this sounds like something that might be beneficial to you, contact a company like Omnifund and explore the option. It might be your ticket to getting the best of both worlds: staying in your own home and having extra cash.

Rent Out A Room

If you’ve always had people around your house then this might not sound so appealing, but if you miss having extra people around then why not look into renting a room in your home out to a lodger? You can carefully vet your lodger so you know exactly who will be living in your home, and they’ll bring in a useful lump sum each month which can go towards the cost of running the house.

Get a Part Time Job

We know you want to take it easy in your retirement, but we’re not suggesting going back to full time work. If you live in a town, take a look at part time jobs and bring in a little extra income. It’ll offset how often you need to dip into your savings for the day to day expenses and you might even enjoy getting out of the house for a couple of easy shifts each week!

Things to Know about Escrow Account and Banking

Escrow is a legal concept where an asset or financial instrument is held on behalf of two parties by an unrelated third party. This service is generally availed of when two parties are in the process of closing a transaction.

The escrow service provider holds the asset or the funds in this account until it receives the instructions or until the obligations as per the agreed terms are fulfilled. The escrow agent may hold various instruments, such as funds, securities, or money in such accounts on behalf of the parties.

In the midst of any transaction, it is likely that one of the parties is interested in moving ahead only if he is assured the other party is capable of fulfilling his obligations. For example, an exporter would sell his products in an international market only when he is assured of getting paid. Similarly, the importer would like to pay the money only when the goods are received in an undamaged condition. In such an instance, an escrow account proves to be beneficial. The importer may deposit the amount in this account, which will be paid to the exporter once the importer instructs the agent to do the same.

About an escrow account

Many people are not aware of what is an escrow account. In simple terms, it is a temporary pass-through account with an unrelated third party when two parties are in the procedure of completing a transaction. The account is valid until all the terms and conditions are met with both the parties and the transaction is completed.

Four features of an escrow account

1. Custodial services

Opting for a reliable escrow account in India service provider provides a one-point contact for efficient, effective, and seamless execution and co-ordination.

2. Regulatory liaison

The service provider may also approach different regulatory authorities on behalf of the clients if required. The agent may assist in seeking special approvals by presenting the case and following up to procure these approvals.

3. Transaction structuring

A reliable escrow agent will be beneficial in structuring the transactions with merchant bankers, investment bankers, and legal partners.

4. Foreign transfers and remittances

The escrow agent employs experienced personnel who have the knowledge for efficient document processing. Therefore, clients may be assured that foreign transfers and remittances are completely transparent and adhere to regulatory guidelines.

Here are six advantages of using escrow services.

1. The transacting parties are assured of safe movement of funds

2. Customization of the transactions as per the requirements of the parties is possible

3. The entire documentation is simple

4. Clients may operate multiple accounts to complete transactions through waterfall mechanism, which means priority based payments may be made to the concerned parties

5. Account holders may easily track the activities in the escrow account through the online platform 

6. Most banks provide a dedicated and experienced team of personnel to ensure the clients are able to maximize operational efficiency

With this type of account, both the buyers and sellers enjoy several advantages. The interests of both parties are protected through this account. There is no ambiguity or uncertainty, thereby providing peace of mind to complete the transaction. By opting for such an account, both the parties may simplify the entire transaction without any difficulties.

Safeguarding Your Finances In The Age Of Instability

It doesn’t seem like the right thing to say, but money is everything, That can’t be true, surely? We’ve been taught that there are things in the world that exist that are so much stronger than money. Love and friendship should rule the day. The sad truth is that you can’t buy a roof over your head, or a warm meal with love.

It depends on your priorities, and maybe love and friendship are genuinely worth so much more than money, but there’s absolutely no denying that money is important.

Money is important, because what having money means is that you are not destitute and on the streets. Having a small amount of money entitles you to a small amount of success. More amounts of money mean you are not dependent on your job and living from payday to payday. Having even more money means that you will be secure, no matter what happens.

Money allows you to have some degree of control over your life; you can travel the world and seek out opportunities with cash. You can get fit and join a gym thanks to money. You can drive and have a sense of relative independence with money.

Another reason why money is so important is because money allows you to give back. Think of charities and fundraisers. Money allows you to help others that are less fortunate.

So yes, while money may not be totally everything to most, having a sense of control, safety and independence are something that shouldn’t be taken for granted and money and wealth afford you that.

But how do you get to a point where you feel like that? Most people are living from paycheck to paycheck! If that’s the case, we need to look for more opportunities to make money. It’s hard, but we should try and save money so we can secure our futures. It’s the age of instability right now. There are more freelance roles than ever, and the ‘gig economy’ is in full swing meaning the chances of a secure and locked down job are decreasing in favor for short-term employee driven roles.

Saving is the key. You don’t need to be ultra frugal and start cutting your hair in your bath to save cash, but you’ll need to employ some common sense and reign in your spending.

For example, if you have two coffees a day brought from your local coffee store, maybe you can cut that down by half? If you have three beers on a night out, why not try having two from this point forward? It’s not about cutting out the fun in life, but focusing on it with quality over quantity. Chances are you’re going to chug through beers if you know they are coming. If you know, you’re allowed two coffees today, you won’t focus on the first because it’s not the only one you’re enjoying today.

Employ the practices of mindfulness to your spending and really drink in your purchases. Take your time and enjoy them for what they are, not how much you can get into you. So, if you’re saving a few dollars here and there by cutting out quantity, you need to immediately plant these savings, however small, into a savings account. If you don’t do this, you’ll allow your savings to build up, and it will only be willpower stopping you from an end of month splurge. Willpower isn’t a factor we want to bring into this discussion, and if you can automate your savings to put two or three dollars away a day to represent your savings, you’ll have done your job admirably.

Insurance is key to safeguarding your finances. If you’re a freelance worker, it’s likely that gadgets like your laptop, phone or mobile tablet are helping you complete your work on a daily basis. Even if you’re not a freelance worker, it’s probable that you cannot afford to replace your phone if it’s broken. On a larger scale, what about investment insurance? Can you afford to lose your savings? If you can’t afford to lose a phone, than losing your money made via investments or savings will be a nightmare you cannot afford. What about if you’re a business owner? You need the right solutions, and there are many insurance options on the market (like www.bswllc.com/captive-insurance/, for example). The bottom line is that insurance might just be your best friend in a time of trouble.

If you’re fortunate to have saved enough to invest, you can’t go wrong with property investment. Putting your cash into a physical presence enables you to hire or rent the site out to a tenant. What this means is that the mortgage and loan will be paid off by the rent paid to you by the tenants. Any excess is your profit. It’s as simple as that, and it’s worth a look at if you want to push your money further while keeping it secure.

Safeguarding your finances will involve a considerable amount of admin, and it’s always worth speaking to an accountant to make sure your business or personal cashflows are working for you.

The threat of scams and hacking is ever-present, no matter your income. Ensure that your information is kept secure and that anti-viral software are used on your laptops. Make sure that any financial information isn’t stored on the cloud or noted down. This information is always for your eyes only and shouldn’t be given out. Look after your debit and credit cards and ensure that you take the time to pore over your transaction history to make sure it’s all above board.

Above all, the easiest step to safeguard your finance is to just apply a conservative mindset to your spending, whether it’s business or personal purchases. Reigning in your spending and putting your savings away is the best and easiest method to secure your financial future. It might seem hard at first, but after a while, it will become second nature, and you’ll never look back.

The Best Ways To Manage Your Money

With Christmas fast approaching many of us are likely feeling the pinch. It’s a time of year where all senses of financial management seems to go out of the window, but it is important, to be successful with our wealth we need to manage it wisely, here are some tips to get you started.

Track Your Spending

Sometimes we just buy on impulse, and before we know it we’ve bought all sorts of stuff we don’t need or regret, so start tracking everything you buy, if you do this you can see it all adding up and it’ll stop more needless spending. Once you’ve started to do this you can start using a budget, I know a budget may sound complicated, but if you do it religiously it saves you a lot of time and money in the long run. Keeping a budget may sound complicated but it's easier than you expect.

Consider Hiring An Expert

If you have money in a few different accounts and really don’t know how to make the best of them then you could potentially hire an expert. Everyone wants the best money and investment tips, what better than to have your own, Ian Filippini is a great example. Experts can manage your wealth and come up with budgets to help you function. They can ensure you save just the right amount and come up with strategies to make sure you’re making your money work for you.

Make a Bill Calendar

Knowing when each company will bill you for services rendered is vitally important. You can budget your finances accordingly and know what to keep back ready for a payment. It also makes sense to combine finances with your partner. Doing this makes paying mutual bills much easier and ensures transparency. You could potentially phone your providers and ask them to change the billing date, this can spread out your outgoings over the month of if you’d prefer lump it all together at the month’s start so you know exactly what you have to spend for the rest of the month.

Build An Emergency Fund

Put money into an Emergency fund. You never know what life is going to throw at you, perhaps you or your partner could unexpectedly lose their job, or your house could become damaged in a storm. Whatever happens, it's always great to have an emergency fund in back up. It can stop you getting into trouble if you have any unexpected bills at the end of the month and ensure you don’t end up paying overdraft fees.

Use The Right Saving Accounts

There are many savings accounts across the land and each are vying for our custom. Do your research. If you’ve got some savings you know you’re not going to touch then it may be worth investing into a cash ISA. It means you can’t touch the cash for a set period of time, but you get much better interest rates. You should also keep an eye on the terms, they may only give you great interest rates for one year, after which they’ll significantly drop, so be sure to keep swapping your ISA to the next best provider, this will keep the interest pouring in.

Three High Yield Funds with Reduced Risk

The popularity of high yield bonds are steadily increasing. Investors are in earnest search for an alternative to the stock market. The stock market tends to be quite unstable and unpredictable and usually proves to be more of a risk than a reward. Financiers are looking for a replacement that removes them from such a risk but still provides a better return than other forms of investments.

High yield funds have been the favored alternative amongst such investors and it shows. In 2015, 22 billion US dollars were invested in such funds. This is more than double the amount recorded the previous year. The allure of this type of financing is that its ‘risk’ factor actually results in a greater return rate than other asset classes. The best way to balance the gamble with the return is to invest in a fund that has a considerably lower risk than most. Here are a list of the best options:

Metropolitan West High Yield Bond Fund

This fund is more commonly known as MWHYX and has 2.3 billion US dollars in asset. It has also received a five-star rating from Morning star. 86 percent of this account consists of United States corporate bonds while the rest are overseas bonds. The annual portfolio turnover rate currently stands at 34 percent.

The MWHYX has a yield of 7.5 percent and has shown a steady increase over the past five years. In 2015, it showed an increase of 16.2 percent in a year.

Similar to other funds, MWHYX main investments lie with bonds that are rated BB and below. In an attempt at stability, the fund discerns the patterns across asset value, flow of money, and seniority to assess certain matters.

Janus High Yield Fund

Denoted as JAHYX, this 2 billion US dollar fund is a conservatively managed fund. It has received a four-star Morningstar rating. 88 percent of the account is comprised of United States corporate bonds while the remaining 11 percent consists of foreign bonds. The annual portfolio rate is typically estimated at 91 percent.

JAHYX has a yield of 7.06 percent. In the year of 2015, it held a total return of 4.1 percent. The previous year showed 18.4 percent. It has a 10-year annual return of 7.6 percent. The expenses of this firm are calculated at 0.86 percent. The least initial investment into the fund is US dollars 2,500.

The majority of the bonds in this fund are from firms that produce solid free cash flow. This leads to an enhancement in the value of the balance sheets and by default a stability in JAHYX credit quality profile. The conservative stance of the company ensures that its losses are smaller than its counterparts.

The Fidelity and Capital Income Fund

Abbreviated to FAGIX, this fund has assets of 11 billion US dollars. It has received a five-star rating from Morningstar. 81 percent of this fund consists of United States corporate funds while the rest is from overseas corporate bonds.

The yield of the fund was at 6.09 percent with a total return of 4.3 percent for the year of 2015. During the course of 2015, it accrued over 20 percent. The 10 year annual return of the fund is 10.2 percent.

Opportunistic in nature, FAGIX is saddled with greater risk than other funds. Its interests comprise of distressed securities and equities. Its investments lie with bonds with a rating of B. It also owns bank loans.

Investment Ideas For The Socially Responsible

Are you looking for ways to invest your savings, but want to be careful about who uses your money? If so, this post is for you. We’re going to take you through the basics of socially responsible investment - or ethical investment - and give you a few ideas.

Whatever your personal beliefs about politics, health, and religion, there are ways to invest money that will fit your views. And, the good news is, that some of them will make you money - while offering good intentions to the world and the human race.

Let’s get started with some of the things you should be looking out for.

The basics

First of all, it’s important to understand that ethical investment is only down to you. One person’s idea of a moral business is another person’s evil. You could invest in a cancer drug, for example, and think that you are helping to wipe out this curse of a disease. But, someone else might avoid doing so. Maybe they don’t want anything to do with big pharma, who charge extortionate amounts for the drugs they patent. Also, you might want to invest in green energy, whereas your neighbor could think it is an enormous con. So, you can’t define an ethical investment as such - it is only your outlook that can make that decision. That said, there are some traditional areas of socially responsible investing, and various ways of going about it. We are going to take a look at those now.

Investment

So, if you are going to look into socially responsible investment, there are a few ways of getting involved. First of all, it’s the investment itself. This is when you look at companies and organizations that share similar values to you. There could be environmental thoughts behind your decision, or any other reasons why that company resonates with you. Perhaps they offer exceptional levels of consumer protection, or they treat their staff well. Maybe the company comes from a similar religious background as you. In general terms, this is called ESG Investing - or Environmental, Social, and Governance Investing.

Advocacy

Of course, once you start investing in companies, you have a responsibility to make sure that they perform well. Most people are happy to watch their stock value rise, but others might apply a little pressure to make those companies more responsible. This is called ‘advocacy’ and involves being proactive and trying to influence the corporate board to work in a particular way. There’s a tricky balance to strike here, of course. But, companies and organizations rarely change if they don’t have to. And, being on the ‘inside’ as a stockholder puts you in a powerful position. Plenty of successful companies have undergone a change after pressure from shareholders. And that will continue for many more years.

Community

Community investment is the act of putting capital into community services. This can be on a local scale, for things like child care, housing, education and health. Or, it could even be investing in other countries, who are undergoing development. There are plenty of places in the world - and the country - that can’t access funds from traditional lenders. So, the only option for them is from investors, who can give them low-interest loans. Check out https://www.kiva.org/ for a good example of what to expect.

Funds

Plenty of investment funds are seeing the benefits of keeping within ethical boundaries. And, it’s fair to say that they are doing great business, as more people switch on to social responsibility. A quick search on Google for ethical funds will bring back plenty of results. However, as we mentioned above, it is down to your own due diligence to find a fund that shares your values. For example, some funds out there won’t touch any company in the gambling industry. You might feel it’s a personal choice issue rather than an ethical one. Also, there are funds out there that will avoid any investments in the defense industry - and you might feel otherwise. There are some tricky choices to make, but the only way you are going to find out is through research.

Direct investments

You can also invest direct into a company, too, rather than buy shares and stocks. For example, medicine and pharmaceutical companies often seek out private investors to fund research. Take a look here for an idea of what to expect - http://poseida.com/investors/. Going down the direct route will give you a lot more influence than you would have just for being a stockholder. So, you could start to bring important ideas to the table if you believe the company is lacking. This kind of active role is often a lot more efficient than screening out companies, as it can lead to greater change.

Screening

Another way of approaching a more socially responsible investment is through screening. This is where you - or your fund manager - discounts companies that don’t adhere to your principles. So, let’s say that you want to invest in a coffee company abroad. You are into fair trade and wish to ensure that your money goes to an organization that offers worker’s rights and treats their employees well. However, you then do your research on the company and find that the business in question violates a lot of working standards - so you don’t invest. Screening can take many forms, of course - many funds won’t go near the tobacco industry anymore. It’s important to understand that this type of ‘sin screening’ can decrease your options by a significant amount. Perfection does not exist in business - like anything else in life.

OK, so there are some of the basics of socially responsible investment. As you can see, there is a lot to think about when you are looking for a more ethical way of working your money. The trick is to find a fund that follows the same guidelines to life that you do, and always do your research. But, if you want to make a positive change, then the direct investment is the best option.

Need Some Cash For Christmas? Check Out These 10 Fundraising Ideas

With Christmas just around the corner, you will no doubt have a list of people you need to buy presents for. As you can imagine, the more folks you've got on your list, the more cash you need to spend! It's no surprise that Christmas is a time where a lot of money gets spent with retailers.

So, what happens if you're broke? Well, you could just give people a card only and tell them you can't afford to get them a present. But, what if I told you there were a few ways you could raise the cash you need?

You might not realize it, but there are plenty of opportunities for making money! Here are ten of my tried and tested methods for you to check out:

1. Sell your unwanted items on eBay

Most people don't realize that they could be sitting on a potential goldmine at home! Let's face it; we all buy stuff of high value and sometimes don't use those items much.

If you've got valuables that you seldom use, now is the time to convert those goods into cash! eBay is one of the most popular ways to sell unwanted items online. In fact, it's the Internet's biggest marketplace! You could also try other classifieds site too, such as Craigslist.

2. Get a small loan

Do you get paid on the last working day of the month? If so, you could find it hard to pay for your Christmas gifts before payday. Instead of celebrating Christmas after the 25th December, why not take out a small loan?

It's easier than ever to apply for cash loans online these days. Assuming you get approved, you could have the money in a matter of hours. When you get paid at the end of the month, you can then pay it back in full.

3. Get an evening job

If you have a 9-5 job, one way to make some extra cash before Christmas is to get an evening job. You could use your car to deliver takeaway food, for example. Or you could run a convenience store. There are thousands of evening job ideas out there.

I should point out that it's only an option for those that don't have a family in tow at home. So, if you're an eligible bachelor, this is a viable option. But if you've got a spouse and three kids at home, it's better to spend the time with them instead!

4. Do some online work from home

The brilliant thing about the Internet is that there are hundreds of ways to make money online. And you can do all those things from the comfort of your home!

From copywriting to Web design, there are plenty of ways to earn some money. You could even take part in surveys where you get paid for your opinions! There's no denying that micro-entrepreneurism is on the rise. Why not be a part of that digital revolution and make some money for Christmas?

5. Sell your scrap metal

Is your backyard more like a junk yard? If so, now is the time to get rid of that stuff and make some money in the process. Scrap metal dealers will pay you cash for your steel, iron and copper.

Even things like old car batteries are worth some money! It's worth having a look around your home and seeing what scrap metal you could sell. Not only will you make some money, but you'll tidy your home up at the same time!

6. Rent out your driveway

Do you live near a major town or city? Perhaps you are close to a significant public transport connection? If either of those scenarios are true, there is one innovative way to make some money. I am, of course, talking about renting out your driveway!

Many people will pay to pay their cars during the day in a safe off-road location. A lot of folks may have to travel long distances for work, for example. Instead of commuting on a long car journey, they'd rather get on a train or bus.

7. Become a tutor

Are you an expert in a particular niche? If so, you ought to consider becoming a tutor! There are many ways to make some money. For instance, you could offer piano tuition services.

Or, if you are good with pets, you could teach dog and cat owners how to train their companions. People will pay good money to learn more about particular subjects. Why not capitalize on that fact and help them out at the same time?

8. Sell your car

If you don't use your car that much, it's likely that it just spends most of its time parked up on your driveway. In such scenarios, you should consider selling your auto and pocketing the cash.

First of all, you'll raise the money you need for Christmas. Second, your car will get better use with its new owner. And, third, you can make even more money if you rent your driveway out because of the freed-up space!

9. Crowdfund your plight

Plenty of people go on crowdfunding sites to ask for money for various things. Most of the time it's to fund a new business idea. For others, they crowdfund for personal reasons.

There's no guarantee you'll get the money you need. But, if you've got a compelling story, people might feel for you enough to make a donation to your fund! I'd probably consider this option as a last resort if I'm honest. Still, it's worth bearing in mind just in case.

10. Offer your services as a handyman

Are you good at DIY? If so, there's bound to be people in your neighborhood that could do with a handyman! You could offer a variety of services, such as fixing broken doors and windows.

If you're a qualified electrician, you could also offer electrical repair work. It's worth advertising your services in a local newspaper for extra promotion.

Expert advice on offshore banking – A few important things

Individuals that don’t wish to disclose money should opt for offshore banks. The legality of any offshore bank can be questioned by many of you. You must have wondered why it becomes necessary for you to hold assets abroad. Challenges associated with asset management may be curbed legitimately, although there’s some truth associated with the offshore banking mystique.

There’s some requirement associated with the business of individuals that maintain an offshore bank account. It could be an individual who needs to engage his local accounts for conducting business or needs to monitor the exchange rates as he needs to visit other nations frequently. While writing checks on your international account, it becomes difficult for you to run your business operations that smoothly. In this way, the payment process gets delayed and turns business owners more apprehensive about dealing with foreigners. It causes certain business communities to experience a certain stigma.

Money to be hidden

If you don’t wish to disclose money, you’ll get an opportunity to do so in one way or the other. The backyard of your house will bury your coffee cans full of money. You may hide money in your offshore banking accounts in almost the same way as you do with your local bank accounts. In this case no money is owned by the “owner” but is maintained with trust and business bank accounts. Such an idea amounts to money laundering and is considered to be illegal.

Certain offshore accounts need you to disclose your interest and assets in your native place. Following the legal norms is absolutely mandatory, so you’ll need to maintain offshore bank accounts by following the advice of industry experts. For this, you’ll need to maintain your status of an expat. Opening an offshore account is often considered illegal for an US citizen. The income is usually not reported by a majority of banks. Doing a proper reporting and maintaining records is entirely up to you. You may be caught for an alleged tax evasion if you don’t maintain records. An offshore banking account will be opened by those individuals that wish to follow the legal norms while opening their business account in a foreign land.

Banking locations

The Federal Deposit Insurance Corporation yields a certain protection, which you can’t avail when your money is transferred abroad. You’ll need to make sure that you’re actually dealing with a large financial organization like HSBC, which is considered to be the biggest global bank.

The Bahamas, Bermuda, the Caymans and Switzerland are a few good nations that assure more privacy towards your offshore bank account. You’re bound to experience firm privacy laws associated with banking in the Bahamas as this nation enforces strong global banking laws. Interest or accounts aren’t reported by the Caymans, which transforms them into a popular banking system like the ones you see in the US.

Gadgets vs Mutual Funds: Where should you invest more and why?

Money is a commodity you certainly cannot survive without. You may have various sources of money, but how you choose to use it depicts whether you’ve utilized the value of money to its full potential or not. Regardless of the amount of money you have in hand, you should always plan to spend some and save some.

Many of the individuals are tempted to spend a lot more than necessary when they have exposure to significant amounts of money at any given time. With the increasing advancement in technology and frequent launches of new gadgets, this just adds to the temptation.

The launch of the Apple iPhone series took the world by storm and it was just the start of a more technological advanced era. Almost everyone gravitated towards the idea of a Smartphone having a multi-touch screen as the user interface. However, one thing they ignored was its cost and the financial impact it would have had on their other more important expenditures.

As long as you have planned your expenditures, which would mean that you have included the cost of any particular gadget you wish to buy, spending on gadgets will not impose any threat to your financial security. Just like you plan your expenditure, you should also plan your savings. You should set out a certain portion of your total monthly income for your savings.

Amongst many other ways, the best way in which you can achieve greater value for money is by saving your money in mutual funds. There are a wide variety and styles of mutual funds that can be accessible to you. You may choose the one that is best appropriate for your requirements.
Basically, mutual funds are a type of investment in which a certain group of investors assemble their money and appoint a portfolio manager. The manager in turn invests these funds in bonds, stocks or any other investment securities.

The manager obviously charges a fee for his services but keeping in view the rewards those investments undertaken by him may bring, the fee may not seem to be that big of an amount. Mutual funds can be an efficient way of investing your money if you are planning to save money for your retirement, education or any other financial goals.

Gadgets and mutual funds are in complete contrast to each other. While the value for money held in mutual funds increases over time, the value of gadgets depreciates over time. Purchasing any gadget requires a massive investment initially as the purchase price and then in subsequent periods as repairs, if required.

Over time, gadgets depreciate in value as you continue to use them and if a new version of the same gadget is launched in the market, it depreciates even more. If you go on to sell your gadget, you may at times have to settle for less than half the price.

Though, some of the gadgets are way too expensive, their cost can be completely justified with the features they have. However, one does not necessarily need to buy these expensive gadgets; instead they can settle for their cheaper alternatives. For instance, there are many alternatives of Smartphones to those of Apple iPhones, though with obvious differences in quality and extensive features.

Many of the individuals tend to get carried away with these gadgets and the added features each new version launched in the market has, to an extent that they might even continue to spend on them completely ignoring their personal financial situation and stability. Even worse, they might even end up being in heavy debt. However, if such a situation arises, the individual should be alert of the consequences this can have on him and his dependents, if any. Before anything else, you should first learn how you could settle credit card debt.

Though, spending on gadgets is not a bad idea completely, but it should not be over-excessive. There are some people who are gadget enthusiasts and want to possess every new gadget that is launched in the market. However, if you are already facing credit card debt issues, it would not be wise for you to continue spending on these expensive gadgets instead you should learn how you could settle credit card debt first.

The above article is composed by Sarah. She is associated with finance related companies as their freelance writer. In her free time she writes articles related to finance and saving money. She always recommends people to learn how you could settle credit card debt.