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.

Is it a good idea to buy Disability Insurance?

Securing your financial well-being involves planning for various scenarios, including unexpected events like disabilities that could impact your ability to work. In Canada, Disability Insurance stands as a vital tool to protect your income and safeguard your family's future. Let's explore why getting Disability Insurance might be a prudent choice.

What is Disability Insurance?

Disability Insurance, often overlooked, is a safeguard against the financial ramifications of being unable to work due to an injury or illness. It provides a steady stream of income, typically a percentage of your regular earnings, should you become disabled and unable to work.

The Importance of Disability Insurance

• Income Protection: Your capability to earn an income is crucial for your financial stability. Disability Insurance ensures that if an unforeseen disability hinders your capacity to work, you can still receive a portion of your income, supporting your daily expenses, bills, and living costs.

• Maintaining Financial Stability: A disability can lead to unexpected expenses, including medical bills and specialized care. Disability Insurance provides a safety net, preventing financial strain during challenging times.

• Mental Peace for Your Loved Ones: Disability Insurance isn't just about protecting yourself; it's also about securing your family's well-being. Being aware that you have a reliable income source in case of a disability alleviates stress for you and your loved ones.

Types of Disability Insurance

• Short-Term Disability Insurance: Covers disabilities that limit your ability to work for a short period, usually up to a year.

• Long-Term Disability Insurance: Provides coverage for extended disabilities that may last for years, ensuring sustained financial support.

Why Consider Disability Insurance Quotes?

When it comes to safeguarding your income and protecting against the uncertainties of life, choosing the right Disability Insurance is pivotal. Here's why exploring Disability Insurance quotes holds immense value:

Comparative Assessment

• Coverage Options: Disability Insurance policies vary in terms of coverage options. Some might cover specific types of disabilities, while others offer broader coverage. Requesting quotes allows you to understand the nuances of each policy's coverage scope.

• Benefit Amounts: Different policies provide varying benefit amounts based on your income and the policy's terms. By comparing quotes, you can assess which policy offers a benefit amount that aligns with your financial needs.

• Waiting Periods: Each Disability Insurance policy comes with its waiting period before benefits kick in. Some have shorter waiting periods, while others might require a longer waiting period. Evaluating quotes helps you understand these waiting periods and choose a policy that suits your preferences.

• Premiums: Premiums vary among insurance providers and policies. Requesting quotes enables you to compare premium rates, ensuring you get the best value for your coverage without compromising your budget.

Tailored Coverage

• Specific Needs: Your lifestyle, occupation, and financial situation are unique. Disability Insurance isn't one-size-fits-all. Assessing quotes allows you to tailor a plan that addresses your specific circumstances, ensuring you receive adequate coverage tailored to your needs.

• Financial Circumstances: Depending on your financial commitments, the ideal Disability Insurance policy might differ. Quotes provide insights into how different policies align with your current financial circumstances, helping you make an informed decision.

Importance of Gathering Quotes

• Informed Decision-Making: Comparing Disability Insurance quotes empowers you to make an informed decision. It equips you with the necessary information to understand the features, costs, and benefits of various policies, enabling you to choose the most suitable option.

• Optimizing Coverage: Gathering quotes allows you to optimize your coverage. You can identify the policy that offers the best balance between coverage, benefit amounts, waiting periods, and premiums, ensuring comprehensive protection.

Exploring Disability Insurance quotes isn't just about finding the cheapest policy; it's about finding the most suitable coverage for your needs. By conducting a comparative assessment and tailoring the coverage to fit your circumstances, you ensure you're adequately protected in case of unforeseen disabilities. Disability Insurance quotes empower you to make an educated decision, secure your financial stability, and offer peace of mind for the future.

Is Disability Insurance Worth It?

Without a doubt, Disability Insurance stands as a fundamental pillar in securing your financial stability. Here’s why it's a smart move:

Proactive Financial Protection:

• Preparation for Uncertainties: Life is unpredictable, and unforeseen life events, like accidents or health issues, can disrupt your ability to work. Disability Insurance steps in as a safety net, ensuring you have a consistent income stream if such circumstances arise.

• Safeguarding Your Livelihood: Your income is the bedrock of your financial stability. Disability Insurance protects this foundation, ensuring you can cover daily expenses, bills, and other financial commitments even if you're unable to work due to a disability.

The Value of Preparedness:

• Peace of Mind: Knowing that you have a safety net in place brings a sense of security. Disability Insurance eliminates worries about how you'd manage financially if you were to face a disability, allowing you to focus on recovery.

• Maintaining Lifestyle: A disability can bring unexpected expenses, from medical bills to specialized care. Disability Insurance bridges the gap, enabling you to maintain your lifestyle and meet these expenses without depleting your savings.

The Significance During Challenging Times:

• Financial Impact of Disabilities: Disabilities can profoundly impact your financial stability. Disability Insurance mitigates this impact by providing a regular income, ensuring you can sustain yourself and your family during challenging periods.

• Long-Term Benefits: Disability Insurance isn't just a short-term solution; it offers long-term benefits. By providing continuous financial support during a disability, it assists in maintaining your financial health over an extended period.

Leveraging Disability Insurance Quotes:

• Informed Decision-Making: Exploring Disability Insurance quotes enables you to make a wise choice. It helps you understand the coverage options, benefits, and costs associated with different policies, ensuring you choose the most suitable coverage as per your needs.

• Optimizing Protection: By assessing quotes, you can optimize your Disability Insurance coverage. You can go for a policy that strikes the right balance between coverage, benefit amounts, waiting periods, and premiums, ensuring comprehensive protection.

Disability Insurance isn't just another expense; it’s an investment in your financial security. It’s a safety net that offers peace of mind, ensuring you’re prepared to face life's uncertainties. Disability Insurance quotes empower you to choose the most appropriate coverage, safeguarding your income and providing a stable foundation even during challenging times. Considering Disability Insurance isn’t just a prudent step; it’s a strategic move toward securing your financial well-being and peace of mind.

Final Words

Disability Insurance in Canada serves as an imperative aspect of comprehensive financial planning. It protects your income, safeguards your family's financial stability, and offers peace of mind. Considering Disability Insurance quotes from reputable providers enables you to make an informed decision, ensuring you have the right coverage to weather unforeseen circumstances. Ultimately, Disability Insurance is a valuable asset that provides security and stability, making it a smart investment in your financial future.

Navigating the Waters of Financial Security: A Guide to Secured Loans

In the ever-evolving landscape of personal finance, understanding the nuances of various financial instruments is crucial. One such tool that often finds itself in the spotlight is the secured loan. In this blog post, we'll explore what secured loans are, how they work, and why they might be a viable option for those seeking financial stability.

What are Secured Loans?

Secured loans are financial instruments that are backed by collateral, typically an asset owned by the borrower. This collateral acts as a form of security for the lender, reducing the risk associated with the loan. Common examples of secured loans include mortgages and auto loans, where the property or vehicle serves as collateral. The presence of collateral allows lenders to offer more favorable terms, such as lower interest rates and longer repayment periods.

The Dynamics of Secured Loans

Understanding the dynamics of secured loans involves delving into the relationship between the borrower, the lender, and the collateral. When a borrower applies for a secured loan, the lender assesses the value of the collateral to determine the loan amount. This collateral serves as a safety net for the lender—if the borrower defaults on the loan, the lender can seise the collateral to recoup their losses.

The interest rates on secured loans are often lower compared to unsecured loans because of the reduced risk for the lender. This makes secured loans an attractive option for individuals with valuable assets who are looking to borrow significant amounts of money while keeping costs manageable.

Advantages of Secured Loans

Secured loans offer several advantages for both borrowers and lenders. For borrowers, the primary benefit lies in the potential for lower interest rates and more flexible repayment terms. The collateral requirement also makes secured loans accessible to individuals with a less-than-perfect credit history, as the lender has a tangible asset to secure the loan against.

Lenders, on the other hand, benefit from the reduced risk associated with secured loans. The presence of collateral provides a layer of protection, mitigating the impact of borrower defaults. This reduced risk allows lenders to extend credit to a broader range of individuals, fostering financial inclusivity.

Considerations for Borrowers

While secured loans offer numerous advantages, it's essential for borrowers to carefully consider the implications. The most significant risk is the potential loss of the collateral if the borrower is unable to repay the loan. Therefore, individuals considering secured loans should thoroughly evaluate their financial situation, ensuring they have a realistic repayment plan in place.

Additionally, borrowers should be aware of the terms and conditions of the loan, including any fees or penalties associated with late payments or default. It's crucial to choose a reputable lender and fully understand the terms of the loan agreement before committing to a secured loan.

In the realm of personal finance, secured loans emerge as a valuable tool for those seeking financial stability and flexibility. By providing a secure and accessible borrowing option, these loans empower individuals to make significant financial decisions without compromising their long-term financial well-being. As with any financial instrument, careful consideration and understanding of the terms are essential to make informed decisions that align with one's financial goals.

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.

Passive Income with Peer to Peer Lending

Many investors these days are looking for new passive income ideas. Passive income means making money for an investment or asset without doing any regular work. Types of passive income include royalties and licensing fees, revenue from content and advertising fees, interest income and a variety of other sources which people are taking advantage of. Many of these streams of income are available on the internet although some are offline. The common denominator is that they all require no significant effort on the part of owner/investor.

One option for those looking for passive income is peer to peer lending investing. Peer to peer (also known as P2P) lending platforms allow individuals to invest in personal loans to borrowers. Investors can see borrowers credit information and select loans they want to invest in. The minimum investment is $25 so a hundred or more investors may be funding each loan. Investors normally spread their money across a hundred or more loans in order to diversify their portfolio and minimize risk. The risk in this type of investment comes from the possibility that a borrower will not repay their loan. Loan defaults can happen and that is why people invest in many loans.

Investors in P2P loans can expect to earn anywhere from 4% to 7% depending on the particular loans that they invest in. They can choose higher rated borrowers with loans at lower interest rates, or lower rated borrowers with higher interest rates. There will be more defaults with the higher rate loans but the return on investment will normally be higher for these investors. Compared to other common investments P2P lending investing has a good risk/reward ratio. This means that the risk is relatively low compared to the return on investment.

At this point, you may be wondering how P2P loans can be a passive investment since we have described how the investor selects loans to invest in. The investor can choose to use a tool called automated investing. This tool, which is available on most platforms, allows investors to set certain criteria for selecting the best loans which they think will be repaid in full. Once the tool is set up, it will automatically choose loans. Whenever the investor has funds available, either through deposits to their account or payments made on other loans, the tool will reinvest those funds immediately. So, the investor does not have to do any work, which is why this is a passive investment.

Based on this ability, peer to peer lending can be a good part of a passive investors portfolio. While it is not recommended that people invest all of their money this way, it does help diversify a portfolio and soften the blow when the stock market is down. The ease of managing this investment is very attractive which explains the explosion in popularity over the past several years. While many people actively manage their accounts, just as many are using the automated investing tool to do the work for them.

How a Current Account Helps in Transacting Business in a Secure Manner

A business owner should be able to distinguish between his personal finance and business capital under all circumstances. You may open a business current account just to keep track of your business incomes and expenses separately from that of your personal finance.

Apart from improving your financial planning on the business front, a current account will help project your entire financial situation in details. Ascertaining a true and fair view of your business will help you to keep your personal finance segregated from that of your business finance.

Know how a current account helps a business owner:

• Helps in proving creditworthiness

Your creditworthiness may be checked by lenders prior to offering a credit-line. This process gets facilitated once you open a current account. The fact that you hold a current account can be proven very easily when you produce a bank letter stating the same. Creditworthiness can even be checked with the help of inter bank connections. You must continue to pay your bills on time even when you’re seeking a new personal loan. You may calculate the amount that you can afford to repay each month with the help of a personal loan EMI calculator. Your current account will even come to your rescue when you need to show a guarantee to a foreign counterpart, especially when you’re into import or export business. Maintaining your current account with a reputable banking concern will help in simplifying the entire process while proving your creditworthiness.

• Promotes a professional image

Maintaining professionalism is truly important while running a business. It helps in developing your business network, promoting your image, and expanding your business. You can prove your point by using a current account for your business dealings. All cheques that are received and issued by you while transacting business will mention your current account. The seriousness and responsibility with which you conduct business get symbolized by your current account.

• Simplifies banking transactions

Compared to a savings account of an individual, a few extra benefits are offered under a current account. Few effective value-added services are now offered by banks as the competition is becoming stiffer with each passing day. All current account holders are now eligible for these offers as they come at no additional charge.

Current accounts are considered as favorites by all banking concerns as these accounts don’t yield any interest for the account holder. However, most of the current account kits come with benefits like cell-phone alerts, online banking, and doorstep services.

Apart from this, a good number of free demand drafts and pay orders are offered to the account holders. He can even utilize NEFT/RTGs for availing the instant fund transfer facility. Although you don’t need to maintain a certain balance, few banks tend to support you with a zero balance account.

In order to ensure a personalized service for each of these current account holders, a bank provides them with benefits like that of multi-location funds transfer, multi-location withdrawals, monthly statements, free deposits, relationship managers, and free remittances. However, you might need to ensure a minimum balance although each of these services comes in handy with your savings bank account.

The primary objective of opening a current account is to transact business in a simplified manner. This, in turn, helps in running a business more smoothly and accurately.

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.

Few Important Points to Keep in Mind While Opening a Savings Account

When it comes to committing transactions with a financial institution, a business mostly relies on its savings account. The extra cash that you earn needs a safe and secure destination, and there’s no better place than your savings account. The financial instrument is hardly any point of research for a usual business owner, although it reflects a significant portion of his investment portfolio.

Factors that can help you to pick the best savings account:

Minimum cash balance

Public sector banks offer a zero balance account or allow you to maintain a much lower minimum cash-balance worth 1000 INR. On the contrary, the private sector banks require you to maintain a minimum balance worth 5000 INR. Experts advise you to opt for a bank that doesn’t require you to block a substantial amount. However,if you choose to go with private sector banks, you must enquire about the fees that they will charge for a low-balance account.

Rate of interest

In comparison to your other investment options, savings bank accounts offer a much lower interest. A majority of banks are still yielding lower interests since interest rates got deregulated by the RBI. You must check out the maintenance clauses prior to opening your savings account with a private bank that offers higher interest rates.

Banking network

Web-based applications have dominated the present generation and are now making their presence felt within the banking sector. Mobile banking and net banking are two of the latest features that come with a savings account. However, you might need to visit your bank’s branch for a certain transaction. So, it is in your best interest to open your account with a bank that has branches spread all over India.

Ancillary fees and service charges

Many financial institutions levy charges for some of their regular services per year. These services include issuing cheque books beyond their free limit, duplicate PIN number and cards besides SMS alerts. You must acquire knowledge on these charges while applying for your savings account. You must opt out of a low-cost account that levies hidden charges in favour of a transparent account.

Deals on debit cards

Multiple debit card deals are offered by banks in their attempt to keep competition at bay. These debit card deals may range from insurance benefits to cash-back offers. While some of these banks are known to charge yearly charges of their cards, while the rest set a waiver for individuals that transact business worth over their minimum threshold limit. For example, certain platinum and gold debit cards are issued by banks. These cards yield a range of benefits for a yearly charge.

Banking facilities at your doorstep

To help you cope with your busy lifestyle and hectic schedules, banks are extending cash collection facilities at your doorstep. Demand drafts are also being delivered by some banks at your doorstep, but you’ll need to bear a cost for such services. In their attempt to serve high net-worth customers, certain dedicated relationship managers are maintained by the priority banking verticals of some banks.

Prior to opening your bank account,it’s truly important for you to check and evaluate all factors that drive a consumerist setup. It will help you to establish a long-term relationship with your bank that’s vivid and lucrative.