Random Ramblings

Originally published on BeingFinWise __ Cashbacks are an amazing way to save money while shopping. More so while you do online shopping. In addition to regular deals and discounts, you can get cashback if you go via affiliates . This way you can get cashback on your online shopping, over and above your regular deals. Some of the popular affiliate networks offering cashback on online shopping in India are Cashkaro ,  Gopaisa , Pennyful etc.

Originally published on BeingFinWise __ Tennis legend Boris Becker is in news - for wrong reasons. He is having auction off his trophies to pay off his debts . Even then, the debt will not be fully repaid. To think of it, he was the youngest Grand Slam champion & considered one of the greats in tennis. He won Wimbledon when he was just 17! At that level, tennis does pay a huge amount of money! So we can safely assume, that he would have had no dearth of money. Boris Becker is not the only celebrity to be rich, yet bankrupt. There are ample examples. For example, Michael Jackson died, he was in huge amount of debt.

Originally published at  BeingfinWise __ If you are 25 year old, there is a good likelihood that you would have started working or are likely to start soon. And hopefully start(ed) managing your own finances. So, what do you do next? The good news is that having a profession can soon lead to cash flows which perhaps wouldn't have seen in your student days. And that can be empowering in many ways. The bad news is that, if you are reckless with spending money, it can soon lead to a downward financial spiral. Managing your finances well can be a good first step towards a healthy financial life. And it starts with small steps.

You can also read this on BeingFinWise __ Credit cards can be an amazing tool to manage your finances, get good deals and some excellent rewards. All you need to do is understand some credit card hacks and be on lookout for deals! However, before starting on how can you make the best use of credit cards, you need to be sure if credit cards really suit you or do you tend to lack financial discipline if you have access to credit cards. If this is the case, it may be wiser to avoid credit cards altogether. (You may also be interested in - You should stop using credit cards now if ... ) Here are 5 ways you can get the best out of credit cards.

Originally published on BeingFinWise __ It is good to have a financial plan. It enables you to have financial resources ready when you may need them. At the same time, it enables you adapt your lifestyle in alignment with the desired goals. But the ride is not always as straightforward as the excel sheets with projected expenses & rate of returns suggest. There can be several factors that can set back your financial planning, even by several years. While one may not have a foolproof mechanism against all eventualities, one can definitely mitigate the impact of several uncertainties by having proper safeguards in place. Here are some factors that can set your financial plan back by several years

You can also read this on BeingFinWise ___ As the new year begins, I wish everyone a very Happy New Year.  I am hoping that this year, I'll make better financial decisions & hopefully people reading this will also do so. One good first step can be to avoid making bad financial decisions and keep improvising.  Here are some financial mistakes one can do well to avoid in 2019 (in no particular order): Spending more than what you earn. ( Rule # 1 of personal finance !) Not investing the saved money, and letting it be idle in savings bank account or worse, as physical cash. Taking debt like personal loans or keeping credit card outstanding - consequently unsustainably living in present with your expected future income. (with an inflated cost, thanks to high interest rate!) Leveraging/ borrowing for speculating (speculations often masquerading as investments, e.g.  speculating in stocks, or worse, derivatives, crypto currencies etc.) Not having...

You can also read this at BeingFinWise __ When you look around for investments, there is a glut - of investment products, of products packaged as investments and products masquerading as investments. However, when it comes to spending real money you need to have a right mix of investments. There is no one right approach towards investments, and there can be several approaches one can take. However, eventually it boils down to one number - what is the expected return on investment (ROI)?  For some products - like fixed deposits, it is fairly straightforward, and probably a good number to benchmark.  Currently,  Most of the banks offer 7-8% rate of interest for 1-2 year duration fixed deposits (actual returns can be lower depending upon tax you need to pay).  PPF (Public Provident Fund)  is currently offering 8% rate of interest Employee Provident Fund (EPF) offers 8.55% rate of interest. If you are a salaried employee you can also top u...

Originally published at BeinfFinWise __ Giving loans is a risky business. Business of banks and financial institutions rely on people taking loans and then repaying it, thus giving them profits. Many have built a fortune based upon giving loans. Loans also serve an important function for the economy by being a facilitator to businesses, housing, automobiles and other elements of consumption.  However,  what is good for financial institutions may not necessarily be good for you, especially when it comes to loans. While some loans may be good loans and help you prosper, there are several others which may derail your financial plans, if any! Taking loans can also lead to compounding work against you - a situation which anyone with long term financial goals would like to avoid. (Lot of the below is based upon Indian context. However, variants of this will be applicable to many places across the world) 1. Credit card debt Credit card defaults cos t a lot...

You can also read this on BeingFinWise __ How you handle your personal finances, can go a long way in determining you overall financial well-being. If you are good at handling it, you can be on path to financial independence even with a decent (not necessarily high) income. Conversely, if you don't handle your personal finances well, you may end up never being financially independence even though you may be making tons of money.  Much has been already written about the basic principles of personal finances that can help you move ahead in direction of your financial goals, and frankly, it is not a rocket science.  Here are my 2 cents on the principles of personal finance which can enable you reach closer to your financial goals. All seemingly obvious, yet often forgotten.  1. Keep expenses less than earning  Pretty obvious. Isn't it? Yet many of us fail to follow it. If your expenses exceed your income, then soon you'll lend up in a deb...

You can also read this on BeingFinWise __ Credit cards are often too attractive to resist. Many of them come loaded with some good welcome gifts, some good offers, a good credit period and the promise of enabling you fulfill your dreams via credit limit. Yet, for many people, especially first timers, this euphoria vanishes before few months. The underlying reason for most of them is - "I don't know how the money vanishes and I land up with so much of credit card bill". In other words, they are unable to control expenses. Credit cards can be very helpful in organizing your expenses, getting rewarded via reward points and earning interest as you defer your payments by around a month on average.  However, use of credit cards, if indiscriminate, can soon backfire. You need to stop using credit cards if - You are an impulse shopper and don't think twice before buying stuff worth thousands - with/ without any clearance sale. When you are unable to pay your car...

You can also read this on BeingFinWise __ Almost everyone wants to have an amazing lifestyle - with best possible food in best possible places, awesome travel destinations, a swanky car, few trending gadgets, elite memberships and many other symbols which can proudly announce- "I have arrived". Yet a lot of us get so obsessed with chasing this lifestyle that before we realize, we are on a downward spiral and caught in the vortex of lifestyle trap. This becomes more pronounced when our income/ sources of earning fails to keep pace with lifestyle inflation led spending. And this is a sure shot sign of you falling into lifestyle trap. The best step to avoid chasing lifestyle. The next best option is to realize that you are falling into this trap. Here are five signs that you are falling into a lifestyle trap. You are looking to upgrade your "I have arrived" possessions like iPhone, car, Fitbit etc. rather too  frequently. And often when you don't even n...

Investing is a often a long journey, and to make the best out of it, one needs to follow the right process and have a clear sense of direction. There may be many ways in which one can follow the right approach (if there is any!), and all of them can be correct.  However, as one embarks on this path it is important to ask the right questions and seek justified answers (which may or may not turn out to be correct, but at least there is a method and not madness in the approach.) 1. What is your purpose of investing? Asking this question is the beginning of your investment journey. Any systematic approach to investment entails knowing your goals (e.g. kids' education, your marriage, financial independence, buying a house, a comfortable lifestyle post retirement etc.) and aligning your approach towards it. And this goal should be more than just "everyone is doing it " or " i have some spare cash" (You may also be interested in - What is the purpose of invest...

You can also read this on  BeingFinWise   __ Buying a house is a big decision for most  of the people. And more so for a first time buyer. And for someone who can afford it (with home loan and associated EMIs, most of the times) it is not an uncommon investment. In fact, lot of buyers buy homes as a investment, rather than as a place of residences. Given the amount of money one commits while buying a house which can be hefty 7 or 8 digit number (in Rupee terms) it is important to do a due diligence before taking the plunge and buying a house. Here are some of the common mistakes to avoid as you look to buy a house for living or just as an investment. For calculation & illustration I'll consider price of the house as Rs. 50 Lac. Of course, if you live in a metro city, you may wonder what you'll get for this amount! 1.  Stretching too much with home loan The fact that you are eligible for X amount of loan doesn't necessarily mean that you use ...

It is not uncommon to see people taking personal loans. It is also not uncommon to see banks & NBFCs pushing for personal loan. For the users, personal loans provide immediate cash to fulfill their requirements - e.g. funding a wedding, vacation, house construction or repairs, buying furniture, unforeseen medical emergency and so on. For banks, it provide a great way to increase profits, since the interest rate is usually higher, given the relative insecure nature of personal loans. If you are a regular user of personal loan, then all may not be well. Personal loans come with its own set of problems, and are something one should ideally be staying away from it. Bankers may however disagree, and may sell you the idea of fulfilling your dreams using a personal loan and so on. But then, they make money out of it! Here are few reasons why you should be avoiding personal loans.

You can also read this article on BeingFinWise __ As Albert Einstein once famously said, compound interest is the eight wonder of the world. Whether it is a wonder of the world or not, it is surely an amazing concept. If you understand it, you can make it work for you (via investments). If not, if can work against you (via debts). That way, compounding can be a double edged sword. One of the most well-known investment tactics that many people wish they had implemented (but seldom do) is the "start young" tactic. This investment approach assumes that rates of return are compounded. Yet, often the idea of compounding is assumed to come from income-paying investments - e.g. fixed deposits On the contrary, compounding can also come in the different shapes & sizes - like profits in mutual funds, equities or other assets. For example, suppose equity has gained an average of 12% in value every year could be said to have a compounded rate of return of 12%. This is...

eCommerce is changing the way lot of us shop today. And websites/ Apps like Amazon, Flipkart, Myntra, Bigbasket etc. are now extremely popular among internet users in India. Most of these come up with regular sale & offers, often linked to a payment method (Amazon Pay, Credit Card, UPI etc). But there is something more that can help you squeeze a better deal - using affiliates to get cashbacks. (as discussed in one of the earlier articles)   Here is how you can get cashbacks on Amazon (and several other eCommerce sites) Sign up with an affiliate partner. Cashkaro , Gopaisa , JioMoney , Jetprivilage , Payback etc. are some of them.  Use their website App to go to Amazon website (not Amazon mobile app) Shop normally, checkout and pay. Please ensure that your shopping cart is empty before shopping & your don't close the browsing session in between.  Amazon gives a commission to these partners for referring traffic, and these partners pass on ...

Credit card can be a wonderful thing. It can help you manage your cashflows, get some attractive deals and reward you with their loyalty program. Yet, credit cards don't come without its share of problems. And most of these problems are not about credit cards, but human behaviour. If not managed properly, they can soon lead you into a downward financial spiral which entails a never ending series of interest payments, balance transfers, bad credit rating, mental stress and more. So, it is important to handle credit cards with care and avoid credit card debt like plague.

Whether one admits it or not - most of our lifestyle needs are inflationary in nature. This is in addition to the inflation that affects our day to day lives. As life progresses one may feel the need to get better house, better cars, better facilities for kids, better vacations, more healthcare needs and so on. On few of the things where you were spending Rs. 100, you may be spending Rs. 200 two years later. And during this time the inflation may be like 5 percent. So, how does this translate into your financial plan?

What will you do if you get a windfall gain, of say USD 1 Million? Will you continue working or will you retire? Will keep working but be choosy? Will you switch to something more "meaningful"? Will you think of the next 9 million? Will nothing change in your life?

Link to original post A lot of buyers, especially first-timers, worry about whether or not they’re going about their home search the right way. On the one hand, buyers fret that if they find their "dream home" too early, they might be missing out on something better. But, on the other, if the process takes a while, they worry that they’ll never find a home that works for them. The FOMO is real. Keep reading to find out if you’re on track with your home search and what you should do if you find that you need to go back to the drawing board. How many homes should you see? Honestly, that depends. While we understand the impulse to try and rely on hard-and-fast statistics, homebuying is a truly personal experience rather than a science. Trust your intuition. You know your needs, likes, and dislikes better than anyone else. You’ll know when you’ve landed on the property that makes the most sense for you to call home. That said, though, there are a few...