Nowadays, almost every 9 out of 10 messages on WhatsApp you will read would be related to Corona Virus. There are also videos where the self-proclaimed experts would talk about home remedies and preventive measures to deal with it. Further, you will see debates on media channels about how Corona Virus is adversely affecting the global economy including India. Then we have the Yes Bank fiasco which has shaken every common man’s trust in depositing money with banks. The power

Mobile apps in our smartphones have become a ubiquitous part of our everyday lives. They are fast and convenient. Apps are just a swipe away – Amazon for shopping, Ola/Uber for travel, Zomato for food orders, etc. However, this high dependence on mobile apps is also enticing us to spend more. Add to that, the discount offers and cash back deals are too hard to resist. We aimlessly spend gobs of time scouting for attractive deals and buy that extra jacket or footwear just beca

Mr. A’s flat in a high rise was recently gutted in a massive fire which broke out due to short-circuit. His entire property, contents, including all important documents, valuables, electronic items, were destroyed in the fire. Unfortunately, Mr. A learnt the importance of home insurance the hard way. Our home is one of the costliest assets we own and we entrust our major life savings into buying it. However, we do not realise that our home too needs protection in the form of

Ask any individual about their health insurance coverage and the basic sum insured would typically range between Rs.2-5 lakh. This primary cover does not usually prove to be sufficient with passing age and increased health care costs. Any lifestyle disease or any complicated medical condition in the future can easily consume the entire health cover in one go. One has to pay a huge sum then from the own pocket. Health insurance cover thus needs to be reviewed at regular interv

An emergency fund is an essential buffer to tide over in unforeseen circumstances. You need a safety net when life throws those harsh bouncers at you. Most financial advisors advocate an emergency fund equivalent to 6 months living expenses. Living expenses here include only the necessary costs such as grocery, utility bills, EMIs, insurance premiums, children’s school/tuition fees, etc. While 6 months is taken as a rule of thumb, it cannot be a blanket solution as personal s

Got Monday blues like Garfield? Do you feel like you are dragging your feet to work? If yes, then I am sure the thought of quitting job may have crossed your mind multiple times. You may be seeking some kind of validation from your family and friends. But quitting is not the right choice always. If you quit for the wrong reasons, you may find yourself aimlessly job hopping and could affect your income earning potential in the long run. So, it is imperative to do a close intr

Think about regular recurring expenses and travel has become one. Frequent getaways are common today for the millennials to unwind. This is unlike the older generation which waited till retirement to plan an international trip or travelled just once in a year. Today, short vacations are common, be it an adventure trip or just relaxing in a resort. These are undertaken 2-3 times in a year and the cost of these short trips start from a minimum Rs.20,000 each. If one stays in a

Being human, we all procrastinate from time to time. We give less importance in our priorities to tasks that are unpleasant or far into the future than those which are rewarding and confronting us today. Similarly, we tend to put off painful but important financial decisions like saving for retirement, compared to funding for an immediate and rewarding goal like vacation. As James Clear says in his best-selling book Atomic Habits- the human brain is evolved to prioritise imme

With India’s top airline Jet Airways going bankrupt, thousands of employees were laid off. Layoffs today are for real. Be it in a small entity or a big business with giant market share. Whether a company is in financial distress or wants to cut costs or simply not satisfied with the performance of its employee, the writing on the wall is not obvious. One can never be prepared for a job loss. Not mentally. And 99 per cent are not prepared financially either. The thought of a p

While parents always have the best intentions for their children, their instincts at times do not prove correct to take the best decisions for their kids. Be it sheer ignorance or guilt or over-protectiveness, parents many a times commit financial blunders which can prove expensive in the long run. There are universal errors that parents with children of all ages make. The only difference is the older the child gets, the less time a parent has to correct it. Here are a few cr

Buying life insurance cover is one of the most vital aspects of Financial Planning. And choosing a suitable life cover is a very important decision. Term insurance has the been the simplest form of life insurance product to understand. The insured pays regular premiums during the policy term and in the event of his death, the nominee gets a lump sum death benefit. But even with a simple term policy, many a times, there is confusion among buyers. It is because of the extra fea

Most life insurance companies today offer term insurance plans online. The premiums of these plans come at less than half the price of the insurance plans bought offline. The absence of an agent between the customer & insurer and low operational costs are the primary reasons for such low premiums. Unfortunately, this is the starting point in selecting a term plan. With information available online, a prospective buyer usually compares premiums of term insurance plans on websi

It is an irony that while many women are financially independent today, they are not financially empowered in a true sense. They may be diligent savers but not truly involved in managing their personal finances. The financial baton is passed onto father, brother and later after marriage to spouse. Working women may feel they are financially secured but that may not be true always. When life throws certain harsh bouncers, the financial hardships experienced by women make them

Raising kids from the millennial generation was so much easier than it is now. In this highly networked world today, the choices are infinite for Generation Z kids. The parental pressure is hence immense in giving the child the best of everything. The cost of raising kids today has also gone up. And not only due to inflation, but also because of the societal and parental shift in the way kids are being raised today. This has led to new age parental expenses. Here are expenses

How do the budget proposals impact the common man? Tax Rebate up to Rs.5 lakh taxable income: For individual tax payers having annual taxable income up to Rs.5 lakh (after availing deductions), the Budget has proposed full rebate of Rs.12,500. So, if the total tax payable is lower than or equal to Rs.12,500, then there will no tax payable on the income. This is going to immensely benefit the tax payers in the lowest tax slab. To illustrate: Here you can see, for an individ

You have a fair idea about your monthly expenses and must have a budget for it. But what about your annual recurring expenses? How far ahead do you plan for it? Or do you just routinely pay for it from past salary earnings which pile up in savings account over a period of time? Some of the typical recurring expenses are: Vacation expense (short trips once or twice a year) School/College fees of children Membership fees (Gym, Club, professional network) Insurance premiums F

One of the biggest pain points that investors find in the National Pension Scheme (NPS) is the taxation part. Of the 60 per cent corpus that could be withdrawn lump sum at age 60, about 40 per cent is tax free and 20 per cent is taxable under the present rules. Now, in a recent development, the government has exempted even the 20 per cent from tax taking the tax exemption limit from 40 per cent to 60 per cent. This means that the money invested in the scheme (up to a limit) i

Many investors have a general perception that while equity and equity mutual funds are volatile, debt mutual funds are risk free. They also see debt funds as an alternative to fixed deposits which can yield higher returns than the latter. The primary reason behind this misconception is that investors fail to understand how a debt fund works. Debt funds are risky for sure and unlike equity, the former is much more difficult for the retail investors to understand. Not just inve

Rising crude oil prices, weak rupee, political uncertainty ahead of state and central elections, etc., all have spoilt the stock market party. But is there anything new in this? Markets have gone down earlier because of such macro-economic and geo-political factors. Yet, panic, anxiety, confusion – any emotion related to fear is common amongst investors. They always face the common dilemma of whether to sell or not. This indecisiveness amongst investors stems from the fact th

Your parents are your well-wishers, no doubt. It is natural to take their advice at face value because you think they are experienced and cannot go wrong. While they don a lot of hats for you – parent, friend, teacher, etc., do not let them be your financial advisor. Chances are their views on money, career, housing will not be applicable to your life now. Although they would be wise in advocating the basic tenets of financial discipline – regular saving and investing, not al