New Year Gift: Four Types of Gift You Must Always Avoid Giving

The snowy, bright & most awaited New Year festivities are just round the corner. It’s that time of the year when gifts serve as a powerful medium for showing your love to your dear ones. So, how are you going to express your feeling for the people you care this holiday season? However, as gift can enhance the sweetness of a relationship so it can ruin it. A bad gift can spoil a relationship with emotional impact that would be remembered for years. According to Finance Investment Companies in Delhi, India the worst of gifts can be grouped into four basic categories:

 The “What I Want to Gift”:

Many of you are driven by the desire to gift “What you want to gift” without thinking actually what would be useful for the receiver. For example, many women would be overjoyed with the gift of diamond earrings from her beloved. But, it may not impress you if they have nothing to do with what you wanted or needed. So, don’t go forward and make a New Year Gift that would prove useless for the receiver no matter how expensive it may be.

The Re-Gift:

The re-gift for New Year is definitely a very bad idea. Not everyone is likely to rejoice a re-gift; instead they might feel belittled by it. Sometimes the gift itself may be great, but what’s likely to hurt the receiver is that it wasn't chosen especially for him/her. Or that little to no thought about them was put into the gift. Nonetheless, one key to successful re-gifting is to ask yourself if you would have picked that gift out for that person in the first place. Re-gifting is recommended if only the gift totally compliments the temperament of the receiver. Even in this case be careful enough to remove any evidence that indicates the gift was something that had been given to you.

The Misfire Gift:

Sometime being over thoughtful or helpful may prompt you to choose a misfire New Year Gift. For example, gifting acne solution kit to your friend because she has acne problem will only throw your gift in a bad light.  Misfire gifts most often occur if you go through a momentary deficiency of empathy while choosing the gift. Failing to think from the point of view of the recipient actually causes a misfire mistake. So, be careful!

The Non-Gift:
As the sub-heading suggests, the non-gift is something very mundane and doesn't qualify as a gift at all. How can anyone including you appreciate things like socks, frying pans, combs or hair brushes as gifts? These types of New Year Gifts are awful in so many ways that the receiver can feel nothing but cheated.

Gift giving is indeed an intrigue and complicated task. Trying to spread happiness among your loved ones in a thoughtless way is sure to land you in a bad light. Be pickier than ever while choosing New Year Gifts. Choosing something cute, complimenting and within the budget will surely do the trick for you says Finance Investment Companies in Delhi, India!

Money Habits: How to Teach Your Kids About it

Today finance experts and policymakers advocate that good money habits be taught to kids at the root itself, from the classroom. According to a research done, high school students who are trained with personal finance skills by professional instructors end up with vastly improved money habits. The trained kids not only exceeded in money skills from their peers, but also beat older generations who are known to pick up more wisdom through life experiences. Thus, by teaching good money habits to your children at a very tender age you will give your children a solid financial foundation once they become young adults.

Encourage Savings Practices:

Children are most interested in doing things that are playful instead of things that are tossed upon them as constraints. For encouraging your child to acknowledge the importance of savings set up 3 piggy banks labelled “saving”, “Spending” and “Sharing.” After the set up is done educate your child to contribute some amount into each jar whenever possible. When the savings jar gets full it can be deposited into your child’s savings bank account. The amount present in the spending jar can be used for his/her short-term purchases. And, the amount present in the sharing jar becomes your child’s charitable bucket for backing a cause he/she wants to support.

Give Your Child a Monthly Allowance:

Always assigned your child with some domestic chores and make a habit of paying him/her allowance for completing the task starting at age 8. According to finance investment companies in Delhi, India, 61% of parents pay their children an allowance all over the world. This not only develops the spirit of workmanship in your child, but also teaches him to understand the value of money and the labour associated in creating it.

Teach Your Child How to Use Debit & ATM Cards:

When you child becomes a teenager it makes sense that you help him with his money habits by teaching him how to use Debit & ATM Cards. Learning to balance a checkbook and using money management tools like ATM machine, Debit cards will provide him with confidence and make him wiser in his operations.

Discuss the Application of Credit & Borrowing:

Once your child is out of his/her teen years and is ambitious about buying a car, it’s a good time to share with him/her how to build a strong credit history. Ask him to pay off monthly his/her monthly balance right away and to make regular installment payments on time so that his scores good on his credit rating. Explain him/her that nourishing this habit will make his monetary journey a very smooth one!

Finance Investment Companies in Delhi, India understands the importance of establishing good financial habits early in life. Stay tuned for more interesting information to come your way!

Money Tips: For Women in Their Twenties

Money tips have always been very useful for professionals as well as entrepreneurs who want to manage their finances effectively. And, twenties are a time when you really need money tips as it’s a phase of radical change. Around your twenties you graduate, join a job, or start a business and you get your first “real” pay check.  Finance investment companies in Delhi advocates that everyone especially women in their twenties need to follow money tips so that they appreciate the profit gained on their hard-earned money for the rest of their life.

Manage Your Own Money:

Whether you are a housewife or a working lady, you should acquire the habit of money management. Giving the control part to men may keep in the comfort zone for some time, but the other way round it is only going to retard your money skills. That’s why finance experts at finance companies in Delhi, India recommend that every woman should continue to manage their money at every stage of life.

Make Earning a Priority:

Now it is a well-known phenomenon all over the world that women often earn less money than they could be. Along with taking care of all the essential things in your family’s life, you should also put some effort to carry forward the determination of saying “yes” to more lucrative job opportunities. Better job opportunities are going to bring better salary your way.

Planning For Retirement:

Retirement is going to be one of the most financially critical stages of your life. So, focus on your retirement at every stage - the earlier the better. Always try to contribute 10% of your earning to retirement savings. For example if you start saving 10% of Rs. 50,000 salary and invest it in a high ROI generating investment plan beginning at the age of 25, you would save nothing lesser than Rs.50L at retirement – which is a fairly good amount for you to back up the retirement.

Personal Loan: Top 5 Reasons to Go With NBFCs

Although many people are scared to apply for a personal loan, at some point of time every 4 out of 10 people are compelled to reach out to their family, friends, and even finance investment companies in Delhi, India.  No matter how speculative you may be, personal loan is a boon for every individual who is in need of money and is need of some assistance from outside.

Fixed Repayment Time Frame:

Personal loan always comes with repayment options. And, most of the personal loans offered by finance investment companies in Delhi, India have a term of 1, 2, 3, or 5 years, and when you've made all the payments, you’re done. So that you take the personal loan knowing exactly how long your debt will take to pay off, instead of watching it stretch into the future for a very longer period of time. In addition to this, some personal loans can be paid off early without a penalty for repayment. Many loans that are sanctioned by financial institutions have this penalty, and thus are designed in the best interest of the lenders rather than the borrowers.

No Collateral Necessary:

Whether you’re planning to take a home loan or any other traditional type of loan through a financial institution you’ll definitely need collateral. Finance institutions as well as traditional lenders ask you to put something on the line so that they can retrieve the money in case you can’t repay the loan. On the contrary, personal loan do not require this, so the valuable possessions that you've earned over the years do not get trapped in the form of collateral with the finance investment companies.

Get Rewarded for Good Credit:

Loans that you can get via traditional means, as well as credit cards, have standard interest rates. No matter how good your credit is, you’ll pay the same amount of interest on your loan as someone with a poorer credit history. This is not so with personal loans. These loans offer a variety of interest rates and you’ll be rewarded with a lower one of your credit score is high. That means you’ll pay back less money overall and there will be more in your pocket along the way.

Fixed Rate = Fixed Payment

If you have a good credit rating you can avail lower interest rates on personal loans. And, once you've qualified for a low rate of interest on your personal it’s fixed for the life of the loan. This one thing distinguishes personal loan from credit cards and lines of credit, where the interest rate can go up or down at any time. So, as your rate gets fixed, your monthly payment gets fixed too. This is a highly beneficial feature as you can have all the peace of mind knowing that the amount won’t suddenly sky-rocket and leave you scrambling for cash. Thus, you can plan ahead and design you budget accordingly avoiding all the inconveniences.

Added Advantage:

When you take a personal loan from a Non-Banking Financial company, you get it within a very short period of time following a hassle free process. This is in fact the most valuable advantage of asking for a personal loan from a Non-Banking Financial company. A little in-depth research on your part and you can mark the advantages of a getting a personal loan from Finance Investment companies in Delhi, India.

Hence, next time when you consider applying for a personal loan from finance investment companies in Delhi, India not only will you get better financial deal, but you’ll also be rewarded with good credit while dealing with them. Have you ever had an experience of getting a personal from a Non-Banking Financial Company in Delhi, India? We would love to hear about your experiences in the comments below!

Money Management: 4 Mistakes Made by Almost Everybody

Money management has always been the most asked and the most read question of all times. Finance expert from Finance Investment Companies in Delhi, India points out 7 deadly pitfalls to avoid. They also say that these points are really easy to follow and anyone can implement it regardless of his/her current bank balance.

Spending Too Much:

Too many people spend their lives and their hard-earned cash by buying things that have little or no lasting value. So, the decision is all yours, if you gave up going on a one night out and you had a pizza instead sitting in a cozy corner of your home, you save a decent amount of money.  And, you can multiply that over the year against 8%-10% rate of interest only to realize that you earned satisfactorily on your savings just by making that little change.

Not Focusing on Cost Cutting:

Everyone needs a place to live and probably has to spend at least some money to earn a good lifestyle. However, it’s very important to avoid overspending on needs and make some cost cutting and conserve your hard-earned money for other meaningful expenses. Stories of some of the billionaires in the world are a good example to this money habit. Though they can afford to spend much more, he lives under his means and find frugal ways to stay satisfied.

Not Saving Early:

Saving is a good habit and one of the biggest mistake people tend to do is not learning the habits of saving at an early age. Those who save early will get the most out of compound interest by investing their money in lucrative investment plans.  Thus, the question is not how much you can begin to invest on a monthly or yearly basis; you just need to start the process.

Doing Nothing:

The money management tips mentioned above are known to most people, but they tend to do nothing or implement not even a single tip thinking that they would do it sometime later. It’s not necessary that you follow all financial tips at a time for reaping the rewards. Just try following a tip one at a time; just begin from somewhere because beginning is after all the hardest part. Once you begin the process will take its own turn in due course of time.

Making Money – Right Decision at the Right Time Can Take You Miles

Making or growing more money than what you earn is something that doesn’t work well with many. The general conception among the masses is that the solution to the problem of making money is to get a high-end job or invest in equities, mutual funds or real estate. However, the truth is that these kinds of investment plans have very high risk attached to them. Most of the times you fail to track a productive, transparent and reliable investment plan because of lack of information.  

Browse through the internet and it will show some of the most reputed Non-Banking Financial companies in the market. Investing in NBFCs is a good way of creating a consistent flow of fund into your bank account. RBI have rated Non-Banking Financial Companies into Category ‘A’ companies (NBFCs accepting public deposits or NBFCs-D), and 2. Category ‘B’ companies (NBFCs not raising public deposits or NBFCs-ND).

NBFC – D is subject to requirements of Capital adequacy, Liquid assets maintenance, Exposure norms (including restrictions on exposure to investments in land, building and unquoted shares). By investing in a Non-Banking Financial Company in India which is allowed to accumulate public deposit, you will be able to earn highest rate of interest with total peace of mind. So, making money is not that much a tough job if you make the right decision at the right time with all the important information in your hand.

However, the number one obstacle that prevents the investors from seeing the huge effects of earning a good ROI year after year is lack of patience. According to finance investment companies in Delhi, India since it’s difficult to watch a small balance grow slowly, people run after equities and mutual funds to gain huge sum of money at the cost of high risk.

Try to stay focused and remind yourself that you’re playing a long game. Irrespective of your ROI on your invested money accumulation every month, the temptation of large profits should be kept at bay. Just see that the money invested with the Non-Banking Financial Company is generating regular monthly rate of interest at periodic intervals and let your investment build up slowly. 

Investing With Non-Banking Financial Companies

Retirement planning in India is a hard job to do because of a number of factors like rising inflation numbers, slowing economic growth and a list of varied financial products increases the level of confusion among individuals makes retirement planning a little bit more complicated.

Investing in random fixed deposit plans will not allow you to retire comfortably in India.  So, instead of saving you excess earning in the bank account – consider investing with Non-Banking Financial Companies for getting the highest ROI on your money. According to financial experts investing in a good ROI yielding plan can give extraordinary growth to your savings and allow you to enjoy an impressive stress-free retirement.

Although people rely less on Non-Banking Financial Companies for investing their money, none of the financial institutions can match the returns offered by Non-Banking Financial Companies. According to RBI guidelines, usually, NBFCs that have higher rating like ‘A’ or ‘AA’ are permitted to raise money from public by offering higher rates of interest. It’s in fact an advantageous step taken by RBI for benefitting the investors and avoid higher credit risk.

Investing with Finance Investment Companies in India will help you earn higher rate of interest, some of the plans also offer regular monthly rate of interest, thus giving you a second source of income. Non-Banking Financial Companies with higher rating is truly a boon to people looking forward to financial prosperity. They offer transparent and reliable investment plan that give the investors proper liquidity. So, put some amount of money aside to make sure that you invest this amount with a reputed Non-Banking Financial Company.

In addition to the benefits mentioned above, the most important benefit that you’re going to get by investing with Non-Banking Financial Company in India is that you get high liquidity on your invested money. With a prior notice of only 30-60 days you can get your money back without any hassle. 

Investing in Fixed Deposit in India – How Much Should You Save

Financial experts recommend that you save 10% to 15% of your income every month for a better future. However, the new school of thought says that you should save as much as you can for your retirement starting from your 20s.

Nevertheless, this is only a general guideline. Even if you establish a savings target, nothing can bring you more relief and peace of mind than knowing that the money saved for your retirement is not just attractive some yearly meager ROI but is multiplying every day at a very faster rate against optimum security. For growing your money for retirement you need to think a bit more productively and invest in fixed deposit plans that can help you grow your savings at a very faster rate.

Investing in fixed deposit in India is one of the most common types of savings schemes for those who want to grow their money at a faster rate in order to get ready for retirement. Fixed deposit plan offered by Non-Banking Financial companies provides the highest rate of interest than any other financial institutions. Here are a few essential things you need to remember before investing in fixed deposit in India.

First, you need to decide on the amount that you want to put into a fixed deposit plan. The next thing that you need to consider is the deposit period. Once both the things are confirmed, another thing that you need to think upon is the rate of interest offered by the financial institution with whom you want to invest. If your financial institution is providing a highly lucrative rate of interest against full proof security then the fixed deposit plan will surely serve your purpose.

Investing in fixed deposit in India with a reliable finance investment company is the best thing to do for a person who wants to grow his money for retirement. Along with safety of the principal amount, the finance investment companies in India provide liquidity and steady earnings. It is thus imperative to have at least a portion of your total savings in fixed deposit plan if you want to create a strong financial back up for your retirement!

Reserve Bank of India – The New Base Rate Formula

Reserve Bank of India decided to awe the citizens of India by cutting rates by 50 basic points. And, the disclosure was followed by reduction of 40 bps by State Bank of India – the largest lender of money in the country. According to finance investment companies in Delhi, India the reserve bank of India Governor Mr. Raghu Ram Rajan  has cut the interest rates by 50 basis points (bps), to a 4 ½ year low of 6.75%.

In addition to this, Mr. Raghu Ram Rajan, the governor of Reserve Bank of India also unveiled that the Indian Central Bank is also working on a new base rate formula that can potentially have a much larger impact on the EMI payment schemes by the end of this December.

What is Base Rate:

Base rate is the minimum rate set by the Reserve Bank of India, below which banks are not allowed to lend to its customers. Deciding the base rate helps in boosting the transparency in the credit market and ensuring that banks pass on the lower cost of fund to their customers.

Although the news is in the air that the new base rate is going to get finalized by the end of this year, how it’s going to benefit the common man is yet not clear. In order to understand the benefits of the new base rate thing you need to understand first how base rate is calculated by the banks and what the change would exactly mean in terms of operations.

How it Works:

Generally there are two prime methods for calculating the base rate. While some uses the average cost of funds method, other banks uses the marginal cost of funds methods, and yet another group uses the blended cost of funds or liabilities method.

Earlier in September this year RBI insisted banks to adopt the marginal cost of funding method while calculating base rates so that it gives uniformity and a better transmission of rate cuts to prospective borrowers.

 In other words RBI wants the lenders to arrive at the cost of borrowing method by taking into account the average rates at which they have raised funds prior to the month of reviewing the rate cut. This method was to be taken in consideration in case of fixed deposits, current and savings account, and borrowing from RBI and other lenders including bonds.

Benefit of the Borrowers:

Earlier banks were concentrating more on their profit margins rather than passing the cut rates effectively. Hence, the main objective behind this norm is to discipline the banks and promote them to strictly following the monetary policies set by RBI.

Inference:

In a nutshell, the changes about to be rolled out by RBI will make everything very transparent. A reduction in rate cut is also set to happen and the borrowers are likely to reap the benefit of rate cuts as much as the banks their interest rates.