Useful Financial Tips for Unmarried Couples

In the present times, couples are seen living together without getting married first. However, skipping the vows and cohabiting for a lifetime is likely to complicate things a little. Since both the partners are not associated legally it would take a little extra effort to make sure you’re financially stable within the chosen situation. Here are four important things to consider for a smooth sailing.

Put a Plan in Writing:

According to finance investment companies in Delhi, India you must try detailing future plans and possessions in written agreement. It will keep your finances and expectations on everything from who pays what monthly bill to the division of property in case things don’t work out. In addition to this,  it will also clarify who owns what, how to divide expenses, and what might happen to jointly owned stuff if the couple breaks up.

Be Ready for the Unexpected:

While the spouse may be the default beneficiaries when someone dies without a will, an unmarried partner may not be considered. It depends on the laws of the state. Hence, in order to be protected in worst-case scenarios, a live-in couple may need to make it official – with some legal documents. You can get a will done to safeguard your rights. A will is a legal document that spells out who will inherit property and other assets. It also names the executor of the estate and provides instructions on how and when beneficiaries receive assets.

Plan for the future:

While couples are living together it’s also important to ensure that both partners are on the same page about the future and the way to get there. For example, one partner may have a good retirement plan offered at the workplace, while the other partner may not the holder of such a plan or he/she may work sporadically. Since unmarried partners don’t get the same financial protections enjoyed by married couples so it is truly important for each person in an unmarried relationship to ensure that they save for the future individually. Both the partners can get individual retirement Account (IRA) to safeguard their future finances.

According to finance investment companies in Delhi, India, knowing the right things to do can help both the partners increase their economic potential – In addition to this it can also put you ahead of the game if you ever decide to make it official. 

Money Management ForTaking Care of Your Aging Parents & You

Caring for aging parents is a respectable – yet often stressful job. It can take a great toll on every member of the family, but for woman the financial impact can come especially hard. According to Finance Investment Companies in Delhi, India, woman who take the responsibility of aging parents are seen to end up in bankruptcy. If they take time off work, not only do they lose pay, and continuity of these episodes can affect their social security, pension payouts, and other savings – threatening their future finances.

Although taking care of an aging family member can become all-consuming, there are steps you can take to save yourself from total financial loss. And, you can accomplish the task with great joy and satisfaction without having to brood over your finances.

Balance Your Job With Care-Giving Responsibilities:

Leaving a job means inviting financial problems from the fore. Try to continue working so that you get a pension or profit-sharing plan from your office. Also, check with your human resource manager to see whether the company offers services to employees who are also caregivers. And, in any case if you must give up your current job in order to become a full-time caregiver, consider asking your family to pay you as an independent contractor for the care you are providing. If you are paid, you can set up a self-employed pension plan. If you are married and have the support of your spouse, take advantage of a spousal IRA contribution (available to non-working spouses) to help keep your retirement savings growing. And, fund these accounts to the limit, if you can

Work under the Assistance of a Financial Advisor:

Although sons and daughters work almost equally for their parents, Finance Investment Companies in Delhi, India is of the view that daughters tend take care physically whereas sons are known to offer financial help. However, you have to keep in mind that providing more hands-on assistance is likely to land you at financial loss someday or the other. And, in the long run this will surely bring a negative effect on your retirement plans. So, work in co-ordination of a financial adviser so that you are able to provide your share of care giving to your parents without bearing any damage on your financial portfolio.  Also, do not forget to create an account where all other siblings including you contribute their share of money for covering all the expenses of care giving. Having a managed account will give you all the peace of mind because it will eliminate any concerns among the siblings about who was making the investment decisions.

Find Some Time For Yourself:

According to Finance Investment Companies in Delhi, India, on average, adult caregivers spend nearly 19 hours a week in their role – which means approximately more than 3 hours a day. So, you must devise a way to save time for reaching your personal as well as financial goals.

Finally, with that bit of extra time you’ve gained, remember to protect your own health. That’s especially important for women, who are more likely than men to feel the emotional stress of giving care. Stress can affect your mental and physical health, as well as your ability to work productively — with unpleasant repercussions for your financial health, too.

While it’s natural for women to want to do all they can for their aging loved ones, the most important lesson to take to heart is this: Taking care of yourself first will enable you to do a better job of taking care of others.

Financial Planning: Important Things to do before Getting Married

According to Finance Investment Companies in Delhi, India money argument is one of the many causes of unrest among married couples. That is why learning some important financial tips can be of great help if you’re about to get married soon. Here are 5 essential financial moves that you need to follow prior to the D’ day.

Financial Wellness Assessment:

Complete financial assessment of yours should be significant enough to give you a firm idea of your financial wellness. At a basic level, complete a net worth statement and review your recent expenses. Then, create a spending plan so that you spend your money in an organised way. Some other important financial planning includes knowing your savings ratio, debt to income ratio, and emergency savings. But a financial wellness assessment should also include a quick examination of your financial attitudes and confidence about your knowledge of your money matters. Peeping at you financial condition would definitely hint you how to direct things in the future.

Reduce Your Debts:

It is recommended that you choose to walk down the aisle only after you are partially/fully clear of your debts. Bringing the burden of debt into marriage can build up tremendous stress on a couple. Hence, as soon as you get a job and you must take an initiative to pay away your debts as soon as possible. Finance Investment Companies in Delhi, India are of the view that focusing on establishing on a debt reduction plan will save you from the impending stress of a financially unstable married life.

Stay True to Your Partner About Finances: 

It’s not unreal to get a little nervous about revealing the financial weaknesses to your future life partner. According to the research done by Finance Investment Companies in Delhi, India - 70% of the adults feels insecure about discussing money with their fiancé. However, discussing your financial portfolio before getting married really helps you give a clear picture to your partner so that both of you can co-operate and take the financial planning forward without any problem. You just need to know that this particular tip is not about dwelling in the past. It’s about using your past to guide you take your future financial decisions together.

 Schedule regular money talks With Your Partner:

Also, after getting married don’t forget to make financial planning a regular event. This is one

of the easiest ways to find the co-operation of your partner in planning your finances. For example discuss the financial lessons that you have learnt, make your vacation goals together, and look forward to doing the most when you have achieved financial freedom.

Make All the Financial Planning Together:

Consolidating accounts can be challenge after marriage. So plan early, creating joints accounts before marriage help in setting a joint account with a common planning so that your day-to-day financial planning gets better and productive in the future. This will help you start creating an initial game plan on how to consolidate accounts and whether it makes sense or not to keep separate accounts initially.

Money Management: Convert Wasteful Spending Into Meaningful One

Money management is really a tough task to accomplish. No matter how much you try to make a big saving, at the end of the month most of you might have witnessed an empty wallet. Acknowledging this fact, Finance Investment Companies in Delhi, India brings some really effective tips that follow the paycheck cycle way of managing things –

It’s really important to remember that every dollar of your paycheck is important and you have to give your paycheck a proper them a proper channel so that your paycheck doesn’t vanish all of a sudden. This is specifically imperative if you’re in the midst of a financial goal such as creating an emergency reserve, or making savings etc. You should consider these financial goals as fixed expenses in your budget and paid as a priority after you receive your paycheck. Separate out these fixed expenses as soon as you get your paycheck, so that at the end of the pay cycle you are not left without any money to make up for these expenses.

Planning vs. Impulse Spending:

It’s always advisable to take a look at you spending habits. You will definitely get a good surprise to see how much you spend on non-essentials. If you’re working to achieve a financial goal like debt reduction or savings, it is imperative that you train yourself to have the financial discipline to resist impulse spending outside of your budget planning.

Net Income:

Whatever is left of your paycheck after your fixed and variable expenses is your net income. Ideally, there is something left, otherwise that puts you in the “paycheck-to-paycheck” category, which is really a dangerous situation. If you are facing problem in stopping yourself from falling into the paycheck-to-paycheck category, then, you can also get some of the budgeting tools online, such as Mint.com and more. Be sure to check your Bank, Finance Investment Companies in Delhi, India website too for assistance as many of the banks have their own tools as well.

Money Management: When You Lose Your Job

Losing job is one of the worst conditions in the present day world. It’s just like falling into an abyss and then having to drag yourself out once again writhing between money management and finding a new job. So, while you’re searching for your next workplace, here are a few tips from finance investment companies in Delhi, India to keep your financial life humming.

Know Where You Stand:

Make sure that you know your rent, mortgage, debt and other expenses that you are shouldering at the time of leaving the job. So, in order to keep pace with your other liabilities, one thing that you need to do at the very outset is controlling your discretionary spending – like going for a movie, food clothing and other utilities. It’s vital to track your spending and control what can be controlled right at the outset.

Financial Liquidity:

How long can you pay your bill before your situation becomes dire is really the strongest backup system in the face of a serious situation like losing a job. An investment plan with high liquidity like Inter-Corporate Deposit Plan can work out as the best thing for you. According to finance investment companies in Delhi, India if your liquidity is low, then managing the period of joblessness won’t be that easy.

Invest in a Medical Plan:

Never fail to consider investing in an investment plan before the bad time strikes. In a scenario where you already have a medical plan, you are not required to pay for the coverage of you medical bills in case you face a health disorder after you lose your job. This can be really critical if a gravid medical condition strikes you at a time when you’re neither holding a job nor you are sure of when you are going to find one.

Being prepared both financially and emotionally for a possible job loss is critical to your long-term goals and desired for security and happiness. But it doesn’t happen by accident. You need actual planning for it. So, follow the tips forwarded by finance investment companies in Delhi, India and sail through your job loss period without any stress!

Finance Terms: Here’s An Interesting Glossary for the Beginners

Finance investment companies in Delhi, India says that even after taking a way lot of content on finances, you may not totally be sure of all the important financial terms. A very few industries are as riddled with jargon as the finance industry. This is why it appears really difficult to know the application and benefits of all of them.

However, you need not enter into the extremely intense dictionary of the finance industry. Just the basics are well enough to give you the essential understanding of the terms & benefits associated with the finance industry. Here are a few common terms that you may tuck under your tool belt for all the convenience.

401(k):

401(k) is a plan offered by companies and is meant to help you save for the retirement. The money you set aside is tax deferred, and it’s frequently matched in part which means that the company will dedicate its money to your account as well.

APR:

The term APR stands for Annual Percentage Rate, and it refers to how much interest you’re paying on the money you borrow. It’s especially a term that’s very important when you are signing up for a credit card.  The higher your APR, the more money you’ll ultimately pay if you don’t if you don’t pay off your balance in full each month.

Assets:

Assets are items of value. For example things like major savings funds, a car or a plot of land are good examples of assets and are used to calculate your net worth.

Bankruptcy:

This is a really scary term and much familiar term. Bankruptcy means owing more money than you can actually afford to pay. It happens when you borrow too much through mortgages, credit card debt, student loans, car payments and more.

Bonds:

You must have heard the terms “stocks and bonds” at several occasions. When you buy a bond, you’re lending that company money. How that money is paid back is determined by the terms & conditions under which you bought the bond.

 

Stocks:

When you buy a stock, you are buying a small part of the company. The price of each share is determined in part by how much people are willing to pay for them. How much they are selling them for and how well the company is anticipated to perform.

Debt Consolidation:

Debt consolidation is a term that describes a strategy when you've accumulated debt from multiple, high-interest sources (such as credit cards). Finance investment companies in Delhi, India says that debt consolidation allow you to make one payment each month, reducing the amount of money you spend repaying your debts overall.

Savings Account: How to grow it With Minimal Efforts

According to finance investment companies in Delhi, India, everybody agrees with the benefits of saving or growing their money. But, when it comes to how, the things are not always that clear. To crack this problem, here are some tips and tricks you can use to help your savings account grow with minimal effort.

Skip Expensive Coffee & Brew at Home:

You might have not counted on it, but your monthly expenses in the name of Cappuccino might be really high if you are a religious patron every morning or every evening at a luxury coffee house. Thus, for the sake of saving some money you can cultivate the habit of sipping your “Cup of Joe” from a different outlet at your local supermarket and at a very simple price.

You Can Skip Bottled Water:

It might seem very reasonable enough to purchase a bottle of water on the go for just some rupees. But it turns out that bottled water comes at a very high markup. If you even purchase 10 – 12 bottles of water a month, you are definitely giving up on reasonably huge amount of money every month. By cutting on these expenses, you will definitely contribute to your savings account.

Pay Off Your Balance With Cash-Back Rewards:

If you have a rewards credit card, you would definitely accumulate some points that haven’t been redeemed. Consider exchanging your points for cold or hard cash back to contribute towards your outstanding balance.

Save on Electric Bills:

Although LED lights come at a higher cost, they are known to be highly profitable commodities in the long run. Major selling point of LED lights is their life span. They can last for more than 17 years assuming 8 hours of use every day. Thus replace the existing bulbs with energy saving LED bulbs and other energy saving electrical appliances to contribute satisfactorily to the growth of your money.

Become a Secret Shopper:

If you are a shopaholic, by becoming a secret shopper you can shop to your heart’s content as well as get hired and paid for writing reviews about your experiences from the company that hired you. So, finance investment companies in Delhi, India recommend you to sign up for the opportunity to be a secret shopper and contribute to your savings account by earning some extra money!

Credit Card: The Most Important Don’ts You Need to Care About

According to finance investment companies in Delhi, India the credit card is a very important money tool. And yet, many do not care to know the benefits of this financial instrument, especially the young adults. Nearly 70% of the crowd prefers a debit card over credit card. However, a blind refusal to the usage of credit cards can hurt your long term wealth.

When used correctly, credit cards can dramatically help you support the growth and sustenance of your wealth. Firstly, on time bill payments will provide you with a good score making you to pay less when it comes to borrowing money for a house or a vehicle. In addition to this rewards like cash back rebates, frequent flyer miles and other offers add tremendous value to your spending. Also, in case of an illegal hacking, stolen credit cards are much easier to remedy than debit cards.

To make the most out of your credit cards, and avoid dismissing them out of fear, here are some important credit card Do’s & Don’ts.

Never Use a Credit Card to Withdraw Money:

The cost for withdrawing cash with a credit card is very high, so this should be a total “no-no” for you. The interest rate on a cash withdrawal is generally above 25% and this is on top of a fee that is usually around 3% of the amount you withdraw. In addition to this, you will also start accruing interest from the day the withdrawal is made and you can’t avoid it even if you clear your balance in full each month.

Avoid Using a Credit Card Cheque:

Credit card cheques may seem straightforward and convenient and a means of paying for something when you don’t have cash and you can’t use your card. However, they are treated like cash withdrawals so the same higher interest rate and the absence of an interest-free period apply. Moreover, purchases made under a credit card are covered under some government law which means that the card issuer is jointly liable so if the retailer goes bust, you can claim refund from your credit card issuer. But the purchases made using a credit card cheque are not covered by this clause.

Stop Using Your Card For Dual Purposes:

Most card providers use a payment hierarchy where the cheapest debt is paid off first. Therefore you should only use your card for one purpose unless the same rate is charged for both balance transfers and purchases. What many users do is keep using credit cards with a much shorter 0% offer on purchases than balance transfers and then be very comfortable with the spending. For example, if a particular credit card offers 16 months at 0% on balance transfers, also offers three months 0% on purchases. So, you’ll start accruing interest on your purchases as soon as the three months offer ends and won’t be able to pay that back until the balance you transferred is paid off in full. Hence, if you want to keep spending while continuing to pay an existing debt you’ll need a card with an equal 0% period on purchases and transfers.

Always Stay Within Your Credit Limits:

Every credit card comes with a credit limit which is why it’s important to monitor what you owe on your card because if you exceed the credit limit, not only will your account be blocked but you will also be charged a penalty. However, if you feel that your credit limit is low you can usually apply to have it changed once you have held a card for six months.

Never Fail to Make a Payment:

Failure to make even the least monthly payment will only hit you with a late/missed payment charge. According to finance investment companies in Delhi, India in some cases even the use of your credit card may be suspended. And, any late payment that shows up on your credit profile will harm your chances of gaining any type of credit in future.  So make sure that you never fail to pay at least the minimum bill every month.

Credit Card: 8 Times When Using It Is More beneficial Than Debit Card

According to Finance Investment Companies in Delhi, India the most impressive benefit that credit cards bring with them is the purchase and fraud protection facility that they bring with them. However, you would be impressed to know that there are certain situations when it’s smarter to use a credit card than a debit card.

Here’s the list of these 8 types of purchases that where using a credit card over debit card would be more beneficial:

Online Purchases:

While making an online purchase you've to be highly aware of not sharing your debit card details with a less established company who do not have a full proof security back up. It’s better to be overly cautious and use credit card over debit card!

Flights:

It’s recommendable that you use a credit card with built-in travel protection when booking flight tickets as you never know when something would come up.

Items from Small Vendors:

If you’re at a restaurant, at a food festival or buying from a vendor that accept cards, don’t forget to use a credit card over a debit card as it will provide you with the safety required while shopping with less established outlets.

Car Rentals:

Credit cards also offer rental car insurance, which will cover you in most situations. Also, if you use a debit card, it’s likely that you may have to put down a large deposit.

A Hotel Room:

Using a debit card for booking a hotel room may deduct a large amount of money asking you to cover things like damage to the room, room service, or other incidental purchases. Hence, using a credit card would prove to be highly profitable in this case.

Purchase Made Over the Phone:

Any purchase that is expected to arrive in the future should be made with a credit card. This is so because there’s always the chance that the stuff may not be able to make up to your doorstep.

Products Offering Warranties:

Many credit cards offer extended warranty policies that will cover your electronic and other goods beyond the manufacturer’s warranty, and the card offer is usually a better deal.

Big Ticket Items:

If you’re in the market for a new washing machine or a laptop, make the purchase with credit card. According to Finance Investment Companies in Delhi, India the purchase protection will come in handy if something ever goes wrong with the item.

Money Management Tips for New Parents

Every couple nurtures the desire to raise kids at some point of their lifetime. According to finance investment companies in Delhi, India there are certain secrets that you need to follow in order to raise your kids properly. Having kids is truly an expensive affair.

Here are some interesting tips from finance investment companies in Delhi, India for having kids without breaking the bank:

Get Ready for the New Expenses:

Arrival of a new baby means more than just an altered sleep schedule. You would need more space to fit in the new guest with all its toys, diapers and furniture. And, a bigger house comes with bigger mortgage.  Knowing these changes can help you make room in your budget and cut out other unnecessary expenses.

Create Emergency Funds:

As soon as you realize that your new found bundle of joy is arriving soon, you must start creating an emergency fund. Finance investment companies in Delhi, India suggests putting aside 3 – 6 months’ worth of living expenses, just in case you face an inevitable circumstance like losing your job. You can have the money deducted from your pay check automatically to make it easier!

Manage Housing Expenses:

According to finance investment companies in Delhi, India, housing is one of the biggest expenses for a family. While you may need more space once you've kids, don’t hire more than you require. As best of the solution, try to get advice from an interior designer so that you can make maximum use of the space available to you.

Get Some Life Insurance Policy:

Investing in life insurance policies might not have been that much important when it was just about the two of you. But, now that you have your child depending on your income, it’s very necessary that you consider good insurance policies.

Start Saving for Your Child’s Education Now:

Starting to save as soon as your little bundle of joy arrives may seem too early. If you start saving early then you won’t feel difficult to pay the college fees for your child by the time he/she grows up. You will be able to afford for his/her education expenses suggest finance investment companies in Delhi, India!

Consider Talking to Your Kids about Money – Tips for a Better Upbringing

Although a large number of typical parents advocate that it’s not important to include kids in discussions about family finances. According to finance investment companies in Delhi, India, 41% of the parents avoid talking to their kids about money.

But, you will not be able to deny to the fact that discussing finances with children at an early age help in making them financially successful adults. However, there’s a perfect way of doing everything. How do you start the conversation in a way that would be meaningful, comprehensible and engaging to them?

Here are some ideas for how you can train your children about a variety of financial concepts –

Explain Borrowing:

Children may not at all know that your family has certain financial obligations to consider such as paying EMI, getting a mortgage for your home and more. Explain your children the seriousness of such things with examples so that they can relate to these concepts.   For example, ask your children to play a “Loan Game” where they can loan a friend with a few dollars to buy lunch. And, the friend pay it back after a while along with a bag of chips as an interest for the loan – a mortgage is like that. Explain to your child how hard you’re working to pay the interest against the money that you borrowed from the bank. Also, educate your child with the consequences of not being able to repay a loan.

Play Games that teaches money skill:

According to finance investment companies in Delhi, India get involved your child in a game that tells how money works and the importance of money. Try games like Pay Day or Cash flow or any real life game that simulate real life financial strategies and situations in an engaging way. Activities or games that show how money works would be helpful for your kids especially if you’re hesitant to talk to your kids about money.

Starting early is the key:

With a little bit of grooming if you can educate your child with good money skills then there can’t be any better investment that you can ever make. The trick is to start money conversations early in life thereby educating your child about more complex topics like saving for college and buying a home.

And, eventually the investment will pay off: You’ll be more likely to see your children grow into happy, financially confident adults!

Does Marrying Someone with Bad Credit Effect Yours

Finance Investment companies in Delhi, India says that if you marry someone with poor credit, it’s not necessarily going to hit your credit score. A common credit score is expected to hit you when your credit card is connected to a joint account that belongs to you and your spouse. That’s because credit reports, which are the basis of credit score, are tied to individual Social Security numbers.

If your credit card was issued keeping in mind the joint account, the ability to get a loan or the interest rate you pay will be based on both the partner’s credit histories. Even if you have a good credit score, but your spouse has a spotty record, the terms likely won’t be as favorable.

However, bad credit rating of a single person in a joint account is definitely not going to drag down the credit score as a whole. Similarly, as long as you continue to pay your bills on time and manage your credit wisely, the good credit score of one of the partners will bring the other partner’s credit rating up. This can be an opportunity for the person with better financial habits to help their spouse improve how they manage their money.

Nevertheless, if your irresponsible money habits result in late payments or maxed-out credit cards on joint accounts, your own credit will suffer. Considering this fact, it’s better idea to share your finances with your fiancée before you decide to tie the knot.

According to finance investment companies in Delhi, India, the challenge of marrying someone with bad credit is that if there is any underlying issue that hasn’t been resolved will only make problems more severe in the years to come.