Conviction of Mind

Most of them would have come across this phase of 'saving tax' during their first year of working (entering into a professional world). They need help on where to invest to get higher returns and how much to insure themselves. This is to help you in making a decision, so that you needn't have to invest in something/somewhere without proper knowledge and regret for it later. (I have seen many doing this) How much can I save and where can I save/invest? How much should I insure? Have I insured enough? These are the questions that comes to you and the answers depend upon the returns you want and the risk appetite you have. The maximum one can save now(2007) as per law is 1Lakh. This also includes your PF. So, exclude that and calculate. You can additionally save a max. of 10,000 from tax, if you are going to buy Mediclaim for your relatives or for you. And also, there are many ways to exclude tax by spending! Insuring is always a best practise. You can insure yourself for atle...

There are various ways to get money and equally more ways to spend it. The question, most of them ask, is "Where to put in my extra money to get higher returns?" This involves many factors like, 1. How much time you are going to remain invested? - Time span. 2. How much risk you are willing to take? - Risk 3. How often and when do you need money? - Liquidity The banks give interest for the money you have saved with them in SB account. Surely, I will not call this as investment. You may have wondered, how come they are able to give some more money as interest. This is the time factor that comes to play here. The thing you buy today at Rs. 100/- will not be the same after, say, 10 years. For example, The price of Gold before 20 years would be very less compared to what it is today. This is due to inflation. Inflation rate is the rise of prices in every year. It is something between 4-8% in India. Now, it is almost 6%. So, What does this mean? If you are saving in a bank, the re...

One should always think on investing if he has more money left after spending for his needs. Actually, what does that mean? His 'cash flow' must be positive. Cash flow is the net amount with you after you spend for your expenses from your earnings. Roughly, calculate it this way, How much are you getting every month (if you are a salaried person, its your salary)? - A How much you are spending every month (It includes everything like food, clothing and every other needs) - B Strictly speaking, (A-B) is your cash flow. Simple, isn't it? Apart from paying for your expenses, you should also have to save for the future expenses. Also, there is a high possiblity that you have some financial goals in your life, like, 1. Buying a car, house, etc., 2. Do marraige for you sister or son or daughter. 3. Financially free over the years to come. 4. Plan to retire soon... 5. Anything that the money can get you, that you can think of! For all the above said things, you will be eagerly wai...

I have been waiting to write a blog for quite some time. Time has come now. I have started this blog.Trying with some philosophies. You should have to live happily and that lies in your heart and mind. There are many things that money cannot buy and that should also be kept in mind. Life is always a Game. you can win and lose and thats part of life. Always try to be happy and have a smile in your face, that will give a boost to you. This post will contain information about my home country (India) - But the concepts hold good all around the world. Its the funda that makes you think in the end.I am also a new investor in shares and also new to making money. I will share my experiences here and will be grateful to see your comments. Happy saving and investing!