Friday, October 20, 2017

Money Management - Let the Money Work for You

Money Management - Make Money Work For You

I am a normal guy who works in a IT company. I get my salary on the last working day. As usual, I pay the rent, pay back the loans, spend some for myself, send some money to parents and I did not bother much about the excess money I had in the savings account every month. I just got a notification stating that Rs.308 has been credited as Interest for the savings account I had. I just asked my two roommates about this and it was shocking to know that, one got Rs.54 and another got a little more than Rs.500.  When checked, he used to spend less and had more money in his savings account which led to such higher interest.

I just started thinking thereafter, how can we make money which would provide me a decent income like the above Interest payments. I will be discussing this via the following upcoming series of blogpost.

My grandmother used to keep all the money in the locker instead of keeping it in the bank. The reason she tells is that, it is easy for her to take money and spend whenever she wanted. She was potentially missing something. Yeah, the interest which she gets every quarter.

Like my grandmother, there are more people who are not sure on what to do with money, they put in bank fixed deposits and expect a large returns, but finally pay taxes for the interest they get, or invest in share markets without knowing how it works and get lost in it, and some invest in some scam schemes and get lost with all the money.

The only reason why we hear about such scenarios is Poor Money Management by them.

We are working very hard to earn money and we don't enjoy with the money we get due to poor management of the money. Once we get to know how to manage the Money, then, with us, money will also start work to reap more money.

Next Blog Post: Why Is A Savings Bank Account Necessary?

Please comment if you/your friends had any of such poor money management before which resulted in depreciation of money. 

Sunday, August 13, 2017

How To Check Your PAN Card Status? Is It Active or Deactivated?

Hi everyone. It was shocking for me to know that around 11 lakhs PAN cards has been found duplicate and has been deactivated by the government of India. I just found a way to check if a given PAN card is active or Inactive and confirmed mine. My PAN card is Active. Follow the below steps to confirm your PAN numbers. Also don't forget to help/verify your parents and friends PAN too.

Steps to Check your PAN Card Status

  • Visit Know Your PAN page of Income Tax E-filing website: Click Here
How to check PAN card status steps
  • Fill all the details you know of which Surname, Status, Date of Birth and Mobile Number (Registered with PAN) are compulsory fields to be filled.
  • Once you click submit, OTP will be sent to your PAN registered mobile number. Check your mobile for OTP and enter the same and proceed further by clicking Validate.
How to check PAN card status steps
  • A resultant page will be showing the details of your PAN Number, Surname, First Name, Jurisdiction and Remarks of which you can find your status as mentioned in the Remarks as either Active or Deactivated.
How to check PAN card status steps

Hope your PAN card is Active. Don't forget to help others by sharing this post with your friends. Keep following for more useful posts.

Tuesday, January 10, 2017

5 Mistakes You Must Avoid While Using Your Credit Card

5 Mistakes You Must Avoid While Using Your Credit Card

I hope you have a credit card for sure. Many banks are providing free credit cards.

You know one thing, the usage of credit cards has increased up to 50% in the last five years. There are 2.64 crores credit cards are in usage currently. After this demonetization in India, the usage of credit cards has also increased slightly.

Though many of you have debit cards, we tend to use credit cards along with them without knowing the mistakes we commit when using them.

One and Only Credit Card

Credit card is only for very emergency purposes. Generally, for various shopping activities, your Debit Card is enough. You can have one or two credit cards along with your debit card, but not more than that.You must remember that you have to pay your dues on credit card within a specific time.

If you want your family members to use your credit card, it is better to get Add-on card for your credit card rather than getting another credit card. Think well!

Also Read: A Case Study: Will Provident Fund enough for your Retirement Needs?

The Credit Limit

You should have certain rules while using your credit card. You should not get addicted to the 50 days credit limit, reward points, cashback offers and other benefits of using your credit card.

The very important thing in credit card is the credit which they give you to spend. It is around 2 lakhs to 3 lakhs for professionals. It is advised to have only the balance money you have after spending for a month as credit limit. For example, if your salary is Rs.25,000 per month and you have Rs.5,000 saved after all expenses, then the optimal credit limit for your card is Rs.20,000. If you have very high credit limits, then you need to spend carefully.

Linking Your Credit Card

Don't link your credit card with any of the online services or wallets. Because, when you spend via debit cards, you know how much money you have in balance. But when you spend through credit cards, you don't know.

If you have more credit limit, due to your interest in shopping, you will spend more money unknowingly. Later you will fall in the trap of liabilities.

If you want to link, then link your debit cards. So that you will be cautious on how much money will be deducted and how much you have to spend after that.

Using Credit Card at ATM's

Do you know one thing? The debt interest and the service charges for credit cards is higher if you use it to withdraw money from ATM than using it to purchase things.

Don't use your credit card to withdraw money from ATM. Even if you do so, repay it within the 50 days time gap. If you fail to do so, you would end up paying extra fine and high interests for that withdrawn money.

Say NO to EMI

Most credit cards offers to convert the debts into easy EMI's if you spend more than Rs.2,000. But it is a very wrong move. Because, when you buy 3 things, say, for Rs.5,000, Rs,6000 and Rs.7,000, you can still convert these three spendings into easy EMI's of 3,6,9,12,24 months. What happens here is, you tend to choose the highest month EMI (like 24 months) as you will be paying very low EMI every month. But, you will end up paying only EMI's every month and you can't come out of your debt. It's advised to choose the lowest monthly EMI or the best option is to avoid EMI.

Conclusion

Having a credit card or not using a credit card is a decision which you must take. Use wisely knowing the risks of using credit card, so that you don't fall in the trap of debt.