Madurai Money: Personal Finance - Investments - Shares - Savings - Credit Card etc.,

Wednesday, February 21, 2007

5 ways to save money in our day to day life...

5 easy ways to save money every day...

1. Get food from home: Be sure to include snack foods like muffins, fruit and cookies for morning and afternoon breaks as well as a lunch. If you also drink the office brew or bring a thermos of coffee, you can save $10 to $15 a day. If there’s no lunchroom at work, eat and read the paper at your desk or take your lunch to the park. You’ll be healthier as well as richer.

2. Take public transit or car pool instead of commuting in your car alone to work: Depending on where you live and how far you commute, you’ll save money on gas, parking, insurance and wear-and-tear on your car. And cutting out the daily drive to work and back will cause less stress on the environment – and you.

3. Go out for dinner just once a month: Cook food that will last a couple of evenings, and keep some frozen dinners, canned soups and pasta sauce on hand for evenings when you are tired and short of time. Cutting back on eating out and ordering in can save you as much as $200 per month.

4. Get rid of your cell phone: By eliminating or severely restricting your use of your cell phone, you can save about $35 a month, depending on your current plan and use patterns.

5. Cancel subscriptions to magazines you don’t read and cable or satellite TV services you don’t watch regularly: Cutting back to the magazines and channels that are essential to you can save you $100 or more per year. You can save even more by cutting your newspaper subscription back to weekends only and getting your news at work, on TV or online during the week. You’ll have less paper to recycle, too.

Labels: ,

Monday, February 19, 2007

Small Savings Schemes of India Post Office

Small Savings Schemes of India Post Office:

(i) Kisan Vikas Patra
(ii) Post Office Monthly Income Account
(iii) 15 Years Public Provident Fund Account
(iv) Post Office Time Depost Account
(v) 5-Years Post Office Recurring Deposit Account
(vi) Post Office Savings Account
(vii) National Savings Certificate(VIII Issue)
(viii) Deposit Scheme For Retiring Govt. Employees-1989
(ix) Deposit Scheme For Retiring Employees of Public Sector Companies 1991

Labels:

Post Office Monthly Income Account

Post Office Monthly Income Account

Scheme
Post Office Monthly Income Account

Interest Payable, Rates , Periodicity etc.
8% per annum payable i.e. Rs. 80/- will be paid every month on a deposit of Rs 12000/-. In addition 10% bonus is also payable on maturity i.e. Rs. 1200/- will be paid as bonus after 6 years for deposit of Rs. 12000/-.

Denominations & Investment limits
In multiple Rs. 1000/- Maximum Rs. 3 lakhs in Single account and Rs. 6 lakhs in joint account.

Salient Features Including Tax Rebate
Maturity period is 6 years. Can be prematurely encashed after one year at 3.5% discount. However, no such deduction shall be made if the account is closed after three years from the date of opening of such account. Interest & bonus deductible under Sec. 80-L of I.T. Act.

Labels:

Friday, February 16, 2007

National Savings Scheme Certificate - Post Office Tax Savings - India

NATIONAL SAVINGS SCHEME CERTIFICATE VIII issue (NSC)

Name of the Scheme NSC VIII Issue
Interest 8.16%
Maturity Period 6 years
Limit of Deposit Min:Rs.100 Max: No Limit
I.T.benefit In the Union Budget 2005 the Tax benefit is given upto the deposit of Rs.1,00,000/-
Place of Deposit All Head Post Offices and authorised Post Offices

Who can Invest

An adult for himself or on behalf of a minor, jointly by two adults, a minor and a Trust.

How to Purchase

Certificate in denomination of Rs. 100, Rs.500, Rs. 1000, Rs.5000 & Rs. 10,000 may be purchased from any post office, either directly or through authorised agents. In addition to cash, locally executed cheque, pay order or demand draft in favour of the Post Master are also accepted.

Rate of Interest

Rate of interest is 8.16% p.a. compounded half yearly and paid after the maturity period of six years along with principal.

Annual accrual rate of interest on investment of Rs.100/- is as under and is in proportion for other denominations.

1st year Rs. 8.16
2nd year Rs. 8.83
3rd year Rs.9.55
4th year Rs.10.33
5th year Rs.11.17
6th year Rs.12.08

Encashment
Can be encashed after 6 years.

A certificate can be encashed at the post office at which it stands registered. A certificate may also be encashed at any other post office if the Officer –in –charge of that post office is satisfied on verification from the office of its registration that the person presenting the certificate for encashment is entitled thereto.

Tax Benefit

In the Union Budget 2005 the Tax benefit is given upto the deposit of Rs.1,00,000/-

Source: tnsmallsavings.com

Labels: ,

Wednesday, February 14, 2007

How to become rich (millionaire)?

Few key points to remember for becoming a millionaire...

1) Make financial security a priority.
2) Spend less than you earn.
3) Save and invest regularly.
4) Pay down your debt.
5) Own a home.
6) Maximize your incomes.

Labels:

Monday, February 12, 2007

Tax Saving Schemes in India

List of Income Tax Saving Schemes in India:

(i) Post Office Savings Schemes
(ii) Investment in Mutual Funds / Units of UTI
(iii) Company Fixed Deposits
(iv) Bank Deposits
(v) Bonds / Debentures
(vi) Capital Gains Investments u/s 54 EC
(vii) Government of India / RBI Bonds Shares / Life Insurance
(viii) Shares

Labels:

4 mistakes on investing in stocks

Four biggest mistakes on stock investing:


Mistake #1 - Invest When You're Old:
Stocks are mostly for young people who can take risk and in effect can afford the effects of the risk. Your portfolio and the asset allocation has be based on the age. Subtract your age by 120 and that is the percentage for which anybody should invest in stocks. For example, if your age is 30, 120-30 = 80%. 80% of your money can be invested in stocks. At times, the 120 can be considered as 100, depending upon your risk taking ability.

Mistake #2 - Not Understanding The Company:
Completely understand the company's history. Before investing in a particular company, know what you are doing and where you are investing.

Mistake #3 - Gambling On Stocks:
Do not trade on a daily basis. Wait for long-term, while you invest in stocks. Do not gamble on your money, but be responsible.

Mistake #4 - Putting All Your Eggs In One Basket:
Do not invest all of your money in a single place. Have all your money in a diversified location.

Labels:

Friday, February 9, 2007

Life Insurance Corporation of India : Jeevan Shree Plan

Life Insurance Corporation: Jeevan Shree I

Product summary:
This is an Endowment Assurance plan offering the choice of many convenient premium paying terms. It provides financial protection against death throughout the term of plan with the payment of maturity amount on survival to the end of the policy term.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, throughout the premium paying term or till earlier death. Alternatively premium may be paid in one lump sum (Single premium).

Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum Assured for each completed year for first five years of the policy. The Guaranteed Additions are payable along with the Basic Sum Assured at the time of claim.

Bonuses:
The policy participates in the profits of the Corporation’s life insurance business from the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary Bonuses will be declared per thousand Basic Sum Assured annually at the end of each financial year. Once declared, they will form part of the guaranteed benefits of the plan.

Source: licindia

Labels:

Personal Finance: Asset Allocation

Check out the website Your Asset Allocation Review.

You can understand where you are in terms of Asset allocation and plan things accordingly. Only constraint is: you will have to signup into personalfn.com.

Probably you can signup to take advantage of all the benefits.

Source: personalfn

Labels:

Pension Plans - Retirement in India

A pension plan or an annuity is an investment that is made either in a single lump sum payment or through installments paid over a certain number of years, in return for a specific sum that is received every year, every half-year or every month, either for life or for a fixed number of years.

Annuities differ from all the other forms of life insurance in that an annuity does not provide any life insurance cover but, instead, offers a guaranteed income either for life or a certain period.

Typically annuities are bought to generate income during one's retired life, which is why they are also called pension plans. By buying an annuity or a pension plan the annuitant receives guaranteed income throughout his life. He also receives lump sum benefits for the annuitant's estate in addition to the payments during the annuitant's lifetime.

Labels:

How to become an Employee Provident Fund Member?

How to become an Employee Provident Fund Member?

# You, as your own, can not become an EPF Member. To become an EPF member, you have to work in an establishment which is covered under EPF and MP ACT, 1952. If 20 or more employees are working in an establishment, EPFO will cover that establishment.

# If Employer and Employees of an establishment desires, that establishment can volunterly opt for EPF coverage

# If your establishment is not covered and atleast 20 employees are working in that establishment, you can approach EPFO to cover it.

Labels:

Income Tax Saving Schemes - India

Income Tax Saving Schemes

National Savings Certificates (NSC)
National Saving Schemes (NSC) is one of the popular Income Tax Saving schemes which is available throughout the year. It can be operated by single, joint, or minor with his/her parent or guardian. There is a return on this scheme at interest rate of 8%. The minimum investment limitaion of the scheme is Rs.100/- and with no upper limit. Other investments can be done in multiple of Rs. 100/-. This scheme has a mturity period of 6 years. It is transferable and also there is a provision of loan on the basis of this scheme. Under section 88 of the Income Tax Act, 1961 any person can take benefit in income tax on amount invested in this scheme and under section 80L of Income Tax Act, 1961 there is a provision of benefit on interests coming from scheme.

Public Provident Fund (PPF)
Under this scheme, there is a return at the interest rate of 8% p.a. The minimum investment limit is Rs. 500/- and maximum limitation is Rs. 70,000/-. It can be opened any time throughout the year. It can be operated either single or jointly. In case of minor, with parent/guardian. There is also a facility of nomination in this scheme. This scheme has a maturity period of 15 years. The first loan can be taken in the third financial year from the date of opening of the account, or upto 25% of the amount at credit at the end of the first financial year. Loan amount can be returned in maximum of 36 installments. A person can withdraw an amount (not more than 50% of the balance) every year. Under Section 88 of Income Tax Act, 1961 there is a provison of tax benefit by investing in this scheme. Interest on this schme is tax free.

Kisan Vikas Patra (KVP)
Money invested in this scheme doubles in 8 years. There is a minimum investment limitation of Rs.100/- with no upper limit. This scheme is available throughout the year. It can be operated either single or jointly. In case of minor, with perent/ guardian. Facility for nomination is also available under this scheme. Currently there is no tax benefit on investment under this scheme.

Post Office Scheme (POS)
It is one of the best Income Tax Saving Scheme. It can be operated by either single or jointly. In case of minor, with parent/ guardian. It is available throughout the year. There are several types of post office schemes depending upon the type of investment and maturity period. Post office schemes can be dividen into following catagories:

* Monthly Deposit
* Saving Deposit
* Time Deposit
* Recurring Deposit


Special Schemes For Retiring Person
Government Employees : There is a return at the rate of 8% per annum. The minimum investment is Rs.1000/- and maximum, amount equal to the total retirement benefit. Maturity period of this scheme is 3 years. According to Income Tax Act, 1961 interest on this scheme is tax free.

Public Sector Employees: Under this scheme there is a return of 9.5% payable half-yearly on 30th June and 31st December respectively. There is a minimum investment limitation of Rs.1000/- and the maximum limitaion is the amount equal to total retirement benefit. It can be operated by retired PSU employees in his/her own name or with the spouse, jointly. In this scheme, there is a facility of premature encashment. Entire balance or part thereof can be withdrawn after the expiry of three years from the date of deposit. Maturity period of this scheme is 3 years. According to Income Tax Act, 1961 interest on this scheme is tax free.

Postal Life Insurance For
This scheme is in operation for the last 117 years. This scheme started in 1884 as a welfare measure for the employees of Postoffices & Telegraphs Department under Government of India to the Secretary of State (having dispatch No. 299 dated 18-10-1882). But after few years, various departments of Central and State Governments were extended its benefits. Now it is open for employees of all departments of Central as well as State Government, Nationalized Banks, Public Sector Undertakings, Financial Institutions, Local Bodies like Municipalities and Zila Parisads, Educational Institutions aided by the Government. According to Income Tax Act there is also a provision of special relaxation in income tax on the basis of investment done in urban or rural areas.

Dividend
According to Income Tax Act,1961 there is a provision benefit in Income Tax if assessee has an income as a dividend on investment in any of the following:

* Shares
* Mutual Funds
* Unit of UTI

This dividend can be given by any company or coperative society.

Source: SurfIndia.

Labels:

Thursday, February 1, 2007

Avoid getting into debts - Say "No Debts"

Getting into debts is one of the things, everyone goes through OR in fact many of us stay all life. In most of the middle class families, there might be no time, you might be out of debt.

Falling into debt is very common and it happens because of a 'fulfilling desire' thing, which cannot be avoided - from a philosophical perspective.

If we make sure we live with what we have, then we won't get into debt. It is all because of getting to a next stage, when we are not ready in life to reach there.

For example, buying a car or a home, when we are not ready to do it. Buying a home is fine, which relieves you from the taxes etc., but buying an expensive car, when you are cannot afford.

Buying more items, which you might not even need and if you make your credit card bill not payable by the following month and you keep passing it on to the next month and you pay high interest, then eventually you will fall into the debt net.

If we try to prevent, before anything wrong happens, then we can avoid lot of calamities. here are some simple pointers to keep in mind easily...

1) Whenever you buy anything, think about two points - (a) can i afford it? (b)If so, is it needed?


2) Pay your bills or urgent credit cards first, then only go for your personal shopping or to fulfill your desire. Because credit card bills first.

If you don't follow the above, you will keep on digging hole under you and every month you keep on try to close that hole under you. As months go by, you will not have money to fillup your hole enough, so you go deep down under, out of which you cannot get out and if you come out it is going to be a tough challenge.

Labels: ,

Pay your bills promptly

One of the best things you can do to your financial health is: Paying your bills promptly and without any delays. This might include your house rent, home/auto mortgage, cable, internet, phone, water, electricity billsetc.,

In some apartments, they might charge a fine or some severe issues, if you don't pay your rent at the right time. I know my friend who had to pay the rent with a fine, since he was paying the rent on 6th of a month, instead of on or before 5th of the month.

Credit bureaus check and rate your credit score based on your time of payment. If you are delayed in payments by 30 days or 60 days, you will be counted for that and accordingly your credit score may go down. So, remember that this is considered as one of the main parameters in building up your credit score.

Labels: