One of the worst money problems a person can have is that there’s simply not enough. More money tends to lead to more expenses, which is why it’s important to always keep working hard to build your stash.

If you want a comfortable life, you need money. Learning the best way to save and compound your money is a great way to better prepare yourself for a cozy future. Take a moment now to read through these helpful tips for saving more money, and look forward to a stable financial future.

Automate your savings account

Given that saving money is something you integrate into your lifestyle, you should integrate an automated savings plan into the budget. Finding a savings account that really pays out a good interest rate is priority.

Once you’ve set up a savings account that makes you happy, it’s time to start adding money. Automate your savings deposits, so you never even have to worry about letting go of the funds. You’ll quickly grow accustomed to the process, and your savings will grow in the meantime.

Learn to navigate the stock market

Most people have a little fear of stock investing, because they aren’t entirely sure how the whole process really works. You can invest in the stock market in many different ways. You can even use your IRA for stock investments.

The only barrier you have to conquer is knowledge. Educating yourself is made easy through the infinite resources offered on the internet. All you have to do is take the time to really apply your mind, and you’ll open up a whole new investment opportunity.

Cut down on your everyday expenses

You can likely save hundreds each month by simply cutting down on your everyday expenses. Eating take out food less often and cooking at home is a good start. Take a look at all the various streaming services you pay for each month, and simplify the list of revolving charges you are responsible for paying.

Hone your value detector

Learning how to find a good value is a good way to save money along the way. Paying more for a purchase may not always be the wrong move. Sometimes you can pay a little more for a bigger package and get a better price per unit. It’s worth the savings to do the math.

Work hard for as long as possible

You can save more money when you have more money, and you’ll have more money if you work hard for more time. Don’t slack, and use your youth to build your financial empire. Take full advantage of your able mind and body, and apply yourself to a lucrative career path.

It’s important to work hard, save, and set goals for the long term instead of waiting until it’s too late. For example, you should start making plans for retirement now to make sure you have enough money to retire comfortably in the future.

The average Canadian owes $73,532, going by a recent Equifax report.

Despite your best effort, debt can get so overwhelming that you become uncertain about your ability to be debt-free. If you have been in debt before, you might understand the burdensome feeling that comes with it.

How do you lessen this burden amidst numerous other competing financial needs? Here are some tips to help you get on a debt-free path.

Consolidate Debt

If you have several loans from different lenders, tracking different repayment dates and interest rates can be an uphill task. Consolidating debts means taking a one quick money loan to cover all your small loans.

This action does not make you debt-free, but it leaves you with one loan to repay. Be sure to look at the costs of the loan Vis a Vis repaying multiple ones.

Create a Household Budget

To create a debt repayment plan, you need to know where all your money goes. This is impossible to do without a household budget.

To get started, list down all your income sources and the amounts they bring in. then sum up all your expenses regardless of how negligible the amount might be.

The difference between the two amounts is your surplus income. The best outcome is when the amount is positive because a negative balance means you are living beyond your means.

If the figure is positive, you can purpose to use this entire amount to repay your debts. This move will help you clear your loans faster.

Cease All Borrowing

When getting on debt elimination, the last thing you want to do is take on more debts, unless it’s a debt consolidation loan.

If you keep borrowing more, you are essentially taking one step forward and one backward, meaning there is no progress at all.

If you find it very tempting to apply for new loans, consider freezing your accounts so that none can be availed to you.

Increase Minimum Repayments

The premise behind loan repayments is straightforward. The longer the long term, the more interest you pay, and of course, the longer you remain stuck with the loan.

If you are looking to be debt-free as soon as possible, consider restructuring your repayments to make larger payments so that you clear the loans sooner.

This might require you to make some changes to your lifestyle but being debt-free will be worth the sacrifice.

One Step at a Time

Debts take time to accumulate, so don’t expect them to go away overnight.

Your only goal should be to make small, consistent efforts towards a debt-free life.

2020 has gone by in a daze but there’s always hope for the new year. We are way into 2021 and as the year is off to a good start, it is a good time to start thinking about your financial planning. While some people aren’t new at this and already know in depth what is financial planning and the importance of investing, if you’re like most others, you might be wondering how to plan the next financial year starting in April and where to invest money but may not know how.

So we have compiled some of the things you need to keep in mind to think through your investment plan for the year 2021 –

• Monthly savings: With the ongoing pandemic, you cannot say for sure whether you will be getting a pay hike at your job. One can always hope, but either way you need to plan ahead for the worst-case scenario and be pragmatic about how much money you are genuinely able to save every month. Learn what amount you will be capable of saving, and make sure that you save at least 20-30% of your savings. So if you are making a purchase, ensure that it does not exceed a year’s worth of savings as that will drive you in a debt.
• Unexpected big expenses: Learn to anticipate expenses, plan ahead and try not to be impulsive. If you plan to unexpectedly make a big purchase such as an expensive car loan or a home loan, calculate objectively whether you will be able to pay the EMI every month with your income without compromising on your core savings. And it is a good idea to have an emergency fund ready with you before you end up needing it.
• Tax saving investments: Figure out if you need to save taxes. If yes, then you will have to explore various types of investments and choose tax saving investment plans to take care of it. Make sure to deduct your EPF contributions, insurance premium payments (if you have a policy), home loan principal payment, etc. from the limit of Rs. 1.5 lakh under Sec 80c, and you can choose an investment plan to invest the rest of the money. The best idea is to go for tax saving Mutual Funds as you can start investing through SIP and not all together at the end of the year, which is more comfortable and helpful in planning ahead.
• Short-term and long-term investment: You need to figure out how much amount of money you wish to invest in fixed income (short-term) and in equity Mutual Funds (long-term). For short-term investments, it’s a good idea to invest in shorter term debt funds as they are efficient and stable if held for at least three years. If the amount is smaller than you can also think about FDs.

So these are some tips on how you can plan ahead your financial year 2021. Make sure you analyse all investment options, calculate the risks and accordingly make financial choices. Happy investing!

Whether you’re looking to put a deposit on your very first home or you’re interested in finally buying and moving into your ultimate dream home, it’s useful to compile a list of tasks to complete. For example, you may want to apply for a loan or to refinance your current loan, in preparation for making an offer on your dream property. Or you may want to compile a list of attributes that you’d like your new home to offer. If you’re feeling overwhelmed and are unsure of how to get started, simply continue reading in order to discover a handy guide to buying your dream home. Especially if you’re looking to invest in your first home.

Ensure to compare the rates offered by multiple lenders:

Instead of signing a contract with the first lender which you talk to, it’s a much smarter idea to compare the rates which are offered by multiple lenders. In order to ensure that you end up paying the least amount of interest as possible, which will save you tens of thousands of dollars in the long term, you need to shop around and do proper research. Also, opt for a fixed mortgage rate rather than an adjustable mortgage rate that fluctuates over time. A 15-year fixed mortgage rate, for example, gives you peace of mind as the interest rate never changes throughout the term so you can set aside a fixed budget for your monthly payments. It also allows you to qualify for a lower rate, reduced repayment amount over the span of the loan as compared to a 20 or 30-year mortgage, and can build equity in your home faster. However, keep in mind that these benefits vary depending on the term you’ll choose.

Compile a list of attributes that you’d like your next home to have:

In order to find a home that ticks all of your boxes, it’s well worth taking the time to compile a list of all of the features which you’d like your next property to boast. For example, you may want a home that has an en-suite bathroom and a walk-in closet, which backs on to your master bedroom. Or you may want to move into a house that offers a double garage and a sizable backyard. While you may not be able to find a property in your price range that features all of your desired attributes, you should be able to find a property that features at least your top six desired attributes.

Pay for a building inspection:

Before you make an offer on a home, it’s important to pay for an unbiased building inspection from a third party. So that you’ll be able to find out if there are any major flaws or faults which you may not know about. As an example, if you find that your dream property requires major structural work, you may want to put in a lower offer or to keep searching for your dream property.

There are numerous things you need to consider before buying a home as it would be one of your biggest investments in life and you wouldn’t want to have any regrets. So if you’re ready to start searching for your dream property, it’s well worth using the handy guide listed above in order to take the stress out of purchasing your dream house.

It is daunting at first to start your investment interests. Understanding what you are getting into is essential for you to make the most out of your investment opportunity. They are several investment tools in the market, making it hard for a new investor to understand the complexity revolving around these tools. You have to be aware of the time you need to spend when building a strong portfolio to get the results you desire.

Building a stock portfolio in line with your risk tolerance is something essential for an investor. It is profitable to build a stock portfolio when you put effort and research into your choice. Understanding all the aspects of the stock portfolio by understanding investment tools and thorough research will help you make the ideal decision that will benefit the money you spend on the investment. It would help if you had patience, time, and hard work to build an amazing stick portfolio. Below are tips to help you make the right decision when you are building your stock portfolio because they are form experts in the investment industry.

1. Think About Long Term Goal

You need to ensure you have long-term goals in mind when you turn to a stock portfolio. You have to purchase stocks you believe in at all economic levels for you to have the patience required to make your investment amazing. You need to study the stock market and understand how it works before making a choice. You have to go for competitive investment companies and a reliable management team because they will help make your stock portfolio strong. 

Sustainability in the market will be easy when you choose the right companies for your stock portfolio. When choosing stocks, you have to consider some things to help you go for the right option. Equity strength is required, which depends on the management team, which should have a track insider trading record to prove they can stick to their work.

2. Diversify Your Stock Portfolio

It is important to be diversified in investments when building a stock portfolio. When one stock suffers a loss, you can be boosted by the one making great returns. A stock portfolio needs to have ten to thirty individual stocks and choose the top companies in the various sectors for better returns in the future. Finding the ideal stocks to add to your list is easy when using stock rankings. Investment research will be useful when you are diversified in your stock portfolio. Being diversified, low loss risk, and it does not affect the returns you expected.

3. Understand Economic Behavior

Understanding how the economic levels will affect your stock portfolio will help you achieve the goals you have. You have to build a stock portfolio that can beat the market even with changes taking place. Economics behavior will require your time and effort to research for you to enjoy the long-term benefits of your choice. You have to think about how changes in stock prices will affect stock valuation. 

Know if the increased price will affect the services’ demand from the sectors you choose for you to build a strong stock portfolio. Avoid brands whereby if prices go up, consumers will have an alternative to ensure it does not affect your stock portfolio’s returns.

You have to be willing to follow all the details given by experts to build your stock portfolio. The building process is intricate as it requires you to have a lot of helpful information to make the right choice. You will need to evaluate different opportunities to find what will and details to build a stock portfolio with strong sectors. With several sources of information, choosing a stock portfolio that aligns with your goals is easy. You can easily access publications, stock screeners, and professional researchers to make the process easier.

Shortcuts to building a portfolio will not lead to an amazing result. You will have easier work but in the long run, make losses that are not your goal. When building a stock portfolio, you have to use tips you are sure will be effective in achieving what you have in mind through generating the returns you have set for yourself. With the right decision, you will grow your investments beyond your expectations. The tips shared above help you understand stock building for you to start your investment journey with basic information.

While UK residents tend to have a straightforward pension plan going with the state and workplace pension, ex-pats don’t have it quite as easy. Ex-pats may have a state pension ready from their years contributing to the National Investment while at the same time contributing to the state pension fund of the country where they are currently based. What you may not know is that this leads to you receiving a lower pension than you expect to receive and being challenged by volatile exchange rates and bank delays.

If you want to know how you can secure a more stable pension, here are a few tips we have for you.

1. Determine how much you’ll need

When you plan for your retirement, one of the first things you should ask is, how much do you need to live a comfortable life? Try to be generous with the figures to account for inflation by the time you’re 50. If, for example, you estimate that you’ll be needing £30,000 a year to get by, inclusive of other costs like hospitalizations or medication, then you’ll know that relying on the state pension won’t be enough. The maximum pay-out only gets you less than £8,640 a year, so you need to look into other options to boost your pension plan.

2. Save money

One of the most obvious ways you can guarantee money in your retirement is by saving a portion of your income while you’re still young. Even just a 20% annual savings is a great habit.

Another way you can add to your pension funds is by extending your work life. The longer you work, the more money you can have set aside. There are occupations available to people even when they’re above 50. These are jobs that don’t entail strenuous activities while still paying a good salary, such as research, academe, and executive corporate positions.

3. Diversify your investments

Relying solely on property investments or stocks could land you in trouble when the economy crashes. This is why you should diversify your assets so you can have multiple backup plans in place. This can be hard to do when you have no experience with finance or investing. Working with experts from TailorMade Pensions can help you understand various investment options and decide on ones that are suitable for your income and goals.

4. Consolidate your pensions

If you’ve worked under different employers and countries your whole life, you may have different pension pots at your disposal. By consolidating your pensions, you can manage your savings easily and you can save money from moving from a high-cost scheme to a low-cost one. For ex-pats, a popular option is to consolidate your pension into a QROPS. This offers many benefits, including being able to access your funds at 55, a whole decade earlier than the UK state pension.

You should have a solid retirement plan ready so you don’t burden your loved ones with taking care of you when you’re old. Expand your financial literacy and work with experts so you don’t have to spend the last years of your life worrying about money.

Long-term investment planning plays a vital part in ensuring your financial stability. However, it can be quite challenging. Many people are often confused between two investment avenues, Unit-Linked Insurance Plans (ULIPs) and mutual funds. If you find it hard to decide which choice is better for your future, read on.

What is a ULIP?

ULIPs combine investment and life insurance cover to offer comprehensive monetary security. If an unfortunate event leads to your absence, the insurance provider uses the life cover to provide your nominees with the death benefits. On the other hand, investment funds create wealth, which you receive either when the policy matures or your nominees get it along with the death benefit. Now that you know the ULIP meaning, read on to understand what mutual funds are.

What is a mutual fund?

Mutual funds use investments collected from multiple institutions and individuals and put the money in bonds and stocks. Professional fund managers administrate mutual funds to ensure high returns while mitigating the risk. While mutual funds are popular as investment instruments, they do not offer any life cover like ULIPs. You can compare the possible mutual fund and ULIP returns in 10 years or a longer period to determine which will benefit you more. However, you also need to check certain other aspects.

Here is a list of factors to help you determine which investment option is more suitable.

1. What they offer

ULIPs use your premium to invest in equity, debt, or a mixture of both types of funds as per your risk-taking ability. With ULIPs, you enjoy the dual benefits of the death benefit and wealth creation.

Mutual funds use your investment to create wealth by putting the money in broader financial markets. For example, an equity index mutual fund invests the money in different stocks under a particular index. The return from that mutual fund depends on how the stocks perform.

2. Tax benefits

Section 80C of the Income Tax Act, 1961 allows you a tax deduction of up to INR 1.5 lakh on your investment towards all ULIPs. Additionally, Section 10(10D) of the Income Tax Act, 1961 makes the maturity benefit from ULIPs tax-free.

Conversely, only Equity-Linked Savings Schemes (ELSS) mutual funds offer the same benefit. However, here, you need to pay 10% Long-Term Captial Gains (LTCG) tax if your ELSS returns exceed INR 1 lakh in a year.

3. Charges

You have to pay specific charges for both ULIPs and mutual funds. For the latter, you pay fees for administration and fund management, but ULIPs require additional fees such as mortality charges and premium allocation charges, among other costs. You can use a ULIP return calculator to compare your total cost and the potential return to determine if it is more profitable for you.

Keep in mind that even though ULIPs may cost more than mutual funds, they offer the additional benefit of a life insurance policy.

4. Financial goals

Your financial objectives determine which product you should purchase. If you want to invest in a short or medium-term instrument, a mutual fund will benefit you more, as ULIPs have a five-year lock-in period. For long-term investment goals, ULIPs will serve you better. With ULIP returns in 10 years or longer, you can accomplish important life goals.

5. Risk tenacity

Your risk appetite is the amount of risk you are willing to take with your investments. Both ULIPs and mutual funds allow you to choose the funds, such as equity or debt, for investments. However, only ULIPs will enable you to switch between the funds if your risk-taking capability changes, ensuring more security.

Your financial aspirations determine if you should invest in mutual funds or ULIPs. However, with the additional benefits of long-term investment and life insurance cover, a ULIP might be a smarter investment choice. You can use a ULIP return calculator to compare among different policies and find a suitable one.

 

 

If you are someone who is very active in the stock market, you probably wonder what makes a stock price so volatile during the trading session. A lot of times it is a natural behavior of buyers and sellers deciding it’s the right time to get in and out of stock. But many times, the short term volatility can be explained by a lot of the content that is being put out by certain news outlets regarding a company, and how investors choose to react to it.

The reality is that a lot of these companies are under constant scrutiny in the media world, and those who can create news for themselves will be subject to a lot of press. With that coverage, investors are free to react any way they choose while others may sit and wonder why a news piece could make them change their mind. 

Either way, this volatility can be a blessing for some and a curse for others. What one investor sees as bad may afford another investor an opportunity to buy stock in a company at a perceived discount.

Sometimes news comes out that is not necessarily about a specific company, but rather an entire industry, which can send stocks within the entire sector up or down depending on the news. 

Take a company such as Northern Oil and Gas, ticker symbol NYSEAMERICAN: NOG. This is a company whose fundamentals are pretty sound. But even if it is considered a good value trade, you will find that this stock’s price fluctuation is generally in line with how other oil and gas companies have been trading. 

Whenever there was word of a possible gas shortage, the price went down. But when other oil and gas companies started reporting positive earnings, this company went up even before it reported its earnings.

Sometimes stock may move not necessarily on company news, but rather a news outlet’s pick based on their reputation. Anyone who is an avid follower of a news outlet’s stock picks may be ready to jump on a stock based on recommendations. It may not always be a guarantee that these publications can result in a positive move in the market, but they usually don’t go unnoticed and play at least a minimal role in the decision-making of the value of the stock for that trading day.

It’s important that if you trade stocks on your own as a retail investor you keep a good eye on your investments. While putting money into a mutual fund means you don’t need to worry as much about individual stocks, it is the responsibility of the fund manager to keep an active eye on news and price volatility, and be willing to make a decision based on some of those outcomes. Some view a price drop as a justifiable reason to sell, while others may see a price drop as an opportunity to buy into weakness and own more shares of a company as a discount, with the belief that the performance shall continue.

Therefore, it’s important that if you decide to manage your own portfolio that you wisely do the same. There are plenty of ways to monitor this. The easiest way is to log into your brokerage account and keep your portfolio up to see how the price fluctuates. 

If you like to set limit orders, you can set up prices to buy and lock in if there is a belief the stock may approach that price tag. Alternatively, if you like market orders, you wait for an opportune time to buy the stock at potentially the lowest price. It is recommended sometimes to buy market orders during the end of a trading day when there is less volatility and a smaller queue of trades.

If you don’t want to be logged into your brokerage account or won’t have access to a computer, you can also create your own watchlist through a source that tracks stock price. You can use Google Finance or Yahoo Finance. To create your own personal watchlist of all your holdings. That way if you can’t access a computer, you could at least have it tracked on your phone.

Term insurance policies have become quite popular over the last few years. The current pandemic has once again proven that life is uncertain, and an untoward incident can occur without a warning. Therefore, it is of utmost importance to ensure your family’s financial security.

If you are the sole earning family member, have you considered how your sudden absence would affect your loved ones? Apart from going through emotional distress, they will end up facing economic difficulties due to no planning.

Life insurance is an excellent way to secure the financial well-being of your dear ones. Traditional plans come at a higher premium; so, investing in a term plan is a more affordable option.

A term insurance plan is a pure life cover that pays the benefits to your nominees if an unfortunate event occurs during the policy duration. As term insurance provides no survival benefits, the premium is lower, and you can procure a higher sum assured (SA).

Often, people think that they require life insurance only when they are older. You have graduated from college and have started working. You have just got your first salary. You may have endless plans to enjoy your financial independence, and investing in a term insurance plan may seem a little unusual. However, here are three reasons why you should buy term insurance with your first remuneration:

• Monetary stability

If you are married, you have the responsibility of your spouse and children. When unmarried, you may still have dependent parents. In the unforeseen event of your absence, a term insurance policy pays the SA, ensuring your parents’ economic security. Your family members can sustain their current lifestyle and meet future financial goals without any liquidity crisis. They can also repay any outstanding liabilities like a home loan or car loan using the money received from the term insurance policy. You can use an online term plan premium calculator to determine the approximate amount based on your age, lifestyle, income, policy tenure, and the SA. This ensures you do not have any problem in paying the renewal premium on time.

• Financial discipline

The sooner you learn financial discipline, the better it is. Using your first salary to buy term insurance online marks the start of your investment journey. Additionally, when you are younger and healthier, you pay a lower premium and avail of the policy for a longer duration. One major advantage of buying early is that the premium is constant during the entire policy duration, which can save a significant amount in the long term.

Another benefit when you buy term policies online is cost-efficiency. Insurers save agent commissions as well as administrative and overhead expenses by selling policies online. These cost-savings result in lower premiums for you.

• Tax deductions

Once you earn an income, you will have to pay tax as per the prevailing guidelines. A premium of up to INR 1.5 lakh per year is tax-exempt under Section 80C of the Income Tax Act, 1961. You can invest these savings in other financial products to earn returns and build wealth in the long run. Additionally, policy benefits paid to your nominees are tax-free under Section 10 (10D) of the Act.

Investing your very first income will give you peace of mind and ensure your family’s financial stability in the future if you are not there to take care of them.

Term insurance is not the first thing that comes to mind when you get your first salary. However, having seen the plus points of investing in a term insurance plan during an early phase of life should encourage you. Use an online term plan premium calculator to know how much you can afford and invest in insurance for your loved ones.