Have you ever being thought in a rut and had no idea how to crawl out of it? Maybe you’re in one right now, or hope to avoid the pitfalls that dwindling finances can cause?

As virtually everything in today’s world revolves around money, a lack of it is one of the stressful things a person can go through. Bills are overdue and need to be paid. On top of that, the car has decided to break down and needs urgent repairs. The mortgage is due. Interest rates just went up. The list can go on and on.

Rather than fall into a depression about your financial state, it’s far more productive to remain positive and be proactive about turning things around. In this post, we’ll take a look at a few tips that can help you do that.

Don’t Live On Credit.

It can be tempting to avail those credit cards when times are tough, but if you rely solely on credit to help you survive, your situation is only going to be far worse down the track. We all know credit cards attract high-interest rates, so if you spend too much on them while going through a financial crisis, in a few months time that crisis is going to be even direr.

That’s not to say you shouldn’t use your credit card to put food on the table if you have no other option, but be wise about their use and use credit sparingly and only for emergencies.

Work Out Where You Can Cut Back On Spending

Almost everyone spends money unnecessarily, and the only way to discover where those money leaks are is to take note of what you spend and how much you are spending on those things. If you give this some time and thought, you’ll soon figure out ways you can cut back on spending and have more cash to pay for the things that need to be paid.

Talk To An Accountant Or Financial Expert

This tactic will cost you a fee, but it could prove to be worth every cent. A financial expert, whether it be an accountant or consultant, will be able to help you formulate effective budgets, give you ideas on how to make your money work for you and possibly have suggestions on how you can increase your income.

A Short-Term Loan Can Give You a Boost

While any form of credit shouldn’t be your first option, if you really need money desperately, rather than relying on high-interest credit cards, you could opt for a fast cash loan from a lender like Sunshine Loans, for example.

With these loans, you can borrow up to $2000 at low-interest rates and have several months to pay the money back. They are a great option for immediate cash when you know you can cover the upcoming repayments.

Start Saving For a Rainy Day

If finances are too tight to begin now, make it a goal to start putting money away in a rainy day savings account when your situation improves. Even if you save just 10% of your income, this will add up to a tidy sum and give you emergency cash the next time you find your back against the wall financially.

Learn How To Be a Better Manager Of Money

Apart from consultation with an accountant or financial advisor, there are many helpful resources about finances online that are free of charge. It costs nothing but time to educate yourself and learn ways to improve both your money management & tips on how to increase your income as well.

If you can achieve both of those objectives, the chances are good that you won’t find yourself in another financial rut anytime soon.

Having More Than One Income Is a Safety Net

Money ebbs and flows are a natural part of life. Therefore, if you rely solely on one income, you could be putting yourself in a precarious position. Having at least one other income stream – whether it’s a second job, money from investments, an online business or anything else you can come up with – definitely gives you a secondary level of financial security should your primary income go south.

It’s almost like having savings, as that second income could be the very reason you pull through dark times and find success on the other side.

 

Have you been hearing people say, “we’re all in the same boat”, during the pandemic?

I have to honest that I’m beginning to find it annoying because it simply isn’t true.

How severely the sudden lack of income has affected you can be mostly attributed to your pre-virus financial position, and let’s face it, most of us weren’t ready, we didn’t plan for that rainy day, make that a Monsoon!

Now we find ourselves in an unthinkable financial position, any savings drained, no regular income, bills accumulating, debts building, terribly stressful times indeed. However, odds are we will make it to the other side, but what we look like when we get there is mostly down to us.

We can be taking steps to decrease the impact and improve the outcome. The following tips are all actions I’ve personally taken, and I can tell you that they are helping me through, and I know they can help you too.

1. Don’t despair, research Your Options

Seeking financial help by those affected by the Covid-19 crises has become a global economic problem, unlike anything witnessed before. But it can be challenging to know where to find help if you don’t know what assistance you need.

Make a list of your most urgent financial shortfalls, then contact the relevant institutions directly. These could be your landlord, mortgage lender, loan providers, and utility companies. No one’s unaware of what’s going on, and most companies are making allowances for it.

If needed, ask for a temporary freeze on monthly repayments and discuss implementing an agreeable repayment plan that will start once you’re earning again. Many people I know have managed to arrange a three-month freeze, do the same as this will elevate the immediate pressure on you, and enable you to think clearly and plan your way through the crises.

2. Maintain Your Credit rating

It’s crucial to ensure that you’re not crippled financially after the pandemic due to a bad credit rating.

Governments and lending institutions have responded favorably during the Covid-19 pandemic, many temporarily changing their lending policies, but these changes can have an impact on your credit score. Lenders haven’t applied a one cure fits all strategy, and often make decisions on a case by case basis. Contact them and make sure they fully understand your situation to avoid any future problems.

Also, educate yourself on the five factors that impact your credit score and then implement what’s needed to maintain your financial health.

3. A good time to re-evaluate your budget

Necessity’s the mother of all inventions, and during times like these we soon realize where we are possibly wasting our money.

Most of us have a household budget, and it usually includes monthly utility bills, medical insurance, mortgage/car repayments, education, food, and extra activity expenses.

Now that every dollar has suddenly grown in importance, it’s time to re-evaluate, trim the fat, and cut unnecessary costs.

• Start by making a quick budget list and assessing what’s essential and what isn’t, and you will quickly see where you can save those much-needed funds. Then cut all non-essential expenditures like gym memberships, club subscriptions, unneeded paid software applications, etc.
• Now you might have a small amount at the end of the month that you could use to pay off high-interest loans, or it might help you from slipping further into debt. Perhaps it could even be used to start building that emergency fund we didn’t have when this all started.

Let’s look at that next.

4. Think ahead and create an Emergency Budget

Right now, an emergency budget might seem like an improbable concept. But the sooner you start one, the sooner you’ll gain a little bit of security back and be prepared for any unforeseen emergencies that might lay ahead!

A proven approach is to apply the 50/30/20 budgeting rule. It can help guide you in starting your emergency fund, and you can use it in conjunction with your household budget list to maintain a positive bank balance and credit rating.

5. Increase your income by working from home

Budgeting is one thing, but what if you still can’t balance the books!

As a lot of us have just learned, a single income source is not always a reliable way of ensuring your financial security; perhaps it’s time to spread your bets. If you want a job that won’t be affected by a pandemic such as this one in the future, assess your skills, add to them where needed, and look at increasing your income by working online.

There’s a growing demand for part-time and one-off gigs online, and people are monetizing their expertise by advertising themselves on platforms such as Fiverr and Upwork. Now might be the time for you to take that leap that you always said you would and start a new vocation. Take a look at what people are offering on these websites; you might be surprised to find that you either have a skill or want to get one that’s in high demand and pandemic proof!

CONCLUSION:

As the great man Nelson Mandela once said: “Do not judge me by my successes, judge me by how many times I fell down and got back up again.” And while all of our situations are different, we have all fallen in some way. Now’s the time to reassess and regroup, and by implementing steps like the ones in this article, you might just come out the other side of the pandemic a happier, wiser, and more resilient person.

It’s entirely up to you, good luck!

 

 

Retirement is a bit of a paradox. For most of us we look forward to retirement as a happy release from work, a time when we can put our feet up and make the most of a long awaited release from the treadmill. However, once the umbilical of a regular salary is cut, the realisation that the only income you will have is pension money can be quite daunting.

During our working lives most of us will have been able to take out loans, mortgages and credit cards on the strength of full time employment and regular salary. Few banks or financial institutions lend to retirees unless they have sufficient assets with which to use as collateral. The best way to prepare for retirement, to make pension money go as far as possible is to shed the burden of any debt to become financially independent.

The following tips and suggestions are presented here to help you navigate the sometimes ‘choppy financial waters’ of retirement to find a safe haven from the storms created by forces which are beyond your control.

Keep investing 

If you have been a regular saver during your working life, why not carry on with the habit. Often it is possible to find savings accounts and mutual funds which offer preferential rates for savers over retirement age. If you have invested in an ISA in the past, why not carry on with the habit. Providing you stick to the rules, an ISA will pay out at the end of the term with no capital gains or personal tax liability.

The stock market is a good place in which to park your money, but always seek professional advice. The value of investment can go up and down as we’re constantly reminded. Blue chip stocks and government bonds are usually a safe bet; earning income from annual dividends may be subject to tax liability, so sound financial advice should be sought to minimise any potential liability.

Emergency fund 

Always have an emergency fund. At the time of writing the country is in lockdown as a result of measures taken by the government to combat the COVID 19 outbreak. Many people have lost their jobs and income. For those with an emergency fund set aside, it offers breathing space to find a way forward, to be able to continue paying bills and buying essentials. For those among us that do not have an emergency fund set aside, it will surely have focused the mind and caused varying degrees of stress and anxiety.

In retirement, just as in life while you are in work, an emergency situation can arise without prior warning, often with devastating results. Be prepared – the worst may never happen, but if it does, you have a safety net to catch you.

Start changing your lifestyle

As you close in on retirement you should perhaps consider your lifestyle and what changes you may have to make. Pensions seldom match salaries so disposable income may be reduced by a wide margin. Is your car reliable; would it be worth buying a new car, thereby avoiding expensive potential repair and maintenance costs? If you enjoy eating out regularly, that may be something which you will be unable to enjoy as often as now. However, eating in is cheap and you won’t have to put up with the annoying loudmouth stranger at the adjacent table.

Pay off debt

Paying off any debt which is outstanding is paramount. Credit card debt, loans, overdraft and mortgage debt should be paid off before retirement. Credit card debt and overdraft debt often incurs draconian interest charges, money which would be better in your account than in the coffers of the bank or other lending agency.

However, paying off debt isn’t something which can happen overnight. It will need to be planned for and should commence at least five years before you retire. Do not consolidate debt with a loan; it is false economy and will merely add to your debt burden. Pay off as a priority credit card and overdraft dept; these two examples will probably incur the highest interest rates. If any loans are outstanding it is often possible tot get a settlement figure which is far less than the amount outstanding. If you can pay off a loan – or two – at a reduced sum, do so, it is in your best interests.

Buy a property

Regardless of the up and downs of the economy, buying in to property has always been seen as a sound investment. Property prices seldom deflate over the long term. While economies rise and fall with regularity, property prices are seldom if ever hit badly. Compare property investment returns over a similar period to stock market returns and you’ll find the former is always ahead. Whether the property you buy is for your main residence or is an investment property to rent out and earn income, it will always be there.

Buying for retirement is a slightly different kettle of fish. Maybe you’re considering downsizing, in which case to may have a tidy sum left over from your old property sale as a result of buying a smaller property to move in to.

Conversely, if you are selling, for example, a property in London to move to a property in, say, Devon, the sum you have over may be considerable given the disparity in property prices outside of London.

Additionally, if you take the route many retirees take and end up relocating abroad, the sum total of the money left over may be even greater. It could be a way of paying off any outstanding debt if you were unable to do so before retirement. It’s also popular among expats.

One of the most affordable countries to which to relocate is one of the smallest – Malta. Property prices in Malta compared to a like for like in Spain, Portugal or Italy for example is cheaper by up to forty percent real value – stats courtesy of Frank Salt Real Estate. Properties in the country are very affordable, especially in comparison with other European countries.

As retirement looms, making plans is essential to your financial wellbeing and security. The safety net of pension will only go so far. If you plan ahead the pension will go much further and

Image: https://unsplash.com/photos/UqkLsgScswM

 

Starting a new business is a tremendous undertaking. Simply choosing which step to tackle next can be challenging. However, there are some steps you can’t afford to overlook.

If you’ve finally gotten your business idea off the ground, it’s crucial that you know how to keep it running. Take a moment to read through a brief look at a few helpful tips for managing your newly formed business, and move forward with confidence.

Make sure you have the proper insurances

As the head of your newly formed business, you’re responsible for what goes down on your watch. You’ve put a lot of time and money into your business, and insurance will help assure it keeps going.

Business owners need several types of insurance to cover every angle. Workers’ compensation insurance is one of the most vital policies you should hold. Also, general liability and business interruption insurance are good to have on file.

Hire the right people for the job

Your employees are critical to holding down a well-run business operation. Hiring the right professionals for the job is something you’ll want to take your time accomplishing.

Don’t hire out of desperation. Take the time to properly vet prospective professionals, and use the various online resources available to find them. LinkedIn is a good place to begin your search.

Consider remote employment to keep overhead down

Hiring remote professionals keeps you from having to pay for all the things it takes to keep an office up and running. Dropping your overhead significantly frees up valuable funds to be allocated in other areas of your operation.

There are also several other perks to working with a remote staff. You don’t typically have to worry about bad weather keeping your employees from work. You don’t have to provide computers and other expensive office equipment for everyone.

Automate processes when technology allows

Automation is made much easier through the various tech tools available today. You can automate things like your payroll, timesheets, and other recurring tasks in your business to spend more time working on other things. Take the time to research the right tech tools for your particular business operation, and create a more efficient workplace along the way.

Make sure to pay close attention to your finances

You can’t keep your business running without money, and you can’t afford for shotty paperwork to be the cause of a huge financial loss. However, there are plenty of software tools to help you manage every aspect of your business finances.

Start by researching Intuit QuickBooks and Freshbooks for your financial needs. There are several highly rated programs on the market. You just have to find the right one to meet the specific needs of your operation.

 

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Insurances are crucial at this point, and no one can successfully argue against that. People used to cover medical bills and expenses upfront in the past, but the times have changed. The updated lifestyles and living trends have become more hazardous to health than we can imagine. People have started adopting bad habits to meet the standards of society. And as a result, they have grown more receptive to health problems and diseases.

The in-flow of patients at healthcare facilities has experienced a rise, as more people seek care and treatment to ensure their well-being. Soon, the medical bills started hurting the monthly finances of their family due to frequent visits to hospitals. That is the point where health insurance stepped up to the occasion and helped everyone to cope with it. As the name suggests, a health insurance plan can help you cover your medical expenses in the hour of need.

Insurance companies function by offering specific health plans to people. You should select one that suits you best from the provided list of options and start paying a fixed annual amount against it. By subscribing to an insurance plan, you expect them to shoulder a significant portion of your medical expenses. Every time you visit a hospital, you can use the health plan to cut down on your costs while enjoying quality healthcare. And the best part is that unlike medical bills, you can choose a suitable payment plan for the annual subscription. It means that you can make quarterly or monthly payments to cover the premium. That allows people to focus on their health without struggling to make ends meet. However, getting the best health plan might not be as simple as it sounds.

Since the growth of the insurance industry, the market has experienced some significant competition amongst top contenders. Every company wishes to get more people on their insurance plans by making attractive offers. Some include perks and benefits, while others offer remarkably low premium rates. But there’s always a catch in the healthcare plan that companies advise. It is why you need to carefully examine their proposal and review your options before choosing a health plan. People usually struggle to decide what’s best for them and end up making poor choices. Because of that, they are often dissatisfied with the idea of health plans. And instead of denouncing a decision, they conveniently blame the insurance. However, you can’t entirely blame them for their actions.

Choosing the perfect health plan can be a challenge if you don’t know anything about how insurance works. People often make absurd payments for mediocre plans without even knowing it. That is why you need to follow some pointers to single out the best yet most affordable insurance option before you make a decision. If you are someone looking for these guidelines, then the following might help you in this regard. These tips ensure that you don’t fall into any scams, and get your money’s worth from a health plan.

1. TYPES OF HEALTH PLANS

Carefully choosing the type of health plan is a great way to start weighing differences. PPO is the most common choice amongst people, as it gets them several benefits. By visiting a facility on your PPO network, you not only get the necessary healthcare support but significant discounts because of your insurance providers. Unlike them, HMOs require you to see designated doctors before visiting any specialists without flexibility. Other options include POS and EPOs, but they are not the best choices when it comes to a decent health plan.

2. RATE COMPARISONS

You can cut down on premium costs significantly if you choose to make careful offer comparisons before associating yourself with a health plan. People making hasty decisions often miss out on better options that they later regret. And because of that, they defeat a part of the primary purpose of a health plan, which is to ensure affordable healthcare.

3. ESTIMATE YOUR HEALTHCARE USAGE

The idea of getting more for less sure is fun, but it isn’t the best course of action when it comes to choosing a plan. You should consult your doctor for an estimate of your healthcare usage and pick an option that aligns with that figure. Try not to go with flashy offers, as they might be ripping you off in one way or the other.

4. WORST CASE SCENARIO OUTLINE

Having a worst-case scenario plan and estimated costs can help you decide your insurance cap. It might sound overly cautious, but it is necessary to have some breathing space in unforeseen situations. Getting an extended coverage can come in handy in case of an accident or medical emergency. So avoid trimming that upper limit from your insurance plan.

5. LOOK FOR PROVIDER’S INCENTIVES

Insurance carriers often provide some incentives to their plans to make them more attractive. These could be free consultations, specialized care, or discounts. Be sure to consider them while making up your mind. Try to look for incentives that might come in handy to you. But if you can’t make up your mind, try to choose the plan that offers some discounts. That way, you can utilize them at some point.

6. GET SOME PROFESSIONAL ADVICE

Remember that it is best to let a professional do the thinking for you. You can easily find a suitable insurance broker that can help you with reviewing your options. Besides that, getting a broker’s assistance might bring a more reasonable alternative to your notice that you might have missed. They can effortlessly hook you up with an insurance agent, and you can sign the contract in a matter of hours. That is why they are a great option if you can’t make a choice yourself.

FINAL WORD

These are some useful guidelines that you can use to get the best yet most affordable insurance plan without breaking a sweat. Just remember not to rush into any decisions and carefully review and compare all your options. And in case nothing clicks you, you can always choose to turn for help to brokers or other people with a health plan in your circle.

Receiving financial support in the form of cash loans can be a significant alleviation for the home budget. Here’s all you need to know about them if you live in Norway.

Cash loan in Norway – when is it useful?

Have you just moved to Norway with a plan to develop a start-up or a personal brand? Or maybe you’re planning to set up your own cozy place first? The cash loan can be a great support, regardless of which kind of plans you have as an expat. For the business owners and people who recently invested in a new house or flat, cash loans are often crucial. Even the most farsighted person can misjudge the approximate cost of an investment. In this case, receiving such financial support can save the company or ongoing construction. Its advantages are numerous – it usually doesn’t require proven savings and passing through the ton of formalities.

Cash loan in Norway – what are the criteria?

 

Many people believe that cash loans can be obtained only by the citizens of a country, However, that’s only a myth. If you are a foreigner living in Norway, you also can receive this kind of support. There are two conditions – firstly, you need to register as a resident, and secondly, you should have at least a three-year history of employment in the country. If you fulfill these criteria, you may even qualify for a mortgage. It’s also important to mention, that you should be at least 20 years old – not 18, as in many countries.

What is the maximum loan period?

The cash loan in Norway is called forbrukslån. It doesn’t require paper securities and can be taken towards the account of any purpose. The maximum amount of such support is 500 000 Norwegian crowns. How long the loan period can be? It can depend on a few factors. Usually, the cash loan is given for a period of a maximum of 5 years but in certain cases, the banks may prolong it up to 15 years. However, there’s a catch. The debtor has to pay off his other financial obligations before signing such an agreement.

To receive any type of loan in Norway, you’ll need an identification number that every permanent resident obtains – in Norwegian, it’s called personnummer. When filling a loan application, you will probably be asked to present proof of residency as well as the documented list of income. Remember, that the temporary D-nummer, received before registration as a long-term resident, won’t entitle you to any type of loan.

In special cases, the bank may give financial support to residents who have been working in Norway for less than three years. It’s worth trying by filling the application, even if you’re not 100 % sure of your chances.

Article prepared in cooperation with LOCALMARKET.

 

 

If you are looking to buy a new car you are also looking to save money on the final bill. Any type of automobile purchase is always accompanied by a consumer’s attempt to shave off cost. This is because there are legitimate ways to reduce the overall price of a vehicle.

We are not just talking about the sale of the auto but the operating cost of driving that vehicle around as well. A car is a long-term investment you never really stop paying for. So if you want to save some money on your next purchase, here are the best ways to do it.

1. Pay in Cash

Cash is by far the cheapest and easiest way to buy a car. You get to avoid that painful task of financing and simply grab your keys and go. If you avoid getting a loan to pay for your car you also avoid interest payments. Interest always adds a few thousand dollars to the overall cost of the vehicle.

So buying it straight automatically saves you thousands. Dealerships are also a lot more willing to dish out incentives if you are paying upfront. It is the upfront part that is the problem, however, as you will need the entire amount right away. If you can buy the car outright do not hesitate to do it.

2. Research and Compare

Homework is another great way to save money on auto. Instead of walking onto a dealership cold turkey, take some time to plan ahead. First, figure out what vehicle you want.

Some vehicles automatically cost more because of the gas they consume, the parts they use, and the type of vehicle they are. You can avoid this cost by simply not buying those vehicles. So looking into gas mileage, cost of repairs and general operating costs is a great place to start. It does not matter what purpose you will ultimately use the auto for. Whether it is a minivan, SUV, truck, sedan, or sports car you can save money simply by researching these factors.

Once you have found your vehicle shop around online and compare dealership prices. You can pinpoint the lot that has your preferred auto at the best price. You can also see who has current specials and ongoing warranties. Do not forget to look at the shop either, because it will be the place your warranty requires you to go. If you take time to look ahead you can hit the lot prepared and be in control of your purchase.

3. Ignore the Whiz-Bangs

Part of an auto’s expense comes from the features it’s loaded with. You might be surprised how much money you can save by simply dropping some of those features. Every make of car has a base-version. Some autos even forgo automatic features and make everything manual including the windows. This dials down on luxury but it also dials down price. If saving money is more important going with a base version of your preferred car may be a way to go.

4. Go Used

Another factor that automatically saves money is buying used over new. A used vehicle will always be cheaper than a new car. Sure, there is a bit more risk but if you are smart you can buy a dependable car and save thousands in the process.

5. Use a Trade-in

You can also instantly save thousands by trading your old car in for your new one. This is a process countless consumers do. The dealership will buy the car and take the amount off your final bill. Make sure you research ahead and know the value of your trade-in beforehand.

6. Check the Insurance

Many people do not factor insurance into their purchase. Insurance is necessary to operate a vehicle and different autos carry different premiums. Many consumers actually suit their car purchase to the cost of insurance. If the car insurance for qld is cheap you will end up saving money in the long run. Remember, an auto is a long-term investment.

7. Negotiate

Haggling is a part of every car purchase. Never buy an auto without at least some negotiation. If you do it right you will save money and find more avenues to hoard value. All you have to do is complete some homework beforehand.

If you know the blue-book value of your trade-in you can negotiate how much the dealership will buy it for. If you research other lots you can also negotiate a price match. Remember, the only way you can haggle is to know the information beforehand. Also, inspect the car for any cosmetic flaws. You can use these as well. The dealer ultimately wants to sell you. So they will give at least a little bit to complete the sale.

If you are an individual new to the investing world, chances are you have skipped considering tax and its consequences while zeroing out on your investment securities. For instance, an individual might feel content with a gain of 8-9% interest on a fixed deposit scheme. However, if the capital gains are fully taxable, which usually is, then the effective post-tax-returns even for the highest tax bracket is just 5.6-6.3%. This income might not be adequate for a middle class or upper-middle-class urban Indian investor who is trying to keep up with the inflation rate and grow their wealth simultaneously.

This is when mutual funds come into the picture. Mutual funds are one of the best tax-saving investment options available to investors. One such tax saver mutual fund is Equity-Linked Savings Scheme or commonly known as ELSS. Before going into detail of ELSS mutual funds, let’s understand the tax benefits of investing in mutual funds

Tax on equity mutual funds – These types of mutual funds have at least 65% of their corpus dedicated to equity and equity-linked securities. The minimum holding period for long-term capital gains or LTCG gains in equity funds is 12 months. Those units sold before one year are termed as short-term capital gains (STCG) in equity funds are taxed at 15% plus 4% cess. LTCG gains above Rs1 lakh is taxed at 10% + 4% cess. LTCG gains up to Rs1 Lakh are exempted from tax.

Tax on debt mutual funds – These types of mutual funds have at least 65% of their corpus dedicated to debt instruments such as corporate and government bonds, treasury bills, et. The minimum holding period for long-term capital gains or LTCG gains in equity funds is 36 months. Those units sold before 3 years are termed as short-term capital gains (STCG) in debt funds and are taxed as per the income slab of investors. LTCG gains are taxed at 20% with the benefit of indexation. Indexation helps to reduce the tax obligation on investors to maintain the purchasing power of the investor after inflation.

Tax benefits under Section 80C – Individuals invest in ELSS to qualify for a tax deduction of up to Rs1.5 Lakhs under s/c 80C of the Income Tax Act, 1961. ELSS funds are eligible for a 3-year lock-in period. Under ELSS mutual funds, the majority of the corpus is invested in equity and equity-linked instruments. An individual can save up to Rs46,800by investing in ELSS, provided he/she belongs to the highest tax bracket of 30%. However, an individual should note that Rs1.5 Lakh is an overall limit of all Section 80C instruments including Public Provident Fund or PPF, Employee Provident Fund or EPF, ELSS mutual funds, life insurance premiums, and National Savings Certificate or NSC.

Considering your personal financial goals, investment horizon, risk profile, you can select the perfect mix of debt and equity mutual funds for your portfolio. Also, you should not consider investing in mutual funds for the sole purpose of tax saving on your investments. Happy investing!

Covid-19 is not like the common flu. It is way more contagious and has a much higher death count to its name. With no vaccine in the picture the only option people are left with is to take precaution, use hand sanitiser in bulk, wear face masks and practice social distancing. The question on everyone’s minds then is for how long?

The economy cannot sustain this inactivity for long. With factories shut down and the entire globe experiencing some form of a lockdown, nobody knows how bad it will get. Last week, a record 6.65 million new unemployment claims were lodged, double the number of new claims lodged the week prior. This number will only increase in the coming weeks. We might even face a worldwide recession like never before. In times like these, it is essential that you cut any corners and save all you can for when you can. For all you know you could be next to lose your job. So, how do you go about it? Here are ways you can cuts costs and save money.

Put Retirement Savings on Hold

We’re talking about savings and at the same time asking you to put your retirement savings on hold. That’s sounds counter-intuitive, doesn’t it? It’s not, not really.

First off, stocks are crashing right now so you don’t know if investing in risky ventures is a good idea. Add to this, once you put your money towards savings it gets harder to liquidate easily and in these times when you can’t be sure if you’ll get the next paycheck you want money in your hands. After all, if you can’t get a meal to eat and survive how will savings help you?

Instead, we’d recommend that you create an emergency fund with the money you were putting towards retirement.

Establishing an Emergency Fund

If you’re money smart then you we bet you already have an emergency fund. Ideally, that’s how it should be, but worry not. It’s never too late to begin one.

To start, you must divert all your retirement money towards this fund. Next, track all your expenditures and see where you’re spending your money. Is it going towards necessities or towards extravagances? Once you know you’ll be better equipped to make a budget. With the shutdown in place, going out for dinners and drinks is out of question so you’re already on track. Now just make sure you know the numbers.

Put Money in High-Yield Savings Account

If you must invest, invest in a place which allows you to liquidate easily and high-yield savings accounts are a great option.

Traditional bank savings account usually offer low interest rates compared to a high-yield savings account, going as high as 2%. The best part about these accounts is you can take out your money with ease from these accounts whenever you want and your money is protected against things like inflation.

Change the Way to Pay Student Loans

Student loans are still breathing down are necks years after graduation. They plague most of us and if you too are stuck in their vicious cycle you might want to change the way you pay these loans to ensure they don’t burden you excessively in these times.

There are two ways by which you can suspend payment towards these loans namely, deferment and forbearance. In the case of deferment you can avoid interest accrual which is great. On the other hand, forbearance doesn’t give you that option which means you debt will grow further. If you must choose the latter, make sure that you keep paying the interest portion so you debt doesn’t grow.

So, How Much Money You Need to Cushion You?

This all sounds good. The more you save the better, but how much should you have to cushion any fall you have in this economy. Well, to put it simply you need to have between three to six months’ worth of living expenses. Given that the coronavirus crisis isn’t going anywhere for the next year or two, getting ahead by at least 6 months is a good idea.

We’d suggest you keep one month’s expenses in your current account and divert the rest to a high-yields account. We are sure to see a drop in interest rates on savings accounts following the Federal Reserve’s emergency rate cut, so you might want to get all these things in order fast.

Final Words

People are losing jobs and all the non-essential staff are vulnerable. In the time of crisis it is in the best interest of all to spend wisely. Given that the economy will take a long time to get back on track, you might be out of work for a long time. So, it is better to be cautious. Stay indoors and take this time to reflect and learn. If you need to learn more about how to save you can always surf the internet for answers. All you need is a high-speed internet connection so call Spectrum service number for one. No need to get out of your homes. So, take care, save and self-isolate!

International remittances have reached an all-time high, with the World Bank reporting a jump of 10% from the preceding year to $529 billion of international money transfers in 2018. A wide range of financial services is being provided by global companies like Western Union, MoneyGram, World Remit, and TransferWise to facilitate this process. But, as more companies are viewing this as a lucrative investment opportunity, the marketplace is facing stiff competition, with some companies charging excessive and sometimes hidden transfer fees while some are going out of their way to facilitate customers. Among them, TransferWise is currently the cheapest and most reliable option available in the market. The Motley Fool has reviewed them to be the best option for sending money internationally because of their transparent fee structure with no hidden fees, their fast transfers, and the excellent customer service provided by them 24/7. Keeping this in mind, one should take care of the following aspects when sending money through these institutions:

Watch the Fine Print for Hidden Fees

The fees on an international money transfer can be broadly categorized into four parts:

§ Sending Fees

§ Transfer Fees

§ Exchange rate Margins

§ Receiving Fees

These are the areas where some companies keep huge hidden margins for themselves. You only find out about these charges once the money has been sent and received. Usually, one sees the transfer fee marked out by the company, but the rest are hidden. Exchange rate margins are especially notorious when sending large amounts of money. When sending small amounts, one hardly sees the difference, but as the amount increases, these fees can multiply and cause a significant dent in your budget.

Keep an eye on the exchange rate

When sending money internationally, one must be vigilant of the relevant exchange rate. Keep one eye on the currency markets and time your transfers when the exchange rate is in your favor. Geopolitical events or natural disasters can have positive or negative impacts on currency markets, and the right timing will save you loads of money.

Use bulk transfers

The most common fee that every money transfer company charges, is the transfer fee. There is usually a cap for a certain amount of transfer fee. The brackets range is under $500, $500 – $7000, and $7000 and above. Although different companies have different brackets, the concept is the same. Try to keep your amount near the upper limit of the bracket, as sending $600 or $7000 would be charged at the same rate.

Branch Networks on both ends

A well-established money transfer institution will have abundant branch networks at both ends. This saves time as well as money. TransferWise, e.g., has branches in 70+ countries, this eliminates bank sending and receiving fees on both ends, and the money transfer is virtually processed within minutes. Extensive branch networks also ensure reliability. The worst thing is when your transfers get stuck in-between banks and tracking that money is a complete nightmare. The banks themselves have no idea what is happening when there is a mix-up like this. So, it is imperative to ensure that the transfer service you are using has sufficient branches at the receiving end.