From PTI
IDBI Federal Life Insurance, the joint venture insurance firm formed by IDBI Bank, Federal Bank and European Insurance firm Ageas, has formally kicked off commercial operations in Coimbatore.
The company, which began operations in March, 2008, had issued over 2.10 lakh policies offering an assured sum of Rs 9,819 crore till July, 2010, IDBI Federal Life Insurance said in a statement here.
With the setting up of a new branch in Coimbatore, IDBI Federal Life Insurance has presence in 53 cities, it said.
In the joint venture between IDBI Bank, Federal Bank and Ageas, IDBI Bank owns 48 per cent equity, while Federal Bank and Ageas own 26 per cent each. IDBI Federal Life Insurance aimed to strengthen its distribution network by adding 1,500 distributors and agents this fiscal, the statement added.
-PTI
Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts
Monday, September 27, 2010
Monday, March 29, 2010
Coimbatore Money - keep liquid investments in some cases
Keep some of your investments Liquid
Coimbatore personal finance wisdom -
Sponsored by OruAcre.com
Are you planning a major purchase this year? If so, make sure to keep some of your investments liquid. The liquidity of an asset refers to how quickly it can be converted to cash without penalty. So, if you are planning a significant expenditure, is important to have liquid assets to avoid pulling from a long-term investment or a retirement fund at an inopportune time.
Most long-term accounts will penalize you for withdrawing your money too early. Some will take away the interest that you have earned; others will actually dip into the principal that you have invested. Utilize a high-yield savings account or a short-term Fixed deposits to have funds accessible when you need them.
Hope this helps in your savings!!!
Coimbatore personal finance wisdom -
Sponsored by OruAcre.com
Are you planning a major purchase this year? If so, make sure to keep some of your investments liquid. The liquidity of an asset refers to how quickly it can be converted to cash without penalty. So, if you are planning a significant expenditure, is important to have liquid assets to avoid pulling from a long-term investment or a retirement fund at an inopportune time.
Most long-term accounts will penalize you for withdrawing your money too early. Some will take away the interest that you have earned; others will actually dip into the principal that you have invested. Utilize a high-yield savings account or a short-term Fixed deposits to have funds accessible when you need them.
Hope this helps in your savings!!!
Monday, January 11, 2010
Different Categories of Coimbatore People by Salaries - Economy of Coimbatore
I was talking to some of my friends in Coimbatore and corporate personnel in Coimbatore for the status of Coimbatore. Based on those discussions and interviews, here is my inference for Coimbatore Economy and reality check of the same.
I am not an economist, but just writing my thoughts and putting together my ideas on paper.
Let me classify working people of Coimbatore in different categories based on their salary.
1) Labour people, who work hard in the bottom of the society and get Rs.2500 per month or less.
2) Lower Middle class people, who earn between Rs.2500 to Rs.7000 per month. Families to feed three or more.
3) Middle class people, who earn between Rs.7000 to Rs.15000 per month.
4) Upper middle class people, who earn between Rs.15000 to Rs.25000 per month.
5) Rich people, who earn anything more than Rs.25000 per month.
The above could be one person to two person earning in a family, so it could be considered as household income. The problem is - people or families would come under my classification or vary time to time - based on the number of family members.
Say for example, a family increases by population and he stays with the same salary, then they slowly come down to a different classification of people in Coimbatore. Please note that this classification only applies to Coimbatore.
Ok, now we have classified people. Let us see what do they do -
1) Labour class does all the low level jobs like cleaning, mechanical work, very very hardworking, sweeping, house work etc.,
2) Lower middle class would be two people earning and doing the same work as above labour class. This category is also hard working and lot of manual work job.
3) Middle class is more of people working in offices, clerks and sit and do jobs, accountants etc.,
4) Upper middle class is more of banking, insurance, service, retail and education, teaching, some IT or ITeS related folks.
5) Rich people are more of corporate people, any kind of business men and women, politicians, specifically IT people and at last thugs, who live on interest (finance).
I am not an economist, but just writing my thoughts and putting together my ideas on paper.
Let me classify working people of Coimbatore in different categories based on their salary.
1) Labour people, who work hard in the bottom of the society and get Rs.2500 per month or less.
2) Lower Middle class people, who earn between Rs.2500 to Rs.7000 per month. Families to feed three or more.
3) Middle class people, who earn between Rs.7000 to Rs.15000 per month.
4) Upper middle class people, who earn between Rs.15000 to Rs.25000 per month.
5) Rich people, who earn anything more than Rs.25000 per month.
The above could be one person to two person earning in a family, so it could be considered as household income. The problem is - people or families would come under my classification or vary time to time - based on the number of family members.
Say for example, a family increases by population and he stays with the same salary, then they slowly come down to a different classification of people in Coimbatore. Please note that this classification only applies to Coimbatore.
Ok, now we have classified people. Let us see what do they do -
1) Labour class does all the low level jobs like cleaning, mechanical work, very very hardworking, sweeping, house work etc.,
2) Lower middle class would be two people earning and doing the same work as above labour class. This category is also hard working and lot of manual work job.
3) Middle class is more of people working in offices, clerks and sit and do jobs, accountants etc.,
4) Upper middle class is more of banking, insurance, service, retail and education, teaching, some IT or ITeS related folks.
5) Rich people are more of corporate people, any kind of business men and women, politicians, specifically IT people and at last thugs, who live on interest (finance).
Coimbatore Personal Finance Tips for 2010
� If you can't afford it, don't buy it. Live within your means.
� Create a monthly budget and stick to it.
� Evaluate your finances, and cut back on unnecessary expenditures.
� Keep up to date with your monthly payments. Missing a single month could cost you thousands of dollars in interest down the road.
� Reassess your life and car insurance policies. You could potentially save money by switching to a different company.
� Create a monthly budget and stick to it.
� Evaluate your finances, and cut back on unnecessary expenditures.
� Keep up to date with your monthly payments. Missing a single month could cost you thousands of dollars in interest down the road.
� Reassess your life and car insurance policies. You could potentially save money by switching to a different company.
Saturday, April 11, 2009
Coimbatore Slums and Coimbatore Microfinance help
Coimbatore Slums and Microfinance help
When researchers met with people living in slums in Coimbatore, during a research, people brought the sufferings that they faced with the private money lenders. With no hope to get small business loans from financial institutions, people living in slums that would like to start up small businesses had to turn to illegal lenders charging a hefty high monthly interest. Moreover, they are totally shut out from professional help on starting and running a small business. In order to let the lives of people living in slums to be self-sustainable, as well as to help parents in Coimbatore to earn enough income to send their children back to school, we will have to decide to start micro credit and micro finance programs in Coimbatore.
In general, the rate of repayment of the loans is expected to be 99%. Micro-credit can be provided to the community for carrying out the following activities:
1. Flower Vending
2. Tea Stall
3. Cloth Vending
4. Sugar Cane Juice
5. Grocery shop
6. Milk Vending
7. Tricycle
8. Vegetable Vending
9. Sewing Machine
10. Idly Shop
11. Bakery
12. Fancy Store
13. Bottle cap
14. Dry Fish
15. Petty Shop
16. Basket Making
17. Rice Grinding
18. Ironing
19. Goat rearing
20. Selling toys
If you are a self-sufficiently budgeted person, you could try this project?!
When researchers met with people living in slums in Coimbatore, during a research, people brought the sufferings that they faced with the private money lenders. With no hope to get small business loans from financial institutions, people living in slums that would like to start up small businesses had to turn to illegal lenders charging a hefty high monthly interest. Moreover, they are totally shut out from professional help on starting and running a small business. In order to let the lives of people living in slums to be self-sustainable, as well as to help parents in Coimbatore to earn enough income to send their children back to school, we will have to decide to start micro credit and micro finance programs in Coimbatore.
In general, the rate of repayment of the loans is expected to be 99%. Micro-credit can be provided to the community for carrying out the following activities:
1. Flower Vending
2. Tea Stall
3. Cloth Vending
4. Sugar Cane Juice
5. Grocery shop
6. Milk Vending
7. Tricycle
8. Vegetable Vending
9. Sewing Machine
10. Idly Shop
11. Bakery
12. Fancy Store
13. Bottle cap
14. Dry Fish
15. Petty Shop
16. Basket Making
17. Rice Grinding
18. Ironing
19. Goat rearing
20. Selling toys
If you are a self-sufficiently budgeted person, you could try this project?!
Monday, January 26, 2009
What to do if You Lose Your Job - Coimbatore Personal Finance Wisdom
What to do if You Lose Your Job
You lost your job, now what?
Stay positive and surround yourself with supportive family and friends and consider the following steps:
1) Immediately evaluate expenditures, bills and financial accounts for strengths and weaknesses.
2) Adjust your budget accordingly and minimize discretionary spending.
3) Discuss with your employer severance pay, outplacement services and medical insurance continuation options.
4) Check out the free job placement and career training services offered by your state. Taking classes will enhance your resume.
5) Remember, every penny saved will add up and help you get through until you find a new job.
Sourced from f e e d p i g dot org
You lost your job, now what?
Stay positive and surround yourself with supportive family and friends and consider the following steps:
1) Immediately evaluate expenditures, bills and financial accounts for strengths and weaknesses.
2) Adjust your budget accordingly and minimize discretionary spending.
3) Discuss with your employer severance pay, outplacement services and medical insurance continuation options.
4) Check out the free job placement and career training services offered by your state. Taking classes will enhance your resume.
5) Remember, every penny saved will add up and help you get through until you find a new job.
Sourced from f e e d p i g dot org
Tuesday, January 20, 2009
Supplementing Your income - Coimbatore Personal Finance Wisdom
Supplementing Your Income
If you've reduced your monthly expenses but still find it hard to save each month, consider additional sources of income�which doesn't always mean working a second job on the side. Look for income sources that are flexible, sustainable and enjoyable. Here are some ideas:
* Become a virtual assistant � Virtual assistants are individuals hired to perform duties online that don't require a physical presence, such as conducting research, designing websites, writing articles and making reservations.
* Start a home business � Turn your skills and hobbies into an additional income source. Home businesses are often inexpensive to start and easy to grow and promote via the Internet.
* Write a blog � Earning a little extra money can be as easy as blogging from your home. With free or low-cost blog publishing tools, you could turn a small time investment into extra savings.
Sourced from f e e e e d p i g
If you've reduced your monthly expenses but still find it hard to save each month, consider additional sources of income�which doesn't always mean working a second job on the side. Look for income sources that are flexible, sustainable and enjoyable. Here are some ideas:
* Become a virtual assistant � Virtual assistants are individuals hired to perform duties online that don't require a physical presence, such as conducting research, designing websites, writing articles and making reservations.
* Start a home business � Turn your skills and hobbies into an additional income source. Home businesses are often inexpensive to start and easy to grow and promote via the Internet.
* Write a blog � Earning a little extra money can be as easy as blogging from your home. With free or low-cost blog publishing tools, you could turn a small time investment into extra savings.
Sourced from f e e e e d p i g
Saturday, January 17, 2009
minimum salary required to run middle class in coimbatore?
Coimbatore is an interesting and unique place, like many cities in India - in which we can live with any kind of money.
Middle class article written before.
Even with Rs.2000 per month, you can get your life with family going. You can even live with Rs.1,00,000 per month. It is all about afford-ability.
You can go to the local street idly shop and have a nice breakfast with even Rs.3(equivalent to one cent in USD). Can you imagine to do the same in a city in any other country?
You can also go to a star hotel in Coimbatore and have the breakfast on the table for even Rs.300. You can live to both extremes.
However, who is middle class in Coimbatore? Middle class in Coimbatore is somebody who would not go to the streets and eat! Middle class is somebody who would not go to the star hotel and have their breakfast. Middle class is somebody who gets the groceries from shops and cooks at home and anything he/she wants prepares at home and be happy with what they have.
Highly budgeted about personal finance. They know how much they get as income every month. Middle class in Coimbatore learn to live with what they have and make in every month. Usually they always run month to month with their salaries. Middle classes are highly community oriented and they are clubbed within the relatives for their rest of the lives.
Here is a list of items - they need every month. Please put it in a sheet of paper of excel spreadsheet and fill it up for yourself.
House Rent
Petrol and Auto expenses
Monthly Bills
Phone
Electricity
Internet
Groceries
School Fees
Going out and Shopping
Restaurants
Medical Expenses
Loan Installments
Insurance Payments
Parents expenses
If you are setting up a middle-class family in Coimbatore, here is what you will need.
Car (optional - depends - mostly upper middle class)
Furniture
Bike
Bicycle
Kitchen Utensils
If you use these data points and fill it up for yourself, you would get some idea about what would you need every month to get your middle-class family going in Coimbatore.
Depending upon your cost you enter, you can determine, if you belong to middle-class family or upper-middle class family in Coimbatore. Again, I would say, if you want to lead a middle class life - it might take Rs.10,000 per month for a middle class family to run, excluding any loan needs you might have and your own home you might live in.
Please bear in mind, there is lot of inflation these days and all the prices have hiked up. Check up for your current needs and rates, before you act after reading this article.
This article was written upon request by one of the visitors. thank you
Middle class article written before.
Even with Rs.2000 per month, you can get your life with family going. You can even live with Rs.1,00,000 per month. It is all about afford-ability.
You can go to the local street idly shop and have a nice breakfast with even Rs.3(equivalent to one cent in USD). Can you imagine to do the same in a city in any other country?
You can also go to a star hotel in Coimbatore and have the breakfast on the table for even Rs.300. You can live to both extremes.
However, who is middle class in Coimbatore? Middle class in Coimbatore is somebody who would not go to the streets and eat! Middle class is somebody who would not go to the star hotel and have their breakfast. Middle class is somebody who gets the groceries from shops and cooks at home and anything he/she wants prepares at home and be happy with what they have.
Highly budgeted about personal finance. They know how much they get as income every month. Middle class in Coimbatore learn to live with what they have and make in every month. Usually they always run month to month with their salaries. Middle classes are highly community oriented and they are clubbed within the relatives for their rest of the lives.
Here is a list of items - they need every month. Please put it in a sheet of paper of excel spreadsheet and fill it up for yourself.
House Rent
Petrol and Auto expenses
Monthly Bills
Phone
Electricity
Internet
Groceries
School Fees
Going out and Shopping
Restaurants
Medical Expenses
Loan Installments
Insurance Payments
Parents expenses
If you are setting up a middle-class family in Coimbatore, here is what you will need.
Car (optional - depends - mostly upper middle class)
Furniture
Bike
Bicycle
Kitchen Utensils
If you use these data points and fill it up for yourself, you would get some idea about what would you need every month to get your middle-class family going in Coimbatore.
Depending upon your cost you enter, you can determine, if you belong to middle-class family or upper-middle class family in Coimbatore. Again, I would say, if you want to lead a middle class life - it might take Rs.10,000 per month for a middle class family to run, excluding any loan needs you might have and your own home you might live in.
Please bear in mind, there is lot of inflation these days and all the prices have hiked up. Check up for your current needs and rates, before you act after reading this article.
This article was written upon request by one of the visitors. thank you
Thursday, January 15, 2009
what would you do with Rs.1 crore? - Coimbatore Finance Wisdom
Sponsored by OruAcre.com
What would you do, if you get a financial windfall of Rs.1 crore?
Would you invest all into real estate?
Would you buy stocks and put it into the market?
Would you and your wife enjoy spending it?
Would you give it for charity?
What would you do?
I am sure you would be shocked! Money can come in various ways to you. At some point of time, if you are lucky, you would get a financial windfall. Be prepared! I am not saying tomorrow you would get a windfall, but any point of life, it can happen.
As soon as you get a financial windfall, don't do anything. There would be lot of advices, lot of new friends, lot of relatives hanging out with you. These people wouldn't have even cared for you in normal days. Hence, don't get overwhelmed. Just stay calm and do whatever you were doing, as in past.
However, you should consult the financial planner and not mention about the windfall. If you mention about it, you will be looted by commissions. However, if this financial planner is a trustworthy person, he/she is the right person to talk to.
Talk to your good friends about it and others ignore it. However, don't overthrow any good friends on the name of money.
Don't panic. If you panic, you will end up putting the money in wrong places. Hence, stay calm and patient.
The whole idea of putting all the money into one pocket is not a good. The age old fundaa has to be applied here. Diversification...
Think about what you really need from life? Do you want to just stay on life and exist in life, without working. Retire early? or do you want to become big using this money?
Put the money in various pockets and make sure you have enough backup for anything emergent. Invest in something, which would earn you money, with a safety lock on it. In Coimbatore there is solid business - build commercial complexes, wherein businesses can be opened. You would get good money for your living.
So, invest a part of it, in real estate. I wouldn't give any percentage, because it depends on what you really want in life, based on Rs.1 crore you have. Invest in lands.
Pay off all the debts you will have;
Invest in market; Invest in businesses you know very well;
Invest on people; Make yourself a job, out of it;
Build businesses for yourself. Have a great backup like 40% of the money!
Give some for charity...
Don't forget to enjoy the money - like 3 lakhs for enjoyment out of 1 crore.
At last, don't forget one important point - People first, Money next!
If you have any thoughts, please post your opinions here by clicking on the comments below the article.
What would you do, if you get a financial windfall of Rs.1 crore?
Would you invest all into real estate?
Would you buy stocks and put it into the market?
Would you and your wife enjoy spending it?
Would you give it for charity?
What would you do?
I am sure you would be shocked! Money can come in various ways to you. At some point of time, if you are lucky, you would get a financial windfall. Be prepared! I am not saying tomorrow you would get a windfall, but any point of life, it can happen.
As soon as you get a financial windfall, don't do anything. There would be lot of advices, lot of new friends, lot of relatives hanging out with you. These people wouldn't have even cared for you in normal days. Hence, don't get overwhelmed. Just stay calm and do whatever you were doing, as in past.
However, you should consult the financial planner and not mention about the windfall. If you mention about it, you will be looted by commissions. However, if this financial planner is a trustworthy person, he/she is the right person to talk to.
Talk to your good friends about it and others ignore it. However, don't overthrow any good friends on the name of money.
Don't panic. If you panic, you will end up putting the money in wrong places. Hence, stay calm and patient.
The whole idea of putting all the money into one pocket is not a good. The age old fundaa has to be applied here. Diversification...
Think about what you really need from life? Do you want to just stay on life and exist in life, without working. Retire early? or do you want to become big using this money?
Put the money in various pockets and make sure you have enough backup for anything emergent. Invest in something, which would earn you money, with a safety lock on it. In Coimbatore there is solid business - build commercial complexes, wherein businesses can be opened. You would get good money for your living.
So, invest a part of it, in real estate. I wouldn't give any percentage, because it depends on what you really want in life, based on Rs.1 crore you have. Invest in lands.
Pay off all the debts you will have;
Invest in market; Invest in businesses you know very well;
Invest on people; Make yourself a job, out of it;
Build businesses for yourself. Have a great backup like 40% of the money!
Give some for charity...
Don't forget to enjoy the money - like 3 lakhs for enjoyment out of 1 crore.
At last, don't forget one important point - People first, Money next!
If you have any thoughts, please post your opinions here by clicking on the comments below the article.
Saturday, January 10, 2009
Advice for Credit Card Users - Coimbatore Money Wisdom
Smart Tips for Credit Card Users
Credit cards can help build a good credit history but improper use can be disastrous. It can be said that credit card debt is easy come and not so easy go. Being knowledgeable and reading the fine print may save you money and may prevent unnecessary expenses when it comes to using plastic.
If you own one or more credit cards, consider the following tips:
1) Most credit cards offer rewards such as airline tickets, cash back, car insurance and other incentives.
2) Paying off your monthly balance to avoid interest will allow you to fully reap the benefits of the card.
3) Credit card applications may often contain low interest rates to attract customers. Before you sign, research: varying interest rates, minimum payment requirements, grace periods, annual fees and credit limits.
4) Understand the impact that cancelling a credit card will have on your credit score. If the card is one that you've had for awhile and consistently paid off, it could negatively affect your credit rating.
Sourced from: f e e d t h e p i g
Credit cards can help build a good credit history but improper use can be disastrous. It can be said that credit card debt is easy come and not so easy go. Being knowledgeable and reading the fine print may save you money and may prevent unnecessary expenses when it comes to using plastic.
If you own one or more credit cards, consider the following tips:
1) Most credit cards offer rewards such as airline tickets, cash back, car insurance and other incentives.
2) Paying off your monthly balance to avoid interest will allow you to fully reap the benefits of the card.
3) Credit card applications may often contain low interest rates to attract customers. Before you sign, research: varying interest rates, minimum payment requirements, grace periods, annual fees and credit limits.
4) Understand the impact that cancelling a credit card will have on your credit score. If the card is one that you've had for awhile and consistently paid off, it could negatively affect your credit rating.
Sourced from: f e e d t h e p i g
Monday, December 15, 2008
Motivating yourself to save: Coimbatore Money Wisdom
Motivating Yourself to Save
Oftentimes, learning new methods to reduce spending and save money are not enough to change habits by themselves, and you may find yourself reverting back to old behaviors before you know it. Motivating yourself to save requires setting goals and constant visual reminders of those goals. Here are some useful tips:
Write down your financial goals and do research to find out what you need to do to get there. Set realistic timelines for achieving these goals.
Don't be afraid to choose goals such as a new home or car. These big tickets items can stimulate your savings attitude and financial motivation.
Create visual reminders of your goals and attach them to places such as the walls in your room, the dashboard of your car, or the background on your computer.
Along with continually learning of new ways to save, following these goal-setting tips will help you realize your dreams.
Oftentimes, learning new methods to reduce spending and save money are not enough to change habits by themselves, and you may find yourself reverting back to old behaviors before you know it. Motivating yourself to save requires setting goals and constant visual reminders of those goals. Here are some useful tips:
Write down your financial goals and do research to find out what you need to do to get there. Set realistic timelines for achieving these goals.
Don't be afraid to choose goals such as a new home or car. These big tickets items can stimulate your savings attitude and financial motivation.
Create visual reminders of your goals and attach them to places such as the walls in your room, the dashboard of your car, or the background on your computer.
Along with continually learning of new ways to save, following these goal-setting tips will help you realize your dreams.
Monday, September 1, 2008
Is everyone is working on a dream job? - Coimbatore Finance Wisdom
I am not sure if everyone is working on a dream job?
Is everyone liking what they are currently doing?
There has to be some motivation to get up daily and go to work, right?
What is that? Is everyone after money?
I believe, the following applies to "most" of us.
Everyone is living more than what we earn. We get loans and we end up paying them monthly with interest. Truth is --- We all get up in the morning to go to work, to pay off our loans.
Do you agree? In today's lifestyle, every one dares to get a loan for themselves at some point of life.
Starting from Education loan, Car loan, Bike loan, House loan, Business Loan, Credit Card loan, Personal Loan etc.,
On those days, getting loan from bank was the last thing for someone to think about. But, today it has become easy for all of us.
We get loans and get stuck for life and keep working to payoff our loans.
Believe me - it is better feeling to be without loan and be in positive credit at any point of time. This is dream for every person in this world I believe!
Leave out anybody else, I wish that could happen to me!? May Goddess Lakshmi see this blog and fedex me bunch of gold coin bags:) joking...
Is everyone liking what they are currently doing?
There has to be some motivation to get up daily and go to work, right?
What is that? Is everyone after money?
I believe, the following applies to "most" of us.
Everyone is living more than what we earn. We get loans and we end up paying them monthly with interest. Truth is --- We all get up in the morning to go to work, to pay off our loans.
Do you agree? In today's lifestyle, every one dares to get a loan for themselves at some point of life.
Starting from Education loan, Car loan, Bike loan, House loan, Business Loan, Credit Card loan, Personal Loan etc.,
On those days, getting loan from bank was the last thing for someone to think about. But, today it has become easy for all of us.
We get loans and get stuck for life and keep working to payoff our loans.
Believe me - it is better feeling to be without loan and be in positive credit at any point of time. This is dream for every person in this world I believe!
Leave out anybody else, I wish that could happen to me!? May Goddess Lakshmi see this blog and fedex me bunch of gold coin bags:) joking...
Friday, August 1, 2008
Best Money Advice anybody can get - Coimbatore Money
The following article is picked up from CNN�s iReport. Author�s id is AnnieGB. I found this article very helpful and I think it is the best money advice anybody can get. I wanted to share this article in my blog for my audience to get benefited too.
See the flowers above...how do you grow a garden? Well, growing wealth isn't very different!
My husband and I simply listened to what our parents told us...yep; believe it or not the "Greatest Generation" had a few good ideas. We are in our fifties now and both millionaires, each in our own right...neither needs to work, but actually chooses to work at things we enjoy now! I was a millionaire by age 43. Answer: I got a good education (that I paid for), worked hard to get promoted, saved a lot, and lived "below" my means. Now, I don't have to, I just do.
SAVE: Each of our fathers told us to save 15% of our salary and put it in the bank first...to pay ourselves before we paid any bill. My father suggested to put 5% away for a rainy day (for unplanned, urgent repairs or expenses) and then, never, and I mean, never touch the other 10%. If you start this practice before age 25, even at a meager salary, the compounding effect will generate almost $600,000 by age 65. Yes, $5000 put away each year at 5% will equal $600,000 in 40 years.
You can't put that much away right now? Then put 1/2 that away and make it a goal to get there after each raise. So what, you'll be 5 years off...it'll still generate $525,000...and you're half-way there. Contribute everything you can that will be matched by your company to your 401K, if offered. Nowhere on this good green earth is there a risk-averse way to make 50% or even 100% on your money...that is what the match is!
When you get a raise, don't figure out how to spend it; figure out how to save it. I suggest saving 1/2.
BE CAREFUL WITH CREDIT! Next, only have two credit cards and absolutely pay them off each month and absolutely on time. There is no reason to pay 20% interest for a meal out at Burger King. Why two cards? Put one in a drawer at home, just in case the other is lost or stolen.
Pay a little bit more than your mortgage calls for each month...that is going directly to principle! You can drop as much as 5-7 years off your mortgage by this simple step.
PLAN: Develop a budget each month for this month and the next two out. Keep to it. You'll find out right away where your money is going and what it takes to shave your expenses. Again, make sure you have a line for "savings" and pay yourself first!
Put together a long-range financial plan (at least ten years and maybe longer) and look at it every 4-5 months or so. It'll keep you motivated. Celebrate when you achieve certain milestones: $100,000 or $250,000, etc.
STICK TO YOUR OWN LIVELIHOOD: Don't compare yourself to your neighbors or friends or even siblings...if they are spending like there is no tomorrow, chances are they are going to be working until their last dying breath and will never have anything in the bank for emergencies, much less retirement.
LEARN: Educate yourselves...learn about money, its time-value, and investing. If you choose to invest, make sure you are comfortable with the risk. Invest in things you know about and make sense to you...right now, if you believe that the energy crisis is here to stay, then think of "smart and credible" ties to businesses that will benefit from the crisis. Also, read up on what the billionaires are doing! What are Warren Buffet and T. Boone Pickens looking at? Is it conceivable that you could invest a little portion of your fortune? If you are afraid, research mutual funds with goals in energy creation.
REMEMBER: There are two things that wealthy people have in common:
1) A sense that they alone are responsible for their well-being and
2) Discipline.
There really is no easy way to get wealthy...its just like growing a garden...prepare, sow, water, tend, weed, and reap!
Original Source: http://www.ireport.com/docs/DOC-52904
Thursday, July 24, 2008
Financial Aims ad Milestones
Here are the fund aims, anybody needs to have
Loan Pay Off Debt Fund
Emergency Fund
Corporate Building Fund
Dream House Fund
Children College Education Fund
Children Marriage Fund
Couple(Husband and Wife) Retirement Fund
Loan Pay Off Debt Fund
Emergency Fund
Corporate Building Fund
Dream House Fund
Children College Education Fund
Children Marriage Fund
Couple(Husband and Wife) Retirement Fund
Case Study: Financial Portfolio
Sponsored by OruAcre.com
As you know, in the recent past, I posted about an ideal portfolio for a 25 to 38 age group person.
Ideal Portfolio:
50% Assets
30% Aggressive Investments
10% Consevative Savings
5% Commodities
5% Savings for Emergency
Insurance is not part of the ideal portfolio. However, insurance is mandatory for a person who has dependants.
Case Study:
I was evaluating my friend 's portfolio and here is what he has, as of today - Name: Suraj(changed for privacy).
Suraj's Asset Allocation:
55% real estate
36% insurance
8% liquid
6% Automobiles
2% commodities
Improvement points for Suraj's portfolio:
His problem is - He does not have emergency funds and he always falls back on credit cards, which is not healthy in terms of personal finance.
An ideal portfolio says a person with dependant should have 10 times his annual gross income. Suraj has way too much insurance coverage for his salary.
Equity in the portfolio is completely missing. One of the best ways to fight inflation in long-term is to have equity items added to the portfolio.
One more improvement Suraj has to do is to increase emergency fund. Emergency fund is supposed to be 3 to 6 months - monthly expenses for the family.
As you know, in the recent past, I posted about an ideal portfolio for a 25 to 38 age group person.
Ideal Portfolio:
50% Assets
30% Aggressive Investments
10% Consevative Savings
5% Commodities
5% Savings for Emergency
Insurance is not part of the ideal portfolio. However, insurance is mandatory for a person who has dependants.
Case Study:
I was evaluating my friend 's portfolio and here is what he has, as of today - Name: Suraj(changed for privacy).
Suraj's Asset Allocation:
55% real estate
36% insurance
8% liquid
6% Automobiles
2% commodities
Improvement points for Suraj's portfolio:
His problem is - He does not have emergency funds and he always falls back on credit cards, which is not healthy in terms of personal finance.
An ideal portfolio says a person with dependant should have 10 times his annual gross income. Suraj has way too much insurance coverage for his salary.
Equity in the portfolio is completely missing. One of the best ways to fight inflation in long-term is to have equity items added to the portfolio.
One more improvement Suraj has to do is to increase emergency fund. Emergency fund is supposed to be 3 to 6 months - monthly expenses for the family.
Quick Personal Finance Tip
A Quick Personal Finance Tip
It is better to be debt-free, rather to be with loans at your hand to pay off.
Never take a loan for a depreciating asset, except for your house or first car, when you can really afford.
It is better to be debt-free, rather to be with loans at your hand to pay off.
Never take a loan for a depreciating asset, except for your house or first car, when you can really afford.
Monday, July 14, 2008
Ideal Portfolio: Asset Allocation : Coimbatore Money - Coimbatore Finance
I have been analyzing on the ideal portfolio and here is what I found:
# You need to plan for the days when you may have a family. Hopefully, you have already made your investment in a property. Keep no more than 50% of your money in property.
# You don�t need to have more than 5% of your money in savings accounts.
# Keep a decent amount of money (30%) in equity - you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
# Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
# And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.
This portfolio success would differ from person to person.
# You need to plan for the days when you may have a family. Hopefully, you have already made your investment in a property. Keep no more than 50% of your money in property.
# You don�t need to have more than 5% of your money in savings accounts.
# Keep a decent amount of money (30%) in equity - you should not need that money in a hurry so you are unlikely to be a distress seller of shares. Equities as an investment may be good long-term investments but they can have one or two bad years and, if you need the money urgently, you may be selling into a distressed stock market.
# Keep some money (10%) in debentures and bonds. The interest from the money invested in fixed income instruments may be given to your parents or brothers and sisters in case they are financially dependent on you.
# And keep some (5%) in gold too. Gold is an international asset priced in US Dollars and sometimes acts as a hedge against loss of wealth due to a weak Indian Rupee.
This portfolio success would differ from person to person.
Sunday, June 1, 2008
Never take decisions based on temptations - Coimbatore Finance Wisdom
Never take decisions based on temptations.
Tempations always lead to bad decisions and you regret for it.
I made a recent financial decision based on temptation.
As always, it ended up in a bad decision.
A different me, came in front of me and kept on talking to me about doing the temptation. I heard to that and did execute the sales. I bought that thing, even though it was difficult for me to buy!
I went for it, even though it is not affordable for me, at this point of time.
I regret for it guys! Why did that temptation come to me?
I was a very happy individual doing my own stuff and satisfied with what I have.
Why do these temptations come? I would have to pay that off, for next one year to get rid of this problem.
I can clearly see that the purchase was unnecessary. I didn't know that at that time. Nobody told me! Every heard to what I said and nobody stopped me!
I went ahead and today a real me is coming and knocking me. This real me is the one I always live with. So, now the real me is coming and asking me lots of questions.
I was a rich guy in terms of financial satisfaction and now I am a poor guy for couple of months at least. I feel guilty of my actions and its consequences.
Why would my inner self come to me and tell me to live life and now tell me that you went too fast in life!? Why there is a contradictory thought floating around and confusing me!!
This clearly tells me who am I!?
Yes - I am a conservative, long-term saver and never would think of living life. Your brought up is like that! You can never become a spender! You will kill yourself, instead!!!
Moral is this: Never take decisions when you are tempted!!!!
Tempations always lead to bad decisions and you regret for it.
I made a recent financial decision based on temptation.
As always, it ended up in a bad decision.
A different me, came in front of me and kept on talking to me about doing the temptation. I heard to that and did execute the sales. I bought that thing, even though it was difficult for me to buy!
I went for it, even though it is not affordable for me, at this point of time.
I regret for it guys! Why did that temptation come to me?
I was a very happy individual doing my own stuff and satisfied with what I have.
Why do these temptations come? I would have to pay that off, for next one year to get rid of this problem.
I can clearly see that the purchase was unnecessary. I didn't know that at that time. Nobody told me! Every heard to what I said and nobody stopped me!
I went ahead and today a real me is coming and knocking me. This real me is the one I always live with. So, now the real me is coming and asking me lots of questions.
I was a rich guy in terms of financial satisfaction and now I am a poor guy for couple of months at least. I feel guilty of my actions and its consequences.
Why would my inner self come to me and tell me to live life and now tell me that you went too fast in life!? Why there is a contradictory thought floating around and confusing me!!
This clearly tells me who am I!?
Yes - I am a conservative, long-term saver and never would think of living life. Your brought up is like that! You can never become a spender! You will kill yourself, instead!!!
Moral is this: Never take decisions when you are tempted!!!!
Sunday, May 4, 2008
Financial Health Check: Coimbatore Finance
Add 10(ten) to every "Yes" answer. Add zero(0) to every "No" answer.
You will get a percentage of your FINANCIAL HEALTH out of 100.
Determine yourself...
Financial Health Check
Q1: Do you have 6 months' salary handy for an emergency?
Yes No
Q2: Do you know exactly how much you spend every month?
Yes No
Q3: Do you save at least 20% of your household income every year?
Yes No
Q4: Do you invest that sum regularly?
Yes No
Q5: Do you know what you earn on your various investments?
Yes No
Q6: Do you review investments at least twice a year?
Yes No
Q7: Do you invest beyond what you have to save taxes?
Yes No
Q8: Do you know how much you will need every month to live on when you retire?
Yes No
Q9: Have you enough life insurance?
Yes No
Q10: Do you have medical insurance?
Yes No
You will get a percentage of your FINANCIAL HEALTH out of 100.
Determine yourself...
Financial Health Check
Q1: Do you have 6 months' salary handy for an emergency?
Yes No
Q2: Do you know exactly how much you spend every month?
Yes No
Q3: Do you save at least 20% of your household income every year?
Yes No
Q4: Do you invest that sum regularly?
Yes No
Q5: Do you know what you earn on your various investments?
Yes No
Q6: Do you review investments at least twice a year?
Yes No
Q7: Do you invest beyond what you have to save taxes?
Yes No
Q8: Do you know how much you will need every month to live on when you retire?
Yes No
Q9: Have you enough life insurance?
Yes No
Q10: Do you have medical insurance?
Yes No
Wednesday, April 30, 2008
Coimbatore Money Advice: How to set financial goals for your future?
Goals give you an idea as to what you want to achieve. They can vary from just plain savings to your retirement, to your child's education, buying a house, buying a car, funding your or your son's/daughter's marriage etc. The job does not end here though. Even after listing them, you must have a clear vision about their priorities. The best, way to make this daunting task easy is to divide your goals into the following three categories:
~ Responsibilities: Like providing for your parents, providing education to your children, funding their marriage, meeting any unforeseen events etc.
~ Needs: This includes requirements that you have like providing for retirement, buying a house, providing for day-to-day life and also saving for the near future, etc.
~ Dreams: Or aspirations. It can be anything like buying a luxury car to buying a solitaire for your wife or a world tour. Your dreams may be out of reach but there is no harm in listing them as this can act as a constant reminder for you to work hard.
Based on the above three criteria you categorize your goals. You need to prioritize the above listed goals in an order of importance in your life and their requirements. There needs to be a fair balance drawn between needs and responsibilities as at a certain point in time both could be equally desired by you.
~ Responsibilities: Like providing for your parents, providing education to your children, funding their marriage, meeting any unforeseen events etc.
~ Needs: This includes requirements that you have like providing for retirement, buying a house, providing for day-to-day life and also saving for the near future, etc.
~ Dreams: Or aspirations. It can be anything like buying a luxury car to buying a solitaire for your wife or a world tour. Your dreams may be out of reach but there is no harm in listing them as this can act as a constant reminder for you to work hard.
Based on the above three criteria you categorize your goals. You need to prioritize the above listed goals in an order of importance in your life and their requirements. There needs to be a fair balance drawn between needs and responsibilities as at a certain point in time both could be equally desired by you.
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