The Wealth Creator

Amidst all the ups and downs in the stock markets, lot of investors are clueless as to what steps should be taken to ensure a balance between growth, risk and liquidity. It is significant to revisit the prudent approach to managing one’s finances. At this juncture, one should introspect and stick to the do’s and don’ts!   Dos! Revisit your Income levels: Allocate additional surplus towards increasing monthly investments to ensure you meet your financial goals in a timely manner. As Warren Buffet says, be fearful when others are greedy and greedy when others are fearful. Ensure sufficient contingency funds: With unpredictability in job markets, 6 months expenses should be readily available in case of temporary loss of income. In an unfortunate event of loss of income there should be sufficient liquidity to manage the minimum household expenditure. Track your fixed and variable costs: Typically, a household has component of variable (say going out for a dinner) and f

Once, our venerable Finance Minister, P Chidambaram, said, “Left to God, even he will not like to pay Income Tax”. Though as a responsible citizen of our country, we should pay our income taxes on time and should not avoid paying it. However, if the Income Tax Act, 1961 provides legal opportunities to save Income tax, it will not be prudent if you are not taking benefits of such provisions. HUF is an entity, which has been given certain exemptions, quite similar to an Individual by the IT Act. If you are a born Hindu or a Sikh or a Buddhist or a Jain, you can take benefit of these provisions, and if possible you should take it. The Income Tax Act 1961 provides that a HUF (Hindu Undivided Family) is separate unit like an individual and is too assessed accordingly. A HUF can claim tax benefits under the income tax act as Wealth tax act. A HUF is eligible for those exemptions that are available to a resident Indian who is not a senior citizen. It can own property and also have its own

Upbeat bulls are celebrating the US Fed's decision not to cut back on its monthly bond purchases , thus keeping the pipeline of easy liquidity flowing smoothly. The Sensex closed at a 34-month high on Thursday after rallying nearly 700 points. Even the most skeptical of market experts agree that momentum could push up the market another 5-7 percent from these levels even though fundamentals do not warrant it. There is no point talking about fundamentals when a strong gush of liquidity sweeps the market. Yet, the Fed move may have also unwittingly set the stage for a deeper correction, sometime in the next couple of months. That is because the inevitably of a reduction in bond purchases is evident. And so are the signs that the economy with its deep-rooted problems is not going to recover in a hurry. At Friday's closing, the Sensex is now quoting above its level in August when the Fed first revealed its plan to cut back on the bond purchases. And this, when there has been

We all have an ambition to go higher up in the career and while doing so our Salary gets many fold Jumps and so do our Expenses owing to our Lavish Life style. Many a times we try to save the money but we have to remember a Simple rule saving and investing are 2 different things. Make an Expense Sheet - Make a detailed Expense sheet and always discuss the same with your Family as well. Take the Minutest expense also in record. Add some 10-15% of the total amount as Contingency expenses as well. Make an Investment Account Separately- Always maintain an Separate a/c for investment and if possible get the online excess to that account so that anytime you can login and check the amount of investment and get a hold of all money flowing in and out. Never Keep Money Idle in Saving a/c- All money lying in the saving a/c get an annual interest of 4-5% but get depreciated @ 10-11% due to inflation. So avoid making money lying idle and let it earn for you. Always Secure your Inc

Building wealth is a topic often spoken about by many, but followed by very few. The reason for this is that wealth creation involves time and a lot of effort. Although the process of building wealth is not complex, it is difficult to implement, simply because of the discipline it requires. Here are a few simple steps which will help you build your wealth: The Earlier, the Better: It is often said that the earlier one starts investing, the better it is to grow your money. As with anything else in life, investing also benefits with an early start. The principle of compound interest works magic on building money. When you begin your career it is understandable that the initial salary will be low. However, even small amounts of savings in good investments will help in slowly and steadily building your wealth. For example, let us look at the case of Raj and Shyam. Raj who is 25 years old needs to invest Rs. 1,500 per month for the next 35 years to build a corpus of Rs. 57.4 lakhs at th

Significance of Reviwing your Financial Planning Your financial plan is one which chalks out your financial goals and how you plan to achieve them. As the situations in life change, your financial plan also requires regular reviewing and change. Just as how you undergo regular health checkups to review your health and regular service for your vehicle or electronic appliances, your financial plan also needs regular examination. Here are a few reasons on when it becomes important to review your financial plan: Change in financial conditions: The first reason why you should review your financial plan regularly is to reflect any change in your financial conditions - be it internal or external. Sometimes you realise when you review that you have not progressed much towards your goals despite a considerable time having lapsed. This requires you to change your investment plan, and sometimes other goals as well - for instance, you can retire later than you initially planned, or settle

Its our Irony that some of the most educated and renowned people are in power currently and the Indian economy is bleeding like never before, thanks to the short-sighted desicions by the government. Were we prepared for another subsidy in the form of Food Security Bill or an 10% hike in the DA of the Central government Employees. Dealing with Fiscal Deficit at a very high tate it is just 5 months in this FY and we have already consumed the Fiscal Deficit limite we have banked upon and still 7 more months to go for this FY. C/A Deficit at its all time high. these two bills passed recently are just another nail in the Coffin it may be a Lucarative Carrot Factor Seeing Elections in the near future 6-7 months later, the government is determined to leave no stone unturned for coming back for another 5 years. Since its performace and the array of scams mounting will not make it a easy task, they have started throwing the carrots in the air for the "MANGO PEOPLE" who would be happ