Creating a family financial plan is within everybody’s reach, but manufacturing a successful one needs some certain methods. Here are some tips to help you to build a successful family budget. Continue reading
If you are ready to invest your money into business then you need to discuss this with your near and dear ones. You need to take every single step very carefully. The facet cannot be denied that there are several types of business in which you can invest your money. But you need to have proper idea about the business that you are going to start shortly. Continue reading
Public Provident Fund is commonly known as PPF and this account can be opened anytime during the year. This plan is taken up by those who are looking for a long term investment plan. You get a fixed income security that is government guaranteed with yearly subscriptions as little as Rs.500. PPF is known to be one of the safest investments in this nation. With a PPF account, you can actually earn interest on the interest earned on the money you have put in the account! PPF is more popular because not only is it a savings account but also a tax saving instrument.
The account for PPF can be opened by you in your name or on behalf of a minor for whom you are a guardian. You can open this account at designated post offices anywhere in the country; also the same can be done at branches of Public sector banks anywhere in the country. Deposits have to be made in this account in every financial year otherwise your account will be discontinued. However, you can activate the account again by payment of the minimum deposit of Rs.500 and the default Rs.50. You cannot close the PPF prematurely except in the case of death. Even your legal heir cannot continue the account. Prematurely withdrawing money is allowed after the 7th year to a limit of 50%. After that you can withdraw money every year. A rate of interest of 8% is compounded every year.
The tax deductions can be gotten under the section 80 C on the income tax act. The interest on the deposits made is totally tax free. The deposits are also exempt from wealth tax. Hence this account is very beneficial for small investors. There was a recent increase of the limit and an increase in the interest rates i.e. from the previous 8% to 8.6%. This has made the PPF account all the more popular. In fact with the increase in interest rates, the biggest beneficiary is PPF investors.
Also, you can now invest up to Rs.1 Lakh instead of the previous Rs.70, 000. Thus, you get an additional tax free interest of Rs.2, 580. The minimum deposit amount is Rs.500. Suppose you invest a total of Rs.1 Lakh every year, you can build a tax free total of about thirty one lakh over a period of 15 years. This, however, can take place only in case the interest rate does remain at 8.6%. Even if it does change, the corpus will still lie in the range of twenty nine lakh and thirty two lakh. You can also avail a deduction of income tax for Rs.30, 000 if you invest One Lakh Rupees and fall under the 30% tax bracket.
Your deposits to the account can be in lump sums or in installments. There can only be twelve installments in a year though. You can also transfer your PPF account from one branch of a bank to another branch or from one post office to another. Also keep in mind that an NRI cannot open a PPF account.
Whichever country you might belong to, and whichever be your field of profession, the news of global recession must have been shocking for you. The companies, in order to minimize the effects the chaotic situation would have on them adopted certain tendencies. Such tendencies are, reviewing the headcount, freezing the budget along with other se3veral cost reduction procedures. Continue reading
Consolidating credit card debts is probably one of the most important things that a cardholder should learn. Individuals aiming to improve their credit score to be able to avail better credit in the future, must start consolidating debts. Continue reading
Several incidents have been reported where certain unscrupulous debt management companies have usurped the money of their customers, instead of helping them clear their debts off. Such incidents make the trust of the people on debt management service providers vulnerable. Continue reading
Financial crisis occurs due to some very common reasons. We buy things beyond our financial capability. But, if we buy the thing according to our financial limitation then there would be no problem. The fact cannot be denied that we never pay attention in proper budgeting. To get a good budget we need to be very careful regarding some points. Continue reading
Everybody wants to lead a happy and hazard free life. But they fail to hold the proper way. It can create huge impact on your income. There is no doubt that in this way you would get depressed within very short period of time. You should know that you would have to pay up to the highest interest rate in case of credit card. You need to lead a disciplined life in order to get rid of debt free life. Continue reading
Investing in the share market is a craze amongst the investors. They are always tallying whether it is the right moment to purchase a share or what will be their profit is they sell off a certain amount of shares during a particular time. With the current dynamics of the global economy, people have been led to a popular belief that this is the right time to make investments on shares. Continue reading
One must not keep enjoying the satisfaction of his current settled life and start planning for the future while there is still time in hand. For many the stress of retirement is too much to bear. Especially after have enjoyed the youth with no financial stress whatsoever, as one is not entitled to any kind of income at the month end. Continue reading