According to a rough estimate, India has approx 60 Mn Housewives. The surveys suggest that there is a very little financial awareness among housewives of the society. Thanks to male-dominated Indian society. In India, financial planning is linked to the breadwinner of the family. Logically, there is nothing wrong in it from a financial perspective. It's a misconception that Financial Planning is always linked to Investment. To financially secure a future and financial planning are different from each other. In past, there was a proposal floated to include the contribution of housewives to the ... Read More
Financial Distress – 5 Early Signs
Financial Distress, In layman terms, is the situation in which an individual may find it difficult to manage his/her personal finances. Financial Distress is not necessary linked only to borrowers. Even a debt free person can be in a Financial Distress. Another way to explain is when your expenses exceed your income then it implies that you are in a Financial Distress. Here expenses mean monthly outflow. It is an undesirable situation for any individual or a family. In my opinion, Financial Distress is not sudden phenomena. It gives timely and necessary warning in advance to fix the financial ... Read More
Insurance – Top 7 Excuses
Insurance Penetration in India is one of the least in the world. Through my blog, i try to create awareness about the importance of Insurance products. Insurance is not a compulsion but the necessity. One of the key reason for low penetration is the lack of knowledge about the importance of Insurance. It is one of my favorite topic in personal finance space. A good financial planning fails if the person is not insured. Therefore, experts recommend that Insurance should be an integral part of Financial Planning. Let me share an example of Person A. He died in an accident and his wife wrote to ... Read More
Critical Illness Plan – Do i need it?
"A Critical Illness Plan is must for you," last week my Relationship Manager told me. It covers 20 Life-Threatening Diseases, She further added. It put me in a fix whether to buy a Critical Illness plan or not. As i mentioned in my previous posts on insurance that insurance can only be sold through FEAR factor. I agree that term insurance plan and health insurance plan are MUST HAVE. Once my relationship manager knew that i already have these two plans, she started pitching me other riders/plans. Personal Accident Cover and Critical Illness plan are two plans that can be easily marketed. Once ... Read More
7 Changes from Current Financial Year
This is my first post of current Financial Year :). I never celebrate New Year but being in a Personal Finance space, Financial Year is the New Beginning. Many readers asked me why i have not shared my inputs on Budget 2015. There was a mad race in the financial world to interpret the budget. I thought of sharing my views at the right time. In this economically liberalized era, the impact of a budget is negligible. Most of the provisions of the budget are Pro-Poor and Pro Farmer. The Budget does not make a much financial impact on the lives of a middle class & rich due to economic ... Read More
How to Spend your Annual Performance Bonus?
Yesterday night we invited one of our family friends for dinner. Quite surprisingly, dinner ended up with fight between husband and wife. The bone of contention between husband and wife was "How to Spend their Annual Performance Bonus?". Best part is that Bonus is yet to be paid. Husband will receive Bonus with March's salary and wife will receive in April's salary. Wife would like to buy Diamond Set and plan holidays abroad both costing 4.5 lakh. She told husband to save rest. Please note that total bonus payout is 5 lakh :). I was avoiding interference in their personal matter but then i ... Read More