Personal Finance Management Key Aspects

Personal Finance Management is all about managing expenses monthly or daily and saving a reasonable amount for the future. Every single person should do this management for healthy and quality living. To effectively organize your money for future needs, consider some of the significant components of your finances.

In this personal finance blog post, we are going to discuss five significant vital aspects of personal finance. So, read the post till the end to draw a better picture of your finances. 

 Components of Personal Finance

These are the five key components of personal finance:

• Insurance for emergency 
• Tax Planning 
• Expense Management 
• Savings are essential 
• Investment

Let's dig in deeper and study these major aspects thoroughly:

#1 Insurance for Emergency

One can do financial protection via insurance to get over hard times. But people don't appreciate this option. Many people don't believe in health insurance or basic insurance. Insurance is an essential element to sail you and your family from difficult times or events. These are the insurances which we all need, these are:

• Term Insurance 
• Property Insurance 
• Health Insurance 
• Personal Accidental Insurance etc.

#2 Tax Planning

Tax planning is another factor that needs to be considered, as some take it for granted. With the right approach, we can minimize our taxes. Pay attention to how much you are spending, over expenses, etc. To grow your money, you can put money in tax-advantaged investment accounts and reduce your unnecessary expenses. One can easily reduce taxable income via tax deductions and exceptions. The most popular sections related to it are Section 80C and Section 80D.

#3 Expense Management

We should track our expenses, whether day-to-day expenses or unforeseen ones. One can fix and keep aside some amount for these unexpected expenses. You can even create funds for vacation, travel, etc. By keeping a track record of all your expenses, you can maintain a decent balance in life. 

 #4 Savings are Essential

Saving is the left money after allocating money for our monthly or essential expenses. It is well said that no matter how small your income is, one must save some portion from it. Make it a habit, and it will benefit you in hard times or for long-term investments. Do savings, and in this way, you can build a safe and secure future.

#5 Investing

Many people think investing and saving are similar, but that's not correct. Saving and investing are different components. Investing is like getting money, i.e., stock, mutual funds, etc., to make your money increase. Investing is generating money from money. One of the best investing options is mutual funds. And some other options are fixed deposits, real estate, stocks, etc.

Final Verdict

To build a safe and robust future, all these aspects are must to consider. With these, one can draw a perfect picture of a financial future. Do personal finance now to make better plans and decisions for the future. A correct balance between expense, income, saving, and investment is necessary to optimize a person's financial management.

Credit Card Balance Transfer- Money Market Blog

When someone transfers a massive amount of payment from one credit card to another, then we call it a credit card balance transfer. In this case, a new credit card is necessary. It is because the bank will credit the amount to this new card account. People who want to transfer money at a low-interest rate can use this mode. They can get many advantages like some exciting rewards, cashback offers, and so on by using this method.

What do you mean by credit card balance transfer?

It implements a money transfer procedure from a credit card to another credit card of a different bank. The entire process doesn't consume so much time. However, you can't transfer money also if both the credit cards are of similar banks. It is an essential thing that you should remember.

You can see multiple credit card associations enticing money transfer fees to mislead customers. However, if you are a cardholder, you can get many promotional offers. The companies offer their customers a specific time about 6-18 months when they won't take any interest charge.

Benefits of Balance Transfer

Reduced Financial Strain – The interest rate of transfer money in the credit card balance transfer is significantly lower. The finance charge of credit cards is around 3.5% every month. But for the balance transfer, the interest rate becomes 1.8% per month. A few card providers are there who offer 0% interest rates. It is the most exciting offer that you can get.

Stabilize Credit Score – If the interest rate charged to you is significantly lower, then it becomes easier for you to make payments. As a result, you can maintain the credit card score also. Besides, you can pay the balance in proper time.

Interest-Free Period – You can get an interest-free period from the credit card providers. Therefore, it becomes beneficial for credit cardholders.

Other Benefits – Besides, the cardholders can get introductory offers from credit card providers. The offers they provide, such as interest-free periods, low-interest rates, and so on are exciting. It is the most attractive benefit that they offer to the cardholders.

Fees & Interest Rates on Credit Card Balance Transfer

Processing Fee - In the case of balance transfer money, you need to pay an extra fee. The range of these processing fees is between 1% and 3%. Apart from this, a few banks are also there who charge a flat fee. Interest Rate – Usually, the interest rate for a balance transfer is 0.75%. However, the interest rate of credit card balance transfer may be 0% also for a limited period.

Who can apply for Balance Transfer?

The credit card balance transfer is advantageous for people who want to transfer money at a low-interest rate. So, they must take assistance from balance transfer credit card. Using it, they don't need to give additional interest rates or processing charges.

But you need to remember that it is suitable when you can pay the entire money within a few months. If you see that it may take a year or more than that, then you must go for a personal loan.

How to apply for the Credit Card Balance Transfer?

Do you know how to transfer money with a credit card? A new credit card comes with a 0% interest on balance transfer. You need to check whether the interest rate is automatic or it relies on a credit score.

You can apply for it through Netbanking, contacting customer care, through SMS, etc. But for this, you should be a credit cardholder.

If you need a new credit card for money transfer, then you need to check a few things. Verify whether you fit with the eligibility criteria set by the specific bank or not. Here, you can know the necessary details related to it from a particular bank. Proof of identity, address, income source- are some essential documents. You may need these documents while applying for the credit card balance transfer.

Conclusion:

Credit card balance transfer is a method that helps you to send money easily with a low amount of interest rate. It doesn't change your credit card rating or credit score.

Frequently Asked Questions:

Q. What is a Zero Balance Card?

Zero balance card implements a credit card by which one credit cardholder can pay any balance owed in full. In this case, the cardholder doesn't need to add any extra charges.

Q. Should you use the secured credit card for your credit?

A secured credit card can act as collateral. This type of credit card is mainly used for a cash deposit.

Q. How can you get money by a balance transfer from the bank?

NEFT, cheques or demand draft are the processes that a bank uses for a balance transfer.

Q. How long does the balance transfer request take time?

At first, you need to check the card, whether it is new or not. If the credit card is not new, then it may consume up to one week. But if you have a new credit card, the balance transfer request may take up to one month.

Q. Which of these is beneficial– a balance transfer or a personal loan?

First, thou should think about whether you will be able to pay the amount within a few months or not. If you cannot pay the balance at the right time, then a personal loan is the best choice for you. Otherwise, if you can pay the amount within a few months, then you must choose credit card balance transfer. You should choose the personal loan instead of a balance transfer. You can do this if you see that the time may require one year or more than that to pay off the money.

Q. What to do if you have applied for a balance transfer on your credit card but haven't got any notification?

If you have faced such issues, then you need to contact customer care.

Q. Can a credit cardholder transfer money from one credit card to another of the similar bank?

No. One cannot transfer any money to a credit card account of the same bank. The credit card account must be of a different bank.

Money Market Blog: Personal budgeting Tips to Know!

When it comes to money management and getting things right the first time around, you have to know how to budget. You don’t need to be an accounting genius to do this. It’s just a simple case of knowing what comes in and what goes out. The latter is the tricky part. But all in all once you have budgeting down to the T, money management becomes so much easier. I don’t say you won’t have any problems but you’ll be well on your way to recovery. In this post we’ll be taking you through some personal budgeting tips. So without taking up much of your time, let’s begin!

Personal Budgeting Tips

First of all is Budgeting for you?

Heck Yeah! Big Companies don’t do them for nothing you know. If big companies have a budget drawn up they’re doing it for a reason. Budgeting tells you where you’re going to put the money after you receive it every month. Without knowing this you may spend it on all and sundry not knowing whether you’re left with something or are in the negative.

Besides this, budgeting is the first step in attaining your goals. Your goals could range from getting out of debt to retiring early to owning your own house. By taking care of what you earn you can have something leftover to help in meeting your goals.

The next advantage of budgeting is that it makes you feel good. Once you’ve planned on spending on something and you go to spend on it, you don’t feel the pinch. At the end of the process if you have something left, you think of it as extra cash. But don’t go spending it now! Save it.

Start with the Basics: 

The first in this list of personal budgeting tips is to start with the basics. This means take out all your expenditure and start justifying it. Well some are essentials there’s no doing away with them but what about others. During this process you’d notice that there are certain things you don’t really need spending on. This where the saving process begins. This is also known as a zero based budgeting. Ok enough of the lingo over here. Keeping it simple.

Get your Partner into the budgeting process: 

If you’re living with your spouse get them in on the budgeting process too. Sit down once a month preferably the beginning of it and note down all your combined expenses. This is one of the most important personal budgeting tips to know. You need to be on the same page when it comes to spending things and setting of goals. It makes no sense that one saves while the other spends like there’s no tomorrow.

Budget Month to Month: 

While some expenses occur every month like groceries there are others that you have to pay only at certain times like an insurance premium. This where month to month budgeting will come in handy.
The most important of all personal budgeting tips is to STICK TO THE PLAN! Happy budgeting!

Money Management Basics- Money Market Blog

Money- you can’t live without it and when you have it, there are problems too. If you’re one of those people where you live paycheck to paycheck and wonder how others don’t face the same, then this post is for you. In this post we’ll be covering money management basics. If you don’t want to be living hand to mouth then continue reading. The secret of many people doing well is not their higher paycheck necessarily but their money management skills. But it’s not only their skills that take them far it’s also a strict disciplinary approach that sets their affairs right too. But not to worry you don’t need to possess any hi- fi knowledge to be able to manage your money effectively. It’s actually quite simple. So without further ado let’s take a look at some money management basics.

Some Money Management Basics: 

Live according to your means:

The first and foremost thing to remember in money management basics is spend within your means. If you’re one of those people who spend all their earnings or are even left with a negative balance you aren’t far behind the majority of Americans. Hey it’s not me saying these things but a study conducted by FINRA Investor shows this.

Anyway, if you fall in this category, it’s not late to start living within your means. This means cutting unnecessary expenses.

Know what you Spend - Money Management Basics: 

This is kind of like budgeting. Budgeting is basically knowing what you have coming in and what you have going out.

When it comes to income, we pretty much have an idea on what comes in but we’re less sure of what goes out. You can check what goes out by looking at your monthly bills or bank statements.

After doing this break down your expenses into the following:

• Living expenses- this is what you have to pay each month like rent, insurance, car loans and other EMIs

• Essentials- these are things you have to spend to live such as electricity costs, gas, groceries etc. 
• Other expenses- these are basically your non- essentials

Pay your Bills on time: 

The next most important tip in effective money management basics is to pay all your bills on time. This is something that you will be able to do if you have a positive balance on hand. To get that positive balance you have to avoid all non- essential purchases.

If you don’t have the dough to pay your bills on time, then prioritize what you pay first. What you pay first is what costs the most. This means those loans that have a higher interest rate or those debts that you need to pay ASAP. You need to balance out higher costs with those that absolutely need paying.

Once you do this take steps in paying off your debt. Sure it will take time but in the end you would have paid off everything and may have something leftover which you can save.

In the end follow this course with a strict approach and hopefully in no time, all will be well!

Leverage Analysis – How to Fast-Track Your Financial Goals

Leverage – Well Though-Out Tool

Saving and capitalising for the later stage of one’s life is considered as a long-term objective which can be achieved steadily with scheduling and discipline. Leverage is a well thought-out tool which can magnify one’s capital using the right strategy. With it an individual has the capacity of enhancing the resources beyond his expectations with amazing results. In the present scenario, it gives excess to improved technology with the provision of wider networks, better insights followed by smarter system. Understanding leverage could –

• Fast-track an individual’s financial portfolio.

• Grow your wealth

• Improve your life-style

Leverage Analysis

Understanding the leverage analysis is a concept wherein one can overcome the limitations which could restrain an individual from his achievements of an improved life-style within a short period of time. However very few are aware of the concept of leverage. For instance, financial leverage could be related to mortgages in real estate or debt financing. It’s one type of leverage which could tend to be risky. However there are other categories of leverage which are beneficial in enhancing the financial portfolio without much risk.

 All one needs to do is to understand the concept of the system. Leverage is a tool that is utilised in making wise business plans which could be beneficial to those involved with their resources to override the hurdles. This would further prove to be effective on success in achieving great result with reduced personal struggle.

Leverage done accurately will enable in creation of job wealth growth and a better way of living. Tutors on success advice are available though many of them could be misleading and half-truths. Often through default these half-truths may tend to work well for some which could be regular and accepted as a fact. But the danger lies here when any half-truths is considered as a fact when essentially it is not, it will limit your capability of checking on improved options.

Financial Portfolio 

Planning for retirement is not about saving and maintaining a financial portfolio till one reaches the age of 65. One can enjoy a good retired life and be financially independent at any age. Distribution of asset across diversified portfolio of bonds, mutual funds and stocks may not be the only means of investing for later age.

Enhancing your portfolio is not about getting a promotion or a raise or working for extended hours. Trading time for money tend to control your revenue since it has a limit on the period of hours put in to achieve the results. One should know to segregate revenue from the working hour in order to ensure to earn more while putting in less hours of work.

Values of leverage will provide the insight to the various strategies in attaining success and the progress in reaching the goals to a strong financial holding.

Apply Leverage to your working system. 

One should always consider applying leverage in order to be successful. Without the principles of leverage in one’s wealth and business plan, it would mean that one is co-operating with time, effort of working and speed which is essential in attaining the level of success.

To understand the strategy of leverage is not complex. It can be implemented with ease and benefit from the consequences at a later stage of your life. The study of leverage will give you an understanding on how to break the series of living from one pay-check to another and start building your financial portfolio.

Leverage Enhances Wealth

Amassing of wealth could be from sources like personal capital and financial capital which tends to accumulate over a period of time. The benefits of utilising leverage enables an individual in segregating wealth growth from return on equity equation thus enabling him to draw a line between income and the hours of work.

Leverage is also enables you with the restrictions of predictable financial planning. This can be done by opening enhanced methods utilising the resources of others wherein the growth of one’s wealth is not restricted by your time, money, abilities and skills.

The additional capitals will enhance the wealth growth from return on equity limitation together with the income growth. Leverage tool can be utilised for enhancing your wealth growth. It is advantageous and beneficial in overcoming any roadblocks which may hinder the steady growth of success.

Risk/Profit

Moreover it is not risky since only financial leverage tends to increase risks as well as profit. Smart savers comprehend the balance between risk and the resulting earnings. They are aware of the characteristic risk with regards to property, business or shares. They have the understanding that in order to achieve success one needs to take a risk to gain profit.

Smart players need to have a confident mind-set in taking and reducing risk to enhance their profit. Leverage tool can totally change the concept of financial strategy enabling the individual to work smartly though not harder with amazing results in reaching and achieving goals in one’s financial life