Category: Finance and money

Know your child’s money habits

As a parent, one realises the fact that each child is different even if they are siblings. They can have contrasting habits and personalities when it comes to their basic nature like eating habits, food preferences, toys and even the kind of friends they make while growing up. Understanding this, it becomes increasingly important to deal with them; teach them aspects of life-differently; even aspects of money matters. By nature, some kids are spendthrift and maynot value money enough. As a parent it becomes critical to explain them the value of money. My eleven year old daughter spent not...

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Know the Returns on your Money

While conducting a session for women during the International Women’s week at a corporate, I realized that most of us women are not sure what returns they should be looking for in investments. This is a basic fundamental of any investment which I would like all my readers to know and understand for sure. The ‘Rate of return’ is the return that we get from the investment plan. The Rate is specified by the product offering in terms of Interest earned/ dividend policy or by word of mouth in a product recommendation by an advisor. This figure can be...

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Off-Beat Careers – Look beyond the obvious!

Few decades back, a career meant becoming an engineer, a doctor, an IAS officer or a manager and for most women, it was the tried and trusted profession of lecturers and teachers. But not anymore! Times have changed. Now opportunities are galore – restaurateur, painter, writer, landscape designer, cake specialist, wedding planner, astrologer, photographer, radio jockey, chocolatier – you name it! Even in the regular professions, more and more people are taking the consultant or entrepreneur route so that they have more control over the quantity and quality of work they do. One factor that most of these off beat careers share is irregular income. So how does one cope with such a flow of income that is not steady – sometimes more, sometimes less and sometimes none? How does one provide for expenses which unfortunately may not match the irregularity of income and are incurred irrespective? Having been an entrepreneur myself, I have experienced this first hand and can tell you that only you can find the system that works best for you. Let me share the method I have experimented and used successfully and maybe that can be a basis for yours. First create a buffer for this profession, a few months before you quit a salaried/steady income job. This buffer should be equal to at least 2-3 months of estimated expenses. If your new profession is...

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Know your finances before you take a career break

Are there times when you wish you could take a break from your work life? Worried how things will pan out financially if you do! There comes a time in one’s professional life when you want to stop and take stock; sometimes this may be necessitated due to personal circumstances. You may wish to take a break to spend time with your teenage son, prepare and support your child for his board exams or have a baby and see it through the initial years. Or you may decide to pursue a degree, invest in alternate skills or just take...

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Union Budget 2014 -Highlights – What it means for us

Taxation: Income tax exemption limit has been raised from Rs 2 lakhs at present to Rs 2.5 lakhs.. For Senior Citizens, Income tax exemption limit has been raised from Rs 2.5 lakhs to Rs 3.0 lakhs: If your taxable income is below 2.5 Lakhs, you do not have to pay any taxes. And in case it is above Rs 2.5L, you will be saving taxes of Rs 5000 for income earned during 2014-15. Anyone above the  age of 60 yrs  is considered a senior citizen  for taxation purposes. Therefore the tax slab for them has moved up too. Investments: Deductions under Section 80C limit has been raised from Rs 1 lakh to Rs 1.5 lakh. PPF (Public Provident Fund)- annual PPF ceiling has been  enhanced from Rs 1 lakh to to Rs 1.5 lakhs: Women can now save Rs 50,000 more towards guaranteed return products whether it is investment in PPF, or insurance premiums or ELSS to name a few. Housing Loan Tax exemption on interest component of housing loan raised from Rs 1.5 lakhs  to Rs 2 lakhs In case you have a home loan on a self occupied property, where you were earlier claiming an exemption of Rs 1.5L on the interest component of the loan, you are now  allowed Rs 2 Lakhs. Small Saving Schemes: A special small saving scheme will be introduced encourage savings towards education & marriage of girl child Kisan Vikas Patra to...

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