Category: Personal Finance

From smart shopper to smart flyer – Claim you free ticket !!

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Travel hacking being such a fantastic topic to write, I was wondering is it possible to
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How to allocate income to equity – The Thumb rule

After few roller coaster weeks in life back to board!

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The first few set of questions I hear from new (and sometimes old too J ) investors are
          Where to Invest
          How  much to Invest and how to allocate
          How long to Invest
While two of them might have clear cut answers, Where to invest — in different asset classes – Equity, Real-estate, Bonds, Alternative investments etc. How long to Invest – Preferably long term at least with a horizon of 3 to5 years. Tricky question is how much to Invest and its allocation – There is an entire Industry (wealth
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Check before you buy :)

Sometimes your favorite websites might not be the bet when it comes to buying, For example other day I was looking to buy Thinking Fast and Slow (Paperback) by Daniel Kahneman . When it comes to books I only trust flipkart and normally would not check any other website and go buy stuff from there.

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Out of curiosity I landed on this Website www.indiabookstore.net and it saved me few bucks J
As you can see Home
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Are you keeping Too much in Saving Account ?

One day I was shocked when Frieda told me that she has INR 3.5 lacs in her savings bank account. My first reaction was Why are you losing money, she was bemused and said can you make sense ?

I replied “why you need so much money sitting in bank account and earning 3.5% p.a, while prices in India are increasing at 8-10 % every year” ( Yes I am talking about Inflation) So by parking your money at 3.5% your actually are on losing side.

So how much is enough ?
And what should I do with rest ?

Good Question but difficult to give one generic answer, it depends upon our comfort level. For me if I have next 15 days Expenditure in my bank account I am OK ( Being Risky guy and pretty sure that I won’t be fired from my current job 😀 ) But as thumb rule don’t keep more than 3 months expenditure in savings account if you have constant and predicable monthly cash flow. ( Your are salaried employed in plain terms)

Tricky one is other part What should I do with Extra balance, for Conservative and new Investors like Frieda its … Read the rest

Credit Cards – Easy Money!!

Pic Source: http://www.psdgraphics.com/file/credit-card.jpg

Credit card doesn’t figure on our list when we want to make money, Does it?

For some it is plastic convenience while others dread it, however smartly used. We can generate some extra money from it. A simple case will make things easy to Understand.

My Friend Freida (Not Pinto 😀 ) has monthly household grocery expense of Rs 10000.00 and she usually uses cash/debit card for purchases. The moment she swipes money is out from her bank account.

Can she be a smart shoppers (all women are :D)
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Yes,
Say if she has a credit card with Billing date of say 5th of every month and payment date … Read the rest