Save your Money from Ponzi Schemes

“People often compare a Ponzi scheme to building a house of cards. It must collapse eventually. “

 Charles Ponzi was an early 20th century Italian immigrant to the United States. Ponzi invited people to invest in International Postal Reply Coupons. He promised extremely high returns. All he really did was take investors' money and deal out small payments to earlier investors. All told, Ponzi cheated his victims of $10 million

Money Management Process

The Savings Mantra - Start NOW! Save First! Save Regularly!

Start saving NOW: There is no better time to start saving (if you are not already saving) than NOW. ‘Time is Money’ and certainly so. The earlier you start saving and get into the habit of saving, the stronger your chances are to face uncertainties and the changing demands of life.

Save First: The surest way to save is to make ‘saving’ your first and most important expense. Set aside a portion of your income as soon as you get your paycheck.

Save Regularly: The commitment of saving regularly, month after month, would enable building a healthy savings from smaller incomes as well.

An up to date record keeping will enable you to:

1.   Track your money— income (where it comes from) and expenses (where it goes)

2.   Provide you an easy reference of your wealth—assets (savings, investment, insurance etc) and liabilities (credit card debt, home loan, educational/ vehicle loan).

3.   Organize financial activities like budgeting, saving/investment, tax-paying.

4.   Provide an evidence of a financial transaction—repayment of loan, depositing money in bank account, purchase of an asset, etc. This is especially important in case any discrepancy arises over it.

5.   Simplify the claim process in case of an emergency (insurance) or damaged good (warranty card).

6.  Provide evidence for your entitlement to an after-sales service or other benefits.

7.   Keep some faithful person informed about your financial transactions

Do not forget to do Wealth Succession Planning – Have a Will

“If you want to provide your best for your loved ones after you pass away, a will is a most necessary document.  if you need insurance, you also need a will.” Your Laziness should not cause  inconvenience to your loved ones.

we are too busy slogging and switching jobs for fatter pay cheques. We spend all of our time planning real estate purchases and creating wealth through stocks and gold. Isn't all of these efforts partly aimed at leaving behind a rich legacy for our loved ones ?

What is Will :

Power of Attorney - Safeguard your Money

'' Inasmuch as human being becomes busier, it becomes more necessary for him to depend on others for getting his things done. Owing to this reason, the power of attorney is now playing vital role.”

In the hands of someone trustworthy, a power of attorney can be an important tool to manage the finances of an elder who has become permanently or temporarily unable to handle financial affairs. But, in the hands of a financial predator or a greedy family member, a power of attorney can be used to secretly steal money and assets, readily bypassing the normal safeguards that are employed by financial institutions.

Common Money Mistakes

People are not SENSITIVE about the money they earn. They work for money but they don’t let the money work for them.

Mistake in Saving Bank Account

I was surprised to see that the people don’t care about the money. They work hard to earn it but they don’t work at all  (forget about hard work) to invest it.

I had seen the saving account of so many people,  they keep lakhs of rupees in their saving bank account !

They don’t know that the Saving bank give them only 4% rate of interest. If they do the Fixed deposit of the same amount in the same bank they will earn @ 8 to 9% rate of Interest. Even if we assume that the person has to give income tax (Assume maximum @ 30%) even then the Net earning will be 5.6 to 6.3 %  which is more than they are earning from their saving bank accounts.

Unknown Tips before Investment in Shares

Investing is serious business. You should take it seriously. After all market favour the intelligent.

Do’s

Invest in Knowledge:

Checklist Before Taking Home Loan

Loan Eligibility : If you are below 40 years just multiply your (and your spouse’s) yearly gross income by four and that should be a rough and ready amount of loan that you should be able to get. If you have some existing loans or some special requirements you can use the facilities of advanced calculators at various websites (www.apnapaisa.com) has one

Five free apps to help you in an unfamiliar city

Business travel has gotten more convenient and less stressful thanks to apps like these. 

       Link:  Five free apps to help you feel at home          

      

When not to Talk about money with your Partner ?

Don’t Talk About Money If You Are HALT

Don’t have important conversations under these conditions!

Solomon identifies 4 times that you shouldn’t talk about money. She refers to these four times as HALT. Any time your present situation is qualified by one or more of the following characteristics, it’s not a good time for your money talk:

1. Hunger
2. Anger
3. Loneliness
4. Tiredness

Smart Ways to Earn Smart Money

Work Freelance

he recession has driven more and more companies to look for contract and freelance work as an alternative to full-time positions. Farming out work to independent contractors makes sense for the bottom line because companies can pay for the work they need done, with decreased overhead expenses like benefits and setting up a physical office for each employee. In today's economy, nine in 10 companies use some amount of contract work [source: Koba]. If you have a marketable skill like graphic design, search engine optimization, Web design, public relations or writing, you can take advantage of those employers' cost cutting.