Learn How to create Wealth

 The gift of creating wealth:

To become really good at handling money and getting out of debt and getting on the road to becoming wealthy, read one or more of favorite financial books :

“I Will Teach You To Be Rich” by Ramit Sethi: This book is hugely popular with millennials and anyone who wants to learn more about personal finance without the boring parts. Sethi’s easy-to read and approachable style includes chapters like how to “Open high interest, low hassle accounts and negotiate like an Indian,” or “How to save hundreds per month (and still buy what you love.)”

“The Millionaire Next Door” by Thomas J. Stanley and William D. Danko: This book is a great guide to the habits that build wealth. Based on the principal that wealthy people didn’t become wealthy by acting that way, Stanley and Danko lay out the seven simple rules to follow to become wealthy.

It’s a must read for anyone just starting out and earning his first real paycheck because it teaches the basics of personal finance and helps the reader to develop good money habits right from the start.

“You’re So Money: Live Rich Even When You’re Not” by Farnoosh Torabi: Weaning off benevolent benefactors (parents, that’ you) and learning to live on an entry-level income, may come as a big shock to your grad’s preferred lifestyle. But if your graduate doesn’t learn to live within his means, especially when just starting out, he may quickly rack up even more debt on those new credit cards.

Torabi, a savvy financial reporter and 20-something herself, gives grads sensible advice to help them successfully adjust to their new disposable income level, and still enjoy some of the finer things in life.

“Why Didn’t They Teach Me This in School?: 99 Personal Money Management Principles to Live By” by Cary Siegal: The author originally wrote this book to pass on good money management skills to his five children. Since most high schools and colleges do not teach students even the basics of money management, this book features eight important lessons focusing on 99 principles that will quickly and memorably enhance any individual’s money management acumen. I like this book because it’s easy to understand and the principles are ready to use.

Atal Pension Yojana (APY)

Atal Pension Yojana (APY) 

1. Introduction

1.1 The Government of India is extremely concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS). To address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, who constitute 88% of the total labour force of 47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not have any formal pension provision, the Government had started the Swavalamban Scheme in 2010-11. However, coverage under Swavalamban Scheme is inadequate mainly due to lack of guaranteed pension benefits at the age of 60.

1.2 The Government announced the introduction of universal social security schemes in the Insurance and Pension sectors for all Indians, specially the poor and the under-privileged, in the Budget for the year 2015-16. Therefore, it has been announced that the Government will launch the Atal Pension Yojana (APY), which will provide a defined pension, depending on the contribution, and its period. The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA). Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more.  The benefit of fixed minimum pension would be guaranteed by the Government. The APY would be introduced from 1^st June, 2015.

2. Benefit of APY

Can Individual have two PPF Account ?

What if an Individual have two PPF Account in his/her name? 

An individual can open only one account in his name either in the post office or in the bank and he has to declare this in application form for opening the account. Persons having a PPF account in the bank cannot open another account in the post office and vice-versa. Only one account can be opened in one name. If two accounts are opened by the subscriber in his name by mistake, the second account will be treated as irregular account and will not carry any interest unless the two accounts are amalgamated with the approval of the Ministry of Finance (DEA). For this purpose the subscriber will have to write to the Under Secretary-NS Branch MOF (DEA), New Delhi-1 through the Accounts Office giving detail of each account. 

Who are allowed to Open PPF account on behalf of a minor

A Public Provident Fund account on behalf of a minor can be opened by either father or mother. Both the parents cannot open a separate account for the same minor. An individual may open one PPF account on behalf of each minor of whom he is the guardian. [MOF (DEA) letter No 7/34/88-NS II dated 17.11.1989] The grand father/mother cannot open a PPF account on behalf of their minor grand son/daughter when parents of the minor are alive. They can open the account if they are appointed as legal guardian after the death of the parents. Under the rules only father or mother can open a PPF account on behalf of minor son/daughter. If neither parent is alive or where the only living parent is incapable of acting, a person entitled under the law for the time being in force to have care of the property of minor can open a PPF account on behalf of the such a minor.

 [DG Posts letter No. 1-23/75-SB dated: 8.2. 1979] 

Best Personal Finance Journalists to Follow

Jean Chatzky

Because she came into the world of personal finance as a journalist, not as a financier, Jean Chatzky asked questions, got answers and gained firsthand her own expert sense of financial literacy that she now works to impart on others. One of personal finance’s most recognized faces on TV, the web and in print, Chatzy’s bibliography includes “Money 911,” “Make Money, Not Excuses” and “The Ten Commandments of Financial Happiness.”

Cameron Huddleston

Huddleston is a familiar face to Kiplinger readers, as the author of the site’s award-winning “Kip Tips” column — a daily tackling of new money problems or issues in a pragmatic, enlightened way. According to Huddleston, many Americans might not earn the financial success they want because of a lack of planning and literacy. Setting financial goals, she says, is the answer.

Universal Account Number (UAN)- EPFO

Frequently Asked Questions  For Members

Q.1 What is UAN?

A.1 UAN stands for Universal Account Number to be allotted by EPFO. The UAN will act as an umbrella for the multiple Member Ids allotted to an individual by different establishments. The idea is to link multiple Member Identification Numbers (Member Id) allotted to a single member under single Universal Account Number. This will help the member to view details of all the Member Identification Numbers (Member Id) linked to it. If a member is already allotted Universal Account Number (UAN) then he / she is required to provide the same on joining new establishment to enable the employer to in-turn mark the new allotted Member Identification Number (Member Id) to the already allotted Universal Identification Number (UAN).

Q.2 How do I get my UAN?

How to Change name of depositor in PPF Account

(1) When a depositor changes his name, e.g. on adoption or otherwise or in the case of female depositor, on marriage, the depositor should be required to intimate the fact in writing to the post office and produce the pass book of the account.

The intimation should bear the depositor’s signature with the old as well as with the new name, and the depositor should also be required to sign a fresh application form with the new name.

 The depositor’s signature as written with the old name on the intimation should be compared with the specimen on record. 

The depositor’s new name should be written clearly in red ink in the pass book and the ledger card above the entry of the old name which should be penned through in such a manner as to leave it still legible.

The corrections in the ledger card and the pass book should be supported by the entry “Vide depositor’s intimation dated _____” which should be initialed and dated by the Postmaster. The pass book should then be returned to the depositor.

The number of the account should be written at the top of the intimation which together with the old application card/form should be kept in a guard file.

 (2) In sub offices one specimen of the new signature should be taken. The intimation with the fresh application form should be forwarded to the head office entered in the list of documents. The new specimen signature obtained from the depositor should be pasted in the S.S. Book over the old specimen in such a manner as to allow inspection of the old specimen signature. Suitable corrections should also be made in the sub office ledger in the manner prescribed above. 

[Rule 72(1) of P.O.S.B. Manual Volume I] 

Note:- The above procedure applicable to P.O. Savings Accounts can also be applied to PPF accounts. The fresh application form in Form A and nomination form in Form E applicable to PPF accounts will be taken from the subscriber. Depositor will also required to submit all the documents related his Change of Name to Complete KYC Formalities. 

How to withdraw amount from PPF Account

(i) Anytime after the expiry of 5 years from the end of the financial year in which the initial subscription for Public Provident Fund (PPF) Account was made, the subscriber may withdraw 50% of the balance to his credit at the end of 4th year immediately preceding the year of withdrawal or the amount at the end of the preceding year whichever is lower. However, not more than one withdrawal is permitted in one financial year. 

(ii) A PPF subscriber may withdraw the entire amount standing to his credit, after the expiry of 15 years form the end of the financial year in which the initial subscription was made. He/She may, also, opt to continue with the scheme by subscribing for a further block of 5 

years by applying to the deposit offices in Form- H before the expiry of one year thereafter. 

(iii) A PPF subscriber may also avail of this facility for a further block of 5 years on the expiry of 20 years (or on expiry of 25 years and so on) from the end of the year in which the initial subscription was made. However, if a subscriber continues to deposit after 15 years without submitting Form H, he shall not be eligible to enjoy benefits under Section 80-C of I.T.Act. These deposits will be treated a irregular and will not earn interest.

(iv) During the extended period of 5 years, a PPF subscriber is eligible to make partial withdrawal not exceeding one in every financial year subject to the condition that total withdrawal during the 5 years shall not exceed 60% of the balance to his credit at the commencement of the period.

 (v) Even if the PPF subscriber does not wish to make any further subscription, the balance in his credit shall continue to earn interest

Best Finance And Budgeting Apps

Best Finance and Budgeting Apps

1. Acorns

The acorns in this mobile investment app are pieces of spare change that can sprout into fruitful finances. Use it to link your debit or credit card; Acorns will round each transaction you make up to the next dollar amount and deposit the change into your index fund of choice. Acorns will even automatically balance and manage your portfolio for you.

2. CNBC

Ignorance means being broke, not blissful, when you’re not informed of the latest business and financial news. Downloading the CNBC app on your smartphone (it has iOS and Android compatibility) means quick access to breaking finance info, streaming programming, interactive stock market watch lists and more.

3. Mint

The Mint app offers easy and convenient organization of your bank accounts, credit cards and other finances, emailing you when bills are upcoming or if you’re approaching your credit limit. The app also recognizes when you’ve transferred funds, closed an account or opened a new one.

4. RetailMeNot

Never pay full price for anything ever again with mobile access to thousands of searchable promo codes, discounts and coupons — you can also check out which deals are currently trending and bookmark your favored retail locations throughRetailMeNot.com.

5. Yahoo! Finance

Beat the market and feel like you’re standing on the Wall Street trading floor with Yahoo! Finance’s mobile app, which tracks, follows and updates your stocks to build your investing savvy. Build a list of your top picks, sync them up and follow minute-by-minute updates on the performance of your portfolio. Access to investment and trading news is just as quick.

6. LearnVest

iPhone and iPad owners who want a user-friendly personal finance mobile portal can download the app version of the popular LearnVest website. You’ll get the articles and content LearnVest is known for, but also interactive features like programs to organize and maximize your funds, track your assets, see your debt and net worth, and work toward savings goals.

Rate of Interest WEF 01.04.2015 on NSC, PPF, KVP, Sukanya Samriddhi A/c

Rate of Interest WEF 01.04.2015 on NSC, PPF, KVP, Sukanya Samriddhi A/c 

Government Announces Interest Rates for Various Small Savings Schemes; Rates to Come Into Force with Effect from Tomorrow

It was decided by the Government of India that interest rates on Small savings Schemes will be linked to yields on government securities of comparable maturity. In pursuance of that decision, the Government has decided to revise the rates applicable on various small savings schemes as given in the table below.

Scheme	Rate of interest w.e.f.01.04.2014	Rate of Interest w.e.f. 01.04.2015
1.	2.	3.
Savings Deposit	4.0	4.0
1 Year Time Deposit	8.4	8.4
2 Year Time Deposit	8.4	8.4
3 Year Time Deposit	8.4	8.4
5 Year Time Deposit	8.5	8.5
5 Year Recurring Deposit	8.4	8.4
5 Year SCSS	9.2	9.3
5 Year MIS	8.4	8.4
5 Year NSC	8.5	8.5
10 Year NSC	8.8	8.8
PPF	8.7	8.7
Kisan Vikas Patra	8.7	8.7
Sukanya Samriddhi Account Scheme	9.1	9.2

The above rates will be effective from tomorrow i.e. 1.4.2015.

Thus the rates on many of the small savings scheme have undergone an upwards revision vis-à-vis 2014-15.