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<p class="credit_i_p">Even seasoned investors sometimes have trouble deciding where to put their money: in Savings or in Investing. The thing is that these two fulfil different functions and fulfil different needs. For instance, if you want to grow your wealth, investing may seem like the better option. And if you want to save your money, going for a Savings account is certainly your best bet.</p>

<h3 class="credit_i_h3">Why people get confused</h3>

<p class="credit_i_p">Basically, it is all easy to understand, and yet many people still get confused. One of the reasons for this is that either way, people are parting with their money, even if for a short time. This makes many people indecisive, something which is important especially if you want to go down the Investing path.</p>

<p class="credit_i_p">These are the common questions people have about Savings and Investments.&nbsp;</p>

<p class="credit_i_p">What is investment?</p>

<p class="credit_i_p">What is savings?</p>

<p class="credit_i_p">Where should one invest?&nbsp;</p>

<p class="credit_i_p">Where should one save?&nbsp;</p>

<p class="credit_i_p">The problem is that there is no one answer for everyone. It all depends on your individual needs and financial plans for the future.</p>

<p class="credit_i_p">In this article, we shall be giving you a basic know-how of both savings and investments, what their differences and benefits are, and how you can use them.</p>

<p class="credit_i_p">First, let us learn about Savings.</p>

<h3 class="credit_i_h3">What is Savings?</h3>

<p class="credit_i_p">Basically, saving is not spending your money, or rather the money you do not have any desire to spend. Now, this has many benefits. For instance, if you have saved enough, you will be able to deal with healthcare and other situational crises better than those who don’t save. Saving can also enable you to splurge now and then. While you may not be able to buy a car with just your savings, you may be able to splurge on pretty big purchases from time to time.</p>

<p class="credit_i_p"><img alt="Investments can be for the short-term as well as for the long-term." src="https://mmk-s3-cms.s3.us-west-2.amazonaws.com/1616131551236.jpeg" class="img-responsive credit_i_img"></p>

<h3 class="credit_i_h3">What is Investing?</h3>

<p class="credit_i_p">Investing refers to the processing of earning money or building wealth through buying assets. This can be for the short-term as well as for the long-term. Investing is far more risky than saving money yourself, but the rewards are greater as well. There is always risk when you are investing, but know that the best investment instruments come with a certain safety margin, generally as assets. The best options for investment are stocks, real estate, bonds, mutual funds, and others.</p>

<h3 class="credit_i_h3">Benefits of investing</h3>

<p class="credit_i_p">There are several benefits in Investing, despite its obvious risks. And look, even saving has some risks, although such risks are different. For instance, you may believe what you have saved up is enough, but during moments of need you may find your savings is not enough at all. Now, let us see the benefit of investing.</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Your money creates money: </strong>When you invest your money, the same money earns you even more money! Isn’t that magical? This happens due to the increase in price or value of stocks, mutual funds or other instruments you own. Thus, you earn a profit when an instrument you own can be sold at a higher price than what you bought it for.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">You save tax:</strong> When you invest for the long haul, you save on taxes.&nbsp;</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">You benefit with compound interest: </strong>Compounding is said to be one of the wonders of the modern world. Rightly so, because it allows your invested money to keep growing in mathematical progression. This gives you a big profit over time. Compounding creates wealth for you, and doubles it in much less time.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">You stay ahead of your personal finance yardsticks:</strong> If you are new to investing, it shall allow you to buy things others cannot. Besides, your investments work as a safety net during unforeseen emergencies.</p>
	</li>
</ol>

<h2 class="credit_i_h2">The Real Difference between Savings &amp; Investment</h2>

<p class="credit_i_p">Saving only preserves your money, but there is no growth to that. Investment makes your money grow over time. Thus, your money works for you, and that is a huge benefit! Yes, there is little risk in Savings and there is considerable risk in Investment, but it all matters what your financial goals and plans are and what your risk tolerance level is. Investing gives you higher returns over time, which savings does not. Savings is for a shorter time while investment is for a longer period of time.</p>

<p class="credit_i_p">&nbsp;</p>

Savings vs investing is a debate that rages daily in the area of personal finance. Should you risk occasional losses for higher returns, or accumulate savings slowly? mymoneykarma provides clarity on the subject.

How To Save or Invest Money - Savings or Investing?

<p class="credit_i_p">Contrary to savings accounts, a Current account is primarily used not to save and grow your money. It is used to preserve an amount of money which you will be using soon over a period of time.</p>

<p class="credit_i_p">A current account is ideal if you have plans to make large transactions regularly. These do not come with a huge interest rate either, which means your money there won’t grow so much.</p>

<p class="credit_i_p">Yes, there is a modicum of interest rate, yet the primary function is to enable you to access your money whenever you want to. A savings account won’t give you this benefit. It is for this reason all merchants, traders, etc. have at least one Current Account.</p>

<h3 class="credit_i_h3">What are the types of current accounts?</h3>

<p class="credit_i_p">You can get different kinds of current accounts from banks according to your requirements. You should pick one which is best suited for your needs. For instance, for the transactions you want to carry out, some types of current accounts are more suited than the rest. Below you'll see the various types. However, before you run off to a bank to start one of them, know that these accounts can differ from one bank to the next.&nbsp;</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Standard current accounts: </strong>In this type of current account you need to maintain a minimum monthly average balance. It gives no interest on your deposit by giving you various facilities like debit cards, cheque books, overdraft and more.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Basic current accounts:</strong> If one has a low wage or salary, or if one is young, this type of current account is ideal. It helps them to manage their money with ease, although there are some daily cash withdrawal restrictions.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Premium current accounts: </strong>Just like the name says, this type of account offers various exclusive benefits and offers. If you routinely carry out large transactions, this is the type of account you may want.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Packaged current accounts:</strong> It offers a range of perks and benefits, along with exclusive features like travel insurance, medical support, and more.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Foreign currency accounts:</strong> This is ideal for NRIs and for those who wish to carry out foreign currency transactions frequently.&nbsp;</p>
	</li>
</ol>

<h3 class="credit_i_h3">What are the features and benefits of current accounts?</h3>

<p class="credit_i_p">Current accounts are beneficial for all, but especially for traders, businessmen and professionals. Here are all the various benefits and pros of a current account.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">Current accounts are there to facilitate frequent transactions especially<br>
	<img alt="The main purpose of a current account is to facilitate frequent transactions." src="https://mmk-s3-cms.s3.us-west-2.amazonaws.com/1616131460791.jpeg" class="img-responsive credit_i_img"></p>
	</li>
	<li>
	<p class="credit_i_p">Customers can be individuals, both private and public companies, associations, proprietors, trusts, and others.</p>
	</li>
	<li>
	<p class="credit_i_p">It is similar to a savings accounts and you need to follow KYC guidelines here as well</p>
	</li>
	<li>
	<p class="credit_i_p">There is no maximum ceiling for the number of daily transaction</p>
	</li>
	<li>
	<p class="credit_i_p">There is no limit for the amount you can keep at the home branch</p>
	</li>
	<li>
	<p class="credit_i_p">Current accounts makes it easier for business transactions to be made through a variety of means like DD, cheques and pay orders.</p>
	</li>
</ul>

<h3 class="credit_i_h3">Who can open a Current account?</h3>

<p class="credit_i_p">People who can open this type of account can be:&nbsp;</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">Individuals</p>
	</li>
	<li>
	<p class="credit_i_p">Sole proprietors</p>
	</li>
	<li>
	<p class="credit_i_p">Limited companies</p>
	</li>
	<li>
	<p class="credit_i_p">Trusts</p>
	</li>
	<li>
	<p class="credit_i_p">Clubs, societies and Associates</p>
	</li>
	<li>
	<p class="credit_i_p">Partnership firms</p>
	</li>
	<li>
	<p class="credit_i_p">Hindu Undivided Families</p>
	</li>
	<li>
	<p class="credit_i_p">Administrators, executors and liquidators</p>
	</li>
</ul>

<h3 class="credit_i_h3">How can you open a current account?</h3>

<p class="credit_i_p">There are two ways to do this. One is by visiting the nearest bank and filling up the application documents. The other way is to apply online.</p>

<h3 class="credit_i_h3">What are the documents you’ll need to open a current account?</h3>

<p class="credit_i_p">The documents you’ll need are:</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">PAN card</p>
	</li>
	<li>
	<p class="credit_i_p">Certificate of Incorporation, AOA and MOA in case of companies</p>
	</li>
	<li>
	<p class="credit_i_p">Partnership deed in case of a partnership firm</p>
	</li>
	<li>
	<p class="credit_i_p">Firm’s address</p>
	</li>
	<li>
	<p class="credit_i_p">Certificate of sales tax in case of a proprietorship firm</p>
	</li>
	<li>
	<p class="credit_i_p">ID proof and address proof</p>
	</li>
	<li>
	<p class="credit_i_p">Cheque for the opening of the bank account</p>
	</li>
	<li>
	<p class="credit_i_p">One’s photo</p>
	</li>
</ul>

<h3 class="credit_i_h3">How to pick the best current account for yourself?</h3>

<p class="credit_i_p">When choosing, pay attention to these criteria.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">The minimum balanced you need to keep</p>
	</li>
	<li>
	<p class="credit_i_p">Fees, costs and charges</p>
	</li>
	<li>
	<p class="credit_i_p">The required cash deposit limit</p>
	</li>
</ul>

<p class="credit_i_p">&nbsp;</p>

Current accounts are quite different from savings accounts, as in they manage more cash flow rather than idle deposits. But what are its other features and benefits? mymoneykarma explains current accounts.

Current Account - Features of Current Account

<p class="credit_i_p">Recently, the Indian Government announced a rise or hike in fuel and <a href="https://www.mymoneykarma.com/gas/indane-gas-new-connection-Price.html" target="_blank">gas prices</a> across India. This has understandably upset people from all over the country. A hike on fuel price means that the price of essential commodities shall increase as well.</p>

<p class="credit_i_p">Now, you can’t bring down fuel prices, but you can control your own fuel spends, and thus bring down your own expenses. If you have a vehicle, you certainly want to know how you can slash down your own fuel costs. This is what we shall cover in this article.&nbsp;</p>

<p class="credit_i_p">India might be the world’s 4th biggest consumer of energy but has a low per capita energy consumption. Each year, more and more people are buying private vehicles, which leads to an overall hike in petrol and petroleum prices. Just in the year 2017-2018, there was a huge 5.31% hike in their prices. To meet increasing demand, the Indian government back then had to import more fuel than before. Did you know that 80% to 90% of the country’s income goes for the purchases of or meeting the bills of various petroleum products?</p>

<p class="credit_i_p">Now, all that was background information. What can you do to bring your own fuel costs down?</p>

<h3 class="credit_i_h3">10 things you can start doing today to slash your fuel costs</h3>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Shake up your driving habits:</strong> Perhaps you already know that when you drive smoothly and press on brakes gently, you lose less fuel. Likewise, you lose more fuel when you are in the habit of driving fast and slamming on brakes. Driving on wrong gears gives you this same problem.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Service your car: </strong>A serviced car consumes less fuel. Generally, cars require servicing per 10000 to 15000 km once a year. Thus, if your car is well-maintained, you end up saving petrol! This even reduces your car’s getting wear and tear.<br>
	<img alt="If your vehicle is well-maintained, you can end up saving quite a bit on fuel." src="https://mmk-s3-cms.s3.us-west-2.amazonaws.com/1616130495143.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img"></p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Change your filters: </strong>If you periodically change your vehicle’s filters, you can be rest assured that it shall be using precious fuel more carefully. Apart from changing these regularly, you should also change these if the car has been driven over a dusty or sandy area.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Don’t give it too much load:</strong> The more load your car has to carry, the more it will be compensating with an increased fuel consumption. Thus, whenever you can, don’t let it carry too much weight.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Check tire pressure frequently: </strong>Did you know that a fall of tire pressure, even by a small amount, can lead your vehicle to mess up its mileage. To save on fuel, you should ensure that its tires have adequate pressure.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Don’t use the AC so often:</strong> Each time you turn on your car’s AC, you end up consuming more fuel. Of course, you may need your vehicle’s AC during summer and all that, but when you do not, do consider turning it off. It’ll save a lot of fuel.</p>
	</li>
	<li>
	<p class="credit_i_p">&nbsp;<strong class="credit_b1056">Stop when the red light tells you to: </strong>When you’re at a traffic signal red light, you’ll see many cars still running their engines while waiting for the green signal. Don’t be like them. They’ll consume more fuel, but not you. Just turn off your car at red lights.&nbsp;</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Use Google Maps more often:</strong> When you don’t know the route to your destination, you end up taking more detours and ‘shortcuts’. And as usual, you exhaust more fuel than necessary. So why not use Google Maps during the journeys? It’ll take you to your destination faster and save you fuel money!</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Don’t travel during rush hour:</strong> Let’s face it. If you dare to travel during your car, you will be caught in several travel jams. If you can, try to travel when the traffic is light.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Get a</strong> <a href="https://www.mymoneykarma.com/credit-cards/index.html/save-money-fuel-credit-card.html" target="_blank">fuel Credit Card</a>: If your main goal is to save fuel, you should absolutely get one of these! These give you free fuel. It’s true. You can use its points for free fuel.</p>
	</li>
</ol>

<p class="credit_i_p">Hopefully, these tips shall help you save on fuel money for a long time to come!</p>

<p class="credit_i_p">&nbsp;</p>

The fuel price may keep on rising, but there are still ways you can reduce spending on it. mymoneykarma guides you on how to reduce fuel expenditure.

10 Things You Can Start Doing Today to Slash Your Fuel Costs

<p class="credit_i_p">The finance minister Nirmala Sitharaman just presented her once in a lifetime Budget on February 1. The&nbsp;Union Budget&nbsp;takes care of the country’s finances and make sure that all segments are considered. These include health, education, financial markets, infrastructure, employment, corporates and so much more. Now, the Budget focuses on more macro matters, but we can learn from the announcements made and make changes in our money matters. From this year Budget, here are 5&nbsp;personal finance&nbsp;lessons&nbsp;savers&nbsp;and&nbsp;investors&nbsp;can learn.</p>

<h3 class="credit_i_h3">Make health your priority</h3>

<p class="credit_i_p">Health and wellness were given precedence in this year’s Budget. With the pandemic putting huge pressure on existing healthcare infrastructure and claiming thousands of lives, the need for boosting spending on health facilities was paramount. Experts say investors too need to accord priority to health before anything else. Your savings wont last long if you are unable to keep fit and are constantly fending off illnesses.</p>

<p class="credit_i_p">“Ensuring body wellness can save a lot of money that goes towards doctor consultations and medical bills,” insists Rohit Shah, CEO, Getting You Rich. Apart from keeping yourself physically fit, it may be a good idea to go for preventive diagnostics tests regularly. Nowadays, comprehensive tests are available that can flag off any issues that may not yet have surfaced. Besides, adequate health insurance cover should be taken.</p>

<p class="credit_i_p">If you have been putting it off till now, it is time you bought a comprehensive cover for yourself and family members. The pandemic has shown that a low cover may not suffice in times of need. A health cover of at least Rs 10 lakh is a must.</p>

<h3 class="credit_i_h3">Don’t borrow your way out of trouble</h3>

<p class="credit_i_p">The government has been hailed for stepping out of its comfort zone and splashing the cash to get the economy back on the growth path. The Budget has ramped up spending like never before. The government will borrow heavily to finance this largesse. But while this is a much-needed booster shot for the economy, taking a similar approach in your personal finances is not advisable. Hemant Rustagi, CEO, Wiseinvest Advisors, says, “This philosophy works for the economy because the government is spending to create assets to spur growth, not for consumption purposes.”</p>

<p class="credit_i_p">Many borrow willy-nilly to stave off a financial crisis. This usually leads to a bigger debt trap. Rather than take on a heavy loan burden, identify investments that can be monetised. The government has shown the way to fund large deficits through disinvestments. “When facing a cash crunch, take a leaf out of the government’s book and try to monetise existing assets,” suggests Shah. Do not get into the habit of revolving credit on credit cards. Whenever possible, pay off accumulated balance in full and bring down your card utilisation.</p>

<h3 class="credit_i_h3">Be fluid in your savings approach</h3>

<p class="credit_i_p">Budget 2021&nbsp;also represents a change in government thinking on key policy matters, necessitated by economic compulsions. By presenting a counter-cyclical fiscal policy and making bold moves towards privatization, among other steps, the government has shown willingness to adapt to circumstances. Investors should also maintain a degree of fluidity in their approach to investments. “It is time investors start looking beyond traditional investment avenues with interest rates at all-time lows,” argues Rustagi.</p>

<p class="credit_i_p"><img src="https://lh3.googleusercontent.com/PqH_he1_oC8OUdeQtfijzWYzyJ2Yena0HyERy1RMFy_ufKrGLnaccjVomh-WPoQOQ10hx2Q_pIIbgSSoDo7YQdbS7evUwnXn4owAt2Z2_2pHhzYSw9A05YRY9ZblbA" style="height:401px; width:602px" class="img-responsive credit_i_img"></p>

<p class="credit_i_p">As personal circumstances change, by ready to recalibrate existing financial plans and goals. For instance, certain life events like a job loss or prolonged illness may require you to go back to the drawing board. Certain goals may have to be refined or even pushed behind indefinitely. At other times, like the birth of a second child, you may have to scale up investing outgo considerably. Household budgets may need to be reworked accordingly.</p>

<h3 class="credit_i_h3">Think of the long-term picture</h3>

<p class="credit_i_p">A key focus area for the Budget was infrastructure-related spending. A sustained push towards building new roads, bridges, railways, ports and airports will have multiplier effects on the economy over the long term. This long-term perspective should be a cornerstone for any investor’s portfolio, insists Rustagi. “Always keep focus on the longer term picture even if it means making sacrifices today.”</p>

<p class="credit_i_p">Refrain from seeking immediate rewards or quick gains by hunting for high-return investments. Link investments to well-defined goals. Maintain savings discipline regardless of near-term market swings to chip away at your long-term financial goals little by little. Give reasonable time for equity-related investments to work.</p>

<h3 class="credit_i_h3">Don’t invest with an eye on&nbsp;tax&nbsp;alone</h3>

<p class="credit_i_p">The Budget sprung a surprise by taking away some tax-free havens enjoyed by high earning individuals. By scrapping the tax-free status on maturity proceeds for certain high value Ulips and interest income from EPF contributions, the Budget has plugged the tax benefits relied upon by a few. This holds an important lesson for everyone – investing solely with an eye on taxes is a bad idea.</p>

<p class="credit_i_p">Not only can a change in tax regime leave you staring at a large liability later, it could also trap you into bad investments. Unfortunately, Indian savers are often guided by tax considerations in investing decisions. Don’t stash money away in low return, poor quality assets just to save tax. Check whether it suits your risk profile and if it fits into your overall asset allocation.</p>

The Union Budget of 2021 has brought about quite a lot of changes in the prospects of many fields. What has it taught us about personal finance? Here are 5 personal finance lessons from budget 2021.

Top 5 Personal Finance Lessons from Budget 2021

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Want to know how to bolster your savings or disaster-proof your investments? These Personal Finance articles are here to give you all the necessary knowledge and skills on Personal Money Management.

Personal Money Management - optimize your Personal Finance and Savings

<p class="credit_i_p">I was on an adventure-packed backpackers' trip to Europe a few years ago. Quite a noob to <a href="https://www.mymoneykarma.com/credit-cards/index.html/credit-cards-basics.html" target="_blank">the concept of credit cards</a>, all I had taken along were two debit cards and cash. The trip was exhilarating until one day, in Holland, I became the victim of a pickpocket.</p>

<p class="credit_i_p">My wallet was gone, along with one debit card and all the Euro I had. I was shaken by the horrific experience that followed. I don't speak Dutch, and those Dutch guys hardly knew much English. Communication barrier made it very difficult for me to seek help and support. My trip almost got derailed!</p>

<p class="credit_i_p">Thanks to my other debit card, I managed to make it back to India, safe and sound. However, the dreadful incident taught me a good lesson, and I am here to share with you what I learned.</p>

<h2 class="credit_i_h2">Potential Dangers of Losing a Card</h2>

<p class="credit_i_p">Losing a card doesn't necessarily indicate the physical loss or theft of a card; your card's sensitive data and information could be stolen, which is much more severe than just losing the physical card. Your credit and debit cards are your primary sources of funds during travel.</p>

<p class="credit_i_p">No one is naive enough to <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/travel-tips.html" target="_blank">carry a thick wad of cash while traveling</a>. If you lose your cards, you will be stuck in an alien land with a lot of difficulties. Apart from the inconvenience, you would also be at risk of <a href="https://www.mymoneykarma.com/credit-cards/index.html/protect-from-credit-card-fraud.html" target="_blank">financial fraud</a>.</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Cash flow:</strong></p>

	<p class="credit_i_p">When you lose a debit card, your hard-earned money is in jeopardy. If thieves steal your debit card and empty your account, you will have a tough time managing your expenses and <a href="https://www.mymoneykarma.com/credit-cards/index.html/pay-off-credit-card-debt.html" target="_blank">paying your bills</a>. However, a false play with credit cards just increases a hypothetical credit balance which doesn't drain your pocket.<img alt="Losing a Credit or Debit Card Abroad" src="../../../images/new/travel/losing-a-credit-or-debit-card-abroad.jpeg" class="img-responsive credit_i_img"></p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Fraud:</strong></p>

	<p class="credit_i_p">Financial fraud&nbsp;are rampant and tourists are the easiest victims. If you lose a credit card, and it is used to commit financial fraud, you don't lose much. As per RBI's guidelines in 2017, if the bank is in any way responsible for the fraud, you have zero liability.<br>
	On the other hand, if your own negligence results in the fraud, you would have to bear the entire loss until you report the unauthorized transaction to the bank. The bank shall bear the liability of any illegal transaction that occurs after you have reported the issue.<br>
	Fraud committed through lost debit cards, however, put you in a vulnerable position, as the fraud protection policies for lost or stolen debit cards are quite weak. The bank might not cover the fraudulent charges, and the lost amount might never be reversed.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Resolution:</strong></p>

	<p class="credit_i_p">The banks take a lot of time to resolve issues pertaining to a lost or stolen debit card. They have time up to ten days to investigate your claim and it might take even longer to replace the funds in your account. If the account concerned contained all your savings, then you would have to manage without money for a long time.<br>
	Such a situation would severely affect your finances. If you complain about a lost or stolen credit card, the bank's money is at stake and hence they will act immediately to resolve the issue. You need not bother a lot as you will not face much hassle.<br>
	We know that credit cards are not only safer than debit cards but also a better choice for daily spending. Losing a credit card is easier to deal with than losing a debit card. However, the most important fact is that you stay so cautious that you don't lose either. You must be prepared to face an emergency. Consider getting <a href="https://www.mymoneykarma.com/insurance/index.html/reasons-to-buy-travel-insurance.html" target="_blank">travel insurance</a>, just in case.</p>
	</li>
</ol>

<h2 class="credit_i_h2">Steps to Take If You Lose Your Cards Abroad</h2>

<p class="credit_i_p">Whether you lose your cards, someone steals them, or they get stuck in a faulty ATM - the hassles are endless. It can be extremely inconvenient, but you can quickly redress the issue when you are in your homeland. If such incidents happen in a foreign country, especially if you do not know the local language, you are in serious trouble!</p>

<p class="credit_i_p">Before you move out of your comfort zone (which, in this case, is your country), you need to know <a href="https://www.mymoneykarma.com/travel-lifestyle/credit-card-tips-overseas-travel.html" target="_blank">what steps you should take</a> and whom to approach if you are in such a crisis.</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Get the Right Mix</strong></p>

	<p class="credit_i_p">Before you take off, fill your wallet with debit cards, credit cards, <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/forex-travel-card.html" target="_blank">prepaid forex cards</a> as well as currency notes of the destination country. Your primary mode of expenditure should be through prepaid forex cards and credit cards. These cards are safe and have good anti-fraud features. Refrain from using your debit cards and try to keep them as backup options. They are unsafe as they are the keys to all your savings; and if they fall into the wrong hands, all your money will be gone.</p>

	<p class="credit_i_p">As you pack for your trip, you should split up the cards and cash amidst your baggage. Even if&nbsp;you lose your wallet, you won't lose all your financial sources at once.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Hotlist the Lost Card</strong></p>

	<p class="credit_i_p">If you misplace or lose your credit or debit card, you need to hotlist the lost card immediately. The best way to do this would be to call your bank's customer care helpline and request them to block your card. You need to be ready with all necessary information pertaining to your credit or debit card account for verification purposes. Once your card is successfully hotlisted, you can rest assured that nobody can misuse it.<br>
	The banks that operate in large-scale have dedicated helplines for credit or debit card related issues, whereas smaller banks have a general helpline number. You can call in either during an emergency and seek support. You should know the numbers that you must reach out to.<br>
	However, when you are traveling overseas, the default helpline numbers might not work. Quite a few banks have specific phone numbers for international calls. Knowing those numbers would be an added advantage as you can quickly call and take action. Once you report the loss to your bank, follow the bank's instruction on the steps you need to take next.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Apply for a Duplicate</strong></p>

	<p class="credit_i_p">The follow-up action would be to apply for a duplicate card. Some banks make life easier for us by facilitating the application online, whereas some banks might ask you to visit the branch in person to submit an application.</p>

	<p class="credit_i_p">Most private banks have branches or overseas offices in various countries. You could locate them through their website and visit them to seek further help. Some banks might be able to provide a duplicate card right away or by an overnight courier. However, do not expect smaller banks to be so proactive, and also know that such services might be quite expensive.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Use Backup</strong></p>

	<p class="credit_i_p">You should never step out of your country with just one card in your wallet. It is imperative that you have <a href="https://www.mymoneykarma.com/credit-cards/index.html/multiple-credit-cards.html" target="_blank">multiple cards</a> - preferably a mix of different card networks. If you lose one card or a card doesn't work due to some technical glitch, you must have something else to rely on.</p>

	<p class="credit_i_p">Backup doesn't necessarily mean that you should carry as many cards as possible. When I was robbed and stuck in Holland, my other debit card was barely useful. I needed cash to travel in a cab; I needed cash to make a phone call; sadly, I had none, and I had to walk for 3 miles to find an ATM. You must always keep a bit of cash on you as a backup.</p>
	</li>
</ol>

<h3 class="credit_i_h3">Tips to Keep Your Cards Safe</h3>

<p class="credit_i_p">Before you fly off to another country, make sure that you do the following:</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p">Take photographs of your cards (both sides) before you start your trip and email them to yourself. This will ensure that you have your card details even after the card is lost.</p>
	</li>
	<li>
	<p class="credit_i_p">Keep your bank in the loop about your <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/how-to-travel-on-a-budget.html" target="_blank">travel plans</a>.</p>
	</li>
	<li>
	<p class="credit_i_p">Know your bank's helpline numbers that can be reached from the country you are traveling to. The general tollfree numbers might not work.</p>
	</li>
	<li>
	<p class="credit_i_p">Carry a backup card and some cash as well.</p>
	</li>
	<li>
	<p class="credit_i_p">Split up the cash and cards. Try not to keep all your money and cards in one place- split them up. Keep some of it in your wallet, some in your handbag, some in your suitcase so that you have something to rely on if either is gone.</p>
	</li>
</ol>

<p class="credit_i_p">If you lose your cards in a foreign land, you should do the following right away.</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p">Call your bank and report the incident.</p>
	</li>
	<li>
	<p class="credit_i_p">Hotlist or block the card.</p>
	</li>
	<li>
	<p class="credit_i_p">Inquire about the next step to be taken.</p>
	</li>
	<li>
	<p class="credit_i_p">Inform the local police about it (in case it was a theft) and keep a copy of the FIR.</p>
	</li>
	<li>
	<p class="credit_i_p">Apply for a duplicate card.</p>
	</li>
</ol>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">I believe you have a fair idea of what you should do if you lose your cards abroad. However, be on guard and try not to lose your cards. Save yourself from all these hassles. Travel safe, travel smart.</p>

<p class="credit_i_p">To be on the safe side, make sure that you <a href="https://www.mymoneykarma.com/credit-score/credit-score.html" target="_blank">check your credit report</a> regularly as well. Any instance of fraud or <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/stay-safe-from-identity-theft.html" target="_blank">identity theft</a> should show up immediately in your report, and you can act on it immediately.</p>

<p class="credit_i_p">&nbsp;</p>

Losing a card abroad could be a menace. Here are some quick tips from mymoneykarma to keep your cards safe during travel. Learn what you should do if you lose your cards overseas.

Losing a Credit or Debit Card Abroad | mymoneykarma

<p class="credit_i_p">If you're unaccustomed to this word, "death proofing" might sound extremely morbid. The concept is inspired by a Swedish word "döstädning,"&nbsp;which translates to 'death cleaning'. Margareta Magnusson's book "The Gentle Art of Swedish Death Cleaning" popularized this concept. “dö” means "death" and "städning" means "cleaning."</p>

<p class="credit_i_p">In Swedish, this term refers to the process of removing unnecessary things to make your home nice and orderly before you leave the planet. It applies to our finances as well. Let's face facts: death is inevitable. If we intend to leave behind a stellar legacy, we must <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/top-financial-mistakes.html" target="_blank">organize our finances</a> before we exit the world.</p>

<p class="credit_i_p">In the financial world, "death cleaning" or "death proofing" refers to the decluttering of finances that people should focus on as they begin to age and approach the end. It is a sensible concept which advises on getting rid of excess debt and simplifying our financial situation instead of leaving behind a financial mess for our heirs to sort out.</p>

<p class="credit_i_p">We should learn to clean our own mess. Life can get much easier for us if we can simplify and meticulously organize our finances; it also takes a potential extra burden off the shoulders of our descendants after we pass away. Responsible adults must understand the importance of "death proofing" your finances and undertake the process at the right time.</p>

<p class="credit_i_p">Of course, youngsters needn't really worry about it right away, but what's the harm in being well informed?</p>

<h2 class="credit_i_h2">When?</h2>

<p class="credit_i_p">Research has revealed that a person reaches the peak of their ability to make financial decisions at the age of 53. Moreover, dementia and cognitive decline generally tend to set in at around 60 years of age. Psychology claims that our decision-making and rational-think abilities decline as we age, hence making us vulnerable to scams, frauds, poor judgment and unreasonable actions.</p>

<p class="credit_i_p">The common assumption in the financial world is that 50 is the ideal age when we should initiate the task of decluttering our finances. We should do it mainly to protect our aging selves.</p>

<h2 class="credit_i_h2">Why?</h2>

<p class="credit_i_p">Why not? It is better safe than sorry, right? Have you ever had to sort out the <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/top-financial-mistakes.html" target="_blank">financial mess</a> of a deceased relative? My Grandpa had succumbed to Parkinson's disease and had trouble remembering things in his last days. When he passed away, my mother had a tough time gathering all his documents and information in order to proceed with the formalities of financial claims.</p>

<p class="credit_i_p"><a href="https://www.mymoneykarma.com/investing/index.html/grow-your-money-by-investing-in-mutual-funds.html" target="_blank">Some insurances</a> could not even be claimed as we couldn't trace the required documents. My mother was in a sorry state as she was already mourning the loss of her father and also had to tackle these glitches at the same time. I learned a valuable lesson and I would definitely not want my successors to go through such agony.</p>

<p class="credit_i_p"><img alt="Death Proofing your finances" src="../../../images/new/personal-finance/death-proofing-your-finances.jpeg" class="img-responsive credit_i_img"></p>

<p class="credit_i_p">Life is unpredictable. Memory is volatile. Diseases are rampant. Growing age makes a man physically and mentally vulnerable. A smart, pragmatic and thoughtful human would understand the importance of sorting out and straightening his or her finances.</p>

<h2 class="credit_i_h2">Steps to "Death Proof" Your Finances</h2>

<p class="credit_i_p">Here are a few steps that can guide you as you conduct a financial "death proof":</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Consolidate Financial Accounts</strong></p>

	<p class="credit_i_p">The primary focus should be on integrating your <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/disadvantages-multiple-bank-accounts.html" target="_blank">scattered bank accounts</a> under a single one. Too many bank accounts can be quite difficult to manage. You might lose track of them. It is also more convenient to monitor fewer accounts for suspicious transactions.<br>
	If you have had multiple jobs, you might have various provident fund accounts. Consolidate the funds in each of them to reduce the financial clutter. If you have invested in stock and shares, it would be best if you swap all individual stocks and bonds for <a href="https://www.mymoneykarma.com/investing/index.html/grow-your-money-by-investing-in-mutual-funds.html" target="_blank">mutual funds</a>; get a professional to manage your investments. These steps will simplify your financial situation.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Automate Payments</strong></p>

	<p class="credit_i_p">Memory lapses are quite common as you age. If you forget to pay your electricity or cooking gas bill, you might be denied the supply of these essential items. If you forget to make a credit repayment, you not only have to pay late fees and tackle a high APR but <a href="https://www.mymoneykarma.com/credit-scores/index.html/how-late-payments-impact-credit-score.html" target="_blank">your credit score will also take a blow</a>.<br>
	It is better to set up automatic monthly payments for all your credit and utility bills. Most banks allow you to avail ECS or Electronic Clearance Service which automatically debits the billed amount from your savings account to pay the monthly bills that you have signed up for.<br>
	<a href="https://www.mymoneykarma.com/credit-cards/index.html/pay-off-credit-card-debt.html" target="_blank">Pay your credit bills</a> in full amount each month to avoid the burden of unnecessary extra payment. Just make sure that your savings account has sufficient money to fund all your bills.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Repay Your Debts</strong></p>

	<p class="credit_i_p">Take responsibility for your actions. If you have landed in debt, your poor sense of money management is the culprit. Your successors are not accountable for it; they must not be made to suffer for your mistakes. Be aware of what you owe and draw an effective budget plan that enables you to <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/how-to-reduce-debt.html" target="_blank">repay your debts as quickly as possible.</a></p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Fewer Credit Cards</strong></p>

	<p class="credit_i_p">Most financial planners suggest that you should <a href="https://www.mymoneykarma.com/credit-cards/index.html/multiple-credit-cards.html" target="_blank">prune the number of credit cards</a> when you get on in years. If you ever had a lot of credit cards, it would be best to wrap up and slowly close the accounts of the ones that you barely use.<br>
	With increasing age, try to close most lines of credit and restrict yourself to using just two credit cards - one for daily purchases and another for emergencies. Keep the two cards that offer the highest credit limit.<br>
	Do remember that closing your credit accounts will <a href="https://www.mymoneykarma.com/credit-scores/index.html/reasons-for-credit-score-drop.html" target="_blank">hurt your credit score</a>, so make sure that you are financially secure and wouldn't be applying for a new loan before you start chopping off your credit card subscriptions. It would be ideal if you gradually unsubscribe over a period of a few months.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Get a Confidant</strong></p>

	<p class="credit_i_p">Identify a trustworthy person, preferably a family member, who can make decisions on your behalf if you are unwell. Entrust your financial and health details to this trusted person. This person should be able to attend to your needs if you are amidst a medical or gerontological emergency.<br>
	It would be ideal if this trusted person is someone quite young to ensure that he or she doesn't become impaired or incapacitated simultaneously. Grant him or her access to your financial accounts, or at least tell them where they can find the information during an emergency.<br>
	Get a lawyer to create your will in case you want to decide how your assets and property will be divided among your successors after you pass on.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Consolidate All Documents</strong></p>

	<p class="credit_i_p">It is better to keep all important documents handy in case of a crisis. You should create an "emergency" folder or a box where you keep all your crucial documents that your family might need in your absence. Keep this box or folder somewhere safe and keep your confidant informed about it.<br>
	Keeping it in your bank locker wouldn't be a great idea as it wouldn't be accessible at all times. A fireproof and locked safe or a locked cabinet would suffice. As we live in a digital age, you should also scan all your paperwork and store them safely in an encrypted folder in the cloud to help your successors in case your original documents are lost or misplaced.</p>

	<p class="credit_i_p">When you amalgamate this emergency folder, make sure that the following documents are safely packed in it:</p>

	<ol class="homeloan_Faqs_ul_1">
		<li>
		<p class="credit_i_p">Your will</p>
		</li>
		<li>
		<p class="credit_i_p">Medical documents</p>
		</li>
		<li>
		<p class="credit_i_p">Powers of attorney, if relevant</p>
		</li>
		<li>
		<p class="credit_i_p">Your Birth and marriage certificates</p>
		</li>
		<li>
		<p class="credit_i_p">Birth, marriage and death certificates of deceased family members</p>
		</li>
		<li>
		<p class="credit_i_p">Military records, if any</p>
		</li>
		<li>
		<p class="credit_i_p">Identity cards - <a href="https://www.mymoneykarma.com/trending-in-finance/index.html/how-to-apply-for-passport-using-mpassport-seva-app.html" target="_blank">Passport</a>, Voter ID, PAN, Aadhaar, Driving License, Ration Card, etc</p>
		</li>
		<li>
		<p class="credit_i_p">Car titles</p>
		</li>
		<li>
		<p class="credit_i_p">Property deeds and any other ownership documents</p>
		</li>
		<li>
		<p class="credit_i_p">A list of your financial accounts</p>
		</li>
		<li>
		<p class="credit_i_p">Insurance policies</p>
		</li>
		<li>
		<p class="credit_i_p">The contact information of your lawyer, financial advisor, insurance agent</p>
		</li>
		<li>
		<p class="credit_i_p">Photocopies of all identity proofs and credit cards</p>
		</li>
	</ol>
	</li>
</ol>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Life is packed with uncertainties and we never know what destiny has in store for us. Unforeseen circumstances are inevitable.</p>

<p class="credit_i_p">However, an aging man knows that his days are numbered. It is better to make life comfortable for those we leave behind before we finally leave for our heavenly abode. A financial "death cleaning" or "death proofing" could be a blessing to our successors.</p>

<p class="credit_i_p">&nbsp;</p>

Death cleaning refers to decluttering your finances before you leave the world so that your successors don't suffer clearing your mess. Here are a few guidelines from mymoneykarma to help you in this process.

Death Proofing Your Finances | mymoneykarma

<p class="credit_i_p">As the time comes for declaring your investments and filing your <a href="https://www.mymoneykarma.com/info-tax/income-tax-returns.html" target="_blank"><strong class="credit_b1056">income tax returns</strong></a>, you might be in a state of confusion about where to invest so that you get the maximum rebate. There is no shortage of advice on things like fixed deposits, tax deductions, and insurance policies from friends, family, and colleagues. But that advice might be generic and may not give you the maximum benefits. You might be wondering how to juggle different modes of investment, which options are risky, and which are safe.</p>

<p class="credit_i_p">mymoneykarma is your friend in need. After carefully assessing several tax saving options for 2019 by their returns, risks involved, costs, transparency, and taxability of income, we’ve come up with a list of the top ten tax-saving opportunities designed to cater to your financial needs. You can invest in a combination of different options to get maximum benefits.</p>

<p class="credit_i_p"><img src="https://lh4.googleusercontent.com/ieyLXER4_aqGILHlPRB0UkAl4S_YPrllGct7o0kzIJVrQ7kEIMuIYZHI1ox0pYadLSxpFIess5MkokNgLubjf0E1hfL3nFtLoJIrqYr0mFTNnXxy34pkMku4yY1CUKjil9YKXXbI" class="img-responsive credit_i_img"></p>

<h3 class="credit_i_h3"><strong class="credit_b1056">ELSS funds</strong></h3>

<p class="credit_i_p">Equity-linked savings schemes are excellent ways of saving your taxes under Section 80C. You can invest as much as you want, but any excess amount over Rs.1.5 lakh will not let you avail of the tax benefits under Section 80C. ELSS funds are of two main types: growth funds and dividend funds. Growth funds are suitable for investors who are looking to invest for an extended period and receive the full value of their funds only at the time of redemption. Under dividend fund, investors receive tax-free payouts that they can reinvest as fresh investments.</p>

<p class="credit_i_p">Contrary to a popular myth, all ELSS funds aren’t necessarily risky. While some funds dedicate more to small- and mid-cap stocks, some others stick with stable large-cap stocks. &nbsp;You must choose the one that best suits your risk appetite.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">National Pension Scheme</strong></h3>

<p class="credit_i_p">The National Pension Scheme or NPS is a government-sponsored pension scheme launched in 2004. A subscriber can regularly contribute in a pension account during his/her professional life, withdraw some amount from a lump sum and use the remaining corpus to buy an annuity to secure a regular income after retirement.</p>

<p class="credit_i_p">NPS can help save tax under different sections. You can claim contributions of up to Rs 1.5 lakh as deductions under Section 80C. There is a provision of an additional deduction of up to Rs 50,000 under Section 80CCD(1b). If the employer contributes up to 10% of one’s basic salary in the NPS, the amount cannot be taxable.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Public Provident Fund</strong></h3>

<p class="credit_i_p">Public Provident Fund (PPF) scheme is a popular long-term investment option offered by the Government of India. It provides a stable investment option with attractive rates of interest and other facilities such as loan, withdrawal, and extension of account.</p>

<p class="credit_i_p">PPF is an excellent option for the cautious investor because the interest is tax-free, giving the scheme a significant advantage over fixed deposits. PPF performs exceedingly well on safety, flexibility, and ease of investment.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Senior Citizens’ Saving Scheme</strong></h3>

<p class="credit_i_p">Investing in Senior Citizen's saving scheme is extremely beneficial for senior citizens in getting the most out of their tax deductions. It is an effective and long-term saving option that offers security and features of any government-sponsored investment scheme. These schemes are available at certified banks and post offices across India. Last year’s Budget has made the Senior Citizens’ Savings Scheme (SCSS) more attractive by offering senior citizens an additional Rs. 50,000 exemption on interest income. The total tax exemption for senior citizens is Rs. 3.5 lakhs.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Sukanya Samriddhi Yojana</strong></h3>

<p class="credit_i_p">For parents with daughters below 10 years of age, the Sukanya Samriddhi Yojana can be an excellent way to invest for their daughters. The interest rate of 8.5% is linked to the yield of government bonds and is subject to change every quarter. The Sukanya scheme offers a higher interest rate than PPF. There is an annual cap of Rs. 1.5 lakh on the investment. A parent can open accounts at any post office or designated banks with a minimum investment amount of Rs. 250. Any parent can open an account for their daughter. The account can be opened for at the most two girls, but the combined investment in the two accounts cannot exceed Rs. 1.5 lakh in a year, and the maturity proceeds have to be used for her education and marriage.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">ULIPs</strong></h3>

<p class="credit_i_p">ULIP stands for unit-linked insurance plans. A ULIP contains both the elements of insurance and investment. The policyholder can either pay a monthly or annual premium. A small percentage of the premium goes toward life insurance, and the residue amount is invested just like a mutual fund. The policyholder goes on investing throughout the term of the policy years and collects the units later. These plans offer investors the option to invest in equity and debt.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Pension Plans</strong></h3>

<p class="credit_i_p">Also known as company pension plans, pension plans are set up by employers and can provide benefits including a tax-free lump sum (within certain limits), and pension income in retirement.</p>

<p class="credit_i_p">These benefits are based on the following parameters:</p>

<p class="credit_i_p">1. your final earnings</p>

<p class="credit_i_p">2. your average earnings throughout your career, or</p>

<p class="credit_i_p">3. the value of your pension fund at retirement.</p>

<p class="credit_i_p">Apart from benefits on retirement, pension schemes can provide benefits to dependants on the death of the account holder during service or after retirement. Pension benefits are also portable and need not be "frozen" when your employment status changes.</p>

<p class="credit_i_p">You should check if your employer has such a scheme and whether you are eligible to join. Or you may have been a member of such a pension scheme in the past and still have benefit entitlements under the plan.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">NSCs</strong></h3>

<p class="credit_i_p">The best thing about the National Savings Certificates (NSC) is that unlike an insurance policy or a pension plan, they don't require a multi-year commitment. NSCs is perfect for those who don’t have time to browse through the features of an investment plan. At an interest rate of 8%, it is a good option for those who just want to invest in a hurry and forget about it. NSCs promise better returns than bank FDs. The interest earned on the NSC is eligible for deduction under Section 80C in the subsequent years. NSCs are suitable for senior citizens who want to invest safely but have exhausted the Rs 1.5 lakh limit of SCSS. Since there are no such restrictions in NSCs, they can use this instrument to save <a href="https://www.mymoneykarma.com/info-tax/income-tax.html" target="_blank"><strong class="credit_b1056">income tax</strong></a>.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Bank FDs</strong></h3>

<p class="credit_i_p">Tax-saving bank fixed deposit is an excellent choice for people who leave their tax planning for the last minute and then search for the best option. Although the interest rates are not as high as other savings instruments, FDs offer the convenience of online banking. If you have to show proof of investment this week, all you have to do is log on to your netbanking account, make the investment, download the proof and print it. However, this convenience comes at a high price. The interest earned on FDs is fully taxable, which reduces the post-tax return for people in the higher income bracket.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Life Insurance</strong></h3>

<p class="credit_i_p">Life insurance policies are essential for the safety and security of you and your family, but they are the least effective instruments to save income tax. They give fewer returns, have reduced rates of interest, and the interest collected is not even tax-free. However, it is a highly preferred mode of investment among the Indian populace; and if you wish to channelize your hard-earned money into insurance, then you must do a careful homework before taking a call.</p>

<h2 class="credit_i_h2"><strong class="credit_b1056">Choosing the Right Option</strong></h2>

<p class="credit_i_p">Section 80C allows you to save up to Rs. 1.5 lakhs across different tax-saving investment instruments; so you might as well maximize your tax deductions. Investing in more than one option and taking calculated risks can pay off in the form of very high dividends that can be used to fund your dreams.</p>

<p class="credit_i_p"><br>
<br>
&nbsp;</p>

Making investments to save your income tax can often be confusing and frustrating. Mymoneykarma brings you a list of the top ten tax-saving instruments for this financial year.

Tax Saving Options - Tax Saving Investment Options

<p class="credit_i_p">Vacations are very much essential for family bonding. They create an ultimate bond between your family members and allow you all to have cherishable experiences. Experiencing different cultures, their native food, scenic locations, etc. is worth the money you spend on a family vacation. However, you need to plan your vacations according to your budget. Here we are, to fill you in with the 12 best tips for a family vacation. Let’s teach you how to travel cheap.</p>

<p class="credit_i_p">Here are a few tips for a hassle-free and affordable family vacation.</p>

<h3 class="credit_i_h3">Choose the Destination Wisely</h3>

<p class="credit_i_p">Choosing a destination might be quite confusing. Follow these steps to clear out the confusion and select the destination wisely.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Fix the budget:</strong> Figure out how much money you can spend on the vacation. Else, you would end up getting into debts, which is not a good idea. So, if you are planning a trip on a budget, it is important to calculate your budget in your holiday fund by adding the funds with the amount you save till you leave for the vacation.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Make a list of the destinations: </strong>There can be a lot of destinations suggested by your spouse, children or friends. List all the vacation spots. Think about the type of vacation that you’d want - a laid back beach or a cultural exploration or a vibrant city, and then it becomes easy for you to rule out the places that do not fall under your preference criteria, thus making it easy to plan a trip on a budget.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Look into the safety risks:</strong> Safety must be a priority as you travel with your family. Look out for the government travel warnings and alerts in the area you want to visit. If the area is free from risks such as an accident, burglar or calamity prone area, then you can finalize the destination.</p>
	</li>
</ul>

<h3 class="credit_i_h3">Book Your Flight Tickets in Advance</h3>

<p class="credit_i_p">If you need an affordable family vacation, plan it well in advance; else you might end up spending more on flight tickets. The price of the flights increases with time due to dynamic pricing. Booking early always proved to be the best way to get the <a href="https://www.mymoneykarma.com/travel/i/8-tips-to-find-cheap-flights.html">cheapest flight tickets</a>. Here's a small tip - use an incognito window while browsing for the tickets. As the flight charges increase based on the cookies in your browser, the price of the particular route that you’re repeatedly searching will tend to increase. You can see the lowest prices in incognito mode. So, if you are concerned about planning a trip on a budget, this is one of the best ways.</p>

<h3 class="credit_i_h3">Fly Mid-Week</h3>

<p class="credit_i_p">If your travel dates are flexible, then travel in the middle of the workweek. For a visual illustration, go through any major airlines fare calendar. You can see that there is a fall on Tuesday and Wednesday and a spike on Thursday and Friday.</p>

<h3 class="credit_i_h3">Weigh Your Luggage in Advance</h3>

<p class="credit_i_p">Check with the limit of hand baggage and check-in luggage limit of the airlines. Weigh your luggage well in advance to check the limit. If it exceeds, you are imposed of certain charges. Stay alert and avoid those charges.</p>

<h3 class="credit_i_h3">Reserve the Hotel in Advance</h3>

<p class="credit_i_p">There are a lot of applications or websites where you can find great deals on hotels. Go through a few neutral sites and compare the price offered by different websites; select the ideal one. Also, you can set price alerts in the app such that you get a notification if the price falls. If you book for the first time, you may also get coupons. You can use those coupons and avail extra discounts to enjoy an affordable family vacation.</p>

<h3 class="credit_i_h3">Go for a Complete Package</h3>

<p class="credit_i_p">These days, we find a lot of travel agencies that provide packages for vacations. Inquire about some of the trusted agencies regarding packages and select an affordable family vacation package. These packages help you reduce your stress level by booking the hotels, arranging cabs and guiding you during your sight-seeing. These packages can be cost-effective, and you will have an idea on the expenditure beforehand.</p>

<h3 class="credit_i_h3">Make Refundable Bookings If You Are Uncertain</h3>

<p class="credit_i_p">If you are uncertain about your travel, we suggest that you make bookings that are refundable. However, these refundable bookings are quite costly. The bottom line is that if you’re unsure whether you’ll be able to travel during your original window, go for refundable bookings.</p>

<h3 class="credit_i_h3">Don't Shop or Eat in the Tourist Area</h3>

<p class="credit_i_p">It is better to shop or eat in the local areas rather than spending a lot of money in the tourist area. The price of mementos and souvenirs in the tourist areas is considerably high when compared to that in the local areas.</p>

<h3 class="credit_i_h3">Travel Off-Season</h3>

<p class="credit_i_p">The time you choose to travel could also have a tremendous impact on your budget, since prices fluctuate depending on the peak or off season. If you are really planning a trip on a budget, it is wise to head somewhere in the offseason. You can find costs far more economical than at peak times.</p>

<h3 class="credit_i_h3">Make Overnight City Transits</h3>

<p class="credit_i_p">You have limited vacation time. You lose a lot of time if you travel during the day. Apart from losing time, it is very economical to travel at night, as you can save on accommodation costs. This way, you can ensure an affordable family vacation.</p>

<h3 class="credit_i_h3">Live on Local Food</h3>

<p class="credit_i_p">Local food is the best option during vacations. You can relish the local flavors and save money by eating at street food stalls and local dhabas. Not only do you get to enjoy the authentic local cuisine, but you would inevitably find cheaper munchies if you are up for local food. Do consider the hygiene factor though.</p>

<h3 class="credit_i_h3">Keep a Tab on Cell Phone Costs</h3>

<p class="credit_i_p">A vacation is when you devote your time to enjoy the destination with your family. Refrain from talking endlessly on the phone. Remember that you are on roaming - call charges might be quite high. Moreover, all your important work can and should wait until you finish your vacation.</p>

<h2 class="credit_i_h2">To Sum up</h2>

<p class="credit_i_p">Those given above are the 12 best tips for a family vacation. These are the key points you must keep in your mind while planning for the cheapest family vacation. So, plan your trip accordingly and have lots of fun. Happy Vacation!</p>

<p class="credit_i_p">&nbsp;</p>

Want to go on a budget-friendly family vacation? mymoneykarma provides you all the tips you need for a hassle-free and affordable family vacation.

Family Vacation On A Budget | Saving Money On Your Family Vacation

<p class="credit_i_p">Traveling abroad is no big deal anymore. However, that doesn’t make a foreign destination any less of an excitement! The stark difference in culture, food, and language elevates the experience to another dimension. Nevertheless, there is a lot more that one encounters while traveling to a foreign country other than the language and food. One such critical aspect is the rattling difference in currency across nations.&nbsp;</p>

<p class="credit_i_p"><a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/currency-conversion.html" target="_blank">Currency conversion</a> is not as simple as you might think. It's not as if you can walk in and exchange dollars instead of your INR's. Before you start packing for your vacation, it is essential to understand foreign currency and how to deal with it. If you are not careful enough about currency conversion, it can turn out to be a point of bother, which is why you should commit enough time to research on the topic.</p>

<p class="credit_i_p">A basic knowledge of the conversion rates, service charges, and other fees involved in the process will definitely help you to relieve a lot of stress and enjoy the place more.</p>

<p class="credit_i_p">Although cash may seem like a good enough option, but it has its own set of cons. With the advancement in technology, the world is now running on plastic money, and thus, there are limitless options to carry cash to a foreign country.</p>

<p class="credit_i_p">However, it is important that your cards are accepted over at your destination. That’s why you should take up prepaid forex cards while traveling abroad, as they are really suitable for this very purpose. First, let’s take a look at the different&nbsp;types of cards made available for travelers:</p>

<h3 class="credit_i_h3">Travel Credit Cards</h3>

<p class="credit_i_p"><a href="https://www.mymoneykarma.com/credit-cards/index.html/how-to-fly-for-free-with-travel-credit-cards.html" target="_blank">These cards</a> are especially built to suit your traveling needs. These cards come with several benefits, which allows you to make purchases and payments at retail stores, restaurants, or anywhere else while traveling. Besides, most of these travel credit cards offer <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/frequent-flyer-programs-india.html" target="_blank">bonus points for booking flights</a> and hotels. Apart from that, the more you spend, the more reward points you earn; you can <a href="https://www.mymoneykarma.com/credit-cards/credit-card-reward-points.html" target="_blank">reap their benefits by redeeming them</a> later.</p>

<h3 class="credit_i_h3">Forex Travel Cards</h3>

<p class="credit_i_p">Prepaid travel cards like <a href="https://www.mymoneykarma.com/travel-lifestyle/forex-travel-card.html" target="_blank">Forex travel cards</a> can be loaded with multiple currencies, and you can avoid paying additional conversion charges. These travel cards are readily available and provide better exchange rates that do not fluctuate once money is loaded on the forex card. These cards are safer as well as cheaper in terms of conversion rates and charges.</p>

<p class="credit_i_p">Forex travel cards have many advantages over cash, <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/credit-card-tips-overseas-travel.html" target="_blank">credit cards</a>, debit cards or traveler's cheques. They offer better exchange rates for loading currencies than you would get on buying foreign currency as cash. Moreover, it also gets easy for the banks to provide forex cards, as it is a cheaper option. Here are the many benefits that you can avail by using forex travel cards:</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">No Effect of Fluctuations</strong> - Forex cards loaded with foreign currency are immune to the fluctuations in the currency value, as the amount is added at locked-in exchange rates. So, for instance, if you have USD 1000 on your forex card, the value in the card will stay USD 1000 irrespective of fluctuations in the INR-USD exchange rate.&nbsp;&nbsp;&nbsp;&nbsp;</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Forex for Safety</strong> - Safety is always a concern, and forex travel cards guarantee your financial security. Forex cards come enabled with chip and PIN technology for safeguarding the money in them, making it a way better option than carrying cash. Besides, you can block the card and freeze the balance in case the <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/lost-credit-or-atm-card-abroad.html" target="_blank">card gets lost or stolen</a>. Moreover, once a secondary forex card is issued, the funds can readily be transferred to it.&nbsp;&nbsp;&nbsp;</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Multi-Currency Cards </strong>- What if you have to visit two different countries with different currencies? It would be insane if one decided to carry cash, as they will surely lose out a lot of money in exchange rates. That's where forex cards act as your savior. Prepaid forex travel cards allow you to carry multiple foreign currencies at the same time in a single card. For instance, Axis Bank forex travel cards enable you to load up to 16 popular currencies such as Denmark Krone (DKK), Australian Dollars (AUD), Hong Kong Dollars (HKD), Euro (EUR), Japanese Yen (JPY), etc.&nbsp;&nbsp;</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">No Exchange Rates </strong>- Exorbitant exchange rates are levied on the use of debit or credit cards, whereas the prepaid forex cards have no additional charges when you swipe it at PoS counters abroad. The rates otherwise are incredibly high, and would cost you around 5-11% extra of the total <a href="https://www.mymoneykarma.com/credit-cards/index.html/foreign-transaction-fee-on-credit-cards.html" target="_blank">transaction charges</a>!&nbsp;&nbsp;&nbsp;&nbsp;</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">No Dynamic Currency Conversion Fee</strong> - The Dynamic Currency Conversion (DCC) fee is not applicable on forex cards, as they are already loaded with the local currency of a foreign country. However, if you are using a debit card or credit card for a transaction, then DCC would add an extra 3-5% charge on your transaction cost.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Universal Recognition</strong> - Forex travel cards are universally recognized and accepted, unlike outdated traveller's cheques.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Withdrawing Cash</strong> -&nbsp; Forex cards can be used to withdraw money from any nearby ATM, as opposed to encashing traveler's cheques, which would put you through the trouble of finding establishments willing to accept it. Besides, you can even use forex cards for online transactions through e-commerce platforms abroad.</p>
	</li>
</ol>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Traveling abroad needs to be safe and comfortable experience for you to truly enjoy it. Forex travel cards will help you beat the hassle of <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/travel-tips.html" target="_blank">carrying cash around while traveling</a> abroad. So, if you have plans to travel abroad, consider buying a Prepaid Forex Card to roam around stress-free.</p>

Prepaid travel cards, such as forex travel cards, offer several benefits while traveling abroad. Know the advantages of prepaid and forex card and have a hassle-free traveling experience.

Prepaid Travel Cards - Prepaid Forex Card

<p class="credit_i_p">Are you planning to buy <a href="https://www.mymoneykarma.com/buying-a-home/index.html/tips-for-first-time-home-buyers.html" target="_blank">your first home</a>? Then you are well aware of the humongous challenge ahead of you - Down payment for your <a href="https://www.mymoneykarma.com/home-loan.html" target="_blank">home loan</a>.</p>

<p class="credit_i_p">The challenge? To save every extra penny to stack up that down payment for your new home. High-five if you think saving money is difficult. I had to toil hard to save for my first home.</p>

<p class="credit_i_p">When it comes to buying a house, the brainstorming session to figure out creative ways to pinch pennies is painstaking. So, if you're a prospective homebuyer trying to save money, I feel your pain. That's why I am here with my 19 tried-and-true tips to get your dream home sooner than expected.</p>

<p class="credit_i_p">So, let's begin.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Create A Household Budget</strong> - &nbsp;A household budget will help you determine how much you can expect to <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/track-monthly-expenses.html" target="_blank">save every month</a>. Along with it, you will also be able to understand the areas that need a little expenditure trimming.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Take Advantage of Government-Run Programs</strong> - Government-funded programs like Pradhan Mantri Awas Yojana can be a big help. If you belong to the middle income group (MIG), you will get added assistance on your home acquisition/construction of a house. Check out this <a href="https://pmaymis.gov.in/">link</a> to see what might be available for you.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Use Gift Funds </strong>- Although gift funds may look like an unconventional way, in the end, every penny counts. You can ask your family and friends to gift you cash that can add up to your down payment.</p>
	</li>
</ul>

<h2 class="credit_i_h2">Increase your Modes of Income&nbsp;</h2>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Become a Freelancer</strong></p>
	</li>
</ul>

<p class="credit_i_p">One of the legit options to mint more money is by signing up on websites like Elance, Upwork, and Guru. You can pick up any job ranging from researching, writing to data entry. A few hours working online during weekends could help you earn some extra bucks.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Sell Your Stuff</strong></p>
	</li>
</ul>

<p class="credit_i_p">Maybe, it's time to get rid of those <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/overcome-phobia-of-buying-pre-owned-items.html" target="_blank">unwanted items collecting dust</a> all over your home. Get on OLX or eBay for some extra cash.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Get Behind the Wheel.</strong></p>
	</li>
</ul>

<p class="credit_i_p">If your driving record is spick and span, you could get paid to drive passengers with Uber, Ola, or Rapido.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Reap Benefits from Your Hobbies.</strong></p>
	</li>
</ul>

<p class="credit_i_p">Monetize your hobbies by selling them online through Instagram or Etsy. Alternatively, you can even consider catering for your neighbor's party if you like cooking, or you could offer to tutor lessons to the neighboring kids.&nbsp;</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Leverage the Space in Your Place&nbsp;</strong></p>
	</li>
</ul>

<p class="credit_i_p">If you have a little extra space in your apartment or house, you can sign up for Airbnb and earn some extra cash.</p>

<h2 class="credit_i_h2">Lifestyle Shift&nbsp;</h2>

<p class="credit_i_p">A little tweaking in your lifestyle would help you save some extra bucks for the down payment.&nbsp;</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Workout at Home&nbsp;</strong></p>
	</li>
</ul>

<p class="credit_i_p">Canceling your gym membership can help you get those extra thousand bucks you need. Instead, you can try <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/cheap-ways-to-burn-calories-at-home.html" target="_blank">running or exercising at home</a>.&nbsp;</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Monitor those Subscriptions</strong></p>
	</li>
</ul>

<p class="credit_i_p">Have you ever tried to find out how many streaming services you pay for?</p>

<p class="credit_i_p">AltBalaji? Netflix? Amazon Prime?&nbsp;</p>

<p class="credit_i_p">Cutting down on these subscription luxuries could save you a considerable amount each year.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Shop Smarter</strong></p>
	</li>
</ul>

<p class="credit_i_p">Slashing <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/save-money-on-groceries.html" target="_blank">your grocery budget</a> can power up your savings. Making a grocery list will help you avoid impulse buys. You can even start buying items in bulk to save up. Take advantage of sales and <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/use-of-online-coupons.html" target="_blank">coupons</a> to leverage your savings.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Plan Meals at Home</strong></p>
	</li>
</ul>

<p class="credit_i_p">With almost no time, <a href="https://www.mymoneykarma.com/credit-cards/index.html/best-credit-cards-for-dining.html" target="_blank">dining out</a> seems more like a compulsion after a long day at the office. However, eating out can lead to overspending. Instead, you can plan your meals at home to save plenty by planning and budgeting for your weekly food purchases.&nbsp;</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Change Your Commute</strong></p>
	</li>
</ul>

<p class="credit_i_p">If you live close to your work, you can ride your cycle. Or else, you can commute by public transport or even take advantage of carpool <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/benefits-of-money-manager-app.html" target="_blank">apps to save some extra bucks</a>. If you are a woman, you've got <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/daily-commute-options-for-indian-women.html" target="_blank">other options</a> as well.</p>

<h2 class="credit_i_h2">A Few More Money-Saving Ideas</h2>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">e-file Your Taxes</strong></p>
	</li>
</ul>

<p class="credit_i_p">Did you know you can save money if you e-file your taxes? You can. After all, it's a nice chunk of change to put directly into your down payment savings account.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Go On a Spending "Diet"</strong></p>
	</li>
</ul>

<p class="credit_i_p">You can put yourself on a 30-day spending diet by limiting your expenses to only essential purchases. Every week, you can save by depositing the money that you planned to spend elsewhere.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Automate Your Savings</strong></p>
	</li>
</ul>

<p class="credit_i_p">One of the easiest ways to save more money into your down payment savings account is by automating it. Just set it and forget it.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Follow The 52-Week Rule</strong></p>
	</li>
</ul>

<p class="credit_i_p">The 52-week rule is an easy way to build your savings, steadily. The rule is simple: Start by saving Rs.10 on the first week, Rs 20 on the second week, and so on. So, by the time you get to week 52, you will be saving upto Rs.520, which adds up to a considerable amount.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Take Advantage Of Credit Card Reward Points</strong></p>
	</li>
</ul>

<p class="credit_i_p">You can start using your <a href="https://www.mymoneykarma.com/credit-cards/index.html/credit-card-reward-points.html" target="_blank">credit card reward points</a> and perks to make purchases. Those rewards points or cash-back bonuses can help you save on everything from groceries to <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/frequent-flyer-programs-india.html" target="_blank">airline miles</a> to hotel stays (cutdown on the last two though - you’ve got money to save).</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Cut The Biggest Expenses</strong></p>
	</li>
</ul>

<p class="credit_i_p">If you want to save big, you will have to <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/kill-the-will-to-splurge.html" target="_blank">cut the biggest expenses</a> rather than cutting down small purchases. Though, they will add up, the tiny cuts never add up enough to save for a down payment.</p>

<h3 class="credit_i_h3">The Bottom Line</h3>

<p class="credit_i_p">Everyone dreams of a home of their own. But the down payment acts as a roadblock in making it a success. Although saving up may seem impossible at first, you can follow several unconventional ways to raise enough for your down payment.</p>

<p class="credit_i_p">Haven't applied for your&nbsp;home loan yet? <a href="https://www.mymoneykarma.com/credit-score/home-loan-credit-score.html?utmsrc=homeloan_enquiry" target="_blank">Apply right away</a> with mymoneykarma. We promise not only a hassle-free process, but also the best interest rates from across banks.</p>

<p class="credit_i_p">&nbsp;</p>

Arranging the funds for a down payment for a home loan can be a long and painful process. Here is mymoneykarma for helping you to buy a home.

How to Arrange down Payment for Buying New Home

<p class="credit_i_p">Let’s face it: not everyone wins a lottery.</p>

<p class="credit_i_p">Some do, and that makes everyone one home to get a huge windfall once a day. Did you know people spend thousands and even millions behind lottery tickets per year? It’s true!</p>

<p class="credit_i_p">The strategies given below are not as bad as the lottery, but everyone cannot benefit from these either. There are so many people who still use these strategies without knowing how to really benefit from them, or how to use these optimally to get financial success. These may look like smart money, but there are dangers under the surface many don’t know of.</p>

<h3 class="credit_i_h3">Using a retirement fund loan</h3>

<p class="credit_i_p">These can be cheaper than other types of loans, and if you borrow, you pay yourself the interest instead of to the lender.</p>

<p class="credit_i_p">The problem is that the loan can easily turn into a withdrawal. Studies have found that 90% of salaried people with these loans default when they leave their job. Most of these plans require quick repayment after getting fired and quitting the job. If you don’t you are considered to be a defaulter. The money you owe now becomes a withdrawal, which brings in taxes, penalties, as well as thousands in compounded gains.</p>

<p class="credit_i_p">What you can do is to think whether you need this fun at all. Often, the answer is no.&nbsp;</p>

<h3 class="credit_i_h3">Investing in variable annuity</h3>

<p class="credit_i_p">It offers a tax-deferred way to save for your retirement funds without any limit to your contribution. This can result in a steady stream of payments later on.</p>

<p class="credit_i_p">The problem is they don’t give tax breaks. Your contributions cannot be deducted, and the withdrawals are taxed. Besides, these are considerably more expensive than mutual funds.</p>

<p class="credit_i_p">Variable annuities are contracts with insurance companies. Your money gets invested in mutual funds, which means your money can lose or gain value according to the market situation. That is why it is called variable annuity. Once your payments start, the company checks for the rest of your life, the life of your spouse after your demise, or others you designate. In case of your death, your heir gets the death benefit. There are some annuities that come with life benefits, and these guarantee a level of income.</p>

<p class="credit_i_p">However, all these benefits come at a cost. The average annual expense ratio is big. In some cases it is 3%, while in mutual funds it is 0.63%. If costs are high, the amount you can save gets reduced.&nbsp;</p>

<p class="credit_i_p">As you can see, here are some things you may not want to do.</p>

<p class="credit_i_p">&nbsp;</p>

Keeping your personal finances healthy is necessary for a secure future. mymoneykarma points out 2 elements that can harm your finances if not taken care of.

Top 2 Common Financial Mistakes That Harm Your Personal Finance

<p class="credit_i_p">There are many ways to invest and plan your budget. Just look on the internet a bit. You’ll find several ways to budget. But that is not the problem.</p>

<p class="credit_i_p">The problem is to choose the one that suits you best. There is no cookie-cutter solution. There is no one-stop shop which gives you the best solution. Investment advisors can suggest plans, but it all boils down to you. Only you know which budgeting plan can be best for you.<br>
In this article, we are going to talk about one specific way to invest or budget…</p>

<h3 class="credit_i_h3">The 70/30 rule</h3>

<p class="credit_i_p">Now, you may have heard of the 50/30/20 rule for budgeting. It is one of the most common one. Under this budget, 50% of your monthly net income is given over to covering needs, 30% to covering wants, and the remaining 20% towards covering savings and investments. In the last section, you can have various savings, emergency funds, and investments.</p>

<p class="credit_i_p">But why did we explain what the 50/30/20 budget plan is? Is this article not about the 70-30 budget plan?</p>

<p class="credit_i_p">Yes it is, but it is also similar to the 50/30/20 budget plan.</p>

<p class="credit_i_p">In the 70/30 budgeting plan, 70% of your income goes towards meeting your expenses which you absolutely cannot do without. This category covers a wide range of things like rent, utility service bills, food, shopping, recurring bills, travelling, miscellaneous expenses, and others.</p>

<p class="credit_i_p"><img alt="70% of your income goes towards expenses you absolutely cannot do without." src="https://mmk-s3-cms.s3.amazonaws.com/1605706706351.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img"></p>

<p class="credit_i_p">As you can see for yourself, these are things you cannot do without at all. For instance, if you live in a rented apartment, you totally need to give rent each month. It is not something you can avoid.</p>

<h3 class="credit_i_h3">Now for the remaining 30%: What to do with that?</h3>

<p class="credit_i_p">Here is what the rule says about the remaining 30%.</p>

<p class="credit_i_p">10% needs to be invested into savings. However, if you have debt, that needs to be settled first. The debt settlement needs to come from the first 10%.</p>

<p class="credit_i_p">The second 10% needs to cater to long-term capital investments, investments, saving for retirement, investing or spending on a business or a property, on PPF, on NPS, and other means of investing for the future. If you want to save for college, this is where you can save from.</p>

<p class="credit_i_p">The third and final 10% is for giving to donation or charity, if you want. In case you do not want to give your money to charity or donations, you save money. 10% saved per month is a huge amount. However, do know that money given for donations and charity is non-taxable.</p>

<p class="credit_i_p">&nbsp;</p>

There are many technique to ease and streamline budgeting and investing, and the 70/30 budget is one among them. mymoneykarma lays down how the 70/30 method works.

What Is 70/30 Rule In Investing And Managing Money?

<p class="credit_i_p">When it comes to your <a href="https://www.mymoneykarma.com/credit-scores/index.html/what-is-credit-score.html" target="_blank">credit score</a>, you surely don't want to be a Jon Snow (context: the famous fictional character who, apparently, 'knows nothing'). If you don't carefully plan and protect your money, your finances might go for a toss. Let me walk you through some quick tips to help you protect your finances.</p>

<p class="credit_i_p"><img alt="5 Smart Decisions to Help Protect Your Finances" src="../../../images/new/creditscore/5-smart-decisions-to-help-protect-your-finances.jpg" class="img-responsive credit_i_img"></p>

<h2 class="credit_i_h2">Make Regular Checks on Your Credit Report</h2>

<p class="credit_i_p">Most financial advisors will ask you to keep a track on your credit report. You must check it from time to time. Credit Bureaus, such as Equifax, CRIF High Mark, Experian, and TransUnion&nbsp;allow&nbsp;you to check your credit report once in a year for free. However, it is recommended that you conduct more frequent checks - maybe twice or thrice a year.</p>

<p class="credit_i_p">By doing so, you get to keep all your personal information updated. You also get to monitor your activities in the finance field and identify possible fraud. <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/stay-safe-from-identity-theft.html" target="_blank">Identity theft</a>&nbsp;has&nbsp;become a common menace these days - it's easier to detect one by going through your detailed credit report.</p>

<p class="credit_i_p">Mymoneykarma offers its Intelligent Finance Tool to help you <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=money-management_1312" target="_blank">check your credit score</a> without any fee.</p>

<h3 class="credit_i_h3">Identify Reporting Errors</h3>

<p class="credit_i_p">Your card issuing company might make an error while submitting your credit information to the credit bureaus. The credit bureaus can make a mistake in filing your credit report. It could be an account-related error, like a wrongly reported late payment record, which can cause a <a href="https://www.mymoneykarma.com/credit-scores/index.html/6-reasons-for-credit-score-drop.html" target="_blank">drop in your credit score</a>.</p>

<p class="credit_i_p">It could also be a new address or telephone number linked to your account which wasn't authorized by you and could indicate fraudulent activity. Your report might also contain old negative marks which must have been cleared by now but somehow wasn't. These errors are quite common and it's your job to identify them and <a href="https://www.mymoneykarma.com/credit-scores/index.html/remove-credit-report-errors.html" target="_blank">get them rectified</a>.</p>

<h3 class="credit_i_h3">Set up Autopay</h3>

<p class="credit_i_p">If you use <a href="https://www.mymoneykarma.com/credit-cards/index.html/multiple-credit-cards.html" target="_blank">multiple credit cards</a>, the different billing cycles and due dates can make you go nuts. There is a high chance that you might miss a payment amidst the confusion.</p>

<p class="credit_i_p"><a href="https://www.mymoneykarma.com/credit-scores/index.html/how-late-payments-impact-credit-score.html" target="_blank">Late payments</a> can incur a huge APR. It can also soil your credit history if the creditor reports it. It might seem like a trivial error, but it can leave a mark on your credit report for seven years.</p>

<p class="credit_i_p">Autopay can be your savior. All you need to do is ink your credit cards to your savings account and set up autopay. Ensure that you keep enough funds in that account to pay the credit card bills and you're good to go!</p>

<p class="credit_i_p">You could also try to convince the issuing companies to set the due date on the same day for all your credit cards - ideally, a day or two after your salary is credited. However, the lenders might refuse. Autopay is your go-to option.</p>

<h3 class="credit_i_h3">Pay off Your Balance Completely</h3>

<p class="credit_i_p">If someone ever convinced you that an <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/high-credit-card-balance.html" target="_blank">outstanding balance</a> would build your credit score, lo and behold - you have been duped!</p>

<p class="credit_i_p">Carrying an outstanding credit balance could be a huge hazard. It can raise your credit utilization rate, thus <a href="https://www.mymoneykarma.com/credit-scores/index.html/credit-score-drop.html" target="_blank">pulling down your credit score</a>. An outstanding balance also attracts an 'outstanding' interest rate reaching up to 16%. You surely wouldn't want to repay more money than you had originally borrowed.</p>

<p class="credit_i_p">Teach yourself these two mantras:</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p">Don't spend more than 30% of your <a href="https://www.mymoneykarma.com/credit-cards/index.html/what-is-a-credit-limit-and-how-does-it-affect-your-credit-score.html" target="_blank">credit limit</a>.</p>
	</li>
	<li>
	<p class="credit_i_p">Repay the full amount that you have borrowed within the due date of every billing cycle.</p>
	</li>
</ol>

<h3 class="credit_i_h3">Ask for Extra Perks</h3>

<p class="credit_i_p">If you can show a clean credit history to the credit bureaus and the credit card companies, you get the upper hand to ask the lenders for a handful of facilities that will help boost your credit health.</p>

<p class="credit_i_p">You could ask for a <a href="https://www.mymoneykarma.com/credit-cards/index.html/increase-credit-limit.html" target="_blank">higher credit limit</a> which will bring down your total credit utilization rate and improve your credit score. However, you must be able to resist the temptation to use up a handsome portion of the new credit limit.</p>

<p class="credit_i_p">If you are skilled with words, you might try convincing the lender to <a href="https://www.mymoneykarma.com/credit-cards/index.html/reduce-credit-card-interest-rates.html" target="_blank">reduce the interest rates</a> on the basis of your spic and span credit history. They might not agree, but what's the harm in trying?</p>

<p class="credit_i_p">Have you <a href="https://www.mymoneykarma.com/credit-cards/index.html/things-to-do-if-you-miss-credit-card-payment.html" target="_blank">missed a credit card payment</a> for the first time? If you have a spotless credit history, you could try to ask your card issuing company to waive off the late fee if you immediately repay the amount in full. You could also talk them into holding this late payment information from the credit bureaus. However, this, again, is entirely at the lender's discretion.</p>

<h2 class="credit_i_h2">To Sum up</h2>

<p class="credit_i_p">With age comes experience; with experience comes wisdom. As your credit age increases, your experiences will make you wise. Until you reach that level of wisdom, adhere to these tit-bits.</p>

<p class="credit_i_p">These five credit decisions can work wonders for your credit health. <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=money-management_1312" target="_blank">Keep track of your credit score</a> so that you have a clear idea of your progress as well.</p>

Good practices to protect your finances - learn to check your credit reports regularly, know how to identify frauds, ways to get additional perks on your credit cards. Follow these steps to secure your finances and improve your credit health.

5 Smart Decisions to Help Protect Your Finances | mymoneykarma

<p class="credit_i_p">Payment history is the most important determinant of your&nbsp;<a href="https://www.mymoneykarma.com/credit-scores/what-is-credit-score.html" target="_blank">credit score</a>. A late payment carries almost 35% of weightage, and a single failed or missed payment can drastically bring down your credit score. Your current credit score, the delayed time in making a payment, and the frequency of missed payments together determine how much of a blow your credit score will take.</p>
<ol class="homeloan_Faqs_ul_1">
<li>
<p class="credit_i_p">Delayed or missed payments can stay on your credit report for up to seven years. It is removed after seven years provided that the amount has been repaid and the account is still active.</p>
</li>
<li>
<p class="credit_i_p">Late fees are added to late payments. Credit card APRs are generally quite high. If you drive your account into <a href="https://www.mymoneykarma.com/credit-scores/remove-negative-credit-report.html" target="_blank">delinquency</a>, there shall be a charge in the form of penalty APR, and you would end up paying much more than you had initially borrowed.</p>
</li>
<li>
<p class="credit_i_p">Failing a payment easily spoils your impression in the eyes of the lenders. They would lose their trust in your creditworthiness and increase your APR. If you were under any low-interest promotional scheme, those benefits might even be canceled.</p>
</li>
</ol>
<h3 class="credit_i_h3">What Can You Do If You Have Made a Late Payment?</h3>
<p class="credit_i_p">Listed below are a few things that you should do when you&nbsp;<a href="https://www.mymoneykarma.com/credit-cards/things-to-do-if-you-miss-credit-card-payment.html" target="_blank">miss a payment</a>:</p>
<ol class="homeloan_Faqs_ul_1">
<li>
<p class="credit_i_p"><strong class="credit_b1056">Try to Settle the Account ASAP:</strong> Pay the amount immediately when you realize that you have missed a payment. If not the full amount due, pay at least the minimum amount required.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Try for a Waiver:</strong> When you miss a credit card payment, an exorbitant late fee is added to your outstanding balance. You could avoid it by approaching the creditor and asking for a waiver. If you have a clean payment history and are careful to be polite enough, this could work. If you could, it would also help if persuaded the creditor to keep the negative information from the report that they submit to the credit bureaus.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Set Reminders for Yourself:</strong> If missing payments becomes repetitive, you better be more careful and find a way to remind yourself. Set reminders - it could be a wall calendar, cell phone reminder, or reminders through SMS/email.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Set up Autopay:</strong> If you are too lazy to follow up on the reminders, consider setting up automatic payments. Link your credit bill to your savings account and set up an automatic payment on a day before the due date. Also ensure that your account has enough money for the automated transaction.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Keep an Eye on Your Credit Reports: </strong>Stay alert and keep a check on how your late payments are affecting your credit score. Lookout for reporting errors. Use mymonekarma&rsquo;s <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=credit-scores_1325" target="_blank">credit score tracker</a> to stay alert and updated.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Pay on Time Henceforth:</strong> <a href="https://www.mymoneykarma.com/credit-cards/pay-off-credit-card-debt.html" target="_blank">Pay bills quickly</a> to prove that you are responsible. If you can show that you are sincerely repaying your balance, your credit scores are more likely to improve. You must verify that the late payment was just an anomaly in your otherwise pristine credit history.</p>
</li>
</ol>
<p class="credit_i_p"><img class="img-responsive credit_i_img" src="../../../images/new/creditscore/how-do-late-payments-impact-your-credit-score.jpeg" alt="How Do Late Payments Impact Your Credit Score" /></p>
<p class="credit_i_p">By the way, did you know that you are entitled to one <strong class="credit_b1056">free credit score</strong> per year? That&rsquo;s right! There are some organizations that give you your <strong class="credit_b1056">credit score report</strong> once a year for free.</p>
<h3 class="credit_i_h3">How Much Does a Late Payment Hurt Your Credit Score?</h3>
<p class="credit_i_p">If once in a while you miss your payments and pay it within 30 or maximum 60 days, then it won't cause any lasting damage to your credit score. However, frequent as well as recent (in the last two years) payment failures can be detrimental. A payment delayed by 90 days or more can make your credit history to plummet and mess up your credit score for up to seven years. It indicates that you might repeat the mistake, and you become a risky borrower. Most credit bureaus follow this pattern:</p>
<ol class="homeloan_Faqs_ul_1">
<li>
<p class="credit_i_p"><strong class="credit_b1056">30-60 Days Late:</strong> If it is a one-time failure, the damages are less, and you can quickly revive. Recent 30-60 days delay causes the most damage, but it wanes off over time. However, if it happens often, the damage can be severe.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Ninety Days Late:</strong> This means severe damage to your credit score. The effects will remain for up to seven years.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">120+ Days Late:</strong> If your payment gets delayed by 120 days, your debt will likely be sold off to a third-party agency. It could become a '<a href="https://www.mymoneykarma.com/credit-scores/collection-account.html" target="_blank">collection account</a>' or a 'charge-off account.&rsquo; Such circumstances significantly damage your credit report. Not only does it bring down your credit score, but it also adds a disparaging remark in the report.</p>
</li>
<li>
<p class="credit_i_p"><strong class="credit_b1056">Repossessions or Foreclosures:</strong> If you drive your<a href="https://www.mymoneykarma.com/home-loan.html" target="_blank"> home loan</a> or<a href="https://www.mymoneykarma.com/auto-and-car-loan-emi-calculator-in-india.html" target="_blank"> auto loan</a> account to a high level of delinquency, the blow to your credit score will last for seven years. A negative remark will be added to your credit report as well.</p>
</li>
</ol>
<h3 class="credit_i_h3">How Long Do Late Payments Stay on a Credit score Report?</h3>
<p class="credit_i_p">Late payments remain on your credit report for seven years. Yes, that is quite a long time. Worse still, if your credit score gets low enough, you may not get any new loans in the future. That&rsquo;s terrible news in case of emergencies.</p>
<h3 class="credit_i_h3">How Can You Remove a Late Payment?</h3>
<p class="credit_i_p">The easiest way to do this is by asking. This means asking your lender to remove the late payment off from your credit report. If they do this, it shall not be a problem for you on the credit report. For this purpose, you can call the lender or write to them. However, you need an excellent reason for this request.</p>
<p class="credit_i_p">The second way to do this is by negotiating with the lender. And it is entirely legal! For instance, if you are late on payments, you can propose to the lender that you wish to pay off all the remaining debt or loan along with additional charges immediately in return for the removal of late payment records from your credit report.</p>
<p class="credit_i_p">The third way to do this is quite simple. You pay the debt off to avoid any further trouble.</p>
<p class="credit_i_p">The fourth way is to hire a lawyer to fight your legal battles for you. This can come useful if the situation is entirely against you.</p>
<h2 class="credit_i_h2">To Sum Up</h2>
<p class="credit_i_p">Now that you know how harmful late payments can be, you should always be on guard. A little effort can save your credit from a lot of harm.</p>
<p class="credit_i_p">mymoneykarma can help you stay on top of <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=credit-scores_1325" target="_blank">your&nbsp;credit score</a> - sign up with us and track your credit accounts with our effective tools.</p>

How Long Do Late Payments Affect Your Credit Score? Should you even worry about late payment?  Go through this article to know more about this. Use mymoneykarma's tools to save yourself from potential payment delays.

How Long Do Late Payments Affect Your Credit Score

<p class="credit_i_p">It always pinches us when our hard-earned money is deducted as taxes. Our taxable income gets reduced quite a bit because of the various taxes imposed on us. Hence, it makes sense for us to make investments that we can claim as tax deductions.</p>

<p class="credit_i_p">Most of you are aware of Section 80C and the investments you can make under the section. mymoneykarma now gives you eight tax-saving investments above 80C. This will free up your hard earned money for fulfilling your wishes.</p>

<h2 class="credit_i_h2">What is Section 80C?</h2>

<p class="credit_i_p">Section 80C is the most renowned section of the Indian Income Tax Act. There are numerous <a href="https://www.mymoneykarma.com/investing/fixed-income-investments.html" target="_blank">tax saving options under 80C</a>, such as ELSS and PPF. While investing under 80C is very popular, we bring you tax-hacks other than Section 80C.</p>

<h3 class="credit_i_h3">NPS</h3>

<p class="credit_i_p">The National Pension System was launched by the Indian government in 2009. The NPS offers a tax deduction for investments made up to Rs. 50,000, in addition to the deduction of 1.5 lakh rupees available under Section 80C. Your returns, however, depend on the asset class you have chosen. Usually, it is advisable to select a high-risk instrument like government debt.</p>

<h3 class="credit_i_h3">Rajiv Gandhi Equity Savings Scheme (Section 80CG)</h3>

<p class="credit_i_p">This is another <a href="https://www.mymoneykarma.com/investing/index.html/guide-to-save-tax-2019.html" target="_blank">scheme available for tax-saving</a>. Under this, you can invest up to Rs 50,000 in approved stocks.&nbsp; But this scheme is available for you&nbsp;only if you are a first-time investor. This scheme was introduced under the UPA regime and has not been promoted aggressively. A supposed overhaul of the project hasn't come through yet.</p>

<h3 class="credit_i_h3">Interest on Education Loan (Section 80E)</h3>

<p class="credit_i_p">You can claim the interests you pay on the active education loans you possess, if you have any. The deduction can be only on the interest repayment part, not on the principal of the education loan. That means only the interest repayment is available for a tax deduction while filing an income tax return.</p>

<p class="credit_i_p">This deduction is available for saving above Rs. 1,50,000, and there is no maximum limit on claiming deduction under 80E.&nbsp;Parents can take up this tax-saving option on behalf of their children, as children are not taxed. It is not a popular scheme, and not many are aware of it.</p>

<h3 class="credit_i_h3">House Rent Allowance (Section 80GG)</h3>

<p class="credit_i_p">If you are staying in a rented apartment or house and paying rent, you can claim the amount as a tax deduction under Sec 80GG of the Income Tax Act. The amount of the deduction is based on the city that you are residing in. In case you have queries, it is best to talk to the HR department on the exact tax benefits that you would get. This is a significant tax hack that you should take note of.</p>

<h3 class="credit_i_h3">Home Loans (Section 80EEE)</h3>

<p class="credit_i_p">An additional deduction of Rs 50,000 on <a href="https://www.mymoneykarma.com/refinance-and-home-loan-deals-in-India.html" target="_blank">home loan interest</a> can be claimed under Sec 80EE of the Income Tax Act. This option is however not a very popular one.</p>

<h3 class="credit_i_h3">Health Insurance (Section 80D)</h3>

<p class="credit_i_p">You should take a health insurance policy, which would not only take care of your medical expenses but also enable you to save tax. The current IT norms allow a deduction of up to Rs 25,000 in the case of ordinary citizens and Rs 30,000 <a href="https://www.mymoneykarma.com/insurance/index.html/best-health-insurance-for-parents.html" target="_blank">in case of senior citizens</a>. So, you can go ahead and take a good health insurance policy.</p>

<p class="credit_i_p">This is a tax hack that you can utilize apart from the usual 80C benefits. The Sec 80D benefits also include the gains on expenses incurred towards preventive health check-ups.</p>

<h3 class="credit_i_h3">Donations (Section 80G)</h3>

<p class="credit_i_p">Section 80G of the income tax law provides tax benefits on the amount donated to NGOs. So, you can be generous to the causes you believe in, to your heart's content. However, the deductions can be made if you are donating by cash or draft only. The limit of the deduction can be either 50% or 100%.</p>

<p class="credit_i_p">You have to claim this deduction when you file your tax returns and quote your PAN to the institution you donated. If you are unsure about the cause you want to support, there is an exhaustive list of institutions and establishments that you can donate to.</p>

<h3 class="credit_i_h3">Medical Treatment (Section 80DDB)</h3>

<p class="credit_i_p">For certain specific diseases, Income Tax Act offers tax benefits to you under section 80DDB from expenses incurred by you for the treatment of said diseases or ailments. This tax-saving option is not only for the people filing tax returns but <a href="https://www.mymoneykarma.com/insurance/index.html/benefits-of-family-health-insurance.html" target="_blank">also for dependents of such people</a>. However, this tax benefit is not available for Non-Resident Indians.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">As law-abiding taxpayers, you have every right to look for ways to save your hard-earned money. When the government offers such great options to optimize your savings, why shouldn’t you utilize them?</p>

<p class="credit_i_p">Knowing about <a href="https://www.mymoneykarma.com/investing/index.html/guide-to-save-tax-2019.html" target="_blank">various tax-saving options</a> can be advantageous for you; now that you do, go ahead and save more!&nbsp;</p>

<p class="credit_i_p">&nbsp;</p>

80C investment options are a goldmine if used properly. But are there more sections like it? mymoneykarma tells you about the different ways you can save on tax over and above Section 80C of the Income Tax Act.

80C - 80C Investment Options - Savings Under 80C

<p class="credit_i_p">You are excited to start your own business, and you have a revolutionary idea that could change the world. You have done thorough research on the concept, and it's all set to be implemented except for a single problem - you don't know where to get business funding for your startup. The painstaking yet exciting journey from the inception of the idea to building a revenue-generating business needs a fuel named 'capital.' Startup funding is a significant hiccup faced by many young entrepreneurs in the country, and most business ideas fizzle out owing to a lack of funds.</p>

<p class="credit_i_p">There are many funding options in India to finance your startup. mymoneykarma brings you eight ways to fund your new business. You can go through them and adopt one that would suit your business the best.&nbsp;</p>

<h3 class="credit_i_h3">Bootstrap Your Business</h3>

<p class="credit_i_p">Bootstrapping or self-funding is an age-old practice of getting your business started. Often, first-time entrepreneurs face difficulties in getting investors on-board as no one wants to take risks with first-timers. If you are a new entrepreneur, bootstrapping might be an excellent option to get your business started. There are fewer formalities involved, and you are much more invested in your startup. You should note that you can bootstrap your business only if the capital requirement is less at the beginning.</p>

<h3 class="credit_i_h3">Choose Crowdfunding</h3>

<p class="credit_i_p">Crowdfunding is another way of funding a startup that is gaining traction these days. It gathers contributions from the common public on open platforms. An entrepreneur has to put up a detailed description of his business on a crowdfunding platform and mention the goals of the startup and plans for making a profit, along with the funding amount required and reasons behind the requirement. With this approach, people can contribute money toward helping a business that they believe in. Crowdfunding can also generate interest in the venture, and hence it helps in marketing the product alongside financing. Remember that crowdfunding is a competitive place to earn funding. Therefore, if your business proposal is not rock solid, you may not find crowdfunding to work for you in the end.</p>

<h3 class="credit_i_h3">Get Angel Investors For Your Startup</h3>

<p class="credit_i_p">Angel investors are individuals or organizations with surplus cash and are keen to invest in promising startups. They often work in groups or networks so that they can collectively screen the proposals before investing. Apart from capital, they can also offer you mentoring or advice . Some of the most famous angel investors are Alibaba and Google. Angel investors invest in your company in exchange for equity. Indian Angel Network, Mumbai Angels, and Hyderabad Angels are a few of the famous angel investment groups in India that are known to fund many Indian startups.</p>

<h3 class="credit_i_h3">Venture Capital For Your Business</h3>

<p class="credit_i_p">Venture capitals are professionally managed funds invested in startups that are deemed to have tremendous potential. Venture capitalists (VCs) invest in your startup against equity and exit when there is an IPO or an acquisition. VCs provide expertise and mentorship apart from evaluating your business from a sustainability and feasibility point of view. A venture capital investment is appropriate for bigger startups that are beyond the startup phase and are already generating revenue. However, VCs are known to be impatient to recover their investment within a three-five year time period. If you have a product that can take longer to get going in the market, then it may be difficult for you to convince a venture-capital investor to fund your startup.</p>

<h3 class="credit_i_h3">Get Your Funding From Business Incubators &amp; Accelerators</h3>

<p class="credit_i_p">You can also consider incubator and accelerator programs as your funding options. Incubators help provide initial assistance in the form of office space, financial backup, and mentorship programs. Accelerators offer similar support to more prominent startups to help them start revenue generation.</p>

<p class="credit_i_p">These programs typically run for 4-8 months and require commitment from you as a business owner. You will be able to connect with investors, mentors, and other fellow startups using such platforms.</p>

<h3 class="credit_i_h3">Raise Funds By Winning Contests</h3>

<p class="credit_i_p">You can participate in several contests organized by several industrial organizations to promote new entrepreneurial talent. In such contests, you either have to build a product idea or prepare a business plan. These competitions can get you media coverage and marketing exposure. Some of the popular contests in India are NASSCOM 10000 startups, Microsoft BizSpark, Conquest, Next BIG Idea Contest, and LetsIgnite.</p>

<h3 class="credit_i_h3">Raise Money Through Bank Loans</h3>

<p class="credit_i_p">Almost every bank in India offers finance for your startup through various programs. Leading Indian banks such as Bank Of Baroda, HDFC, ICICI, and Axis bank offer different options of collateral-free business loans. Moreover, personal loans can also aid you in setting up your business. You&nbsp; can bank upon the financial expertise of mymoneykarma, where we not only take care of your loan application and disbursal but also guarantee affordable interest rates.</p>

<h3 class="credit_i_h3">Opt For Govt Programs that Offer Startup Capital</h3>

<p class="credit_i_p">You can also opt to register as a startup in the various schemes started by the Government of India. The Indian government had launched Rs 10,000 crores worth of Startup Fund in the Union Budget of 2014-15 to improve the startup ecosystem in India. To boost innovative products and companies, the government has launched the 'Bank Of Ideas and Innovations' program. Also, different states have come up with various programs, such as the Kerala State Self Entrepreneur Development Mission (KSSEDM), Maharashtra Centre for Entrepreneurship Development, and Rajasthan Startup Fest, to encourage innovative startups. If you meet the eligibility criteria, government grants could be one of the best funding options for your startup. You need to be aware of the various government initiatives to utilise them prudently.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">If you want your startup to grow fast, you probably need external sources of capital. If you bootstrap your enterprise but end up remaining without external funding for too long, your finances may fizzle out before your product or service takes off. While the plethora of funding options available may make it easier than ever for you to get started, it's also essential to invest in good accounting software and keep your finances in order.</p>

Startup funding in India requires a lot of capital, which is difficult to arrange and procure during the initial stages. mymoneykarma tells you all that you need to know.

Startup Funding India - Crowdfunding For Startups In India

<p class="credit_i_p">There is no doubt that Bollywood movies are packed with action, drama and entertainment. However, these movies also play inspirational roles in our life sometimes. For instance, the film 'Yeh Jawani Hai Deewani' has been made <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/millennial-spending.html" target="_blank">keeping millennials in mind</a>, as it is wholly relatable to the phase of mental dilemma, ambitious spirit and passion for accomplishing that all of us have been through.</p>

<p class="credit_i_p">Likewise, the metaphorical dialogues of the movie intrigues and motivates the audience through various life lessons, such as,</p>

<blockquote>
<p class="credit_i_p">"Main udna chahta hu, daudna chahta hu, girna bhi chahta hu. Bas, rukna nahi chahta,"</p>
</blockquote>

<p class="credit_i_p">implying that a person should never stop trying due to the fear of failing.</p>

<p class="credit_i_p">Apart from the motivational lessons, some <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/5-decisions-to-protect-your-finances.html" target="_blank">financial tips</a> can be construed from the Bollywood dialogues as well. Following are a few famous Bollywood dialogues and the financial advice hidden between the lines:<br>
&nbsp;</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue #1</strong></h3>

<blockquote>
<p class="credit_i_p"><em>"Paisa, paise ko kheechta hai." </em><br>
&nbsp; &nbsp; &nbsp; &nbsp;&nbsp;- Emraan Hashmi - Jannat</p>
</blockquote>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> It implies that 'only money can attract money.' You can earn more only by investing money in the stock market, real estate and <a href="https://www.mymoneykarma.com/investing/index.html/grow-your-money-by-investing-in-mutual-funds.html" target="_blank">mutual funds</a>. Stashing it in a savings account will <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/disadvantages-multiple-bank-accounts.html" target="_blank">make it stagnant</a>.<br>
&nbsp;</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue #2</strong></h3>

<blockquote>
<p class="credit_i_p"><em>"Kahin pe pahuchne ke liye, kahi se nikalna bahut zaruri hota hai" </em><br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; - Ranbir Kapoor - Yeh Jawaani Hai Deewani.</p>
</blockquote>

<p class="credit_i_p"><em>"To achieve something new, you ought to leave something old, and you should leave at the very moment before you start experiencing grief and sorrows."</em></p>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> It means that to thrive in life, a person needs to come out of their comfort zone. If you feel uncomfortable to invest your money in various <a href="https://www.mymoneykarma.com/investing/stock-market-vs-mutual-funds.html" target="_blank">stocks and mutual funds</a> due to the lack of experience, then you need to acquire knowledge about the ongoing trends and try it out by investing in small amounts.<br>
&nbsp;</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue# 3</strong></h3>

<blockquote>
<p class="credit_i_p">"Risk to Spiderman ko bhi lena padta hai, main to phir bhi salesman hoon"<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- Ranbir Kapoor - Rocket Singh.</p>
</blockquote>

<p class="credit_i_p"><em>"Even Spiderman has to take risks, so why can't I? I am just a salesman."</em></p>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> There is a common saying, "Power comes to those who take risks in life." It is true that no one can accomplish their goals without taking risks. For instance, to <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/ditch-the-fear-and-start-your-own-business.html" target="_blank">start your business</a>, you need to take the risk of leaving a high-paid job and invest in what you have conceptualized.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue#4 </strong></h3>

<blockquote>
<p class="credit_i_p">"Apno ko kabhi kuch ho jaye, to sasura sahas ki bahut jarurat padti hai."<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- Saurabh Shukla - Raid.</p>
</blockquote>

<p class="credit_i_p"><em>"If something happens to our close ones, a lot of courage is required to face it."</em></p>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip: </strong><a href="https://www.mymoneykarma.com/insurance/index.html/benefits-of-family-health-insurance.html" target="_blank">Keep your near and dear ones protected</a> by varied insurance covers such as health insurance, <a href="https://www.mymoneykarma.com/investing/index.html/life-insurance-vs-mutual-funds.html" target="_blank">life insurance</a>, and accidental insurance, so that you can gather the strength to deal with the worse if any unfortunate circumstances arise.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue#5</strong></h3>

<blockquote>
<p class="credit_i_p">"Kamata hoon Dirham mein lekin kharachta hoon rupai mein."<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; - Varun Dhawan - Dishoom.</p>
</blockquote>

<p class="credit_i_p"><em>"I earn money in Dirhams, but I spend in Rupees."</em></p>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> Always spend less than what you earn; it will help you with <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/optimize-your-savings.html" target="_blank">savings</a>. For NRIs who earn in dollars, this can be a remarkable strategy for generating more money by channelizing the investments in Rupees.<br>
<img alt="" src="https://mmk-s3-cms.s3.amazonaws.com/1570439253103.png" class="img-responsive credit_i_img"></p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue #6 </strong></h3>

<blockquote>
<p class="credit_i_p">"Sahi time par sahi jagah hona, sahi time par sahi baat karna, aur sahi time par sahi kaam uthana, isi ko luck kehte hai."<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- Danny Denzongpa - Luck.</p>
</blockquote>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> Luck is all about taking the right step at the right time and the right place. So, do your <a href="https://www.mymoneykarma.com/investing/index.html/fixed-income-investments.html" target="_blank">research before investing</a> and make the decisions smartly. Luck will surely follow you.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue#7</strong></h3>

<blockquote>
<p class="credit_i_p">Jua mein hamesha jeetkar hi nahi, kabhi kabhi haarkar bhi zyada paisa kamaya ja sakta hai."<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; - Kajol - Kuch khatti Kuch Meethi.</p>
</blockquote>

<p class="credit_i_p"><em>"In gambling, you earn by winning, but sometimes a defeat can let you earn more."</em></p>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> Here, the crux of the dialogue is not to encourage gambling but to explain that even if you lose money during times when the sharemarket exhibits a downward trend, don't panic! You still have the chance to earn, just wait for the right moment. Also, a defeat always gives the opportunity to learn from <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/top-financial-mistakes.html" target="_blank">the mistakes</a> and coming back in the game.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue#8</strong></h3>

<blockquote>
<p class="credit_i_p">"Maal chahiye chokha, toh note karo ji mota."<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; - Manoj Bajpai - Satyagraha.</p>
</blockquote>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> To buy an expensive product, one needs to spend more. Similarly, to earn more, one needs to invest more.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue#9 </strong></h3>

<blockquote>
<p class="credit_i_p">"Mere pass paisa hai par style nahi hai, aur tere pass style hai par paisa nahi hai"<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- Danny Denzongpa - Luck.</p>
</blockquote>

<p class="credit_i_p"><em>"I have money, but I don't have style; you have style, but you don't have money."</em></p>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> A debonair without money has the capability to earn it. If you attain the right kind of attitude and confidence while handling your business, you will always <a href="https://www.mymoneykarma.com/trending-in-finance/index.html/exciting-avenues-for-startup-funding-in-India.html" target="_blank">be able to get funds</a> to invest in it.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Dialogue#10</strong></h3>

<blockquote>
<p class="credit_i_p">"Nazdeeki fayda dekhne se pahle dur ka nuksan sochna chahiye."<br>
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;- Amitabh Bacchan - Sarkar.&nbsp;</p>
</blockquote>

<p class="credit_i_p"><strong class="credit_b1056">Financial Tip:</strong> Before focusing on <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/save-for-short-long-term-goals.html" target="_blank">short-term profits</a>, focus on the loss that you may incur by breaking the long-term investments.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">These were some of the iconic Bollywood movie dialogues which have left a deep impression in the mind of the audience.</p>

<p class="credit_i_p">The dialogues and concepts of these movies have influenced people of all generations, from millennials to the older ones. If you haven't seen any of these movies, we would suggest you watch them and share <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/financial-lessons-from-wolf-of-wall-street.html" target="_blank">more financial tips</a> with us.</p>

<p class="credit_i_p">&nbsp;</p>

Here are the 10 financial tips for you from Bollywood dialogues shared by the movie buffs of mymoneykarma. Visit our website to read more.

10 Financial Tips From Bollywood Dialogues | mymoneykarma

<p class="credit_i_p">Hey there!</p>
<p class="credit_i_p">Are skyrocketing fuel prices burning a hole in your pocket?</p>
<p class="credit_i_p">Are you keeping aside a big stash of your monthly income for fuel expenses?</p>
<p class="credit_i_p">If your answer is yes, then we assume that you are here to find a solution. Let's begin the discussion then.</p>
<p class="credit_i_p">The solution lies in the credit cards that provide a waiver on fuel surcharge or let you <a href="https://www.mymoneykarma.com/credit-cards/credit-card-reward-points.html" target="_blank">use your rewards</a> to pay for fuel expenses. Here, mymoneykarma has prepared a comprehensive list of the best credit cards that can help you in saving money:</p>
<h3 class="credit_i_h3">ICICI HPCL Coral Credit Card (Visa)</h3>
<p class="credit_i_p">Joining fee: Rs.199 + GST</p>
<p class="credit_i_p">Reward points: Two payback points on every Rs.100 spent (on retail purchases except fuel)</p>
<p class="credit_i_p">Reward points value: 2000 payback points = Rs. 500 spent on fuel</p>
<p class="credit_i_p"><strong class="credit_b1056">Exclusive benefits&nbsp;</strong></p>
<ul class="banklogin_ul">
<li>
<p class="credit_i_p">Get 2.5% cashback (on minimum fuel transaction of Rs. 500)&nbsp;</p>
</li>
<li>
<p class="credit_i_p">Savings of 1% fuel surcharge on making purchases at HPCL pumps.</p>
</li>
<li>
<p class="credit_i_p">Enjoy Rs.100 discount on up to two movie tickets per month at www.bookmyshow.com</p>
</li>
<li>
<p class="credit_i_p">Minimum 15% <a href="https://www.mymoneykarma.com/credit-cards/best-credit-cards-for-dining.html" target="_blank">savings on dining</a> at over 800 restaurants.</p>
</li>
</ul>
<h3 class="credit_i_h3">ICICI Bank HPCL Coral Credit Card (Master)</h3>
<p class="credit_i_p">Joining fee: Rs.199 + GST</p>
<p class="credit_i_p">Renewal fee: Rs.199 + GST</p>
<p class="credit_i_p">Reward points: Six payback points on every Rs.100 spent (all retail purchases except fuel)</p>
<p class="credit_i_p">Reward points value: 2000 payback points = Rs. 500 spent on fuel</p>
<p class="credit_i_p"><strong class="credit_b1056">Exclusive benefits of this card</strong></p>
<ul class="banklogin_ul">
<li>
<p class="credit_i_p">Get 2.5% cashback (on minimum fuel transaction of ?500)</p>
</li>
<li>
<p class="credit_i_p">Savings of 1% fuel surcharge on making purchases at HPCL pumps.</p>
</li>
<li>
<p class="credit_i_p">Get Rs. 100 off on Zomato for orders of Rs. 250/- and above - Use this code while paying through your ICICI credit card: ZOMATO101</p>
</li>
<li>
<p class="credit_i_p">This offer is valid up to 5 times per user</p>
</li>
</ul>
<h3 class="credit_i_h3">Kotak Mahindra Delight Platinum Card</h3>
<p class="credit_i_p">Joining fee: Rs. 2000 + GST</p>
<p class="credit_i_p">Renewal fee: Rs. 299 + GST</p>
<p class="credit_i_p">Reward points: You get rewards in the form of cashback</p>
<p class="credit_i_p"><strong class="credit_b1056">Exclusive benefits</strong></p>
<ul class="banklogin_ul">
<li>
<p class="credit_i_p">Get 10% cashback on dining and movies after spending an amount of Rs.10,000 monthly on other categories.</p>
</li>
<li>
<p class="credit_i_p">Enjoy a 1% fuel surcharge waiver across all petrol pumps in India.&nbsp;</p>
</li>
<li>
<p class="credit_i_p">If your credit card is stolen, you get an insurance cover of Rs.1,25,000 against <a href="https://www.mymoneykarma.com/credit-cards/protect-from-credit-card-fraud.html" target="_blank">fraudulent usage</a> for up to seven days of pre-reporting.&nbsp;</p>
</li>
<li>
<p class="credit_i_p">VisapayWave facility for one transaction of up to Rs. 2000 without entering a PIN.</p>
</li>
</ul>
<h3 class="credit_i_h3">Kotak Mahindra Solaris Platinum Credit Card</h3>
<p class="credit_i_p">Joining fee: Rs. 500 + GST</p>
<p class="credit_i_p">Renewal fee: Rs.500 + GST</p>
<p class="credit_i_p">Reward points (RP): Earn up to 5X RP on every Rs.150 spent (online purchases)&nbsp;</p>
<p class="credit_i_p">Earn 2X RP for every Rs.150 on other retail spends.</p>
<p class="credit_i_p"><strong class="credit_b1056">Exclusive benefits</strong></p>
<ul class="banklogin_ul">
<li>
<p class="credit_i_p">Fuel surcharge waived for transactions between Rs. 400 and Rs. 3500&nbsp;</p>
</li>
<li>
<p class="credit_i_p">Enjoy the railway surcharge waiver for bookings on IRCTC.</p>
</li>
</ul>
<h3 class="credit_i_h3">Bajaj Finserv RBL Bank Value Plus Supercard</h3>
<p class="credit_i_p">Joining fee: Rs. 499 + GST</p>
<p class="credit_i_p">Renewal fee: Rs. 499 + GST</p>
<p class="credit_i_p">Welcome bonus: Gift vouchers redeemable on Flipkart, Shoppers Stop, MakeMyTrip, etc.</p>
<p class="credit_i_p"><strong class="credit_b1056">Exclusive benefits of this card</strong></p>
<ul class="banklogin_ul">
<li>
<p class="credit_i_p">10% cashback on Ola/Uber/Fuel Purchases (up to Rs. 250 per month)&nbsp;</p>
</li>
<li>
<p class="credit_i_p">Get a fuel surcharge waiver up to Rs.100 per month.&nbsp;</p>
</li>
<li>
<p class="credit_i_p">The approximate value of benefits per annum: Rs. 6200+</p>
</li>
</ul>
<h2 class="credit_i_h2">To Sum Up</h2>
<p class="credit_i_p">These cards aren't exclusively for fuel purchases; instead, they have other benefits too, as mentioned above. Hence, you can save money on your fuel expenses through these cards along with making other retail purchases.</p>
<p class="credit_i_p">If this makes sense to you, then apply for a new credit card right away - but don't forget to <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=credit-cards_2089" target="_blank">check your credit score</a> before you do so. <a href="https://www.mymoneykarma.com/credit-score.html" target="_blank">Happy Credit</a>!</p>
<p class="credit_i_p">&nbsp;</p>

Are you worried about the soaring fuel expenses? Relax! This blog on the mymoneykarma portal can help you in saving money.

Best Credit Card For Fuel Purchases In India

<p class="credit_i_p">Buying a dream car is usually on the bucket list of many people; likewise, it was on mine too. However, buying a car without an auto loan is very unlikely, especially for salaried individuals. There are various points you need to keep in mind for taking a car loan and then being able to repay it faster without having to pay a tremendous amount of interest.</p>

<p class="credit_i_p">I am going to share my experience with you, but before that, let's discuss the steps to go through before opting for a car loan.<br>
<br>
<strong class="credit_b1056">1. Down-payment and EMI calculation: </strong>Ensure that you have the right budget to make a down payment to the maximum extent, so that the pressure of EMI and tenure of the loan get reduced. Reduction of EMIs will substantially cut down the interest on the loan.</p>

<p class="credit_i_p">Banks may tempt you by offering to lend 100% of the on-road price of the car. However, if you have enough monetary resources, you can take a lesser amount of loan to buy the car. Also, calculate the EMIs on mymoneykarma <a href="https://www.mymoneykarma.com/auto-and-car-loan-emi-calculator-in-india.html" target="_blank">auto loan calculator</a> to determine what you can afford before choosing the loan.<br>
<br>
<strong class="credit_b1056">2. The rate of Interest:</strong> The interest rate of car loans usually ranges between 9.5%-13.5% per annum on new cars, and it goes up to 15%-20% on used cars. Many banks adopt the practice of keeping the interest rate fixed for the entire loan term.</p>

<p class="credit_i_p">However, it is always advisable to choose a floating rate of interest as it gives the benefit of a lesser interest rate instantly whenever the rates are slashed.<br>
<br>
<strong class="credit_b1056">3. Processing fee, foreclosure charges &amp; the late payment fee:</strong> Choose the bank that has less processing fee, foreclosure charges, and <a href="https://www.mymoneykarma.com/credit-scores/index.html/how-late-payments-impact-credit-score.html" target="_blank">late payment</a> fee to reduce the overall cost of the car loan.<br>
&nbsp;</p>

<h2 class="credit_i_h2">How Can You Repay Car Loan Faster?</h2>

<p class="credit_i_p"><strong class="credit_b1056">1. Make an additional payment:</strong><br>
If your budget allows, then increase the regular EMI payment. For example, if your EMI payment comes to be Rs. 12,000, you can then start paying Rs.13,000 without putting much burden on your pocket.</p>

<p class="credit_i_p">In this way, you will be paying an additional annual payment of Rs 12,000 towards the EMI, therefore cutting down your loan term and the interest outgo.<br>
<br>
<strong class="credit_b1056">2. Part-payment of loan:</strong><br>
You can partly pay the mortgage from hikes in your salary or investment yield or annual bonus. It not only reduces the loan amount but also saves much interest that you might have to pay otherwise. Many banks and NBFCs offer this option. The more you stretch the loan repayment timeline, the more interest you pay. If you pay back a lump sum, the outstanding principal gets reduced and helps you save considerably on the interest.</p>

<p class="credit_i_p">However, before availing such an opportunity, confirm from the lender if there is any penalty for part payment. If there is a penalty, then find out the exact amount. Deduct the penalty amount from the savings that you would make on interest if you prepay a lump sum. Now, check the resultant savings after deducting the penalty fees. If the savings turn out to be ample, it's worth making a part payment.<br>
<br>
<strong class="credit_b1056">3. Never skip the EMIs:</strong><br>
Some lenders may allow you to skip the payment once or even twice a year. However, try to resist such temptations, as skipping payments will lengthen the term of your loan and cost you more in interest.</p>

<p class="credit_i_p">In case you are jumping the payments on your own, remember that it will affect your credit score and your credit account can be declared as <a href="https://www.mymoneykarma.com/credit-scores/index.html/remove-negative-credit-report.html" target="_blank">delinquent</a> by the bank, which may reflect on your credit report for a long time.</p>

<p class="credit_i_p"><strong class="credit_b1056">4. Increase the EMI amounts over time:</strong></p>

<p class="credit_i_p">There is an annual appraisal benefit provided by most of the companies, which results in a salary hike. At this time, you should be paying more amount towards EMIs. If you continue doing this each year, it will drastically reduce the&nbsp;loan tenure. Also, as you are paying more than the actual EMIs, the outstanding of the loan will be reduced.</p>

<p class="credit_i_p"><strong class="credit_b1056">5. Round up the payments and pay:</strong></p>

<p class="credit_i_p">Instead of just paying what is mandatory, round up the amounts to the nearest number to repay your car loan more quickly. For example, if you are paying Rs. 10,200 for EMI, make it Rs. 11,000 as it assists in repaying the loan faster.<br>
<br>
<strong class="credit_b1056">6. Choose the car as per&nbsp;affordability:</strong><br>
Assess your financial limit and purchase power before choosing a car model. For example, if your budget can afford a Ford Figo, you must buy it instead of purchasing a BMW, which is beyond your reach.<br>
<br>
<strong class="credit_b1056">7. Keep a lid on the expenses:</strong><br>
Make effective financial plans by keeping expenses such as rent, <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/tips-to-save-electricity-bill.html" target="_blank">electricity</a>, food and some other miscellaneous expenditures in mind. Always make sure to keep your income level much ahead of the expenses, so that you can pay off the car loan much faster.<br>
<br>
<strong class="credit_b1056">8. Don't take a new loan:</strong><br>
If you already have a <a href="https://www.mymoneykarma.com/home-loan.html" target="_blank">home loan</a>, then don't take an auto loan and put an additional burden on your pocket. You might not be able to afford it.<br>
Taking out a new loan can leave an impact on your future credit by messing up your credit score. I had a credit score of 810 when I was approved for the loan. After two months of timely payments, I checked my credit score and discovered that it had dropped down by 15 points.</p>

<p class="credit_i_p">I had not missed any payments, nor had I accumulated a debt on my credit cards -&nbsp;so, the drop was entirely due to the new loan that I had taken. I realized that a 15-point slump isn't a problem if the credit score falls within the range of 700-800.</p>

<p class="credit_i_p">However, if the <a href="https://www.mymoneykarma.com/credit-scores/index.html/reasons-for-credit-score-drop.html" target="_blank">score drops</a> to the 600 range, then 15 points can be the difference between loan approval and rejection.</p>

<h2 class="credit_i_h2">Conclusion</h2>

<p class="credit_i_p">It's not difficult to accomplish dreams nowadays, but doing it with intelligent planning is essential. If you go beyond your income level, then it will not be healthy for your financial life in the long run.</p>

<p class="credit_i_p">For best results, <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=carloan" target="_blank">check your credit score</a> regularly as well.</p>

<p class="credit_i_p">Here, mymoneykarma will suggest that you must <a href="https://www.mymoneykarma.com/personal-finance/i/do-it-yourself-budgeting.html">prepare your budget</a> wisely before taking any credit so that the spirit of accomplishment doesn't put you under massive debts.<br>
&nbsp;</p>

Wondering how to pay off your car loan faster? Here are a few smart tips and tricks to help you settle your car loan debt quickly.

How to Pay Off Your Car Loan Faster | Car Loan Tips | mymoneykarma

<p class="credit_i_p">Fixed income investments are specialized for risk-averse investors who want the safety of their money with assured returns. Along with these two aspects, schemes such as Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana (SSY), also offer tax-saving benefits under section 80C of the Income Tax Act since the returns from these schemes are entirely tax-exempt. Fixed-income instruments should be an integral part of every investor's portfolio to ensure security, mainly during times of economic volatility. So, let's take a look at some of the best fixed-income investments under the ambit of section 80C, where you can safely park your money.</p>

<h3 class="credit_i_h3">Public Provident Fund (PPF)</h3>

<p class="credit_i_p">PPF is a favorite mode of investment among the Indian middle-class. It’s considered to be a safe investment that offers an interest rate of 8%.&nbsp;</p>

<p class="credit_i_p">You may choose to invest a lump sum or make periodic contributions to your PPF account. You can claim a tax deduction for investments of up to Rs 1.5 lakh in a fiscal year under section 80C of the Income Tax Act. PPF is a safe investment avenue as the government reviews it. Currently, the investment, interest and maturity proceeds in PPF are entirely tax-free. New investors can buy this scheme either at a post office or any designated branch of a public sector bank that provides this facility. Also, there are a few private banks that offer the facility to invest in PPF.&nbsp;</p>

<h3 class="credit_i_h3">Sukanya Samriddhi Yojana (SSY)</h3>

<p class="credit_i_p">The current interest rate offered in SSY is 8.5 percent. You can make a contribution of up to Rs 1.5 lakh per account in a financial year under section 80C. However, there’s a catch. Sukanya Samriddhi Yojana is applicable only to the parents of a girl child. This scheme can be availed for a maximum of two daughters who are not more than ten years of age during the time of opening the account. In this scheme, you can claim a deduction for investments up to Rs 1.5 lakh only in a fiscal year according to section 80C of the Income Tax Act. There are no restrictions on the number of deposits that you can make either in a month or a financial year. The interest rate of SSY is linked with government bond yield and is subject to change every quarter as per the discretion of the government. You can utilize the maturity proceeds of this program for the education and wedding expenses of your daughter.</p>

<p class="credit_i_p"><img src="https://lh5.googleusercontent.com/D8pvtkFJyWwz37BoiHnw8M6L-E-MtYe00VhSNeIqX9PsTPQFuZLb6KdTdzB_z8GVjo8lMYoHazGs6wVKtNJWdlnsbnhWXvjxx2cKpvbPJaHGzlbjM8bp0QVCgOokEf-Iv8vuIpPH" style="height:417px; width:624px" class="img-responsive credit_i_img"></p>

<h3 class="credit_i_h3">Voluntary Provident Fund (VPF)</h3>

<p class="credit_i_p">The current interest rate offered by VPF schemes is 8.65%. You can contribute your entire basic salary and DA (dearness allowance) to this fund. However, you can only claim a standard tax deduction for investments up to Rs 1.5 lakh in a fiscal year under section 80C of the Income Tax Act. Hence, if you have already crossed your 80C limit through other investments or expenditures, such as <a href="https://www.mymoneykarma.com/epf-forms.html" target="_blank">EPF</a>, PPF, ELSS, FDs, etc., then you won't be able to use the additional VPF contribution to save more tax amount.&nbsp;</p>

<p class="credit_i_p">If you’re wondering how VPF and EPF are different, then let’s help you understand. Unlike EPF, VPF facilitates the employees to voluntarily deposit beyond a fixed contribution limit in their PF accounts. However, in VPF, it is not necessary for the employer to make a matching contribution as it is mandatory in EPF. VPF also has lock-in conditions until retirement or resignation, whichever is earlier.&nbsp;</p>

<p class="credit_i_p">VPF is an excellent investment tool for saving tax under <a href="https://www.mymoneykarma.com/info-tax/sections-80c.html" target="_blank">section 80C</a> as it gives a tax-free return. Further, the gains are risk-free since the government guarantees them. VPF offers you the dual benefit of a tax saving scheme and a retirement planning scheme, and salaried employees should allocate a higher proportion of their salary to VPF for substantial tax-saving.</p>

<h3 class="credit_i_h3">Senior Citizens' Saving Scheme (SCSS)</h3>

<p class="credit_i_p">The current interest rate offered by SCSS is 8.7%. A maximum contribution of Rs 15 lakh is allowed in this scheme. As a&nbsp; senior citizen, you can claim a deduction for investments up to Rs 1.5 lakh in a fiscal year under section 80C. SCSS is a tax-saving instrument for people who are above the age of 60. However, if you have opted for voluntary retirement, you can start investing in SCSS even at the age of 58. On October 3, 2017, the Ministry of Finance announced that the minimum age limit for retired defense personnel is reduced to 50 years for investing in SCSS. This scheme has a lock-in period of five years. And, if you want to extend the tenure further, you can continue it for another three years. No partial withdrawal is allowed before the expiry of the lock-in period. However, in case of an emergency, you can prematurely close the account with a penalty levied on the withdrawal.</p>

<h3 class="credit_i_h3">Tax-Saving Bank Fixed Deposits</h3>

<p class="credit_i_p">The current interest rate offered in tax-saving bank Fixed Deposits (FD) is around 7-8.25%. The maximum amount that you can invest in this scheme is Rs 1.5 lakh, for which you can claim a deduction in a fiscal year under section 80C. The tax saving bank fixed deposits have a lock-in period of 5 years. This scheme is highly preferred for investments due to the assurance of capital preservation and returns as compared to equity investments in terms of tax-saving. It is convenient for the last minute tax savers, and the interest rates on this scheme are reviewed and changed periodically by the banks.</p>

<h3 class="credit_i_h3">National Saving Certificate (NSC)</h3>

<p class="credit_i_p">The current interest rate offered in NSC is 8%. There is no cap on the amount of investment that you can make in NSCs. However, you can only claim a deduction of Rs 1.5 lakh during investment declaration. Currently, National Savings Certificate is available for five-year subscriptions only. The interest rate is reviewed every quarter by the government and modified accordingly. Although interest earned from National Saving Certificate is taxable, the interest amount is considered re-invested (except in the last year of tenure) as it is not paid back to the investor until the maturity of the instrument. Hence, the re-invested interest component also qualifies for deduction under Section 80C of the income tax act. The interest earned in the final year of the tenure is not considered re-invested and is paid back to the investor for that year along with the principal and accrued interest in the previous years.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">The interest rates on PPF and SSY are reviewed and changed quarterly as per the discretion of the government, and the change in rates applies to existing accounts along with the newly opened ones. However, in NSC and Senior Citizen Savings Scheme, new interest rates are applicable only for newly opened accounts, i.e., the interest rate for existing deposits remains the same. Hence, before choosing any of the fixed income schemes mentioned above, indulge in in-depth research and compare the plans in terms of return on investment, interest rate, income tax saving, and lock-in tenures. Finalize the one that suits your requirements. Happy Savings!</p>

<p class="credit_i_p"><br>
&nbsp;</p>

Save your taxes by investing in these 6 fixed income investments schemes that we have listed for you on mymoneykarma website.


Section 80C: 6 Tax-saving Fixed Income Investments for 2021

<p class="credit_i_p">Picture this: you are making a routine check on your credit score, but the results are anything but routine! It shocks you that your credit score dropped out of nowhere, and you are unaware of what exactly happened or what to do next.</p>
<p class="credit_i_p">Given that you are here, I&rsquo;m guessing you are looking for an answer to a similar predicament.</p>
<p class="credit_i_p">Well, the <a href="https://www.mymoneykarma.com/credit-scores/reasons-for-credit-score-drop.html" target="_blank">drop in your credit score</a> could be the result of several reasons; one of them being a high credit utilization rate. If that is in fact the case, increasing your credit limit can definitely help push your credit score forward.</p>
<h3 class="credit_i_h3">What's a Credit Limit?</h3>
<p class="credit_i_p">The credit limit is the absolute maximum outstanding amount that your credit card issuer lets you borrow. Every time you purchase with your credit card, the purchase amount is added to your credit card balance, which cannot exceed the credit limit. Keeping your expenses well within the credit limit is vital both to avoid a debt trap and to build a good credit score.</p>
<h3 class="credit_i_h3">Why Would You Want a High Credit Limit?</h3>
<p class="credit_i_p">There are three primary reasons why you may want an increase in your credit limit:</p>
<p class="credit_i_p"><strong class="credit_b1056">To obtain more credit for making purchases - </strong>Your existing credit limit might be too low to cover a planned purchase or an expensive gift. A higher credit limit will help you to make more purchases easily, thereby allowing you to reap the benefits of <a href="https://www.mymoneykarma.com/credit-cards/credit-card-reward-points.html" target="_blank">credit card reward points</a>.</p>
<p class="credit_i_p"><strong class="credit_b1056">To get more credit during an emergency</strong> -&nbsp; An emergency in the form of anything - last-minute plane tickets home to car repairs - might knock on your door at any hour. Although you might want to use your emergency fund for every rainy day, a credit card can come in handy as well. The higher the credit limit, the more funds you can access to support yourself through a difficult situation.</p>
<p class="credit_i_p"><strong class="credit_b1056">To lower your credit utilization rate</strong> - Your credit score is profoundly affected by the amount owed (especially when it goes above 30% of the credit limit). The amount that you owe determines your '<a href="https://www.mymoneykarma.com/credit-scores/credit-utilization-ratio.html" target="_blank">credit utilization rate</a>.' Hence, an increase in your credit limit can surely boost your credit score and take care of your financial health.</p>
<h3 class="credit_i_h3">How to Request an Increase in Credit Limit</h3>
<p class="credit_i_p">If your lender is not willing to increase your credit limit, proceed with caution. The strategy of asking upfront can backfire and eventually become the reason behind the dip in your credit score. So, plan well before you request for a higher credit limit.</p>
<p class="credit_i_p">The reason why a request can hurt your credit score is that the request will lead to a hard inquiry. A number of <a href="https://www.mymoneykarma.com/credit-scores/hard-inquiries-vs-soft-inquiries.html" target="_blank">hard inquiries</a> on your credit report might make you look desperate for credit, thereby landing a blow to your credit score. With that said, sometimes it also makes sense to request a credit limit increase. Although your credit scores might dip temporarily, it will eventually improve if you have a plan in place for prompt repayment.&nbsp;</p>
<h3 class="credit_i_h3">How to Prepare Yourself for It</h3>
<p class="credit_i_p">Here are a few things that you should keep in mind:</p>
<p class="credit_i_p"><strong class="credit_b1056">Timing is key</strong> - It is always a good idea to wait until you've got a good credit track record or a stable income. As odd as it may sound, the best time to ask for more room in your credit line is when you need it the least.</p>
<p class="credit_i_p"><strong class="credit_b1056">Keeping your credit score stable</strong> -&nbsp; As discussed above, a request to raise your credit limit could initiate a series of hard inquiries on your credit report. So, avoid applying for many lines of credit all at the same time.</p>
<p class="credit_i_p"><strong class="credit_b1056">Evaluate the reasons before applying </strong>- Make sure that you are not asking for a higher credit limit on just a whim or impulse. The best reason to have is that you're trying to keep your credit usage low relative to your credit limit.&nbsp;</p>
<h3 class="credit_i_h3">What Are the Dangers of Maxing Out on Your Credit Limit?</h3>
<p class="credit_i_p"><strong class="credit_b1056">Your Credit Score Can Plummet</strong> - A higher credit limit <a href="https://www.mymoneykarma.com/money-management/kill-the-will-to-splurge.html" target="_blank">can tempt you to splurge</a>, resulting in a higher credit utilization rate. Maxing out on your credit card/(s) is much worse, and can totally derail your personal finance as your credit score drops considerably.</p>
<p class="credit_i_p"><strong class="credit_b1056">Lenders Might Not Approve of It</strong> - Maxing out on your credit limit could put you at risk of lenders considering you irresponsible. It might just start with rejection on your <a href="https://www.mymoneykarma.com/personal-loan.html" target="_blank">loan application</a>, and could extend well beyond. So, try to keep your credit card expenses well under check.</p>
<p class="credit_i_p"><strong class="credit_b1056">You Might Fall into a Debt-Trap</strong> - Maxing out on your credit card can put you a step closer to deep debt. Although you may plan to repay the balance soon, it could take years to repay, which often leads to a vicious cycle of interest accumulation and repayment.</p>
<h2 class="credit_i_h2">To Sum up</h2>
<p class="credit_i_p">If you're careful and responsible with your credit card usage, there are a series of benefits to a higher credit limit. Hence, a higher credit limit boosts your purchasing power but simultaneously increases the potential risks.</p>
<p class="credit_i_p">Make sure that you take all relevant factors into account before deciding whether you need a credit limit increase or not. <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=credit-cards_2071" target="_blank">Check your credit score</a> regularly to inform your plans, as well as to assess its effects.&nbsp;</p>
<p class="credit_i_p">&nbsp;</p>
<p class="credit_i_p">&nbsp;</p>

How to increase credit card limit on your credit card? Read this article by mymoneykarma to get insights on credit card limit increase and its effects. Increase credit limit easily.

How To Increase Credit Card Limit - Credit Card Limit Increase

<p class="credit_i_p">Maya was 23 when she got her first credit card. Fresh out of college, she was just adjusting to adulting. Although she had bagged a job for herself, she wasn't earning a lot.</p>

<p class="credit_i_p">Maya worked hard to make ends meet. After paying rent, utility bills and other basic expenses, she barely had anything left. Her expenses shot up in her birthday month, when she not only pampered herself with a few lovely gifts but also threw a party for her friends, cousins and colleagues.</p>

<p class="credit_i_p">Her credit card bill was way more than what she could afford. Ignorant of how the mysterious world of credit cards works, Maya found an easy solution to the looming problem - she chose to make the minimum payment and decided to handle the remaining balance in the next month. Her next credit card bill hit her with a huge shock.</p>

<p class="credit_i_p">Like Maya, many credit card users are oblivious to the intricate mechanisms of the credit card payment system. When you only pay the minimum amount due on your credit card, you aren't really solving a problem - it's just temporary relief. In reality, you are committing to repay more in interest charges and taxes later on. Such a trade-off can get you into grave financial trouble over time, especially if your card charges a high interest rate.</p>

<h2 class="credit_i_h2">What is Minimum Due?</h2>

<p class="credit_i_p">The minimum due on credit card is the bare minimum bill amount that you have to settle each month to evade paying penalty charges. While some lenders fix a flat amount as 'minimum due,' some others calculate it as a certain percentage of the <a href="https://www.mymoneykarma.com/credit-cards/index.html/pros-cons-of-credit-card-balance.html" target="_blank">outstanding credit balance</a> in a particular billing cycle.</p>

<p class="credit_i_p">If your bill amount for January is Rs.10,000, and the minimum due is 5% of your outstanding balance, then you just need to pay Rs.500 within the due date to avoid late payment charges. The minimum amount due is much lower than the total outstanding due. Convenient and affordable, right?</p>

<p class="credit_i_p"><img alt="Debt Never Ends by Paying Only Minimum Due on Credit Cards" src="../../images/new/creditscore/debt-never-ends-by-paying-only-minimum-due-on-credit-cards.jpg" class="img-responsive credit_i_img"></p>

<h2 class="credit_i_h2">What's the Problem?</h2>

<p class="credit_i_p">Well, many fail to recognize the danger hidden behind the garb of convenience. You might manage to escape the late fees by paying the minimum due, but the remaining outstanding amount will get heftier in the next billing cycle due to the addition of interest and taxes. Before you realize it, you might slip into a deadly <a href="https://www.mymoneykarma.com/credit-score/i/how-to-escape-credit-card-debt.html#" target="_blank">credit card debt trap</a> that can escalate rampantly, ballooning the debts out of proportion within a blink of an eye. Let's explore why.</p>

<h3 class="credit_i_h3">Time Trouble</h3>

<p class="credit_i_p">When you are making just the minimum payment on your credit card, you're basically telling your debt, "See you next month."</p>

<p class="credit_i_p">Credit card issuers usually set the minimum payment requirements at rock-bottom levels. As I've already mentioned, you'll either be required to pay a fixed amount or a percentage of the outstanding balance. Some credit card companies require you to pay barely 1% or 2% of the credit balance each month, along with any fees and accrued interest.</p>

<p class="credit_i_p">Making such tiny amounts of payment on time will definitely keep you safe from late fees, but you will hardly make any real progress on repaying your balance.In fact, if you keep paying the minimum due each month, it'll take you years to pay off the debt. Moreover, you can easily end up paying more than double the amount you had actually borrowed. You pay, and you pay, and you pay, but you never pay it off.</p>

<p class="credit_i_p">The best way to avoid this mess would be to settle all your current dues within the current billing cycle. If a tight budget impedes you from doing so, pay off as much as you can - paying at least the double of your minimum due will reduce the debt burden to a large extent.</p>

<h3 class="credit_i_h3">Incredible Interest</h3>

<p class="credit_i_p">Credit card interest rate is an enigma. We all know that credit cards are accompanied by notorious APRs (Annual Percentage Rate), but we barely know <a href="https://www.mymoneykarma.com/credit-score/i/how-to-measure-interest-rate-on-credit-card.html" target="_blank">how to calculate credit card interest rate</a>. Credit card APRs are usually in double digits; it can be as high as 30-35% per annum. Credit card users are charged interest only when they carry a credit balance from one month to another.</p>

<p class="credit_i_p">So, if you're paying your credit card bills on time, you wouldn't have to pay any interest at all. However, if you are simply paying the minimum due, the hefty APR applies to the remainder. The longer and the heftier outstanding balance you have, the more is the interest payable. Additionally, a GST of 18% will also be applicable to the amount. And don't forget, credit card interest is compounded. You'll be buried deep in debt even before you realize!</p>

<p class="credit_i_p">So, unless you're using a credit card with 0% credit card APR, your interest charges will rise along with your rising outstanding balances. Making only the minimum payment will barely wipe out your last month's interest. And assuming that you keep using the card every month, your outstanding balance will pile up, attracting a huge amount of interest and taxes, and you will fall further and further behind in settling the amount.</p>

<h3 class="credit_i_h3">Credit Catastrophe</h3>

<p class="credit_i_p">Although you have a credit limit of Rs.1 lakh, you are expected to keep your expenses (technically known as credit utilization ratio) within Rs.30,000, i.e., 30% of the credit limit. <a href="https://www.mymoneykarma.com/credit-score/i/what-is-a-good-level-of-credit-utilization.html" target="_blank">Credit utilization ratio</a> plays a major role in determining your credit score. If your credit balance rises, so does your credit utilization ratio, and <a href="https://www.mymoneykarma.com/credit-score/i/6-reasons-why-your-credit-score-dropped.html" target="_blank">your credit score takes a hit</a>. A serious blow to your credit score can take years to repair.</p>

<p class="credit_i_p">A bad credit score can mess up your life - it will not only be harder for you to qualify for new lines of credit, but it can also affect your ability to find a job or get a new phone connection or rent an apartment, as employers and service providers often review your credit score to evaluate your credibility.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Credit card companies aren't giving you "free money;" neither are they your friends. They are in the big game of making money. Lenders often obfuscate important details, camouflaging the deadly consequences of certain actions with lucrative offers that tempt you to indulge.</p>

<p class="credit_i_p">Don't be gullible enough to step into this quagmire of credit card debt. Stay aware, stay informed, and settle all your dues in time. Do not forget to <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=money-management_1322" target="_blank">check your credit score</a> regularly to keep track of how well your efforts are paying off.</p>

What is minimum due on credit cards? Wondering why your credit card debt keeps on increasing, although you've been paying minimum dues regularly? Worry not - mymoneykarma is here to help.

What is minimum due on credit card - Minimum due amount credit card

<p class="credit_i_p">One of the most important things to do before getting a mortgage is to ensure that you get a much lower interest rate. After all, who wants to pay more than necessary, right? The thing is that interest rates determine the total cost of the mortgage. Getting a lower interest rate means that you’ll have to pay less.</p>

<p class="credit_i_p">The interest rate is calculated as the percentage payable on your total loan amount. It is also called the mortgage rate.</p>

<hr>
<p class="credit_i_p"><img alt="SBI Card IPO - Share Quota and Subscription Status SBI plans to raise up to Rs 10,341 crore by selling 13.71 crore shares through its IPO of 'SBI Card'. Separate share quotas were set aside for six different categories of investors — anchor (3,66,69,590 shares), qualified institutional buyers (2,44,46,393 shares), non-institutional investors (1,83,34,795 shares), retail (4,27,81,188 shares), SBI shareholders (1,30,52,680 shares) and employees (18,64,669 shares).  Share prices start at 755 per share (with 75 per share discount for employees), with a minimum cutoff of 19 shares to be purchased. Around 40% of the IPO was subscribed on day 1 of the offering itself, and saw a further 55% subscription on day 2." src="https://mmk-s3-cms.s3.amazonaws.com/1583229637603.gif" class="img-responsive credit_i_img"></p>

<h2 class="credit_i_h2"><strong class="credit_b1056">HDFC Home Loan Interest Rate at 6.80%</strong></h2>

<p class="credit_i_p"><a href="https://www.mymoneykarma.com/hdfc-bank/home-loan.html" target="_blank">HDFC offers Home Loan</a>&nbsp;interest rate of 6.80% for loan amounts up to 30 lakhs for Women Applicants. The offer has been in effect since 11th January, 2021.</p>

<p class="credit_i_p">This special Housing Loan Scheme is for a limited period only, and can be availed if the loan is disbursed <strong class="credit_b1056">on or before 31st March, 2021</strong>. HDFC decides eligibility for the offer based on parameters such as credit scores, segments, details of other loans, etc., and is applicable only for applicants with the <a href="https://www.mymoneykarma.com/buying-a-home/index.html/how-to-improve-your-credit-score-for-home-loan.html" target="_blank">credit score</a> of <strong class="credit_b1056">730 and above</strong>.</p>

<p class="credit_i_p">The offer can be availed on Home Loans including Home Improvement, Home Extension, and even Refinancing/ Balance Transfer from other lenders.</p>

<p class="credit_i_p">However, as the offer is applicable only for loans under the ‘Adjustable Rate Home Loan Scheme’, it is subject to change at the time of disbursement. The rates are linked to HDFC's BenchMark Rate. Hence, they are variable throughout the loan period as well.</p>

<hr>
<p class="credit_i_p">Rates set by lenders can be either fixed or variable. It’s the variable rates that you may want to stay away from, as they are quite unpredictable. Rates fluctuate depending on the market condition. They are also dependent on the loan type and your available funds.&nbsp;</p>

<p class="credit_i_p">There is yet another way to know how expensive the home loan will be: the APR cost. The APR is the Annual Percentage Rate. It is calculated as a percentage of the entire loan amount and finds out the total cost of the mortgage. The Annual Percentage Rate is composed of lender fees, discounts, interest rates, and various other charges. The APR gives you a bird’s eye view of how much the mortgage is going to cost you each year.&nbsp;</p>

<p class="credit_i_p">As with any loan you take, a mortgage consists of the principal amount and the interest. The principal is the amount that the lender gives you. The interest is what he earns for providing the principal amount in the first place!</p>

<p class="credit_i_p">The principal balance decreases over time as you continue paying it back. The interest tends to be high in the beginning, but does down as you keep on paying back the principal.&nbsp;</p>

<p class="credit_i_p">Here are all the things you need to know to get a lower interest rate!</p>

<h3 class="credit_i_h3">Indicators of Mortgage Rate</h3>

<p class="credit_i_p">While it may seem impossible to figure out anything about home loan rates, it is not that hard. Even without an advanced education on the financial and banking industry, you can figure it out yourself by two key indicators.&nbsp;</p>

<p class="credit_i_p">The first indicator is the Prime Rate, which you may also know as India Prime Lending Rate. The Prime Lending Rate stands for the lowest average mortgage rate at which banks are offering credit. Banks use the prime rate for their interbank transactions. Banks also give prime rates of lowest rates to the borrowers they trust the most.&nbsp;</p>

<p class="credit_i_p">The 10-year central government treasury bond is the second indicator. As its yield rises, the mortgage rate rises as well, and vice versa.&nbsp;</p>

<h3 class="credit_i_h3">Agreeing to a Mortgage Rate</h3>

<p class="credit_i_p">A lender offering you home loan does not do so without risk. The lender understands that there is a chance that you may not be able to pay back the loan, and takes that into account. If your loan application is seen to be very risky, your interest rate will be appropriately high.&nbsp;</p>

<p class="credit_i_p">The high-interest rate offsets the risk, as it allows the lender to recover the principal amount faster. However, this interest is not chosen arbitrarily. Lenders pick the rate after studying your income, financial situation, loan type, loan amount, and your creditworthiness.&nbsp;</p>

<h3 class="credit_i_h3">Credit Score</h3>

<p class="credit_i_p">The credit score is one of the most critical determinants of your interest rate, and thus your loan amount. If you use your credit responsibly and pay bills on time, you’ll have a high credit score. In similar fashion, you’ll have a low credit score when you don’t pay bills on time and don’t use credit responsibly.</p>

<p class="credit_i_p">Before you even apply for a home loan, make sure that your credit report is in order. Look for administrative errors caused by agency calculations, red flags caused by you such as due accounts, accounts in collections, and late payments. If you do find errors not caused by you, report and dispute them immediately. If, on the other hand, you have caused the negative remarks, correct them soon.&nbsp;</p>

<p class="credit_i_p">It is essential to understand how your home loan rate is affected by your credit score. Sometimes, you may come across subprime lenders that offer you high-interest loans when they learn you have bad credit; it is better to stay away from them. Knowledge of <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=winner1" target="_blank">your credit score</a> can very well save you from such instances.</p>

<h3 class="credit_i_h3">Employment History and Stable Income</h3>

<p class="credit_i_p">Your income level and employment history are two critical factors as well. Lenders give the best home loan with the lowest rates to those with exceptional income levels and good employment history. If the records in these two sectors are poor, you can expect lenders to give you high-interest rates. Lenders shall ask you to furnish tax returns for the previous two years as well.&nbsp;</p>

<p class="credit_i_p">Additionally, the lender could check your employment history by contacting your previous employers. Are their gaps in your employment? Have you been out of work? What is your skill level and profession? All of these could be taken into account.</p>

<p class="credit_i_p">If you are self-employed, things are a bit more complicated. For instance, you may need to pay higher interest. The rules for the self-employment verification is more stringent as well. All this information is used to find out your debt-to-income ratio.</p>

<h3 class="credit_i_h3">Debt-to-Income Ratio (DTI)</h3>

<p class="credit_i_p">Before giving you the funds, lenders have a few more things to check, such as your debt concerning your gross monthly income. There are two formulas for calculating this: Front-end Ratio and Back-End Ratio. After these are calculated, and if the DTI ratio is high, your loan application will be declined. This is because a high DTI is considered a sign of you defaulting.</p>

<h3 class="credit_i_h3">Down Payment and Loan-to-Value Ratio</h3>

<p class="credit_i_p">To get a home loan, you need to make a down payment up-front. Different lenders have various requirements, yet it is agreed that the more you pay as a down-payment, the less your interest rate will be. This is because when you spend a large sum of money upfront, the lender’s risk is mitigated. You also get a lower Loan-to-Value Ratio (LTV). Thus, the lender has no problems in giving you low-interest.</p>

<h3 class="credit_i_h3">Shop for the Best Loans</h3>

<p class="credit_i_p">Now starts the fun part. You practically go shopping for the best mortgage available. This means that you talk to and compare the various lenders interested in working with you. The one you are looking for offers the best terms and the lower interest rate.</p>

<p class="credit_i_p">You should also look at the closing costs and fees payable to the lender. Some costs can spiral up quickly if you’re not careful. Stay away from discount ‘points’ and ‘low-closing costs,’ which normally increase the interest rate.</p>

<p class="credit_i_p">Consider hiring a mortgage agent. It saves you time as well as money. Consider contacting some lenders directly, as well. For a good comparison, check our at least five lenders and their products.&nbsp;</p>

<h3 class="credit_i_h3">Negotiate the Rate</h3>

<p class="credit_i_p">It is certainly possible to negotiate the rate, but for that, you need to comparison shop. Ideally, you need to have strong credit, employment history, and stable income, as well. This gives you more negotiating power than other borrowers.&nbsp;</p>

<h3 class="credit_i_h3">Lock Your Rate</h3>

<p class="credit_i_p">If your loan application is accepted, you get the option to lock your lower interest rate. This has both advantages and disadvantages. The benefit is that even if the rate rises in the interim period, you do not need to pay more as the rate is locked. Conversely, if the rate falls, you lose as you still have to pay a higher interest amount. Rate locks remain valid for 60 days. You can apply for an extension, but those are very expensive.</p>

<h2 class="credit_i_h2">In Closing</h2>

<p class="credit_i_p">It takes a bit of research and comparison shopping to get a good home loan. It is not the only consideration either. You need to pay close attention to the lender’s closing costs. This includes the lender’s fees. All of these items should be listed or outlined on the loan estimate given by the lender.</p>

<p class="credit_i_p">To avoid all the hassle involved, you can just <a href="https://www.mymoneykarma.com/credit-score/home-loan-credit-score.html?utmsrc=homeloan_enquiry" target="_blank">apply for a home loan</a> through mymoneykarma. Apart from an easy application process, we also offer the best interest rates from across various banks.</p>

<p class="credit_i_p">However, to ensure that you are getting the best rate and terms, do a bit of comparison shopping. That will put you in a better bargaining position than most of the other borrowers. Doing so shall also alert you about inflated fees, risky loan attributes, and give you better options to choose from.</p>

<p class="credit_i_p">In closing, a strong credit profile, having low LTV and DTI ratios, stable employment history, and income, makes you attractive to any lender. This means more bargaining power to you.</p>

<p class="credit_i_p">&nbsp;</p>

About to get a home loan? mymoneykarma shows you how to get the best possible home loan with a lower interest rate.

Apply for a Home Loan  | Home Loan Interest Rates in 2021

<p class="credit_i_p">One of the biggest expenses for a lot of people is that of rent. It is something you need to spend a lot on, month after month. At least, it is a sizable part of your income. You can’t ignore it. It is like a debt that needs to be paid each month. You may try to skip paying it, and at times the landowner may even deign to let it rest. But the next month, you’ll have to pay it anyway along with the missed rent payments! In other words, there is no way out of this mess.&nbsp;</p>

<p class="credit_i_p">Now, that is not the problem. The problem is far bigger. What happens if you run out of money before paying that rent? Don’t want to get into a problem with your landlord, but unless you pay it, you may have problems anyway. It happens, especially to working bachelors and other unmarried individuals. Sometimes, salaries are late in coming. Sometimes, they are just not enough. Sometimes, they don’t get salaries! It happens. So what can be the solution to this issue, and it is actually a pretty big problem plaguing a significant part of the population. After all, you cannot get instant loans, can you?</p>

<p class="credit_i_p">This is one of those times when a credit card is super handy. A credit card is useful because it gives you instant loans. Therefore it is very useful. In that regard, HDFC Bank can help you out a lot. HDFC Bank, in partnership with RedGiraffe, provides you with the novel and new facility RentPay. This is a facility or platform that you can use to get loans or credit instantly to pay your rent. It is specifically for paying rent, and not for anything else. You can use this facility to pay rent each month, just as you need!&nbsp;</p>

<p class="credit_i_p">Perhaps the best part of the deal is that, like all loans, if you pay before the due date you will not need to pay interest. So, your loans become free, at 0% interest! Sounds like a great relief, right? That is because it is so!</p>

<h3 class="credit_i_h3">About RentPay</h3>

<p class="credit_i_p">RentPay is a facility given to you by HDFC Bank and RedGiraffe in partnership. This is to enable you to pay your rent whenever you like, by giving you instant credit or loan. RedGiraffe is a Fintech start-up from the UK, and that is the entity that gives you the actual service.</p>

<h3 class="credit_i_h3">How can rent be paid using credit cards?</h3>

<p class="credit_i_p">Sounds confusing, right? Paying rent by credit card. Till now you may have paid rent by your debit card, or using other electronic means like GooglePay. You may even pay by cash. You are used to all these, and maybe the idea of paying with a credit card may sound foreign to you. But don’t worry. There are many benefits of paying through this means. For instance, credit cards are much more secure than debit cards. Now, the question is how to pay with a credit card.</p>

<p class="credit_i_p">If you are a HDFC Bank customer, you need to register for RentPay at the website of RedGiraffe. Fill in the details like your name, address, and that of your landlord. After this process is done, RedGiraffe gives you a unique ID (or RG-ID). With this ID, register with the HDFC bank.</p>

<p class="credit_i_p">This is a one-time registration. After this is done, you can credit your monthly rent payments directly to your landlord’s bank account every month. Of course, the credit can be done at a predetermined date as well, so you do not need to keep much track of the process. For this service, you’ll be charged a very nominal fee.</p>

<h3 class="credit_i_h3">What are the benefits of paying rent by credit card?</h3>

<p class="credit_i_p">There are many benefits. First of all, credit cards are more secure than a debit card. In case of credit card loss, your money is not lost and you do not need to pay the bank anything. Secondly, your rent is automatically deducted, and thus there is no chance of missing out on payments. Thirdly, you get 45 to 60 days of interest-free credit. If you pay by that time, you’ll need to pay no interest.</p>

<p class="credit_i_p">&nbsp;</p>

HDFC bank now offers the facility to pay rent using your credit card! How to access this facility, and what are its benefits? Find out at mymoneykarma.

How To Pay Your Rent With A Credit Card | Know Its Benefits

<p class="credit_i_p">Martin Scorsese's film, 'The Wolf of Wall Street' is based on the real-life experience of the convicted white-collar criminal, 'Jordan Belfort,' who turns <a href="https://www.mymoneykarma.com/credit-cards/index.html/protect-from-credit-card-fraud.html" target="_blank">securities fraud</a> and market manipulation into a raunchy comedy through his investment company, 'Stratton Oakmont.' Long story short, the movie is about the 'wolf' who makes a fortune by selling blue-chip stocks, penny stocks and IPO stocks.</p>

<p class="credit_i_p">Leonard Di Caprio plays the character of stockbroker Jordan Belfort (the protagonist or 'The Wolf'), who makes his fortune by selling stocks, especially penny stocks. The movie is based on Belfort's memoir and vividly presents both the phases of his life - the time when he was a pure hedonist and a remarkable player in the bullish market, and his ultimate fall when he ended up convicted and imprisoned for fraud and money laundering.</p>

<p class="credit_i_p">In the movie, Jordan starts his career with a brokerage firm in New York City. Soon after joining the firm, he sets forth to learn the relentless nature of the business. The emphasis of the firm is on selling stocks and generating commissions, rather than educating and advising the customers about the investment products.</p>

<p class="credit_i_p">As a consequence of the significant market decline in October 1987, Jordan loses his job and starts working with a small firm that sells penny stocks. After realizing that the commissions on penny stocks are subsequently higher than the stocks traded on major exchanges, Jordan conceptualizes the establishment of his own firm.</p>

<p class="credit_i_p">At the request of a low-paid neighbor, he expands his operation and recruits several employees who have minimal financial knowledge and smutty interpersonal skills but a strong desire to succeed in their careers. Eventually, the firm sells blue-chip stocks and even starts initial public offerings (IPOs). Jordan emerges as a debonair business tycoon by training his employees in effective selling techniques.</p>

<p class="credit_i_p">During this time, he started taking drugs to streamline his focus on making money, but it blurred his sense of ethical behavior. He also violated the securities regulations while selling stocks, for which he gets convicted. After serving his time in prison, Jordan rises like a Phoenix - molding his strengths of sales and communications into being a motivational speaker.</p>

<p class="credit_i_p">Interestingly, if you read between the lines, The Wolf of Wall Street offers a handful of crucial lessons in the business and financial domains.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson #1</strong> Stop Paying Fund Managers to Invest Your Hard-Earned Money</h3>

<p class="credit_i_p">Many people, who aren't aware of <a href="https://www.mymoneykarma.com/investing/index.html/stock-market-vs-mutual-funds.html" target="_blank">the stock market</a>, hire "experts" like financial advisors and fund managers to manage their money.</p>

<p class="credit_i_p">People looking to invest their money should usually opt for one of these two options - either do your research or invest in the passively managed index funds. It's better than hiring an expert to decide what happens to your money.</p>

<p class="credit_i_p">The reason is simple - <a href="https://www.mymoneykarma.com/investing/index.html/grow-your-money-by-investing-in-mutual-funds.html" target="_blank">mutual fund</a> managers are not empowered by advanced AI algorithms and machine learning technology. They are humans who are trying to reduce the risk in investment by diversifying the fund's portfolio across stocks.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson#2</strong> If It's Too Good to Be True, It Probably Is</h3>

<p class="credit_i_p">Jordan Belfort earned millions of dollars through a "pump and dump" penny stock scam. The scam was slightly different and more involved than the typical illegal method of selling shares of non-existent companies because Belfort's firm was persuading the investors to invest in real companies instead of non-existent ones.</p>

<p class="credit_i_p">Penny stocks are cheaper and don't trade on major stock exchanges, as the companies that issue them typically don't publish financial statements. Since the market capitalization, stock price, and the daily volume of these stocks are quite low, they are highly vulnerable to manipulation. For example, a sudden large volume of purchase or sale could cause the price to drop by triple-digits in a single day.<br>
<br>
<img alt="10 Unforgettable Financial Lessons From The Wolf of Wall Street" src="../../images/new/personal-finance/10-unforgettable-financial-lessons-from-the-wolf-of-wall-street.jpg" class="img-responsive credit_i_img"><br>
The notion of "pump and dump" was pretty simple - his firm used to accumulate the shares of these thinly-traded companies, stash them into secret accounts, and 'cold call' the investors to convince them that these companies were potential stocks for investments. The influx of purchasing orders would rapidly inflate the price, assuring investors that the shares are showing bullish behavior.</p>

<p class="credit_i_p">The best defense for everyday investors against these kinds of financial predators is to remember two things:</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">If a firm believes that a stock will shoot to the moon, they will not share that information with you through a phone call or email.</p>
	</li>
	<li>
	<p class="credit_i_p">Understanding the simple stock market fundamentals, such as market capitalization, volume, revenue, and earnings growth can help everyday investors in making their investments cautiously.</p>
	</li>
</ul>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson #3</strong> Don't Let Success Affect You</h3>

<p class="credit_i_p">Jordan Belfort couldn't handle the quick success, and he abused his life with drugs, lewd behavior and scams. Belfort's line in the movie, "On a daily basis, I consume enough drugs to sedate Manhattan" reflects the extent of his addiction.</p>

<p class="credit_i_p">This film teaches the lesson that everyone can't handle the overnight stardom. Moreover, it can lead people on the path of destruction.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson #4</strong> Set Clear Goals for Your Investments</h3>

<p class="credit_i_p">Just like Belfort who knew that he wanted to become a wealthy person, you also need to know what you want from your investment. <a href="https://www.mymoneykarma.com/investing/index.html/grow-your-money-by-investing-in-mutual-funds.html" target="_blank">Segregate your goals</a> by the size and timelines and invest accordingly.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson #5</strong> Be Your Own Investment Expert</h3>

<p class="credit_i_p">Follow the fundamental rule of 'Do It Yourself.' It's not rocket science! Research adequately about <a href="https://www.mymoneykarma.com/investing/index.html/fixed-maturity-vs-fixed-deposit.html" target="_blank">different financial instruments</a>; start investing in small proportions.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson# 6</strong> Representatives of the Financial Firms Are Sales Professionals, Not Financial Advisors</h3>

<p class="credit_i_p">In the movie, Leonardo Di Caprio as Jordan Belfort trains his team of employees to sell investments. He does not educate them about the risks involved, their suitability for a particular portfolio, and other advisory regulations. The emphasis of the firm is solely on pushing the product to the client. Representatives are more worried about commissions than the <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/5-decisions-to-protect-your-finances.html" target="_blank">financial health</a> of the customer.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson #7</strong> There Is a Difference Between Legal and Ethical Behavior</h3>

<p class="credit_i_p">Many of the ethically questionable behaviors are shown as perfectly legal in the movie.</p>

<p class="credit_i_p">For example, selling penny stocks is legal;&nbsp;but not informing the investors about the speculative nature of the stocks is unethical.</p>

<p class="credit_i_p"><img alt="" src="https://mmk-s3-cms.s3.amazonaws.com/1577430228837.jpeg" style="height:499px; width:749px" class="img-responsive credit_i_img"></p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson #8</strong>&nbsp;Diversify the Investments</h3>

<p class="credit_i_p">As an investor, you should never put all your eggs in one basket. Diversify your portfolio instead - investing across different stocks can be more fruitful.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson# 9</strong> Long-Term Success Can't Be Accomplished Through a Single Formula</h3>

<p class="credit_i_p">While Belfort succeeded on Wall Street, his first venture of a meat delivery business had failed, due to which he had to sell his Porsche. He started afresh, tasted both success and failure. Even after going bankrupt, Belfort applied his sales skills to step up the ladder and eventually became a best-selling author and a motivational speaker.</p>

<h3 class="credit_i_h3"><strong class="credit_b1056">Lesson # 10</strong> Financial Mistakes Can Be Rectified</h3>

<p class="credit_i_p">As he once shared with a journalist of Reuters, "You can do the best with the gifts that God has given you and also the worst can be done," Belfort had learned his lessons from his former life.</p>

<p class="credit_i_p">He was ordered by the court to repay $110 million to his investors out of the $200 million that he had swindled from the clients. He regained this amount by advising major financial institutions and lecturing on the business ethics; he fulfilled the promise and paid back the money to the victims of his scam.</p>

<p class="credit_i_p">So, yes, he made a financial mistake, but rather than becoming depressed for being bankrupt, he found a way to rectify it.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Every person learns from his or her own <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/top-financial-mistakes.html" target="_blank">mistakes</a>. Have you ever reflected on yours? Moreover, did these financial lessons strike you when you had watched this oscar-nominated movie?</p>

<p class="credit_i_p">Well, you might want to go back, watch it again and have your 'eureka' moment.</p>

<p class="credit_i_p">&nbsp;</p>

Wolf of Wall Street teaches us 10 unforgettable financial lessons. Have you ever realised them while watching the movie? mymoneykarma is here to enlighten your minds.

10 Unforgettable Financial Lessons from the Wolf of Wall Street

<p class="credit_i_p">What do you find most appealing in children? Is it their beauty? Is it their playfulness? Is it their innate humor? Apart from these, the most appealing thing about children is their innocence, their curiosity, and their belief or trust in their parents. Have you ever noticed that your children behave the way you do? You may feel embarrassed by it sometimes, but that is what children do. They try to ape you. They try to be like you. They believe in whatever you say. So, childhood is the time when you must educate your kids about the importance of money, as they believe in that.</p>

<p class="credit_i_p">Parents are the most important people in the life of children. Teach your children a lot of good habits. A growing family witnesses an increase in expenditure. This is the time you must educate yourself as well as your children on the benefits of saving money. This is where the importance of a piggy bank kicks in.</p>

<h3 class="credit_i_h3">What is a Piggy Bank?</h3>

<p class="credit_i_p">A piggy bank is not just a storage box for thousands of rupees. It symbolizes the essential habit of saving money. Putting a coin or two in a piggy bank has been fun for most of us in the olden days. However, nowadays parents are taking piggy banks more seriously because they have realized the utility and importance of piggy banks to teach children how to save money.</p>

<p class="credit_i_p">One of the most effective ways of parenting is teaching your child the value of money. Saving money is an essential skill you need to have in your life. Buying a piggy bank for your kids at an early age and encouraging them to fill it up with money can inculcate great saving habit in your children. Ask your children to drop the coins or currency notes received as blessings from their aunt, uncle, grandparents, etc. into their piggy banks. Even if they are young, start budgeting for your kids. The best thing they can throw into a piggy bank is leftovers.&nbsp;</p>

<h3 class="credit_i_h3">How Do You Encourage Your Children to Save Money in Piggy Banks?</h3>

<p class="credit_i_p">Piggy banks are fun elements for children. They’re like toys that inherently attract children and hence encourage them to save money as they cannot understand the concept of real banks or savings account. Here is the list of things you must keep in mind while educating your kids about piggy banks.</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">Gift your children a piggy bank on their birthday.</p>
	</li>
	<li>
	<p class="credit_i_p">Teach your kids about money and its importance.</p>
	</li>
	<li>
	<p class="credit_i_p">Make it a ritual to fill it with a minimum amount weekly.</p>
	</li>
	<li>
	<p class="credit_i_p">Set some financial goals for your children.</p>
	</li>
	<li>
	<p class="credit_i_p">Give them a target, and if they reach it, gift them with something like a toy, a video game, or increase the amount of the weekly ritual.</p>
	</li>
	<li>
	<p class="credit_i_p">Make a plan on how the money must be spent.</p>
	</li>
</ul>

<h3 class="credit_i_h3">The Importance of Piggy Banks</h3>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Helps in Organizing Loose Change:</strong> You might often end up losing all the change under the couch, in your car, or under your pillow when you go for shopping. Piggy bank is a better way to organize this loose change. You can also save the right amount of money which go wasted every time.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Helps in Adding up Money: </strong>Setting up goals is one crucial thing you must do for your children. What do children like to buy usually? It can be a bicycle or a video game or a beautiful doll. Make them save every penny to purchase the toy they desire. This would keep them motivated toward the assigned goal. Also, it visually shows your children how close or far they are from achieving the goal.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Motivates You by Setting a Great Example: </strong>Piggy banks are effective ways to teach youngsters in the family about the importance of saving money. You might not save an enormous amount, but indeed you end up saving something with which they can buy a new toy or a new video game. This drives the children to save more and more, which benefits them in the near future.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Helps You to Save Always:</strong> “A penny saved is a penny earned,” said Benjamin Franklin. Savings must be a top priority for your children. It must become a habit for your children to save money. Tell them the purpose and importance of piggy banks. A piggy bank is just like a foundation for great savings. It’ll surely help inculcate a saving habit in your children.</p>
	</li>
</ul>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Now that you know why you should educate your children about the benefits of saving money, rush to the market and get your kids a piggy bank. It creates a roadmap to a bright future in which they know how to manage their money. Have fun and saving more!</p>

<p class="credit_i_p">&nbsp;</p>

Have you ever gifted your children with a piggy bank? If not, you must do it. Want to know why? mymoneykarma, your financial success partner, is here to help you out in letting you understand the importance of piggy banks.

Importance Of Piggy Banks | Teach Your Kids More About Money

<p class="credit_i_p">During my initial encounter with credit cards, there was this one time when I was at my wit's end to see the big numbers on my credit card bill. I immediately scanned the detailed expenditure report and wasn't able to find anything odd - grocery, petrol, rent, a few restaurant bills, a bit of shopping here and there - the usual. That's when I realized that I was overspending.</p>

<p class="credit_i_p">I was a young individual, just starting my adult life. I wasn't particularly wealthy and was running on a tight budget. However, the moment I got a credit card, I developed a tendency to be <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/kill-the-will-to-splurge.html" target="_blank">a spendthrift</a>. The expenditures were the on the same things as before, but much more in amount. I was spending much more than I could afford.</p>

<p class="credit_i_p">If you are a spendthrift young adult, you might be able to relate to my situation. Most credit card newbies fall into debt as they couldn't don't manage to pay off their balance on time. These tips might help you climb out of the debt if you are dealing with a high credit card balance.</p>

<h2 class="credit_i_h2">Find the culprit</h2>

<p class="credit_i_p">A high credit balance should be your wake-up call, and you must realize that you are indeed overspending. Maybe you don't yet understand the how credit cards actually work, or maybe the idea of the available 'free money' tempts you to spend a lot.</p>

<p class="credit_i_p">What initially comes off as a few swipes here and there, might later become a heavy burden on your pocket. It is imperative that you inspect your spendings, find the culprit and tackle it. Here are two of the most common culprits:</p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">Overspending</p>

	<p class="credit_i_p">You are probably sending too much without realizing it. It's a natural tendency for most <a href="https://www.mymoneykarma.com/credit-cards/index.html/10-tips-for-first-time-credit-card-user.html" target="_blank">first-time credit card users</a> - it tempts you to spend more than what you would have spent with cash. Identify those unnecessary spendings and curb them.</p>
	</li>
</ul>

<p class="credit_i_p"><img alt="What to Do If You Have a High Credit Balance?" src="../../../images/new/creditscore/what-to-do-If-you-have-a-high-credit-balance.jpg" class="img-responsive credit_i_img"></p>

<ul class="banklogin_ul">
	<li>
	<p class="credit_i_p">Insufficient income</p>

	<p class="credit_i_p">Well, adult life is expensive - rent, electricity, <a href="https://www.mymoneykarma.com/travel-lifestyle/index.htmlindex.html/save-money-on-groceries.html" target="_blank">groceries</a>, utility, insurance, fuel, medical bills, phone bill, internet - you need to pay for innumerable things. As a novice, you might not be earning a lot and it's natural to falter at times. You could consider these strategies to plan your finances well.</p>

	<ol class="homeloan_Faqs_ul_1">
		<li>
		<p class="credit_i_p">try to reduce your bills - go for a lower plan for internet and phone services</p>
		</li>
		<li>
		<p class="credit_i_p">cut down on rent - consider a cheaper accommodation</p>
		</li>
		<li>
		<p class="credit_i_p">avoid <a href="https://www.mymoneykarma.com/credit-cards/index.html/best-credit-cards-for-dining.html" target="_blank">eating out</a> at expensive places</p>
		</li>
		<li>
		<p class="credit_i_p">use public transport more than cabs</p>
		</li>
		<li>
		<p class="credit_i_p">try to take up a part-time job or a freelance project if time permits</p>
		</li>
	</ol>
	</li>
</ul>

<h3 class="credit_i_h3">Assess the damage</h3>

<p class="credit_i_p">Don't freak out and run for cover. <a href="https://www.mymoneykarma.com/credit-scores/index.html/collection-account.html" target="_blank">Never ignore a debt</a>. It could severely damage your credit history and you might a long time to recover from it. Assess the damage, how much ever scary that might be. List your balances, your <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/credit-card-minimum-payment.html" target="_blank">minimum payment amount</a> and your interest rates for every debt. Get a clear vision of your current standing. Plan accordingly. This will give you a good start. Don't panic.</p>

<h3 class="credit_i_h3">Act on it</h3>

<p class="credit_i_p">After you note down your credit card balances, interest rates and narrowed down to the cause of debt, it's time for you to take action.</p>

<p class="credit_i_p">Start <a href="/credit-score/i/tips-for-paying-credit-card-bills-quickly.html" target="_blank">paying off the debt</a>. Carrying a large balance can adversely affect your <a href="https://www.mymoneykarma.com/credit-scores/index.html/credit-utilization-ratio.html" target="_blank">credit utilization rate</a> as well as your <a href="https://www.mymoneykarma.com/credit-scores/index.html/what-is-credit-score.html" target="_blank">credit score</a>. You could follow the 'Debt Avalanche' method and pay a high-interest debt first, followed by a minimum interest on the rest; this helps you save some money.</p>

<p class="credit_i_p">Or you could opt for the 'Debt Snowball' method wherein you start with paying off the smallest balance amount first while paying the minimum on the remaining balance; this keeps you motivated as you feel that you're steadily progressing on your debt.</p>

<p class="credit_i_p">If your <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/how-to-reduce-debt.html" target="_blank">debt is too much</a> and you are helplessly in need of money, you could consider taking a personal loan or apply for a balance transfer card to help settle a high-interest debt.</p>

<p class="credit_i_p">Henceforth, develop the habit of not exceeding 30% of your <a href="https://www.mymoneykarma.com/credit-cards/index.html/what-is-a-credit-limit-and-how-does-it-affect-your-credit-score.html" target="_blank">credit limit</a> and pay off the entire balance within the due date of your billing cycle. It will keep you safe and away from possible debts.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Using credit cards can be an adventurous experience. Mistakes like this are quite common when you're embarking on a new adventure. Don't get worked up. You'll learn a lot as you credit age increases. With age comes experience; with experience comes wisdom.</p>

<p class="credit_i_p">Just be careful, follow a few ground rules and keep yourself safe during the initial days of confusion. To make sure that you are clear of trouble, <a href="https://www.mymoneykarma.com/credit-score/credit-score.html?utmsrc=money-management_1357" target="_blank">check your credit score</a> regularly as well.</p>

<p class="credit_i_p">&nbsp;</p>

Are you new to credit cards? Avoid the mistakes that might lead to a debt. Know how to deal with a credit card debt, solutions to recover from credit card debts, tips to stay out of credit card debts. Spend safe, stay safe.

What to Do If You Have a High Credit Balance? | mymoneykarma

<p class="credit_i_p">In March 2020, WHO declared a state of emergency worldwide due to the Coronavirus Pandemic. This is clearly something the world had never seen, and thus was not ready for it.</p>

<p class="credit_i_p">Worldwide, the number of confirmed cases has crossed 8 lakh while the number of deaths has crossed 40000. In such an alarming situation, governments around the world including India have taken steps to slow and stop the spread of the virus. In India, the state governments have been instructed to do likewise.</p>

<p class="credit_i_p">One of the steps the government has asked people to take is to avoid public gatherings, and to work from home. Some companies were forced to shut down and allow ‘work from home’ because some of their employees were found Positive with the virus. Other companies followed suit, clambering to take new measures in this emergency situation. Right now, most jobs apart from the absolutely necessary ones are to be done from home.</p>

<p class="credit_i_p">All of this is certainly alarming. One of the fears that people are having now is about their state of finances. What if their salaries get halved? What if there are no incentives, bonuses or even yearly increments? What if the company shuts down?</p>

<h2 class="credit_i_h2">Worried about your finances during Covid-19 lockdown? Here are 5 things to help!</h2>

<p class="credit_i_p">To ease your fears, mymoneykarma brings to you some personal finance tips to aid you in these uncertain times.</p>

<ol class="homeloan_Faqs_ul_1">
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Get an insurance cover:</strong> The government is doing its best to provide healthcare to affected patients. While the number of affected cases may now seem like small, no one can say what the future will bring. It may happen there won’t be enough medical facilities for the rising tide of patients. To prepare for such a time, it is more prudent to take an insurance cover. This shall ensure your hospitalization at medical facilities that are otherwise very expensive. In such cases, there is no need to worry about funds.<br>
	<img alt="health insurance : Emergency Health Care Services" src="https://mmk-s3-cms.s3.amazonaws.com/1587983957695.jpeg" style="height:640px; width:960px" class="img-responsive credit_i_img"></p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Get a high data limit broadband or internet package:</strong> Most people are working from home. Are you? Well, if you are, you may want to consider having this. It ensures that your work is seamless without any data breaks. This can be spent not just on work, but also for family entertainment.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Do online transactions: </strong>Going outside is strictly prohibited, unless it is absolutely necessary. As such, there is very less need to do hand-to-hand transactions. Perhaps you are already making transactions online. If not, consider that when you need to buy something. Stay safe, and buy from home.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Subscribe to study and entertainment packages: </strong>Nowadays, there are many of these like Amazon Prime, Hotstar, Netflix and more. Education channels include Udemy, Khan Academy, and more. This quarantine can be a great way to level up your skills.</p>
	</li>
	<li>
	<p class="credit_i_p"><strong class="credit_b1056">Buy health items: </strong>One more thing to do is to stock up on health items including sanitizer, masks, handwash, and others. This shall keep your immunity strong and help to keep the virus away. Besides that, have home-cooked food. Have plenty of green vegetables, dairy products and other nutritious items.</p>
	</li>
</ol>

<p class="credit_i_p">&nbsp;We hope that these tips shall help you during these tough times.</p>

Personal Finances, During covid19 especially, have to be protected at all costs. Let mymoneykarma help you navigate the financial roads during the Covid crisis.

Covid 19 : How to Protect Your Personal Finances

<p class="credit_i_p">First things first - investment and insurance simply don't mix. Mutual Funds are investments, and life insurance has barely anything to do with investments. Ironically enough, a majority of Indians consider life insurances to be safe, ideal and the best investment option. The general tendency is to keep a distance from Mutual Funds, which are regarded as "risky" investments. This attitude can be attributed to general ignorance and lack of foresight.</p>

<p class="credit_i_p">However, investing into the right <a href="https://www.mymoneykarma.com/info-tax/income-tax.html" target="_blank">tax</a><a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/tax-saving-investments-after-80c.html" target="_blank"> saving</a> fund is a common objective of all working individuals, yet a majority of the Indian working populace is forever confused. So, let's start from scratch by attempting to comprehend the difference between the two before determining which tax saving fund is ideal to invest in.</p>

<h3 class="credit_i_h3">What are Mutual Funds?</h3>

<p class="credit_i_p">Mutual Funds are professionally managed investments - a managed portfolio of stocks and bonds. Simply put, mutual funds are like baskets containing a diversified blend of stocks and bonds from various companies across different industries. When you <a href="https://www.mymoneykarma.com/investing/index.html/grow-your-money-by-investing-in-mutual-funds.html" target="_blank">purchase a mutual fund</a>, you are basically buying one of these baskets that contains dozens (or even hundreds) of stocks from numerous companies. This is quite different from how <a href="https://www.mymoneykarma.com/investing/index.html/stock-market-vs-mutual-funds.html" target="_blank">stock market invesments</a> work.</p>

<p class="credit_i_p">However, you don't get to buy a basket and lock it away for a certain period. As these are professionally managed investments, the fund managers decide what proportions of stocks your basket should store after carefully researching and predicting the market growth. They constantly shuffle the goodies in your basket to make sure that you profit from the market fluctuations. On an average, you can expect a steady annual return of at least 8% on these investments.&nbsp;</p>

<p class="credit_i_p">So, even if you are a risk-averse person, your money isn't at stake, and you can peacefully invest in these products for a long term. Tax saving mutual funds are all the more safe baits.</p>

<h3 class="credit_i_h3">What are Insurances?</h3>

<p class="credit_i_p">The Oxford English Dictionary defines insurance as "An arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium." Drawing on this definition, we can define life insurance as a similar arrangement in which the insurer compensates your survivors if you die; all you need to do is pay a specific amount for a specific period.</p>

<p class="credit_i_p">This is the pure and unadulterated definition of life insurance, which is commonly marketed as Term Insurance. However, there are several <a href="https://www.mymoneykarma.com/insurance/index.html/" target="_blank">other types of insurances</a> that are quite complicated.</p>

<p class="credit_i_p"><img alt=" Life Insurance or Mutual Funds" src="../../images/new/personal-finance/life-insurance-or-mutual-funds.jpg" class="img-responsive credit_i_img"></p>

<h2 class="credit_i_h2">What's the Problem?</h2>

<p class="credit_i_p">The world of insurances is indeed mysterious. Investing your hard-earned money into them without adequate knowledge of what is to become of that amount is the biggest problem. Let us try to understand the complicated world of insurance in extremely simple words.</p>

<h3 class="credit_i_h3">The Simple Ones</h3>

<p class="credit_i_p">Term life insurances are pure protection products - they are available at a low cost and do not pay dividends. To put it in the simplest of words, if you purchase a term life insurance policy, you keep paying a certain premium towards the policy for a specific period - you won't get back a single penny from this policy. Your family gets a substantial fortune when you depart for your heavenly abode. A purist might not consider this a financial investment.</p>

<p class="credit_i_p">However, you and I can treat it as an investment in financial security as it pays a cash benefit to your family when you're not around to support them anymore. It just compensates the loss of income arising out of <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/death-proof-finances.html" target="_blank">your death</a>. On an average, a 30-year-old non-smoker can easily get a cover of Rs.1 crore by paying just Rs.12,000 a year. The premium amount of such policies is exempted from income tax. That's life insurance - simplified for you.</p>

<h3 class="credit_i_h3">The Beguiling Ones</h3>

<p class="credit_i_p">Insurance companies, however, have diversified their offerings and introduced several types of life insurance products which claim that they will return the premium after a specific period. Endowment Plans, ULIPs, Money Back Plans, Whole Life Plans, Annuity Plans and the likes belong to this category. These schemes have been cleverly designed by mixing insurance with investment.</p>

<p class="credit_i_p">The insurance companies position these products in such a way that they appear as lucrative investment options. Millions of Indians are tempted by the plethora of benefits, bonuses, coverage and a lump sum maturity amount that these policies offer. They rampantly purchase these products, not realizing that the apparently lucrative maturity value will be worth very little if inflation is accounted for.</p>

<h2 class="credit_i_h2">The Dilemma</h2>

<p class="credit_i_p">Let's try to understand how these insurance-cum-investment products work. Well, it's true that the hybrid insurance policies offer insurance coverage and simultaneously allow you to capitalize on various investment instruments like stocks, bonds and mutual funds. Let's say you decide to invest Rs.50,000 into an insurance-investment hybrid product. As insurances are meant to provide death benefits, a chunk of the invested amount is directed towards the life cover.</p>

<p class="credit_i_p">Let's assume that Rs.10,000 goes towards life coverage, and you don't earn a penny on this amount. The remaining Rs.40,000 becomes your investment. Alternatively, you can buy a term insurance policy with Rs.10,000 out of Rs.50,000 and invest the remainder in mutual funds. What difference does it make?</p>

<p class="credit_i_p">Most importantly, the hybrid insurance plans pay you round 5-6% return on the invested amount, which is much lesser than the minimum returns of 8% that you can expect from mutual funds. The hybrid insurances don't let your entire money grow. Moreover, term insurances generally insure you for much more than ULIPs and Endowments plans do.</p>

<p class="credit_i_p">People looking for life insurances undoubtedly want to leave a substantial corpus for their beneficiaries - the hybrid policies do not provide as high a death benefit as term life insurances do. It makes more sense to invest in a mutual fund to grow your money and enjoy it while you live; simultaneously, purchase a term life insurance for <a href="https://www.mymoneykarma.com/insurance/benefits-of-family-health-insurance.html" target="_blank">your family's future needs</a>. That would be a better and smarter financial move.</p>

<h2 class="credit_i_h2">To Sum Up</h2>

<p class="credit_i_p">Now that we have clearly established that insurances are not mean to be<a href="https://www.mymoneykarma.com/investing/index.html/" target="_blank"> investments</a>, the choice should no longer be between life insurance or mutual funds. Both are different financial products and strive to serve totally different purposes. Does that mean insurances should be off the table? No! Please, don't get me wrong - my objective is not to dissuade you from purchasing life insurance.</p>

<p class="credit_i_p">You should definitely buy a life insurance policy for protection. Just don't "invest" in insurance. Channelize your investments into something promising so that you are able to reap the benefits of your hard-earned <a href="https://www.mymoneykarma.com/buying-a-home/index.html/index.html/optimize-your-savings.html" target="_blank">savings</a>. Would you prefer 5% returns that a traditional endowment policy gives you or a long-term mutual fund investment that returns a corpus that is twice as much? The choice is yours!</p>

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Life Insurance vs Mutual Funds - finding the better alternative can be hard. mymoneykarma is here to make things simple for you and help you decide what you should channelize your savings into.

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