Month: September 2021

Money Matters – Being Wise With Your Money

Laura, September 29, 2021

Money Matters – Being Wise With Your Money

When you hear the word frugal, it automatically brings up negative connotations and is often mistaken for being cheap. In reality, frugalness is a traditional value where people are careful in the expenditure of money or the use of material resources. In American culture where consumers are constantly bombarded with advertising and pressured to spend, spend, spend, saving money has become a rarity. According to the Bureau of Economic Analysis, the US personal savings rate as a percentage of disposable income decreased to -0.4 percent at the end of 2005. It might be time to rethink your definition of frugal and begin to think of it as being wise with your money and not wasteful. Not only will you be able to save, but you’ll set a good example for your children. Here are some things you can do in your household, beginning now!

Aï¿½ Take advantage of your local library. These are your tax dollars at work. Buying books and movies, or renting, can add up. Besides books, most libraries have video and DVD collections to check out, free of charge.

Aï¿½ Eat out less often. Eating at home can save you a lot of money, and it’s probably healthier. If you go out twice a week, try scaling back to once a week. When you do go out, try not to be wasteful. Children’s meals often go uneaten. Try splitting a regular meal for two kids.

Aï¿½ Cook with what is in the pantry. Often times we run out to the grocery store to pick up ingredients for a meal when you have all sorts of stuff on your shelves. Challenge yourself to use what you have.

Aï¿½ Clip coupons. Tedious you say? It can be, but if you stick to the items that you buy on a regular basis, it’s money in your pocket. Find a grocery store in your area that doubles coupons and you’ll save even more.

Aï¿½ Pay your bills online. You’ll save stamps, time and maybe some late fees if you set up automatic payments.

Aï¿½ Hire yourself. Although it may be a matter of convenience, a lot of things that you pay others to do can be done yourself, such as oil changes, mowing the lawn, and cleaning.

Aï¿½ Wash laundry in cold water. Washing in cold water can cut your electric bill substantially, yet still get the clothes clean.

Aï¿½ Turn your lights off! This may bring back fond memories of your parents shouting this at you when you were growing up, but, it really does make a difference in your electric bill.

Whether you live paycheck to paycheck or make a comfortable living, it’s wise to take a closer look at how you spend your money and not waste. Creating more opportunities to save is simply being wise with your money.…

Personal Finance Budget Series: No 20 – What Wealthy People Really Think About Their Money

Laura, September 25, 2021

Personal Finance Budget Series: No 20 – What Wealthy People Really Think About Their Money

One of the main characteristics of wealthy people is that they have confidence in their ability to make decisions, in their purpose, and in their personal finance budget. Confidence, self confidence specifically, is a learnable skill, and to become strong in confidence is to understand how to place the mind in the right state. With mind and money aligned, wealthy people are much happier than those who only chase money as an end goal.

Confidence: The Four States of Thought

Autopilot Thinking is when people are over familiar with routine decisions, and can quickly form assumptions about what is expected – like when using credit cards in the store, or driving home along a well known route. This is an external thinking state and can be harmful. Another harmful state is the internal, critical voice, which so often tells people that they are an imposter – that they “can’t do” or “aren’t good enough”

There are two helpful thinking states which balance this – the internal voice is the thinking state where the mind assesses options, while the external helpful state is the engaged state, where the mind is concentrating on solving problems.

The objective in managing money, in assessing the personal finance statement, and especially if financial planning has been ignored and money is a problem, is to move from a harmful state to a helpful state, by working out where all the money goes, balanced against when it all comes in. Reflecting and evaluating alternative choices brings confidence back into the personal finance budget process.

Confidence: Why Negative People are so Destructive

Negative people are destructive because they can suck out the enjoyment of life from all the people around them. These people suffer from afflictive emotions, they become jealous, angry, fearful. They are critical, condescending and demeaning. These people are the opposite of what they seem because they are not at all confident, and project their toxicity as a protection against being touched by the people around them.

In seeking to build confidence as a skill, these people need to be avoided, or managed because they will do everything to precipitate doubt in those around them

Confidence: Strategies to overcome Doubt

The secrets to overcoming doubt, are to become confident in taking action and making decisions with personal finance. By moving away from self consciousness, by deliberately tuning out, focussing on something else, concentrating on financial goal setting, budgeting and forecasting, people can grow confidence because they can see a future to pursue, which takes attention away from self – building confidence.

Another way to overcome doubt is to picture the situation as a movie in the mind. Then make it black and white, then dim the picture before finally moving backwards as if leaving a cinema, so the image gets smaller and distant. Finally, positive thought and positive action both dispel doubts – so doing something active, and surrounding yourself with …

India First Life Insurance company

Laura, September 25, 2021

Headquartered in Mumbai, India First Life Insurance Company is a joint venture of Bank Of Baroda and Union Bank of India, and the UK’s financial and investment company, legal & General.

Incorporated in November 2009 with paid-up share capital of INR 663 Crore, India First Life Insurance Company is one of the fastest-growing life Insurance companies in India.

India First Life Insurance Company has grown exceptionally due to delivering good results to their customers and creating value for their investors without compromising integrity. The company is built on a strong foundation of trust and has a promising future.

India First Life Insurance Company has a plethora of life insurance products ranging from pension plans, term plans, ULIP, retirement plans, micro insurance plans, etc. The company has a variety of insurance products to cater to the needs of all types of customers. People can choose insurance products as per their requirements. The company has approximately 4800 branches across India.

India First Life Insurance Company has a variety of insurance products:

Term Plan

India First life Plan
India First Any Time Plan
Star First Combi Plan
Star First Optima/Classic/Comprehensive

Unit Link Investment Plans (ULIPs)

India First Life Wealth Maximizer Plan
India First Money Balance Plan

Savings plan

India First Life Cash Back Plan
India First Maha Jeevan Plan
India First Simple Benefit Plan

Retirement Plan

India First Guaranteed Retirement Plan
India First Immediate Annuity Plan

Micro Insurance Plan

India First Life “Insurance Khata” Plan

Child Plan

India First happy India Plan
India First Little Champ Plan

The process to claim India First Life Insurance

The following step by step process to be followed to claim India First Life Insurance:

The company can be notified regarding a particular claim

By registering online
By contacting the call center
By contacting the sales advisor of the company
By visiting Bank of Baroda branches

After notifying the company, the claimant has to submit the claim form at the earliest along with the following documents:

Copy of death certificate

Copy of age proof of insured

Copy of claimant’s age & address proof

Copy of Claimant’s passbook and canceled cheque

Medical report and discharge summary

Copy of FIR and panchnama, in case of unnatural/accidental death

On submission of all these documents, a claim will be registered. The documents will be sent for verification. If any additional documentation is required would be informed to submit it.

After the investigation of the case, the claim can be accepted or rejected. If accepted settlement amount will be calculated. The amount will be released via bank transfer/NEFT.

What is life insurance?

Our life seems beautiful if we are blessed with a caring family. We work hard and put our best efforts to ensure the beautiful life of our family. We take care of all the financial needs of our spouses, children, and parents.

But life is uncertain, you never know what life has in store for you. Due to any unfortunate

…

Home Loans – By Using a Brokerage to Check Home Loan Rates

Laura, September 22, 2021

Home Loans – By Using a Brokerage to Check Home Loan Rates

This, obviously, is how a financing broker, usually called a mortgage broker, could be worthwhile to us. Mortgage and home loan experts are in your corner that will help you through the twists and turns of the house-buying labyrinth, and can assist you cut costs while also keeping you right on the legal duties of house investment. Buying a home really should be a satisfying period of your life, and if you know what you can and cannot afford to repay month to month, and the way that results into a reasonable offer price for a house, then it can be so. There are plenty of professionals who may be willing to assist you on this, and it is strongly advised that you simply consider them to save yourself considerable time and trouble.

A broker can locate the most satisfactory deal for you from numerous of home loans institutions, which an individual lender will not be able to do. Maybe you’ll need a higher percentage loan for the value of your home because you can opt for only a small deposit, or maybe a lower interest rate is more essential to you. A delayed payment format may be your alternative, whereby in paying nothing for three months, allowing you spend your spare cash on decorating and furnishing the home. A home loan broker has the wherewithal to check out many choices for you and can take care of these needs for you.

There are a few decisions that you will have to make when finding a home loan. There is one leading queries, is it advisable to have fixed or may be variable rates? Fixed rates would be a loan that you sign to receive an annual percentage rate set with the lifetime of the loan. Variable rate mortgages ordinarily provide options in addition to flexibility, but additionally may also be risky in the rising rates marketplace if perhaps you’ve overcapitalized on your loan. What is important to carry out if obtaining a variable rate loan would be to prepare and even budget with respect to hikes in interest rates, and make sure that you are always able to meet ones repayment commitments if rates rise.

Numerous individuals utilize the home loan calculator to check the rate of interest that’s in their means. The issue with interest is that it may alter rapidly, so you have to make a decision whether to get your rate fixed for the complete loan period or risk getting a variable rate with a lower rate, which might in-fact rise later. Nonetheless, it could be of use to some to be aware of the maximum price they can afford for the sum borrowed. To learn that, type in the principal (amount of loan) and also the specified time period you would like to borrow it for.

Then make a decision about how much you will be able to pay for month for month, …

Holiday Loans – Travel the World!

Laura, September 19, 2021

Holiday Loans – Travel the World!

After days, months and sometimes even years we all need a holiday, a vacation, some quality time off, with family or friends or alone to relax, rejuvenate and revitalize our body mind and soul. Working under the same conditions, day in and day out can always ware us down and decrease our performance levels. Sometimes, the solution is not to work harder and concentrate, the solution is to take some time off and enjoy some quality, if not quantity time to relax and reignite your mind. And how are you to fund this holiday of yours, especially because holidays need lump sum amount of money? The best option to opt for Holiday Loans, rather than canceling on quality time.

These monetary funds are of two main types; secured and unsecured types. The lender provides you with different amount ranges and repayment time periods in each case. In both the cases, you can apply for an extension, sighting valid reasons, which will be given along with an added interest rate.

Both these types of Holiday Loans, secured and unsecured, have their own advantages and disadvantages. In case of secured type, its advantage is that the interest rate charged is lesser than unsecured type. But, its disadvantage is that you are required to mortgage some land holdings with the lender as security. You must make sure that the value of the land must be in accordance with the total amount borrowed. You must make sure to repay your loan within the stipulated time limit; otherwise your land holdings will be ceased. On the other hand, in case of unsecured fund type, its advantage is that you are not required to mortgage any land holdings with the lender as security. As this puts the lender at a risk of losing a high amount of money the interest rate charged is more than secured loan type. You must also prove to the lender that you are capable of repaying your loan by showing that you have an adequately paying job, where you earn enough to repay your loan in time.…

Index Annuity Crediting Methods

Laura, September 16, 2021

Index Annuity Crediting Methods

An index annuity earns interested based on an external financial index, such as the S&P 500. Interest that is credited to the annuity is based on a formula that is linked to the underlying index. An index annuity also is usually guaranteed to pay a minimum interest rate so that investors do not lose their initial investment premiums.

One of the most important features in determining the actual interest received on a contract is the crediting method used to measure the amount of change in the underlying index. The three most common methods are annual reset (ratcheting), high-water mark, and point-to-point:

Annual Reset

o Interest is determined by comparing the index value at the end of the contract year with the index value at the beginning of the contract year. Interest is added each year for the term of the contract.

High-Water Mark

o With this method, the index value is recorded at various points in time during the term of the contract. Typically, the annual anniversary is used as the reference points. Interest is added at the end of the contract and is based on the difference between the highest index value and the beginning index value.

Point-to-Point

o The final method pays interest at the end of the contract, similar to the high-water mark method. However, the amount is based on the difference between the index value at the end of the term and the index value at the beginning of the contract.

These three methods may yield similar results over one time span or drastically different results during another. It is important that investors research the options that are available on the annuity index annuity policy they are interested in because there are unique advantages and disadvantages for each method.

The annual reset method has the advantage that the interest is reevaluated each year and that future decreases in the index cannot affect the interest that was earned in previous years. The disadvantage for annual reset is that the participation rate may change each year. In general, its level will be lower than other indexing methods. Sometimes this method is also combined with a cap on the amount of interest that can be earned in a given contract year.

The advantage of the high-water mark method is that a customer may receive a higher amount of interest than other methods if the index reaches a high point towards the beginning or middle of the contract, then falls at the end of the contract term. However, the disadvantages are that this method sometimes comes with a cap and a lower participation rate than other methods. In addition, some contracts state that if the annuitant surrenders the contract before the end of the term, then the interest is forfeited.

The final method, point-to-point, has the advantage that many of the contracts have a higher participation rate than other index annuity methods since interest cannot be calculated before the end of the policy. However, like with …

Financial Planning and Wealth Management – A Comprehensive Guide

Laura, September 11, 2021

Financial Planning and Wealth Management – A Comprehensive Guide

Ways by which Financial Planning can be undertaken?

1. Cash Flow Management

Incomes and expenditures can be better matched through the Plan. It assists in identifying whether borrowings are within prudent limits.

2. Insurance

It usually takes care of unpredictable needs and as these needs can arise at anytime, insurance is extremely important.

3. Investment Planning

With increased volatility in capital markets, there is a surge in demand for small saving schemes as a safe haven. Schemes like PPF, NSC, KVP, RBI bonds, Senior Citizens Savings Scheme, Post office MIS need to be part of asset allocation for investors. Although, it is good to keep some risk free investment in the portfolio as a part of overall asset allocation.

4. Retirement Planning

Due to increase in longevity in life and growing expenses due to inflation sustaining the living standard during post retirement stage is a difficult task, so a wise investment of a nest egg during working life helps in lining comfortably during retirement stage

5. Taxation

The financial plan should help client in minimizing its tax liability and also maximizing its after-tax returns from your investments.

6. Estate Planning

Estate planning is arranging for the transfer of property to legal heirs and to other beneficiaries, in a way that will, as much as possible, achieve its objectives.

Who requires Financial Planning?

It is useful to everyone. Since every one has dreams and goals to be fulfilled, so even people earning small amounts of income should get their financial planning done, so that their limited income can be used more efficiently.

How is it different from Wealth Management (WM)?

Wealth management sounds similar to Financial Planning (FP), it differs in the sense that Financial Planning is for one and all while WM is only for a select few. It relates more the management of plenty i.e. taking care of the needs of affluent clients as part of a long-term, consultative relationship, while FP aims at getting the most out of limited resources.

What is a financial Plan?

Financial plan provides direction and meaning to financial decisions. It helps to understand how each financial decision can affect other areas of finances. For example, buying a particular investment product might help client save adequately to finance for its child’s higher education or it may provide enough for a comfortable retirement.

It includes a review of net worth, goals and objectives, investment portfolio, retirement planning, tax planning and insurance needs, as well as a plan for implementing client’s goals.

After a plan is developed, what next?

The best plan is useless unless it is put into action. Hence the plan should be implemented in said manner, and review the plan when there is a lifestyle change such as marriage, death or divorce. The review also considers changing goals and circumstances.

The entire process for a financial planner can be summed up as follows:

• Initial meetings with client and answering its queries if any.…

Investing in the Markets With Options?

Laura, September 8, 2021

Investing in the Markets With Options?

Options are a great way to protect profits and safeguard against losses for people trading in the markets. They are perhaps the only true form of hedging, when people properly understand how to use them.

Although, the problem is that options are still widely misunderstood in the marketplace, and that is why many people do not get the results that they should with them.

One of the reasons for this is the Options education industry. Education is the most valuable thing a trader can do to progress their knowledge and experience of the markets, and it can ultimately be a big factor in either succeeding, or failing when trading.

However, when it comes to options training many of the companies in the industry actually approach it back to front. Often they will teach people all the different options trading systems that they can, even to a very advanced level and then let them live in the markets on their own.

The problem is that while students know theoretically how to use an option, they don’t know how to identify the opportunities where options can best be utilized.

If people are serious about making the profits that are possible with options trading, then they need to find companies that teach things the right way round.

These are companies that first coach their students in how to understand and identify good opportunities in the marketplace, and then after students feel comfortable being able to do this they then go on on to teach them what strategies are best suited for each different situation that they find.

Also, good companies will be able to offer traders the chance to trade in live markets alongside successful professional traders. It is one thing to understand something theoretically, but being able to progress and develop skills and experience alongside people who are already successful in the markets is extremely valuable indeed.

Accounting, Audit and Reporting In Thailand

Laura, September 3, 2021

Accounting, Audit and Reporting In Thailand

Accounting Period

A newly established business entity may choose any date for its initial accounting period. Thereafter, the accounts should be closed every twelve months.

If an entity wishes to change its accounting period, it must obtain written approval from the Commercial Registration Department and the Revenue Department.

Books of Accounts

The Accounts Act of 2000 prescribes the regulations regarding the keeping of books of accounts and supporting documents.

The Act also stipulates the qualifications of the bookkeeper, who must be a Thai resident, proficient in the Thai language, and a graduate from high-vocational school or university with the minimum of a Bachelor Degree in Accounting.

The Civil and Commercial Code also provides general rules on the accounts that must be maintained.

Recording of accounting entries may be done in the English language, but there should be appended a Thai language translation. All accounting entries must be written in ink, typewritten or printed. Computerised accounting systems are supposed to be registered with the Ministry of Commerce and the Revenue Department.

Accounting Principles

Generally, the accounting principles promulgated in the International Financial Reporting Standards are followed in Thailand. In addition, accounting methods and conventions sanctioned by law are considered as generally accepted accounting practices. The Federation of Accounting Professions is the authoritative body promoting the application of generally accepted accounting principles.

Certain accounting principles, which are adopted by a business entity, must be followed consistently and may be changed only with the approval of the Revenue Department. Such accounting principles include depreciation, statutory reserves, stock, dividends, consolidation, expenses paid out of net profits and accounting for pension plans.

Audit Requirements

All business entities including companies, partnerships, branch offices, representative offices and joint ventures are required to prepare profit and loss accounts and balance sheets on an annual basis, and have them audited. The auditor’s report must state whether the accounts have been properly prepared in accordance with the Accounting Regulations and whether these give a true and fair view.

Appointment of Auditors

Each business enterprise is required to appoint independent auditors who are registered Certified Public Accountants in Thailand. Certified Public Accountants are registered and issued with licences by the Ministry of Commerce.

The Auditors are appointed at the Annual General Meeting of Shareholders (AGM) to serve until the next AGM. The AGM is also required to set the Auditor’s remuneration. Although the auditor must be independent, the Civil and Commercial Code allows a company to appoint a shareholder as an Auditor if he possesses the requisite qualifications.

Reporting Requirements

All business entities are required to file one set of their audited financial statements, together with an annual corporate income tax return and statement of director/manager with the Revenue Department within 150 days of their financial year end.

Companies, partnerships and branches of foreign corporations are required to file two sets of their audited financial statements and a statutory annual return with the Companies’ Registration Department within five months of their financial year-end. Companies are …

The Basics of Cash Flow Management

Laura, September 1, 2021

The Basics of Cash Flow Management

The Basics of Cash Flow Management is important as it helps to ensure that you have enough or even excess money to save up for other usage every single month. Here are a few simple steps that you need to take to manage your cash flow:

Track your current monthly expenses on a daily basis for at least 3 – 6 months.

Analyze your monthly expenses to find out where does your money goes to.

Make a list on the expense items that you can cut down on.

Start setting aside 20-30% of your income to pay yourself first. Put this money into a separate savings account which you will not spend other than for investment purpose.

Plan your expenses budget every month after you have completed the above steps. Make a list on all your expenses and set a budget to it. Make sure that you stick to your budget and not give in to temptations. Make sure that your total expenses budget and planned savings does not exceed your total income per month.

For all major or big spending of about more than USD$1000, you need to plan for it, and ensure that your purchase is genuine and not due to impulse. Hence you need to take note of the cost involved and set aside a sum of money every month towards a fund and only purchase the item after your fund has collected enough to pay for it entirely.

With the above, you should be able to have more savings which you can use for investment purpose to contribute towards your financial freedom or retirement.

Take note that Good Investments are assets that are able to put more money into your pockets, not take money out of your pocket, in both short term and long term. Items that you purchases that takes money out of your pocket every month (creates expenses) are liabilities, not assets!

As long as you do not spend more than your income minus the amount that you need to set aside to pay yourself first, your cash flow will be fine! Take action to do that today! Do not procrastinate.…