The Reasons Why You Need Emergency Fund

Saving up your hard-earned cash to stash away an emergency fund? 

Saving up your hard-earned cash to stash away an emergency fund?

Well, it can be a hard sell. Spare cash can be hard to come by, and, after all, taking a vacation is a heck of a lot more fun.

Or at least a lot of us seem to think so. The idea behind an emergency fund is to store at least six months of net income for the sake of “just in case.” Just in case your job goes “poof.” Just in case your car conks out. And a select few other things we’ll explain below.

Does that mean an “emergency” outfit for the film festival (rumor has it Jude Law will make an appearance)? That big trip your teen suddenly wants to take this summer because “everyone else is”?

Not exactly.

We’ve written before about exactly what counts as an emergency. One of the biggest reasons to have an emergency fund is to avoid going into debt for a cost you just can’t avoid (i.e, not celebrities or peer pressure).

In our survey above, 31% of respondents said that credit card debt was a significant impediment to reaching their financial goals, and they each had an average of $5,000 to pay off. Well, guess what? If they had an emergency fund, they shouldn’t need to get so far in the hole in the first place.

Don’t believe us? Planning to spend your money on something sexier? Nothing’s sexier than being worry-free.

Here are the top seven reasons you need an emergency fund:

1. You’ve received a Pink Slip

It usually isn’t as dramatic as Donald Trump proclaiming “You’re fired!” In recent years, it’s looked more like rounds of layoffs spurred by economic turmoil. Or maybe you chose to resign because your job is taking a serious toll on your mental health and you were burning out. Whatever the reason, you need a way to pay your bills until you establish another source of income–and your emergency fund should be it.

2. You Can’t Shake That Cough

Robitussin isn’t cutting it anymore. You need to go to the doctor, and then maybe the doctor again, and possibly even the hospital. Most health insurance plans only go so far–when it comes to hospital visits or other major medical costs, it’s likely you’ll be required to supplement your coverage (if you have it). With an emergency fund, you won’t have to choose between your well-being and your rent.

3. The Only Job You Can Get Is Three States Away

According to our survey, 60% of respondents have, at some point, had the experience of being unemployed and looking for a job. And as we all know, when things are getting financially tight, we need to consider any suitable position that crosses our path … whether it’s where you live … or in Portland. Between finding new housing, arranging to transport your things and the million other little costs that come up along the way, a move is expensive, but it can be unavoidable.

How can you help finance an emergency move? You guessed it.

4.You find yourself with a debilitating illness.

If you’re too sick to work, you could lose your job. And even if you qualify for short-term disability, you could wind up living on less than your full salary. An emergency fund could help you make it through

5. You Need to Get to the ER. Stat.

Did you know that in many cases, you have to pay for some or all of an ambulance ride to the hospital? (And if you don’t have health insurance, it’s even more likely you’ll be responsible for covering the whole cost.) If you get hurt enough to spend time in a hospital or emergency room–maybe even hurt enough to need surgery and physical therapy–you can’t always rely on insurance to cover the full cost.

6. Someone Close to You Passes Away

No one likes to plan ahead for mourning, but if someone you love does pass away suddenly, “I can’t afford the plane ticket” is the last thought you’ll want to have. If you have to travel to (or pay for) a funeral, burial service or any other bereavement-related expenses, your emergency fund can keep those charges off your credit card.

7. Your Roof Starts Leaking

If you own your home (like 70% of you said you did in our survey), you know that there are few things more ominous than watching the paint swell and crack above your head. It’s right up there with discovering a flood in the basement or setting the kitchen on fire before a particularly ambitious dinner party. First, make sure you have homeowner’s insurance. But, then, if an unexpected home-related expense pops up, rest assured that that’s part of what your emergency fund is there for.

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BUY -- Don't Hold

 "Be fearful when others are greedy, and be greedy when others are fearful!”

The temptation for excessive money has always propelled investors into the lap of stock markets. However, making money in equities is not that easy as it not only requires huge amount of patience and discipline accompanied by a great deal of research and a profound knowledge of the market, among others.

Adding to this fact, the volatility in stock market has left investors in a state of confusion in the last few years. In such a scenario, investors are in a dilemma whether to invest, hold or sell.

The typical buyer's decision is heavily influenced by the actions of his acquaintances, neighbours or relatives. There is a tendency that if everybody around is investing in a particular stock, there will be an automatic inclination for potential investors is to do the same. Nevertheless, this strategy is bound to play like a boomerang in the end (long run).

1) We do not need to mention every time about the hard-earned money in stock market whether investors are going through a rough patch. The world's greatest investor Warren Buffett was surely not wrong when he said, "Be fearful when others are greedy, and be greedy when others are fearful!”

2) Appropriate research should be and suitable inquiry should be arrived with before investing in stocks. However, unfortunately, that is rarely done. Investors are generally stimulated by the name of a company or the industry they belong. This is the most foolish way to put one's money into the stock market.

3) Investors should never invest in a stock instead, they should check up on the business in. Most importantly, invest in a business one understands. In other words, before investing in a company, people should know the status of the business the company is running in.

4) Diversification of portfolio across asset classes and instruments is the key factor to earn optimum returns on investments with minimum risk. Level of diversification depends on each investor's risk taking capacity.

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How To Avoid Emotion While Investing?

Fear is one of the most primal human emotions and plays a huge role in emotional investing.

Investing is an emotional experience. With so much at stake, it can be an emotional roller coaster to watch the stock market gyrate from day to day.

Investors are often torn between their guts and their heads. While there’s nothing inherently wrong with consulting your emotions when making purchasing decisions, stock buyers do need to beware of relying too heavily on their guts. Bank runs, flash crashes and stock market surges are just some of the ways in which emotions can impact the market for the worse.

Why does this type of emotional investing happen and how can investors avoid both the euphoric and depressive investment traps? Read on for some tips on how to keep an even keel - and keep your investments on track.

1. Bad Timing

The lag between when an event occurs and when it is reported is what typically causes investors to lose money. The media will report a bull market only once it has already hit; unless the trend continues, stocks will retract in upcoming periods.

Investors, influenced by the reports, often choose these times of premium valuations to build up their portfolios. It is worrisome when the daily stock market report leads off the mainstream news because it creates a buzz and investors make decisions based on "opinions" that are often outdated. Market uncertainty creates fear and brings about an atmosphere of emotional investing.

2. Fear

Fear is one of the most primal human emotions and plays a huge role in emotional investing.

“I find that fear is probably the most detrimental emotion,” said Bruce Ailion, a real estate marketing expert. “It might be the fear that prevents making a good investment. It might be the fear that causes an exit at the first sign of trouble that prevents realizing the full profit of the investment.”

3. Hope

Just as being too fearful can jeopardize your investment success, being overly hopeful is problematic. Hope can turn negative when it inflates expectations. Whether you’re a brand-new investor or one with years of experience, being too optimistic can lead you to take on too much risk with the idea of scoring a big payout.

Further, people who are too hopeful often experience something called recency bias, in which they assume that what has happened recently will continue to occur in the future.

4. Stubbornness

Believing in yourself is one thing, but stubbornness rarely pays off in the world of investing. In fact, stubbornness often inspires investors to purchase a stock that isn’t ideal or stay with a stock that has already shown signs of dropping.

“Part of the problem people have with giving up hope is that they’d have to admit they were wrong,” said Kirk. “If the investor were to sell it at a loss, they’re admitting they made a bad decision. Worse, a bad financial decision. Admitting this is very tough for people. In reality, often it’s best to cut your losses and move on.”

It’s good to have faith in yourself and your abilities. However, if you stubbornly refuse to listen to reason, you could quickly put your investments — and your money — at risk.

5. Write Down Your Rebalancing Plan

If you don’t rebalance your portfolio, it will drift over time from your plan. The drift can become significant during extremely good or extremely bad markets when our emotions can get the better of us. Rather than waiting until this difficult times to decide when to rebalance, come up with a plan now and commit it to writing. It can be as simple as rebalancing once or twice a year.

Rebalancing will force you to sell asset classes that have risen in value and buy others that have fallen in value. It’s exactly what we should be doing, but it can be difficult. Who wants to sell stocks when they are going up and up, only to buy miserly bonds A written rebalancing plan puts this decision on autopilot, taking our emotions out of the equation.

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Things That Women Should Know About Life Insurance!

There is a myth in india that life insurance is only for men

There is a myth in india that life insurance is only for men. In simplest form, life insurance means protection against risks in life. While men might not give it due attention, risks also exist in a woman’s life, sometime even more than a man’s life.

Even though a woman may not be considered a breadwinner in the conventional manner, she also needs to protect against life’s risks, and thus needs life insurance.

In today's world, a woman's contribution to the finances of a family cannot be ignored. Besides, they provide much more than men in household matters. But women are seen to be holding themselves back when it comes to buying life insurance. 

While most men are aware of the fact that life insurance can be an emergency fund and help meet one's objectives or protect their families, it is time women know their importance in their loved one’s lives. They need to get themselves insured, in fact, adequately insured. 

Why women must buy life insurance?

The biggest reason a working woman must buy life insurance is because she is adding to her household income. Of course, about 100 years ago, the value that women were providing to the home wasn't considered worth insuring, but not anymore. Today the woman’s salary provides equally for the family, sometimes even more. 

Now as a woman, you can actually put a number to the value you provide to the household and help your family to continue living at their current lifestyle.

So the reason you need a life insurance is to ensure that your family has the income to stay afloat even if something happens to you – like permanent disability, accident, or untimely death.

Now, if you are a single, working woman, the reason you must purchase life insurance is when you have ageing parents (or any other dependents like younger brother or sister) that you're caring for. 

What kind of insurance women should buy?

What are the various types of life insurance?

There are two basic types of life insurance policies viz. Traditional Whole Life and Term Life Insurance. A whole life is a policy you pay till death of the policy holder and term life is a policy for a fixed amount of time.

The basic types of  life insurance policies are:

Term insurance

Term plans are the most basic form of life insurance. They provide life cover with no savings / profits component. They are the most affordable form of life insurance as premiums are cheaper compared to other life insurance plans.

Online term insurance plans provide pure risk cover, which explains the lower premiums. A fixed sum of money - the sum assured – is paid to the beneficiaries if the policyholder expires over the policy term. If the policyholder survives, there is no pay out.

Endowment plans

Endowment plans differ from term plans in one critical aspect i.e. maturity benefit. Unlike term plans which pay out the sum assured, along with profits, only in case of an eventuality over the policy term, endowment planspay out the sum assured under both scenarios – death and survival. However, endowment plans charge higher fees / expenses – reflected in premiums – for paying out sum assured, along with profits, in either scenario – death or maturity. The profits are an outcome of premiums being invested in asset markets – equities and debt.

Unit linked insurance plans (ULIP)

ULIPs are a variant of the traditional endowment plan.They pay out the sum assured (or the investment portfolio if its higher) on death/maturity.

ULIPs differ from traditional endowment plans in certain areas. As the name suggests, performance of ULIP is linked to markets. Individuals can choose the allocation for investments in stock/debt markets. The value of the investment portfolio is captured by the NAV (net asset value). To that end, there are many similarities between ULIPs and mutual funds. ULIPs differ in one area, they are a combination of investment and insurance, while mutual funds are a pure investment avenue

Whole life policy

A whole life insurance policy covers a policyholder over his life. The main feature of a whole life policy is that the validity of the policy is not defined so the individual enjoys the life cover throughout his life. The policyholder pays regular premiums until his death, upon which the corpus is paid out to the family. The policy expiresonly in case of an eventuality as there is no pre-defined policy tenure.

Money back policy

A money back policy is a variant of the endowment plan. It gives periodic payments over the policy term. To that end, a portion of the sum assured is paid out at regular intervals. If the policy holder survives the term, he gets the balance sum assured. In case of death over the policy term, the beneficiary gets the full sum assured.

How I invested in Mutual Funds, When my friends asked me too.

I Raj(25) being a software professional. My friends and colleagues always suggested me to invest in mutual funds. I always wondered what is it and why? whenever i saw TV commercial or YouTube ad. It always comes with a disclaimer 'Mutual funds are subjected to risk, read the documents carefully before investing. This always pricked me and I always wondered why is it risky.

I went to Banks, every bank and an agent i met it confused me, more and more. I thought let me check online like always we do and i came across numerous websites, blogs and something new First Free Online Financial Advisers. I had a online chat with chat them, sometimes investing online is a worry so I asked them to call me .

They called me I spoke to them. The gentleman on the other line was very helpful, gave me an options how I can invest in mutual funds and the benefits of it . Types of Mutual funds. How I can redeem when ever I want to and save tax too.

I was very keen, confident and had a positive vibes so that I can invest my hard earn money into mutual funds. Yes, I was clear with the ex-claimer that suggested me Please read the document carefully before investing into mutual funds. With no time I decided I will invest the in Mutual Funds.

Types of Mutual Funds : 

There are four types of Mutual funds. Probably, you can invest in any of these funds. You can invest mutual fund with low risk. You need to understand how market works. You can check them before you invest. I have mentioned them below.

1. Money market funds : 

These money market funds are invested in money market instruments. These securities have very short time of maturity. As per net asset value you can sell to retail investors. These funds are considered to be a safe investment. But returns will be lower than other mutual funds. These funds are invest in short term for fixed income.

2. Bond funds :

These Bond fund invest in bonds and other debt. These funds invest in fixed income. You can classify according to bonds. In addition, these bonds are fixed by maturity. Mainly, These investments are in government, corporate and convertible. It is like mortgage secured securities.

3. Equity funds :

These equity funds are invested in common stocks. You may focus on companies of stock market. These stocks come from industries or countries. The companies are calculated on market price of stock. But these funds grow faster than money market. It has higher risk that you can lose money.

4. Hybrid funds : 

These funds are characterized by portfolio. And it is mixed with stocks and bonds. It remains fixed. And it is categorized into domestic and international fund. It also knows as Balance funds or asset allocation funds. They invest in other mutual fund.

Benefits of Mutual Funds :

1. You will be provide with many stocks.That will diversify your portfolio. It will diversify instant. It gives low risk. You can see it effect for smaller accounts. Since mutual fund provides exposure also. For hundreds and thousands of stocks. Therefore, you need not go out.

2. You can buy hundreds or thousands of stock by own. So you will get profit from smaller investment. These funds will give you good service. You feel convenience.

3. Apart of this, government regulates all mutual funds. Therefore, all mutual funds must give same information to investor. Because to compare easily. Check advantages and disadvantages of Mutual Funds.

Draw Back of Mutual Funds :

1. You can find few hidden chargers in mutual fund. If you sell mutual fund. Because after sale only you have access to cash. Means, you need to wait for three days after sell.

2. You need to understand both good and bad points. If you buy or sell mutual fund. Therefore, you find transaction will take place at market close. It is simple, easy and stress free investment.

3. The government is not responsible for losses. No guarantee on returns. It depends on market. Some of these expenses are charged on ongoing basis. The portfolio diversify helps in minimize of risk. It’s hard to show higher returns.

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Things To Remember While choosing a Home Loan

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Purchasing a home and applying for a home loan are the two most vital decisions of one’s life. You can plan to buy your dream home with a secured home loan, where you have to keep your house as collateral. So, in this case, you are giving the authority to the lender to auction your home to get the money back, if you become a defaulter.

However in that excitement, a lot of people do not take all the required actions and later suffer because of small things they didn’t complete after closing their home loans. In this article, I want to share few things every home owner should complete, when they are closing their loan.

While I am focusing totally on home loan closure in this article, but whatever I am going to share also applies when one closes a car loan, education loan, personal loan or any other kind of loan

So why are you waiting?

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We only provide FREE financial advice so that you are not mis-guided while buying any kind of financial products.

Get back all the original documents

Once you have made all your payments, the Bank or Housing Finance Company will give you all the original documents. You should make certain that all the documents you presented with the bank when taking the loan are returned. Typically it will be the Title Deeds and Mother Deed (if applicable).

Don’t just test out for document alone. Confirm that all the pages are there in good condition as well. I have seen cases where last page of sale deed went missing. In that instance you require to arrange for the misplaced page which is a tiresome process.

Ensure all the pages are intact in front of the bank official prior to signing on the acknowledgement of the bank.

Once you sign, you can’t undo it and banks typically won’t be receptive in this regard. It is typically a good process to get hold of the documents from bank by visiting them than request documents by courier.

Obtain No Objection Certificate

NOC or NC is a No Objection certificate which is a consent certificate from the bank or housing finance company. This affirms that the Bank does not have any more interest in the asset and it’s cleared by the bank after removing all hypothecation.

When you get this make certain the NOC unmistakably mentions the Property details (like address etc.,) , name of the borrower, home loan account number, date of loan starting and closure, amount borrowed and repaid (some banks don’t mention) .

Also a section should be plainly mentioned that the borrower has paid all the dues and the property is now debt-free. This will confirm that the home is completely yours now.

If Lien of Your Home Is with the Lender, Don’t Forget to Remove It from the Registrar Office

Lien here means “the right to hold possession of property which belongs to another person until he/she has cleared all the debt.”

When you buy a home with housing finance, the lender has the right to sell the property (home bought by you) if you’re unable to pay back the entire loan.

Nowadays, banks carefully check the background of the borrower in advance, so they don’t put a lien on the property. However, they keep the original documents (of property) in their custody.

But if the lenders find anything suspicious in any customer’s background, they might want to put a lien on his/ her property from registrar office.

So make sure you ask your lender about the lien on your property, and if it’s there, ask them about the process to remove it.

Is Your CIBIL Report Updated With “Closed” Entry?

A borrower’s creditworthiness is measured through his/ her CIBIL report and it records your every loan entry and payment actions. Lenders check your CIBIL report before giving any type of loan or credit card. So, if you have closed your home loan by making full payment, it’s crucial to check if your CIBIL report is updated with the “Closed” entry or not.

Although banks update it themselves, but many times they delay or even completely ignore it for several months and your CIBIL report isn’t updated on time which might decrease your credit score and mar your chances of getting any loan in future.

So, double check with the lender bank when you close your home loan account, that they update the CIBIL report at the earliest.

Whenever you’re closing your home loan (even if you’re opting for pre-closure), make sure you complete all the things mentioned above to be on the safer side.

You getting married: How will protect your Finances?

The First Step would be sitting with your partner and have a candid conversation about money

Preparing to get married is an exciting time, but it is also fraught with expectations, tough financial decisions, and potentially awkward conversations.

Although getting married can be financially beneficial, sharing the wealth — and the debt can make you feel like you’re paying more than your fair share. That’s why in most cases, it’s best to set clear financial expectations from the start and take steps to protect your assets, especially if one partner comes into the marriage with significant wealth or with children from previous relationships.

Here the some tips to protect your finances.

Have a Honest Conversation With Your fiancé: 

The First Step would be sitting with your partner and have a candid conversation about money.

Before you wed, you should explore values surrounding budgets, debt, lifestyle, retirement goals and plans, children and college, and so much more. It is ok if both of you doesn’t agree to everything.

If you marrying someone who doesn’t care about budgets, debt then it is going to be lot of tensions and conflict.

You should start sharing your credit report

Any joint account you open will require a credit report being checked for both you and your spouse. If your spouse’s credit is too poor to use for a home or car loan, you may be tempted to take on those financial responsibilities on your own.

Protecting your assets 

You have to ensure that your separate asset remains separate and that will protect in future.

Sitting your goals for the future is a important step. Whether these goals are joint financial goals or something you’d like to take on alone, it’s important to work toward a goal and set a plan to do so. “You’d be surprised how many people make assumptions about how others think about saving and spending

Think Big Pictures

Having these tough financial discussions may seem unromantic in the months leading up to your wedding, but it’s important to keep the big picture in mind.

“Differences in spending habits and financial goals are precursors to divorces — and one of the biggest reasons why people divorce,” Hutchinson says. “[You want it to be] the strongest possible start…so when challenges arise, you have already had these conversations and don’t have to start from square one. It doesn’t mean you don’t trust or love [your spouse.]”

Kruger echoes that sentiment.

“When you get married, you tie an emotional and financial knot that you need to keep strong throughout your lives together,” she says. “Talking about money and financial issues doesn’t come naturally to all of us, but it’s a critical conversation to have with your partners

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Expenses

How To Start With Systematic Investment Plan

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Many just think of surplus available with them for investment. But sadly forget to identify the financial goals, time horizon, asset allocation and finally the right funds.

Hence, before jumping into “How should I start investing in Mutual Funds?”, I want to make sure that you must know few basics of investment (including Mutual Funds).

I am not saying that Mutual Funds are BEST or WORST. At the same time other products also. Each product or asset will come with it’s own positives and negatives and also risks. Hence, it is YOU who must understand your RISK.

Below are few inputs from my end.

You must have a proper Financial Goal

I noticed that many of investors simply invest in mutual funds just they have some surplus money. The second reason may be someone guided that mutual funds are best in long run compared to Bank FDs, PPF, RDs, or even LIC endowment product.

If you have clarity like why you are investing, when you need money and how much you need money at that time, then you will get the better clarity in selecting the product. Hence, first identify your financial goals.

You must know the current cost of that particular goal. Along with that, you must also know the inflation rate associated with that particular goal. Remember that each financial goal to have it’s own inflation rate. For example, education or marriage cost of your kid’s is different inflation that the inflation rate of household expenses.

By identifying the current cost, time horizon and inflation rate of that particular goal, you can easily find out the future cost of that goal. This future cost of the goal is your target amount.

Asset Allocation is MUST

Next step is to identify the asset allocation. Whether it is short term goal or long term goal, the proper asset allocation between debt and equity is a must. I personally prefer the below asset allocation. Remember that it may differ from individual to individual. However, the basic idea of asset allocation is to protect your money and smoothly sail to reach the financial goals.

If the goal is below 5 years-Don’t touch equity product. Use the debt products of your choice like FDs, RDs or Debt Funds.

If the goal is 5 years to 10 years-Allocate debt:equity in the ratio of 40:60.

If the goal is more than 10 years-Allocate debt:equity in the ratio of 30:70.

While choosing debt product, make sure that the maturity period of the product must match your financial goals. For example, PPF is best debt product. However, it must match your financial goals. If the PPF maturity period is 13 years and your goal is 10 years, then you will fall short of meeting your financial goals.

Return Expectation

Next and the biggest step is the return expectation from each asset class. For equity, you can expect around 10% to 12% return. For debt, you can expect around 7% return expectation.

When your expectations are defined, then there is less probability of deviating or taking knee-jerk reactions to the volatility.

Portfolio Return Expectation

Once you understand how much is your return expectation from each asset class, then the next step is to identify the return expectation from the portfolio.

Let us say you defined the asset allocation of debt:equity as 30:70. Return expectation from debt is 7% and equity is 10%, then the overall portfolio return expectation is as below.

(70% x 10%) + (30% x 7%)=9.1%.

How much to invest?

Once the goals are defined with target amount, asset allocations is done, return expectation from each asset class is defined, then the final step is to identify the amount to invest each month.

There are two ways to do. One is constant monthly SIP throughout the goal period. Second is increasing some fixed % each year up to the goal period. Decide which suits best to you.

Hope the above information will give you clarity before jumping into equity mutual fund products.

How many mutual funds are enough?

How many mutual funds do we have? Is it 1, 3, 5 or more than 5? The answer is simple…you don’t need more than 3-4 funds for investing in mutual funds. Whether your investment is Rs.1,000 a month or Rs.1 lakh a month. With the maximum of 3-4 funds, you can easily create a diversified equity portfolio.

Having more fund does not give you enough diversification. Instead, in many cases, it may create you portfolio overlapping and leads to underperformance.

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Do you believe money is important?

Money which is a solution of all problems actually becomes the root of all problems for most people.

The importance of money in human life is similar to the importance of food for the body. Just like you can’t live even for a few days without food, you can’t survive for long without money.

You can definitely solve most of your problems of life if you have unlimited supply of money. If you have lots of money:-,

You won’t be facing basic problems of life like food, water, shelter or clothing.

You can buy all items for your comfort like house, Air-conditioners, TV and other household goods to live comfortably.

You can engage many servants to take care of you and live like a king

The only problem is that money does not come just like that to any person by any amount of wishing, praying or wanting. You have to work hard and compete with fellow human beings to earn money as the supply of money is limited in this world but the demand of money is unlimited.

Hence, money which is a solution of all problems actually becomes the root of all problems for most people.

Most people fail to strike a balance between earning and enjoying money. They believe that more money means more joy. Hence they workday and night; make all sorts of compromises and suffer all types of pain in order to earn money in the hope that they would use this money to enjoy happiness soon. However, for most people, such time never comes and they die unhappy and dissatisfied.

"How Much Land Does a Man Require?" is a beautiful story by Leo Tolstoy which explains this nature of man.

A peasant named Pahom overhears his wife and sister-in-law argue over the merits of town and peasant farm life. He thinks to himself"if I had plenty of land, I shouldn't fear the Devil himself!" Satan is present sitting behind the stove and listening. Satan abruptly accepts his challenge and also tells that he would give Pahom more land and then snatch everything from him.

A short amount of time later, a landlady in the village decides to sell her estate, and the peasants of the village buy as much of that land as they can. Pahom himself purchases some land, and by working off the extra land is able to repay his debts and live a more comfortable life.

Later, he moves to a larger area of land at another Commune.Here, he can grow even more crops and a mass a small fortune, but he has to grow the crops on rented land, which irritates him. Finally, after buying and selling a lot of fertile and good land, he is introduced to the Bashkirs, and is told that they are simple-minded people who own a huge amount of land.

Pahom goes to them to take as much of their land for as low a price as he can negotiate. Their offer is very unusual: for a sum of one thousand rubles, Pahom can walk around as large an area as he wants, starting at daybreak, marking his route with a spade along the way. If he reaches his starting point by sunset that day, the entire area of land his route encloses will be his, but if he does not reach his starting point he will lose his money and receive no land.

Pahom is delighted as he believes that he can cover a great distance and has chanced upon the bargain of a lifetime. He stays out as late as possible, marking out land until just before the sun sets. Toward the end,he realizes he is far from the starting point and runs back as fast as he can to the waiting Bashkirs. He finally arrives at the starting point just as the sun sets. The Bashkirs cheer his good fortune, but exhausted from the run, Pahom drops dead.

His servant buries him in an ordinary grave only six feet long, thus ironically answering the question posed in the title of the story.

This story provides the greatest wisdom about money.

You must ask this question: “How much money does a man require?”

And then try to find the answer yourself.

The right answer to this question can solve most of the problems of your life and fill it with joy and peace.

If You are finding difficulty in managing your personal Finance 

Leave a Missed call @ 022 - 62116588 

(Or) www.moneymindz.com

Looking to plan a hassle Free and Embalming Holiday in 2017 in india

From the mighty Himalayan peaks, pristine North East to the tropical beaches of the Andamans and Lakshadweep or even the Nilgiris - inscribed by UNESCO as World Heritage Site, there is no dearth of options when it comes to choosing summer holiday destinations in India.

However, there are still areas where you can be caught off-guard; such as ending up overspending on unplanned activities

Plan your trip:

• For a entire trip you should have enough money. It’s important to have a budget. One should not planned at last moment for a trip. If it is a long vacation, one needs to plan his vacation mainly the finances well in advance.

• Use internet to help you find a great deal on hotels, plane tickets, rental cars, or whatever else you’ll need for your trip.

• Plan for food and drink costs including snacks.

• If travelling by car, allocate money for petrol. 

• If you plan to fly to your destination, budget for the cost of round trip plane tickets.

• Allocate money for a rental car, ride shares, taxis, or a personal driver to travel around the place you’re visiting.

• Budget for the place you’ll be staying during your trip. Hotels with free breakfast are a good budget friendly option. 

Get a Travel Insurance:

It is recommended to get a travel insurance on the day you book your tickets. An extra expense is also a way to save money, in case things go wrong. Travel insurance does more than cover unforeseen health emergencies or medical treatment as a result of accidents and specified illnesses while you are on a trip. There are also policies that cover emergency dental expenses, medical evacuation and repatriation of mortal remains.

Reduces used of credit card: 

Apart from planning the travel, also try to minimize the use of credit cards. “Planning in advance always helps to avoid overspending. Also, try to use the credit card less. When we have a credit card, we generally tend to overspend,”

.Keep in mind that the interest rate charged on your credit card spends is on a monthly basis and ends up in the range of 24-40% per annum. Also, while using credit cards during international travel, you would be paying a foreign transaction fee, which is usually in the range of 3% of the transaction value.

Think Outside the hotel box :

In a research it has been proven cost of hotel room is less costlier then the vocational rental property.

“When you’re in a hotel room with children and family, you have to get out to entertain them,” de Belloy says. “When you’re in a vacation rental, there are typically quite a few entertainment options on the property.”

Travelers can find additional ways to save money on their summer vacation, depending on where they plan to visit.

Are You Finding difficulty in getting the Travel insurance.

We at moneymindz.com will assist you to get the travel insurance easily.

(Or) Leave a Missed Call @022-62116588 

(Or) visit www.moneymindz.com