7 Ways to Manage Good and Easy Personal Finances

If you want to be rich, you have to be able to manage your personal finances well! It turns out that it is not complicated to be able to manage finances independently! Follow the method below!

Happy reading!

How to Manage Good Personal Finance is Easy

Everyone certainly hopes to have a significant income, but did you know that the most important thing is that you can enjoy it, right? It’s unfortunate if we have a large salary or income, let’s say above INR 20 million, but our debts and bills are more than 70 percent of our income, and we can’t save or invest.

Any amount of income will not guarantee the welfare of our lives if we do not manage sound personal finances. Even rich people will be stressed and frustrated if they don’t manage their finances and manage their income and expenses.

Financial problems will certainly make your head dizzy, and you can’t sleep. So before financial problems pile up, it’s better to fix one by one simple thing and move on to the next stage. Let’s follow these Seven ways in managing finances that will make your financial life better, even avoiding the trap of consumptive debt.

#1 Have Personal Financial Records

Without personal financial records, we will not be able to manage personal finances properly.

Personal financial records are instrumental. This is an essential step we have to take. If we don’t do this initial step well, even consistently, then our finances will still be messy and not well organized. By recording personal finances, we can track where the money we earn is spent.

In addition, we can find out what expenses we can reduce, or we need to increase the nominal according to need. Recording personal finances can also help design financial goals; we can find our financial strength to achieve our financial goals within a specific period.

For example, suppose we have a financial goal to buy a house with a mortgage of 300 million in the next five years. In that case, we can plan from now on by saving a minimum down payment of 30 percent, which is 90 million for a specific time, according to our financial capabilities.

Besides buying a house, what other financial goals can we achieve? Of course, the first step we have to do is to record personal finances.

#2 Create a Monthly Budget

In creating a monthly personal finance budget, here is a formula that you can use 40-30-20-10, in the form of a division:

  • Allocate 40 percent of your income for daily expenses, such as monthly bill fees, to daily shopping needs.
  • Next, allocate 30 percent of your income to pay off debt installments if you have one.
  • You can allocate 20 percent of your following income for investment savings for a better financial future.
  • Then, 10 percent of your income you allocate to donations, gifts, or charity.

Easy, right?

#3 Manage Expenditures Wisely

This is where the art of managing personal finances comes in. Everyone certainly has their strategy, including you, right?

The first expense we need to pay is taxes or deductions.

Usually, this tax will automatically be deducted from the salary for workers or employees each month to receive a net wage that the cost of paying taxes has deducted.

In addition, deductions for social security for workers have also been paid automatically.

The next expense that needs to be regulated in managing personal finances is donations or charity.

Usually, 5 to 10 percent of the income is received.

Furthermore, to build good financial strength, we need to prioritize savings through investment vehicles.

Saving in the bank alone is not enough. The average amount of interest received in one year is not comparable to the current monthly administrative discount, which is quite large, especially with the inflation rate increasing every year.

Therefore, it is highly recommended to invest through various investment instruments that are very profitable to build a personal finance printer and prepare for a better financial future.

From this investment savings, we can also increase our income by building a business from the investment income.

Thus, we will increase the financial income stream.

#4 Create an Emergency Fund from Investment Savings

An emergency fund is a significant fund to anticipate an emergency or urgent situation not to affect our financial condition.

There are many events or disasters that we cannot predict, so we need to have an emergency fund.

So, where can we collect emergency funds from? Did you know that we can collect emergency funds from investment savings funds?

Already know the number of emergency funds you have to prepare?

  • Usually, you need to collect six times the total expenditure per month for single or unmarried couples.
  • In contrast to those who are married but do not have dependent children. Ideally, they need to raise an emergency fund of 9 times their total monthly expenses.
  • Meanwhile, families with dependent children need to collect an emergency fund of 12 times their total monthly expenses .

#5 Have Health & Life Insurance

There are still many people who do not understand the usefulness and importance of having insurance.

They feel a loss because they have paid for insurance so far but have never received the benefits.

The question is: does anyone want to get sick or experience bad things? Insurance is used as an umbrella to protect us from rain or the scorching heat.

We don’t know when the rain will come, but we need to be prepared and on guard, correct?

Herein lies the importance of health and life insurance where we need to have it!

There are many benefits of having insurance, including:

  1. The insurance premiums we pay can pay for treatment or care.
  2. The insurance premiums we pay can protect assets and prevent loss of assets and debt.
  3. The insurance premiums we pay can replace installment payments and debts
  4. Increase funds for family needs.
  5. Can focus on healing

#6 Pay Debt or Installment

If you have debts or installments, prioritize them first to pay them off one by one.

To get accurate advice and solutions to get out of debt that binds you and makes it difficult for you to sleep, immediately contacts my Financial Planning Consultant that you can rely on!

Did you know that hiring the services of a financial planner or financial consultant is very expensive?

But, no need to drain your wallet just by subscribing to the Financial Application for one year at a subscription price of Rp. 350 thousand/year, you can consult with a Certified Financial Consultant and get the right solution on managing personal finances and how to get rid of confusing debts.

#7 Avoid Consumptive Debt

Consumer debt will make your wallet tighter. However, financial planners and financial experts agree that consumer debt is not recommended.

On the other hand, productive debt can increase your income; for example, you borrow some money for business capital from the bank or make a vehicle loan where the vehicle is used to work or make money.

 

Managing Personal Finance is Easy & Fun

It turns out that managing personal finances is fun and not complicated, right!

Keeping track of personal finances is not complicated, you know! We can be assisted with financial recording application services and apps, many of which are free.

These apps make it easier for us to record daily finances. Not only taking notes, but this application can also help calculate the costs that must be collected per month to achieve a financial goal.

We can also consult with a Certified Financial Planner. So don’t forget to immediately record expenses and income transactions that occur at the same time, so you don’t forget to register or miss them.

 

Investing in cryptocurrencies is it worth it?

There is hardly a week that the topic of investing in cryptocurrencies such as Bitcoin or others does not come up in a conversation. Sometimes because they go up meteorically and others because they go down. There are opinions for all tastes.

Personally, I believe that we cannot ignore crypto assets or Bitcoin as if they did not exist. It would be a kind of denial of reality. It is a new type of asset, but one that falls within alternative investments. And as such, it can have a place in a portfolio to de-correlate, but for other reasons as well.

Investing in cryptocurrencies for the long term. My point of view

In my opinion, I think anyone could consider investing in cryptocurrencies for the long term. Obviously, not as a core investment asset of a portfolio, but as a complement or satellite investment.

As we have seen these weeks and in other moments, cryptocurrencies are a very volatile asset. Do not suitable for all audiences. Or of course, not suitable for a significant amount of money within our heritage.

But you can invest in cryptocurrencies with little money. For a $100,000 portfolio let’s say 1-5%. Depending on the ability to take risks and personal circumstances, I think that is the range of capital that I would assign to an estate of that amount. Each particular case would have to be seen.

If it goes wrong. Nothing that the global investment strategy sinks you. And if it goes well. Certainly, an asset to add alpha to the portfolio in the long term.

How to invest in cryptocurrencies

You have to look for a reliable and safe intermediary. With many users. Where you can contrast opinions and references of other people who have invested through these platforms.

The key, as always, is to diversify. Cryptocurrencies are still an unregulated asset, which is still surrounded by a lot of uncertainty. And when I talk about diversifying, I don’t just mean investing in different digital currencies. I also think about investing in 2 or 3 different brokerage platforms. Which can be brokers or directly specialized cryptocurrency platforms. I give you some examples.

Coinbase is perhaps the best-known platform, for having made the leap to the markets and starting to trade on the Nasdaq. It is one of the largest platforms. The volume of digital currencies traded on this platform is skyrocketing. Some say that you can end up dying of success. And the experiences of some clients have not been very good lately, due to the great collapse of new account openings that they have suffered recently. For that reason, it is not strange to read some bad opinions.

EToro –  If you are in Spain then an eToro ad is almost ubiquitous on YouTube video. They come on at all hours. This is a very popular platform for buying and selling stocks at zero cost, but also for trading cryptocurrencies. Personally, it is not the one I like the most. I prefer other more specialized ones.

Bitpanda – those who know about these new alternative investments say that Bitpanda is one of the best platforms to invest in cryptocurrencies, due to its reliability and security. It is by the way also, one of the platforms in which you can invest in precious metals with physical support. Not just annotation.Bitpanda investing in cryptocurrencies

Most cryptocurrency exchanges are preparing for the future leap to payments and have begun to offer cards with which to use digital currencies on a day-to-day basis.

And well, I could list many more cryptocurrency platforms or brokers such as Binance, Kraken, Bit2me, etc. There are quite a few wallets and exchanges. Here the key you have to look at is the differential between supply and demand that each applies. And then I would look at security a lot. Although that also depends on you as a user. But every time, news of robberies of digital currency warehouses is read. So be careful with passwords and security protocols.

Disadvantages of investing in cryptocurrencies

One of the worst things about any of the 6,000 digital currencies that you can invest in today is that you cannot calculate a fair value for it. Because they do not generate future flows. They are not backed by anything. They cannot be used (yet) in our day-to-day operations. It is simply the supply and demand that sets prices. That, and the tweets of an influential person. See Elon Musk.

This aspect makes cryptocurrencies a kind of long-term lottery ticket. Hence, yet another reason to diversify into different crypto assets.

It is not yet known how they will be regulated. If a digital currency has a virtue, it is that it is out of the control of central banks and traditional financial circuits. But that also makes them attractive as a hiding place for money from illicit activities.

It will end up being regulated, I’m sure. Regulatory development always lags behind innovation. At the time that money laundering control rules are put in place, it is regulated how to tax the profits in the sale of cryptocurrencies and the rest of legal varnishes, it will be one more asset, in which, probably, investment funds and others collective investment systems, can enter in a generalized way. And it will no longer be such an alternative market. Something that can happen in the next 3-5 years.

It is also unclear whether central banks will end up imposing their digital currencies ahead of Bitcoin, Ethereum and many others that have emerged from private initiatives. Some more serious than others. There is the risk, but also the opportunity. That is why I believe that investing in cryptocurrencies now that they have collapsed is a good time to sow for the future. The key: investing little money and diversification in every way.

Factors Influencing Adoption of Cryptocurrency in 2021

The issue of cryptocurrencies has many discrepancies since, just as many important figures promote these digital currencies, many others entirely oppose their development.

For this reason, many people wonder if cryptocurrencies are good long-term stores of value or if it is not worth investing in cryptocurrency. We will explain some factors that slow down the adoption of cryptocurrencies and the reasons that will allow their expansion.

Some think that cryptocurrencies are very speculative assets

It is not a secret that many do not like the idea of ​​cryptocurrencies since they feel that “they can threaten the monetary sovereignty of any country,” as mentioned by the senior advisor to the former director of the International Monetary Fund, Christine Lagarde.

Some crypto-skeptics believe that it is a highly speculative asset. Others think that it has been created solely for criminal purposes. Andrew Bailey, Governor of the Bank of England, warns that when buying cryptocurrencies, all the money invested will be lost.

Many say that cryptocurrency is still the future.

But, just as the price of Bitcoin fell considerably, after a few days, it began to rise and was recovering some value, reaching around 36 thousand dollars. This is how many promoters of cryptocurrencies assure that, although this famous digital currency has collapsed, it will recover its value over time for various reasons and will become an excellent long-term investment opportunity.

Jack Dorsey, CEO of Twitter and Square, thinks that Bitcoin cannot be stopped by anything or anyone, like Changpeng Zhao, CEO of Binance, who feels that cryptocurrencies exist to offer greater “money freedom.”

Some known as investment giants believe that Bitcoin is an asset to invest in, just as Goldman Sachs said.

Institutional support has grown.

One of the reasons that cryptocurrencies continue to be the future is the increase in investments by institutions. In addition, there will be more and more tools that will facilitate the management of the cryptocurrency system, and there will be more offers that will benefit users.

All of these seem to be reasons enough to attract more users in the long term. In fact, in Latin America, there has been increased adoption of cryptocurrencies, especially in the first four months of the year; And although it is barely recovering from the last drop, experts say it will soon reach mass adoption.

The easyMarkets broker was recently surprised with the launch of a new μBTC account, with which its users can deposit and trade CFDs with cryptocurrencies on all the assets that the broker has to offer.

The μBTC account automatically creates a Bitcoin wallet address, allowing easyMarkets users to deposit, trade quickly, and withdraw Bitcoin funds when they see a convenient transaction.

Factors that slow down the adoption of cryptocurrencies

Apart from crypto-skeptical people, a part of the population is still very uninformed and does not dare to invest in cryptocurrencies because they do not know how it works and their benefits.

Other reasons that slow down the adoption of cryptocurrencies are the numerous regulations and restrictions by many governments on financial institutes and companies that wish to operate with cryptocurrencies.

In addition, the significant volatility of Bitcoin generates a lot of distrust since, just as you can earn twice the amount invested in a short time, you can also lose half of the fund. As happened in previous weeks, after reaching a historical record with a value of over $ 60,000 in April, its price fell to $ 30,000 in May.

Being covered may not be sexy but smart

Hey, I’m not into fashion designing. But could not resist a tantalizing title to talk about Insurance!! If you haven’t started a family, Insurance cover is the least of your priorities. But even though it’s not that cool to be insured, it sure is smart when there are people who depend on you.

Life insurance is a potent tool that not only offers the ability to plan for unforeseen events that can affect the family’s financial situation adversely but is also looked up to as an important tax-saving cum investment tool.

One needs to do a certain amount of spadework before purchasing a policy, to ensure the best possible coverage at the right price. Here are some helpful tips to get you started:

Explore

As premiums vary widely from company to company and cover to cover, it’s important to look around. One can try internet sites to get instant quotes.

Plot your value

The key to purchasing the right amount of life insurance is to have just enough coverage to meet your needs. If you have more life insurance than you need, you’ll be paying unnecessarily for higher premiums. On the other hand, it’s important not to have too little coverage, resulting in you being underinsured.

Health matters the most

Healthy people get better rates on life insurance. Higher premiums are quoted for anything that poses a risk for longer life expectancy (smoking, on regular medication, etc). The Sooner the better as premiums rise with increasing age, the younger you are when you purchase life insurance, the lower premiums you will be required to pay.

Review your cover periodically

Any life change indicates the need for an overall review of the financial plans. Make sure you have enough cover for all important events of life.

Focus on annual installments

You may not realize it, but you may be paying more for your life insurance if you pay your premium in monthly installments. Many insurance companies charge extra fees if you make monthly premium payments instead of paying the annual premium.

Never conceal facts

Though age and negative health-related conditions attract a higher premium, don’t think about lying on the insurance application. If your insurance company gets the knowledge of concealed facts they can terminate the cover.

Women, Money and Marriage: What You Need to Know

In today’s world, “Leave It to Beaver” stereotypes for men and women in partnerships should only exist in Nick at Nite reruns. Yet many women still don’t understand their household’s finances and aren’t actively involved in managing money matters.

To achieve true equality in a partnership, both individuals must have knowledge of and involvement in their partnership’s assets and debts. If you’re one of those women who isn’t participating in the financial side of your marriage, here are some tips to get you on the right track:

Talk Money

If your partner has always handled most financial matters, it may seem difficult to bring up that you want to be more involved. The first step is to initiate a conversation with your spouse about your desire to learn more about your household’s assets and debts and to be more actively involved in making decisions.

Choose a time and place without high levels of stress or too many distractions to have this discussion. Bring it up in a positive way, rather than in a tone that might sound complaining or accusing.

Keep Current

It’s never fun to think about something bad happening to the people you love. Yet you must be responsible and realize that if your partner should no longer be able to carry out the role of primary financial decision-maker, the tasks would fall to you.

Make sure you’re familiar with and have access to all financial records and documentation. Know how to quickly access everything from account numbers to mortgage documents to investment information.

Get Involved

Look for ways to become more integrated in your marriage’s finances. Whether it be creating and maintaining the filing system for your financial paperwork or paying the bills, sharing responsibility can be rewarding and make your partnership more balanced and fulfilling.

Stay Independent

There can’t be a strong “we” without a strong “me.” While marriage is a partnership, you should still maintain your own financial standing. We recommend that each partner have a checking account and credit cards in his or her own name so that both can build good credit.

Get Help

There are many programs available today that are focused on helping women handle financial matters. Many companies today provide financial services to help women achieve financial empowerment, security and independence.

Equality in marriage exists on many different levels and requires working together as a team – a team where both members are informed and involved.

The 5 Worst Forms of Debt

I suppose you could live your entire life without going into debt, though modern middle-class society in the United States seems to be designed to require at least some debt. Even if young adults can complete their education without taking on student loan debt, just about all new homeowners need a mortgage in order to afford a house. In some cases, debt is just a cost of middle-class living.

Some debt products should just be avoided, however.

1. Payday loans.

To qualify for a payday loan, you would need to prove a history of income. This will provide you a short-term loan, with the balance and fee due within weeks. Those fees could be $15 to $30 for every $100 borrowed, which on a two-week loan could be considered a 390% interest rate. If you aren’t able to pay off the loan when it is due, you can renew it for an additional fee.

Most people who take out payday loans fall into a cycle of debt, renewing their loans or going back to the lender often. It’s rare that someone in a short-term financial fix borrows money at a high rate for a few weeks and pays the loan off in full.

2. Refund anticipation loans.

These were marketed heavily a few years ago, and now that we’re heading into tax season it’s likely we’ll see more ads. Refund anticipation loans are often offered by the same company you might use to help file your taxes. If your income tax return forms show that the government owes you money, for a fee, these companies will be willing to offer you your anticipated cash now.

You can adjust your tax withholding at your job to make sure you’re not due a large refund when you file your taxes. There are few good reasons to keep paying the government more than you need to every week or two when you receive your paycheck. The “forced savings” rationalization is not a good reason.

The 5 worst forms of debt 13. Gambling.

For the sake of your kneecaps, you don’t want to find yourself in debt to a bookie. Movie drama aside, gambling is always a losing endeavor in the long run. It can be an addiction, so seek help if gambling is controlling your life. One problem is sunk costs. Once you start losing, you want to make up for your losses, taking larger risks.

If you’re a stock trader relying on the margin for making purchases, you might as well be gambling.

4. Rent to own.

If you have young children in school beginning to learn to play a musical instrument, you are likely encouraged to rent the instrument from the store. The rental programs are generally designed to either buy the instrument after some time or return the instrument to the store when the student loses interest. This is the best rent-to-own scenario.

Once you start renting electronics and furniture, you will generally get a bad deal. It’s likely you’ll pay much more than the cost of the product by renting, and you will likely be charged a high rate of interest.

5. Debt used to finance a depreciating asset.

One rule of thumb dictates that debt should only be used to pay for an asset that increases in price. For that to make sense, the price of the asset should increase at a rate higher than the rate of interest on the debt. The only problem is that you can’t consistently predict whether the price of an asset will increase.

Cars, unless they are collectible items, would not qualify under this rule. I would argue that if you need a car to earn money, the benefits of its use might outweigh the cost of the loan. And even a reliable used car could cost more than someone on the first day of his first job might be able to afford.

A few years ago, I knew many people who thought that real estate prices could never go down, conveniently excusing the fact they had no equity in their house. Banks were eager to let them buy their houses with hardly any down payment. If they were forced to sell after their house values dropped 20%, they would be in financial distress. And worse, if they were no longer able to afford their mortgage, they might have to foreclose.

What other forms of debt should people avoid?

GATE 2021 Results: How marks will be Normalized?

As the GATE exams are approaching, students are more curious about the calculation and the normalization process. The normalization process analyses candidates appearing for the GATE on the 5th February to 14th February 2021. This article will educate the process of counting the marks of GATE exams.

The GATE examination conducted for MTech and PSU recruitment. Generally, the GATE papers are calculated at once, but some have to count in shifts/sessions. GATE uses the normalization process to calculate the final marks, obtained by the students following the exam held in multiple sessions.

Why is the Normalization of Marks Necessary? 

Every year the difficulty level differs from the previous one. The exams conducted under IIT Delhi, have variant slots and time accordingly. Here, the normalization process works as a mediator and is justified with marks.

The difference in GATE scores and normalization scores

There are two different formulas and methods to calculate the GATE scores and normalization scores. The following points elaborate on both the process of calculation.

  • The GATE scores have records on the scorecard of GATE. The normalizing process utilized in case of multiple sessions and the results showed up in GATE scores.
  • GATE scores used to calculate the final marks. To calculate the final score of the students, the board does not use the normalizing score.
  • Not all the students who sat for the GATE exams use the normalization score. Passed students have the privilege of the same.

Formula to Calculate the Score

The standard deviation and formula to calculate the scores of multiple sessions in GATE examination. The actual formula is as follows:

Mij=Mg – Mg\ Mti – Miq ( Mif-Miq)+Mg

t q\ q

Where,

  • Mij is the marks obtained in the session
  • Mgt is the average marks obtained in the session
  • Mgq the solution of standard deviation and mean of all sessions
  • Mti refers to one session’s average marks
  • Miq the solution of mean and standard deviation for one session

Scorecard of GATE 2021

After appearing for the GATE examination, students will receive obtained marks. The GATE 2021 result will be declared on the 22 March 2021; hence, the students who will qualify in the exams will get their results. The GATE examination results are foremost, as most of the organization admissions rely upon GATE scores. For further details, visit the GATE website. There are more details about the GATE exams—the marks obtained by the students, integrity of the score, and the exam. A student’s GATE examination scores are significant only before three years. After completing three years of the exam, the student cannot take admissions based on GATE results. The candidate must re-apply to get an acknowledgement.

The ranking is all India based. Total marks are out of 100. After scoring the minimum passing marks in UG program, the candidates can sit for the GATE examination.

Eligibility Criteria for GATE Examinations 2021

This year the eligibility criteria are based on IIT Bombay. The IIT Bombay and IIT Bangalore decide the eligibility every year in an alternative way. The criteria are the qualifying marks, exam and qualifying year.

The GATE exams are crucial for the candidates applying for ME, MTech and PhD throughout the country’s engineering colleges. The PSU (Public Sector Undertaking) relevant while recruitment. Therefore, before appearing for GATE examinations, meet the minimum marks to apply for the exams.

  • IIT Bombay included Humanities and Social Science along with the Environmental Science and Engineering(ES). The new number of GATE syllabus is 27.
  • Now, candidates with minimum 10+2+3 eligibility can also apGateply for GATE examinations.
  • Candidates can opt for their combination of papers according to their preferences.

For more details about GATE 2021, visit at  https://www.shiksha.com/engineering/gate-exam

Sales Tax Nexus – Do Not Ignore

Are you suffering from Nexus Perplexus?

Definition: A state of confusion regarding the degree of business activity allowed before a state may exert its jurisdiction to impose a tax.

Cause: The many (and often conflicting) definitions of Nexus for state tax purposes from legislative, judicial, administrative, and secondary sources.

Symptoms:

  • A nagging feeling that there are potential tax liabilities in other states.
  • A suspicion that state taxes may be lowered as a result of apportionment of business income to other states.
  • A cold sweat resulting from the receipt of a nexus questionnaire from a state where one is not currently filing.

Are your products and services taxable in your home state? How about other states where you sell? Did you know that if you charge a fee for electronically filing an income tax return in Texas that the fee is subject to sales tax?

Regardless of the sophistication of the sales tax reporting system, the system still needs to be told what is taxable and what is not.

As businesses expand into multiple states (“multi-state”), the issue arises of whether the “foreign” states can force your company to register and collect use tax. Your company’s presence in a different part of a country or state is referred to as a “nexus”.  This may be through your salespersons traveling to those states, or your hiring of jobbers, repairpersons, or independent contractors who perform installation or maintenance in a state where the company is not registered may create nexus in that state.

The level of activity performed has a direct bearing on whether another state has the ability to impose a tax.  The critical issue is to determine if the nexus exists.  A nexus review will carefully determine the facts of a taxpayer in light of not just state rules and regulations, but all applicable federal legislation, as well as relevant judicial and administrative law.  The end result is a clear picture of potential state tax exposure.

Sales Tax Nexus issues can create serious tax liabilities because companies miss the opportunity to collect tax from customers and eliminate their own burden. In addition, there is usually no statute of limitation because the company never filed a return in the state where it created nexus.

Have you received a nexus questionnaire lately? If not responded to correctly, a state may conclude that nexus exists and assess tax, penalty, and interest for all periods from the first-day nexus exists. There have been many cases where taxpayers have filed returns and paid tax to a state where nexus did not exists, based simply on a nexus questionnaire that was not properly responded to.

The sales tax nexus requirements are very different from income taxes. In simple words, activities that will not cause nexus (a filing requirement) for income taxes will cause nexus for sales tax filing purposes. Companies typically delegate the sales tax filing function to clerk level positions. Consequently, high turnover in these positions can create inconsistency in the sales/use tax reporting function.

It is often difficult to find the time and the resources to prepare a comprehensive state tax plan. Outsourcing the planning function to a state tax expert can be a cost-effective way to ensure that all state tax options are being considered. A state tax plan starts with a review of the taxpayer’s facts and circumstances, as well as future plans and expectations. The end result is a recommendation of the best planning technique(s) for lowering state tax liabilities and/or exposure.

 

Credit Score Factors – The essentials

Do you know your credit score but are wondering what it means? We’re here to help you understand it. The data pulled from all of your financial histories is placed into five primary categories that make up your FICO score. These five factors are as follows: payment history, amounts owed, length of credit history, new credit, and types of credit used. Represented by the pie chart below, each factor is weighed differently – some are weighed more and some are weighed less. To find out which areas of your personal finances should be given more attention, review the easy-to-use chart below, and then read out tips for raising your score through these five factors.What affects your credit score

What Makes Up a Credit Score?

Payment History

As the most weighed factor of your credit score, your payment history is a very important factor in determining your chances of qualifying for loans and mortgages. We all know that there is no way of going back and changing your past, but there are indeed ways of erasing your past mistakes. With 35% of your credit score is calculated from your payment history, it is important to make sure that you avoid missed payments and late payments. Contact our credit team to find out how you can get your bad items removed from your payment history.

Amount Owed

The next largest factor that determines your credit score is the amount that you owe to your creditors. This is calculated by the amount that you owe on all of your accounts, and how much credit is available to you on your revolving accounts. To easily determine where you stand in regard to the amount owed, you can calculate your credit-to-debt ratio. In this, you simply must divide the amount of debt on your credit card by the limit amount on your card, and then multiply by 100. For example, if you have $2,000 in debt on the card and the limit is $10,000, then your credit-to-debt ratio is 20%. Anything below 50% is an acceptable ratio.

Length of Credit History

The third factor of your credit score is particularly pertinent to young people. This number is calculated by how long your cards have been open. Basically, the longer your accounts are open, the better. In calculating your length of credit history, FICO takes the following factors into account: how long your collective credit accounts have been established, how long each credit account has been established, and how long it has been since you used each card. The best advice regarding your length of credit history is to keep all of your cards open for as long as possible.

New Credit

Making up 10% of the weight of your credit score, having new credit is an easy way to boost your score. If you have a steady source of income, then consider opening one or two new cards for charging small items. The credit reporting agencies will, however, penalize you for overdoing it and opening too many cards in a short period of time. In order to effectively build your credit by opening new credit cards, it is important to do so in moderation.

Types of Credit Used

Finally, the last factor of your credit score is the types of credit that you use. The types of credit considered in your FICO score are as follows: credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans. It is important to have a good mix of all of these different types of credit in order to boost your credit score. Diversity in your credit cards and accounts is essential to building a good credit score.

Life Certificate for Senior Citizens via Jeevan Pramaan app.

Recently, the Government has announced a life certificate facility via post office at your doorstep, and it can be availed at Rs 70.

However, if you want to avail of the facility via an app, then the process is still more straightforward, and even a person who is not tech-savvy can do it.
  1. You need to buy a biometric device listed on their website as the app works with only a few compatible devices like Mantra. It will cost you around 1500 to 1800 Rs. (Note: Many senior citizens are facing a problem with a fingerprint scanner. In that case, it would be advisable to buy an iris scanner which costs around Rs.5000.)
  2. Download the client service for your biometric device from the app store.
  3.  Connect your device to the phone or laptop via USB.
  4. Test the scanner to check if it works properly or not.
  5. Now once you are done with step 4, visit jeevanpramaan.gov.in and download their app. This app is available on their site only. I couldn’t find it in the playstore.
  6. Open the app with your biometric device connected to the phone or laptop. If you don’t connect your device, then the app will show errors and will not work.
  7. Now register as an operator by providing Aadhaar, mobile, and email. Enter the OTP and submit.
  8. Authenticate yourself on the biometric device.
  9. You will have to provide the Aadhaar, mobile, and email of the pensioner and enter OTP authentication.
  10. If you had already submitted a digital certificate earlier then you will see a prepopulated form. If not, then enter pensioner’s details like pension type, department, disbursing authority, bank name, etc. and then submit it.
  11. Now the pensioner will have to authenticate via the biometric device.
  12. Once the biometric is successful, you will see his or her photo with Jeevan Pramaan id. This is the digital copy of the life certificate. You can download it anytime from their website as well.
  13. The bank or disbursing authority will verify your certificate and send you an acknowledgment in 3 to 5 days.
You will receive an SMS after successful verification is done. You have to be patient as sometimes the fingerprint isn’t captured due to old age or other reasons.