Article

5 Samvat Resolutions

Priyanka Sharma

27 Mar 2018

Samvat also known as Vikram or Bikram Samvat (VS or BS) is the official Hindu calendar followed mainly in India and Nepal. The next day of Diwali is considered as the Samvat New Year. People celebrate it with festivities and often observe resolutions. Diwali is the time when people worship Laxmi, goddess of wealth with a wish of happiness and prosperity. How are you planning to welcome Laxmi (wealth) in your lives? Resolutions have always been an important part of New Years and so making resolutions for betterment is always a good go.

Which resolutions are you going to make for the betterment of your finances? Yet not decided? Here are the 5 Samvat resolutions which you can make to enhance your finances as you enter into a new Samvat year.

1) Payoff your Credit card debts and personal loans: It is very important to pay off your credit card debts and personal loans as they are high-cost debts. Paying them off will help you save a large amount which you would otherwise have paid as high rate interest.

Unsecured loans such as personal loans and credit card debts can prove to be very costly. The sooner you would pay them off the more you would save on the interest. Another benefit of it is that you not only save on the interest but you also tend to improve your credit score. So, paying off the high cost debts should be the first priority this Samvat.

2) Try to work on alternative income sources: With the rising inflation and soaring prices, it is very difficult to manage the expenses and maintain savings with just a single source of income. It is thus advised to look for alternative income sources for extra income. These alternate sources will help you to not only work out with your expenses smoothly but have those extra bucks as savings as well.

Alternate income sources could be anything right from the rental income, to freelancing, shares or interest earned on fixed deposits.

3) Work on the savings: Working on savings is very important. Though each one of us often thinks to start saving it happens with very few of us. So, it is important that you start taking the savings part seriously and contribute to it a good amount every month. To have a secured future, savings is very important, and you must make it a point to work on your savings this Samvat to have a good amount of funds and a secured future.

RD i.e. Recurring Deposits which are kind of recurring fixed deposits can be really very useful if you want a disciplined approach for your savings. It requires the deposit of a fixed amount every month and thereby maintaining the deposit.

4) Broaden your portfolio: Though you might be investing in stocks it is important that now you should look on to broaden your portfolio for better prospects. It is always better to go for the greener pastures. Broadening your portfolio in different businesses will decrease the risk quotient and would ensure even if one domain sinks you still have better prospects.

The most important thing is to choose the portfolios. Try to go by business and not the stock price. Avoid speculating. If you focus on business you can understand the nature of the investment.This would help you in making decisions and yield better returns in the long term.

5) Cut down unnecessary expenses: We often end up buying things which are non-essential without thinking and planning much. This kind of expenditure acts a drain for your wealth. It is very important to keep a check on them and think carefully before spending. This will help you control expenditures and save more money which would you have spent otherwise.

The best way to control this is to distinguish the essential and non-essential expenses. Try to adapt to minimalist approach and you could see the difference in no time.

This Diwali welcome Laxmi to enhance your wealth by working out on your financial activities. Make financial resolutions this Samvat and follow them around the year to enhance your wealth. Happy Samvat!!!

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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 

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5 Samvat Resolutions

Priyanka Sharma

27 Mar 2018

Samvat also known as Vikram or Bikram Samvat (VS or BS) is the official Hindu calendar followed mainly in India and Nepal. The next day of Diwali is considered as the Samvat New Year. People celebrate it with festivities and often observe resolutions. Diwali is the time when people worship Laxmi, goddess of wealth with a wish of happiness and prosperity. How are you planning to welcome Laxmi (wealth) in your lives? Resolutions have always been an important part of New Years and so making resolutions for betterment is always a good go.

Which resolutions are you going to make for the betterment of your finances? Yet not decided? Here are the 5 Samvat resolutions which you can make to enhance your finances as you enter into a new Samvat year.

1) Payoff your Credit card debts and personal loans: It is very important to pay off your credit card debts and personal loans as they are high-cost debts. Paying them off will help you save a large amount which you would otherwise have paid as high rate interest.

Unsecured loans such as personal loans and credit card debts can prove to be very costly. The sooner you would pay them off the more you would save on the interest. Another benefit of it is that you not only save on the interest but you also tend to improve your credit score. So, paying off the high cost debts should be the first priority this Samvat.

2) Try to work on alternative income sources: With the rising inflation and soaring prices, it is very difficult to manage the expenses and maintain savings with just a single source of income. It is thus advised to look for alternative income sources for extra income. These alternate sources will help you to not only work out with your expenses smoothly but have those extra bucks as savings as well.

Alternate income sources could be anything right from the rental income, to freelancing, shares or interest earned on fixed deposits.

3) Work on the savings: Working on savings is very important. Though each one of us often thinks to start saving it happens with very few of us. So, it is important that you start taking the savings part seriously and contribute to it a good amount every month. To have a secured future, savings is very important, and you must make it a point to work on your savings this Samvat to have a good amount of funds and a secured future.

RD i.e. Recurring Deposits which are kind of recurring fixed deposits can be really very useful if you want a disciplined approach for your savings. It requires the deposit of a fixed amount every month and thereby maintaining the deposit.

4) Broaden your portfolio: Though you might be investing in stocks it is important that now you should look on to broaden your portfolio for better prospects. It is always better to go for the greener pastures. Broadening your portfolio in different businesses will decrease the risk quotient and would ensure even if one domain sinks you still have better prospects.

The most important thing is to choose the portfolios. Try to go by business and not the stock price. Avoid speculating. If you focus on business you can understand the nature of the investment.This would help you in making decisions and yield better returns in the long term.

5) Cut down unnecessary expenses: We often end up buying things which are non-essential without thinking and planning much. This kind of expenditure acts a drain for your wealth. It is very important to keep a check on them and think carefully before spending. This will help you control expenditures and save more money which would you have spent otherwise.

The best way to control this is to distinguish the essential and non-essential expenses. Try to adapt to minimalist approach and you could see the difference in no time.

This Diwali welcome Laxmi to enhance your wealth by working out on your financial activities. Make financial resolutions this Samvat and follow them around the year to enhance your wealth. Happy Samvat!!!