The Art of Money by KG

Dear Friend, In continuation to my previous post about Insurance, t oday I will take you through Health insurance and its importance. The most neglected part of our life is Health and Health insurance. More than half of our population is not even aware about Health insurance and its benefits.  Image courtesy: Google What is Health Insurance? Health insurance is an insurance product which covers the cost of an insured individual's medical and surgical expenses. In many countries, like UK and Canada, health care coverage is provided by the state and is seen as every citizen's right. Need for Health Insurance Medicare or medical costs are rising year by year. In fact, inflation in medical costs is higher than inflation in general items. While inflation in food and clothing is in single digits, Medicare costs usually escalate in double digits. The rapidly increasing medical cost has made it necessary for all individuals to protect themselves and their families with

Dear Friend, I hope you have gone through my initial 2 posts and have made the provision for your Emergency corpus and started saving money through Recurring Deposit or Fixed Deposit. Next Step of saving should be getting insured. Please do not take Insurance lightly and think of getting insured in next 5-10 years. This is one of the biggest mistakes that you can do. Today I will tell you about two types of insurance that we need:   Life Insurance   and   Health Insurance . 1)    Life Insurance : What is life insurance ? Life insurance is the shield or protection against the financial loss which may happen in case of unfortunate demise of the earning member of the family. Any such calamity is always unforeseen, so you must be prepared to face it always. Life insurance provides a lump sum amount for family to take care of its financial needs like Loans and liabilities, children's tuition fees, daily expenses, etc. for some years. Who should be insured ? Th

Dear Friend, After successfully creating a corpus of your Emergency fund, it’s a good time to move your focus to the next step. That is, starting to invest a small portion of your money to create a big corpus for your goals. Everyone has different income, expenditure patterns and saving goals. But one thing is constant:   SAVING . In order to achieve your goal, you need to start saving today. Some easiest options to save money for a beginner are: Recurring deposit and Fixed deposits . 1.      Recurring deposits : Popularly known as RD, are the simplest option to start saving a small sum of money today. All the Nationalized or other banks provide this facility to start RD either online or through personally visiting the bank branch. In RD, you give an instruction to the bank to deduct a particular amount of money every month on a chosen date for a chosen period of time. Example to make it more clear: Suppose, Gaurav will need Rs. 20,000/- in next year April for pur

Dear Friend, Congratulations on your first job. Now, You are earning decent amount of money to live a lavish life and splurge as per your wish. This is one of the best phases of life. Enjoy it without any doubt. Now, comes the first step that you are looking to take to move from a carefree spender to a wise saving guy. I would suggest creating an " Emergency fund ". What is Emergency in real life? (God forbid any of these happen with anyone) It can be a Medical illness, Job termination, Vehicle repair, House repair, or any unforeseen circumstances which need urgent attention. Emergency fund is the sum of amount that you need to live with your normal expenses for 3 to 6 months. Image courtesy: Google I am providing you one example to make it clear. Suppose a guy , Gaurav, joins a company with a starting salary of Rs. 30,000/- per month. The basic expenses of Gaurav for a month is Rs. 20,000/- . This includes House rent, Grocery e

Dear Friend, This is my attempt to give you some simple tips to save your hard earned money. After you land your first job, you are too excited to splurge money to gift a saree to your beloved mother, a nice watch to daddy dear, that expensive sports shoes to little brother, a nice purse to sister and loads of goodies for yourself, the hard worker ;) In a way, it is good to spend your salaries on our own leisure to enjoy our life. But after 6 months or 1 year you should move from  a spender to a saver. You should make a plan to save money for your goals and then spend the remaining money left in your account. Being some one who crossed this "Spender" phase of  life 6 years ago, I have accumulated some tips with the help of books, blogs, friends, well wishers , etc which helps me to plan my finances in an optimal way to reduce taxes and save money for my goals. I will be sharing these tips with you to help you learn finances like a pro. Happy planning an