RE:opinion as to why not to invest the entire savings in the PPF
by Anupama on Jul 09, 2006 03:47 PM
As per the conditions that go along with this particular fund, i.e. PPF, this is a 15 years scheme. You are entilted to deposit Rs 70,000/- per year. At the same time, you are not entilted to withdraw any amount of the money deposited in the same for the first 5 years of the scheme.
I would suggest deposit about 40% of your savings in your PPF account.
well really a good one .I have seen people who only save there income or merely plan save.It's good for both of them ,they must know were there savings are heading towards.
You have given a good suggestion. I am very particular about my savings. How to approach the diversified equity fund (mutual fund )to save my money on monthly basis.
Sales Tax at 10% is imposed on housing loan, in addition to the Housing loan rate of around 7-9%.
The overall cost of Housing loan may be expensive than a pesonal loan at 11%.If the buyer plans the agreement to underquote the total value of the apartment, thereby reducing the sales tax effect.
The biggest adavantage of Housing Loan is the long tenure. But it also means more payout on interest component.
Thank you for an eye-opening article. I have gained lot from my goal setting. I work in UAE in Finance Department as Finance Manager.
From 1998 to Pre-2003 June - I was only planning to save but every month, no saving, only expenses, expenses and expenses :) 2003 June - I took a personal Loan here in UAE (Interest rates were low) payable in 4 years, and the same amount i invested in Bonds with good coupon rates denominated in USD issued by Indian companies in USA. Every month I have to pay the EMI for the loan (I succeeded in forcing myself to save). 2003 July till 2005 December - I realised that YES without the amount coming in my hand, I can manage and is now habituated with the reduced cash available. And during this period the coupons received were re-invested for more Bonds. 2006 Jan - As the outstanding amount has been reduced with each payment, so I must prepay the loan with interest free loan from Office (equivalent to my accumulated gratuity). And now, I am a free bird, no loan, now you can say saving is an addiction and I don't mind with such addiction :)
What I do with the Interest I earn now? Next time!!
Making Goals for Expense or not to expense beyound the Spec.Limit is essential as we can not be able to save money unless we set parameters for us as constraint.
RE:Using Credit Card
by Nahush Khubalkar on Jul 09, 2006 07:49 PM
Thats correct. That's the right way to use credit card. As a means of convenience and not as a tool to immerse oneself in debt.
I always have the opinion that instead of NSC, investing in PPF is better. anyhow, after five years PPF also allows withdrawing. what is the additional advantage with NSC, except paying tax on interest. Am i thinking right.
I will use my credit card only if I am 100% sure that I can pay that money (100% of it) when it's due. In short, I use my credit card more as a convenience and not to immerse myself in a debt trap.
