Welcome to the world of future finances…..

About our blog and services: On this blog we have made a constant effort to update you about saving and investments and different types of investment options available in the market. We also make you realise your financial goals and help you achieve them on time.

On similar lines comes our Financial planning and Investment advisory services which help you plan for a safe and sound financial future. We do not represent any company hence our advice is unbiased. We aim at achieving clients financial well being and don’t work on achieving any targets or revenues. We access your current financial status, your risk profile and draw down a systematic and disciplined plan that helps you in achieving financial success.

There is always an Ideal situation but we are not always in ideal situation. We work towards it, thats what life is all about.

Almost all of us get atleast two to five solicitation calls each day. They might be for selling insurance, mutual funds, credit cards etc. Every company wants to increase their sales as sales generate revenue.

Some of us fall into this trap and purchase credit cards as we want credit, some of us purchase insurance as the agent was eager to complete his targets or because he was a family friend. We also wake up from our sleep in the month of January to March and invest in Ulip’s or tax savings schemes of mutual funds to save tax. Here we think that atleast we have saved something for our future. We do not plan our finances properly. Dont worry! We are here to help you out. So what are you waiting for.

Come, lets plan and Contact us at futurefinances@gmail.com

Also check out our New Articles

Bad Spending Habits
I often come across friends who tell me that they have negative balance in their savings account by the 25th of each month. They often burrow money from others and repay it next month when the salary gets credited. That’s when I came across making a financial plan of one such friend. I was surprised to know that my friend actually overspent of what he used to earn each month. My dear friend, had a few of the pampered habits listed below with examples.

For Unhappy Investors
I come across a lot of my friends who are unhappy with their investment in mutual funds. Most of them have invested in mutual funds three years back and at present, they are sitting on unrealised losses on their portfolios. When they purchased these funds three years back, they had witnessed a sharp bull run in their NAV’s. They expected the bull market performance to carry on. Now they are ruining the fact that they did not book profits at that time.

The power of systematic investment plan (S.I.P)
The power of systematic investment plan (S.I.P)As explained in my article ‘Planning financial goals’, a goal can be any target that needs to be achieved in a stipulated period. I have also explained different types of financial goals like, buying a flat, children’s education, marriage or retirement living expenses. All of these are critical long term goals in your life. These goals need to be achieved in a disciplined and systematic manner. When I say systematic, I mean investing a fixed sum of money each week, month or year to achieve the targeted financial goal. In this article let me make you understand the different advantages of SIP investing. SIP as everyone knows is Systematic Investment Plan. Generally SIP relates to investing a fixed sum of money each month in mutual fund scheme. The rupee cost averaging and the power of compounding are two main advantages of SIP investments.

Get Your FInancial Financial Plan

Future finances educates you with different aspects of finances in context to Indian markets. Now, we are launching online financial planning services that would help you make informed decisions about your investments and also help you to achieve your financial goals.

Mutual Fund Entry Load Controversy
Till date retail investors are charged an entry load of 2.25% on their investments in equity mutual funds. In case the investors fill their forms and submit them directly to the fund house there is no entry load applicable to them as it is assumed that they do not require any advice from agents/ distributor’s. An entry load is a charge levied by the fund house on investors which is utilised for payment of agent/ distributor's commission.

Birla Sun Life Dream plan vs term plan.
Quite a few of us know for a fact that a term plan covers an individual for a stipulated period. If death occurs during the term the whole cover amount (sum assured) is paid out. If policyholder survives the term he gets nothing. The term of this policy generally is a maximum of 30 years and maximum cover provided by any company is till the age of 65.

Planning financial goals

When we talk about goals we talk about achieving a target. The target can be the crossing the finish line for an athlete or passing out with flying colours for a student or achieving the top medical college for an aspiring doctor. Every individual has a different approach to achieve these goals. All goals are different and all people have different goals. Today let us talk about a few financial goals.

Income Tax Planning

Most of us lack behind in the Tax planning. We always do it at the endof Feb or Mar, because of which we end up into wrong decisions. Here wewill help you to identify Tax saving investments as per yourrequirement.

Why retirement planning?

In today’s fast pace life everyone is busy working hard to earn a living for their family. With an enhanced lifestyle everyone wishes to own a flat, and live a secured and peaceful life ever after. But little do they realize that they need to plan for their future retirement.

Buying a Home

Selecting a Home – Buying a home is like a dream come true. So be careful while selecting it. The first few things you should look at are locality, age of building, area of flat, school, market, transportation, and neighborhood.

Asset Allocation

So what’s asset allocation?People generally feel uncomfortable discussing their personal investment portfolio with others. They fear that their investment portfolio will be discussed by one and all. Some feel that they are experts in the field of finance and they can manage their investments better than anyone else. Others want proper advice but don’t know where to go.

Ulip's

The expensive cover policy. A few decades back, only money back and endowment policies used to be sold by LIC agents. The enterance of new private insurers marked the regime of new unique policies that suited individual needs. Now-a-days, except for LIC all other companies are busy selling ULIP’s. Unit Linked Insurance plans as provide you with a cover along with the benefit of enhanced returns on the principal. Lets have a look at the features of this policy:-

Credit card – Blessing or curse

Credit Card – It is also known as Plastic money. The use of credit card has been increased immensely. It is very good invention but still people don’t know the proper use of it. Nothing comes free in the world. Many people while spending through credit card thinks that it is not going from their pocket and get shock while seeing credit card bill.

Bad Spending Habits

I often come across friends who tell me that they have negative balance in their savings account by the 25th of each month. They often burrow money from others and repay it next month when the salary gets credited.

That’s when I came across making a financial plan of one such friend. I was surprised to know that my friend actually overspent of what he used to earn each month. My dear friend, had a few of the pampered habits listed below with examples.

Technology or the peer effect: All of us have a like a particular asset. Some like cars and bikes, others like new generation touch screen mobiles, laptops, I-pods and the list goes on. If we look at someone with a new phone that is better than our’s we too have a desire to own it one day. But little do we realise that technology is not here to stay. It is a fact that pagers in United States ruled for ten long years but in India pager companies go wiped out in less then a year. Then came normal mobile phones, then came mobile phones with games, music, touch screen and what not. Here, I mean to say that technology is moving really fast to keep pace with. Most of us don’t like to use the same phone for years. Innovation makes us look at new things and all of these demands a price. So keep a track of your spending towards technology and you need not have a new mobile because your friend has one.

Show-off: A pop corn in a mall or a multiplex that costs forty to sixty rupees would hardly cost rupees ten if you prepare the same at home. But you are prepared to pay that premium just because you have gone on a date or with a group of friends. You tend to think, about your friend who would ill-comment about you, if you don’t purchase some snacks during intervals. Don’t you? Hence just to show-off you tend to over-spend.

Mall effect: Now-a-days we atleast have one super mall next to our area of residence. We go there to purchase a few things as they turn out to be cheaper than the baniya store or because you get more variety. We end up over purchasing quite a few eatables that are not on our shopping list, but they were purchased as they had a good offer or were being sold for a good discounted price. Realise, that you would not have purchased the same products if you would have visited your baniya near your house as the same offer would not be available.

Hasty decisions: You see an advertisement while window shopping that you would get a home theatre system free on purchase of an LCD. This ad would obviously make you step inside the store and you give a chance to the salesman to convince you to buy the LCD on cash or credit. He would even give you a refund of your old television with remote and offer you no interest if you make full payment within six months. Its unjust to let go of such a good offer. Think, if you would have missed that shop you wouldn’t have actually bought that LCD. It would have been a different matter if you actually required one television for your home. Please read, understand and analyse a product before you buy. Remember haste makes waste.

The sale effect: Its been a 365 day sale at almost all the shops in Mumbai. Buy 3, get 2 free, 60% flat discount, or offer valid till stocks last are the most common adverts outside the shops. But everytime I pass by that shop the stock doesn’t seem to get over. Sale does not always mean that you have got the best deal. It is better to analyse the actual price of the product according to its quality and other factors and then decide for yourself, is it logical to pay an X amount for 1 + 1 free offer. To learn more about the product, scan the internet, check out other such schemes, check out competitors price and then make a wise purchase decision within a few days.

Overburden with EMI: Equated monthly instalments is a commitment by you towards a bank or a financial institution promising them to pay an X amount each month under any circumstance. EMI can be for a home, car, personal loan etc. Please remember to have an EMI of not more than 50% of your income. Your personal expenses are minimal when you are single but the expenses and responsibilities increase with an increase in every additional member in the family, maybe a wife or a child. It is always logical to keep your EMI’s in control so that even in case of redundancy you can afford to pay the EMI for a few months from your emergency expenses or savings till the time you are re-employed. Also protect your family with an appropriate insurance equal to the total amount of all your outstanding liabilities.

Overleveraging: Many of us tend to follow a herd tendancy towards investing. If Mr. X has earned a quick buck by investing more than what he could we even try to win our luck in lotteries, stock markets, chit funds, real estates etc. Remember, Mr. X was luckily in the right place, at the right time and in the right investment to earn more out of his leveraged investment but the situation would have changed when you try to invest the same way Mr. X did. So be cautious. Think ten times before making an investment option.

At the end of the day its your hard earned money. Spend it as you like but with caution.