Tag savings

7 Money Lies (and 3 Truths) for the New Economy.

-Credit card companies enhance the credit limits on their own and they also charge an amount for enhancement .If you protest they reverse the entry.
Minimum balance payment is observed more in the breach.
Rate of interest calculation is so complex ,though it appears to be nominal, you will find it is phenomenally high.They say 2.5%, which means 30% p.a.
Best is not to use credit cards for imaginary convenience and you will pay dearly for it, especially if you default in repayments.They charge you if you remit cash towards your outstanding; it has to be paid by Check(in India) .
Do not let the Financial Advisors,they are agents who get a commission, to decide your plan for they will get you a plan that gives them maximum commission.
Ideal is to save 15% of your nett earnings-7% for immediate returns not exceeding 3 years balance 8% to be received by you by your 50th year.

Global financial crisis breeds money-savvy Generation Z

True nature of spending may understood only if spending pattern of age group 22-25. is studied;they spend more they earn and they go into depression mode immediately if they do not have sufficient cash on hand or a credit card or for that matter if they can not recharge their cell phones.Their ability to face the vicissitidues life, especially finance, is very minimal and they need toughness to handle crises of life which they lack now, because of higher wages and easy recognition.