Public Provident Fund Basics

Public Provident Fund is a good saving investment which provides tax benefit and also gives good returns. Many people don’t know about PPF or have very little information. If someone asked me in 2009 about PPF I could not have any answer that time because I also didn’t had any information about PPF.

Public Provident Fund started by government for salaried and self-employed people to encourage the saving habit and by investing in PPF, people can build good corpus for their retirement. In this post I will list down some basic and important points about PPF.

Health Insurance - Points To Understand Before Purchase

Some people thinks that since they are young and living a healthy life they don’t required any health insurance and purchasing health insurance is totally waste of money. But what they do not understand that medical emergency can arise anytime and we should be well prepared for that because medical treatments are getting costlier day by day and it can make a big hole in your savings which could affect your future goals.

One of the best ways to prepare for such situation is to get health insurance for the future medical expenses. Now the question is which health insurance to choose, what the common terms are and how much should be the sum assured. To get these answers let’s try to understand the types of health insurance and there features.

11 Points To Achieve Financial Freedom - Part II

Being independent is wonderful feeling. We got our independence from British after long struggle. Same is applicable to financial freedom. Let’s understand what financial freedom is:

 “Financial independence is a term generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities”

In part one of this post I have listed 5 points, do read it "11 Points To Achieve Financial Freedom - Part I".
Here I am listing remaining 6 points.

6. Purchase adequate life cover

The main purpose of term insurance is to provide the financial security to your loved ones in case of you died so that after you, your family will not be in any debt.

11 Points To Achieve Financial Freedom - Part I

Being independent is wonderful feeling. We got our independence from British after long struggle. Same is applicable to financial freedom. Let’s understand what financial freedom is:

 “Financial independence is a term generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities”

Things which prevent people from being financial independent are debts, no savings only spending, no plan for future goals, choosing wrong investment products etc.

Term Insurance - Points To Remember Before Purchasing

Term Insurance is the best way to provide the cover for one’s life. Currently there are lot of term insurance plans available in the market and the premium is getting cheaper, thanks for the competition.

Before purchasing term insurance please read below points:

1. Understanding the main purpose of term insurance

The main purpose of term insurance is to provide the financial security to your loved ones in case of you died. It is also needs to understand that there is no maturity benefit in term insurance. So use term insurance as the life cover provider not the money making tool. 

9 Best Tax Saving Instruments

One should plan their tax saving investments at the beginning of the financial year. Do not wait for end of the financial year which can lead to wrong choice of instrument. I am listing here 9 tax saving instruments one can consider while doing tax planning.

1. Term Insurance Policy

Everyone who is having some liabilities or having dependent people should purchase a pure term insurance policy. I have used word purchase because it is a expense (and should be a mandatory expense) which provides cover to life. Life cover may differ from person to person depending on liabilities or dependent people. One can avail tax benefit under section 80C.

Please read "Term Insurance - Points To Remember Before Purchasing" blog post before purchasing the term Insuranse.

Understanding The Tax Benefit on Home Loan Interest

Most of us took home loan for purchasing our dream house and it is a very good tax saving instrument. There is a lot of confusion about the tax benefit on interest on home loan among people and in companies also.

I have experience in my previous and current company (with old payroll vendor) that they allow tax benefit only on one home loan and up to 1.5 lacks. So if you have more amount for tax benefit (i.e. Interest on a second home loan etc.) you have to file return to get back the paid tax.

5 ways to payoff home loan early

It is every ones dream to own a house and taking home loan to fulfill this dream is the most preferred way for most of them. But till you doesn't pay off your home loan house is not yours. So it’s also important to pay off the home loan early to get the full ownership of the house.

Let’s see how we can payoff the home loan early.

1. Opt for lesser tenure

Now these days some home loan lenders giving loan for 25 yrs tenure. Mostly people Opts for long tenure since long tenure reduces the EMI amount. Doesn't fall into this trap. You should understand that irrespective of tenure or EMI amount, the interest part EMI remains same. So if your interest rate is 11% that means you have to pay 11% interest annually irrespective of tenure, what it mean is the more is tenure the more interest you are paying.

You should opt for the minimum tenure you could afford. This will reduce the total interest paid.