When you’re in debt, it can feel like a mountain that you’re never going to be able to reach the top of. But once you do reach the summit, you’ll be amazed at just how light you feel and how much more money you have to retain control of over the course of a month. However, to get to this point, you’ve got to have a plan in place for repayment of your debts.

To help you in doing this, here are three ways to better manage your debt repayments.

Get An Accurate Report Of All Your Debts

In order to really start making progress on paying off your debt, you first have to know where you owe money and exactly how much money you owe. Without this information, you can’t create an accurate and complete plan for how you’ll go about paying off this debt.

When making this calculation, make sure you calculate not only the total amount of money that you owe right now, but also how much you’re paying in interest and what your monthly payments are. This way, you can know how much you’re responsible for right now, how much more you’ll be responsible for when paying all of the interest on your revolving balances, and the total amount you’ll be paying to get completely out of debt.

Pick A Debt Strategy The Will Work For You

Depending on how much debt you have and how you feel about your debt, you’ll want to pick a debt repayment strategy that will work for you.

There are quite a few different strategies you can choose from for repaying your debt. One option is to get rid of the smallest amount of debt first and then add those payments to the next smallest debt until all your debt is gone, often called the debt snowball. You can also try paying off the debt with the largest interest rate first so that you don’t have to pay more interest than is necessary, which is called the debt avalanche. Or, if you have too many different debts to effectively manage on your own, you can also consolidate your debt payments and just pay everything at once each month.

Don’t Allow Yourself To Create More Debt

When you’re working hard on paying off your debt as quickly as possible, the one thing that can majorly set you back is if you continue to add to your debt. Knowing this, you should make it part of your debt repayment plan to not create any more debt at this time. Put your credit cards away and stop using them until your debt and spending is back under control.

If you’re having a hard time managing the repayment of your debts, consider using the tips mentioned above to help you overcome this.

 

Mutual funds have successfully become one of the most popular investment options among investors due to the several mutual funds benefits enjoyed by investors such as hassle-free and convenient mode of investment, professional management, tax benefits, liquidity, etc. But are they devoid of risk? Well, no investment option is entirely risk-free. Just like different types of investments, mutual funds are also exposed to certain risks. However, there are certain ways in which you can decrease the exposure of risk of your mutual fund investments. In this article, we will understand how you can reduce mutual fund risk of your investment portfolio.

5 mantras to reduce mutual fund risk

If you are looking to reduce the risk exposure of your investment portfolio, here are 5 mantras that can help you achieve the same:

1. Diversification of investment portfolio
   Diversification of investment portfolio is the key to reducing risk exposure of an investment while investing in mutual funds. As mutual funds invest in different types of securities such as fixed income instruments, equities and equity-related securities, money market instruments, gold, etc. they help to diversify an investor’s portfolio, making them one of the most sough-after investment options among retail investors.
2. Avoid overlapping of mutual fund schemes
   There might be times while choosing the right mutual fund schemes for your portfolio, there is an overlap of sectors or themes, even though the mutual fund investments are channeled through varying AMCs (asset management company). This results in concentration of a particular type of asset class or theme or sector which could result in opportunity cost of the portfolio in other themes or asset classes or sectors or categories that could have added value to the investment portfolio.
3. Periodic monitoring and reviewing of mutual fund investments
   It is important that an investor periodically and regularly monitors and review their investment portfolio to keep a track of the performance of their investment portfolio and their progress towards achieving a specific investment goal. This will also help an investor to identify any under performing assets, if any and take necessary steps that will benefit their portfolio.
4. Taking the services of a financial advisor
   With different types of mutual funds available at the click of a button to an investor, it is easy to get overwhelmed. Investing in the markets require a certain knowledge and time about the financial markets. Not every investor might have the time or expertise required to make the right investment decisions for their portfolio. This is when financial advisors come into picture. A financial advisor has adequate experience and knowledge to make the right investment decisions on behalf of an investor.
5. Investing in mutual funds through SIPs

Systematic Investment Plan, commonly referred to as SIP is an investment tool that allows investors to invest in mutual funds in a systematic and disciplined manner. Several investors make the mistake of assuming SIP as an investment product; however, it is merely an investment tool. SIP investments allow investors to benefit from the concept of rupee cost averaging and the power of compounding. What’s more, with the help of SIP investments, an investor does not need to time the markets, an investment concept which is often frowned upon by mutual fund experts.

Thanks to advancement in technology, you can now invest in mutual funds online from anywhere in the world. So, what are you waiting for? Invest today to enjoy benefits of mutual funds tomorrow. Happy investing!

 

A credit card can be a great way to save money as a family. While you might assume that a family should stay away from credit cards, as they can definitely lead to debt if you’re not careful, there are also many ways to use a credit card effectively for better savings. You just need to know how to make the best of them. When you’re thinking about signing up for a credit card, here are four things that you need to do to make sure you’re choosing the right one.

1. Consider the Yearly Fee

One of the first things you’ll likely think about when you’re choosing a credit card is the yearly fee. Remember, while no-fee credit cards are definitely a good option, they may not be the best for your family. Some families may benefit from a credit card with a moderate yearly fee, as the benefits you receive from these cards may actually give you more bang for your buck.

2. Make Sure You Can Get the Sign-On Bonus

If a card you’re interested in has a sign-on bonus, you need to be sure that you can qualify for that bonus. The BoA Premium Rewards card, for example, has a pretty significant bonus, with 50,000 bonus points, equivalent to a $500 value, that you can redeem for a number of rewards. To qualify, you need to make at least $3,000 in purchases within the first three months. Make sure you can hit that number to get the most out of your card.

3. Utilize All Statement Credits When Available

Statement credits can effectively nullify your annual fee. Some credit cards offer statement credits to help you cover certain purchases, and those credits can be as much as your card’s yearly fee. If your credit card has any statement credits available, make sure you use all of them. It’s the best way to make sure you’re getting the most out of your yearly fee.

4. Maximize Your Rewards Earnings

It’s important that you do whatever is necessary to maximize the number of rewards points you’re earning with your card. Check to see what categories provide the most rewards for the specific credit card you’re interested in signing up for. If you strategically use different credit cards for different purchases, you may be able to get more rewards points than if you were to just use the same credit card on all your purchases.

Conclusion

Families often end up needing a variety of credit card benefits, which is why a credit card can be such a useful tool for a family. However, if you’re interested in getting a credit card, you need to make sure that you’re getting the right card for your family’s specific needs. These four things are all important things to make sure you’ve thought about before you sign up for a credit card. With the information from these things, you’ll be able to get more with every credit card purchase.

Come year end, and taxpayers get all worked up to invest in the right tax-saving investment for their portfolio. Why, you may wonder. Well, all tax-saving investments offer a tax deduction of up to Rs 1.5 lac per annum under Section 80C of the Income Tax Act, 1961. An investor can save up to Rs 46,800 each year by investing in tax-saving investments under Section 80C, provided that they belong to the highest tax slab. However, this habit of procrastinating things often comes at a cost. The cost is that in a hurry to choose a tax-saving investment for that particular year, investors often make an ill-informed decision and end up investing in investment options that might not be suitable for their investment portfolio. In this article, we will understand different tax saving investments that you can consider adding to your investment portfolio.

Equity Linked Savings Scheme (ELSS)

As mandated by the Securities and Exchange Board of India, ELSS funds are a type of equity funds that invest at least 80% of their assets in equity-linked investments. Note that investments in ELSS mutual funds are associated with a mandatory lock0in period of 3 years. This also happens to be one of the lowest lock-in tenures when compared to other tax-saving investments. As ELSS mutual funds invest majorly in equities, these mutual funds have a huge potential to generate significant returns over long run. Thus, ELSS tax saver mutual funds offer investors with dual benefits of capital appreciation and tax saving benefits.

Unit Linked Insurance Plan (ULIP)

As the name suggests, ULIPs offer the combined benefits of a life insurance policy and an investment option in a single fund. Basically, when you invest in ULIPs, a smart part is invested towards securing your life and remaining is allotted towards different types of investment basis your financial goals, risk profile, and investment horizon. Investors investing in ULIPs have the flexibility to switch between different types of funds around three to four times in a particular year.

Senior Citizen Savings Scheme (SCSS)

SCSS is a type of savings scheme which is backed by the government of India. Any Indian citizen can invest in SCSS provided that the investor is at least 60 years of age. The interest rates earned on these savings scheme is declared by the Indian government before the investor purchases these schemes. As compared to other savings schemes in India, SCSS offer comparatively higher interest rates to investors. The maturity tenure of senior citizen savings scheme is 5 years. However, you can choose to extend it further by three years.

These were some of the tax-saving investments that you can choose to add to your investment portfolio. Even though tax-saving investments are a great way to reduce one’s taxable income, one should not invest in these investment options with the sole purpose of saving tax. The tax-saving investments that you choose to invest in must align with your financial goals, risk profile, and investment horizon. Happy investing!

 

 

Trend trading strategy has always been the best way to avoid losing orders in the stock market. Every professional trader is taking their trades in the stock market in favor of the existing trend. On the other hand, new participants in the stock market are taking their trades in an aggressive manner and trying to earn a big amount of profit without respecting the market trend. Thus, they keep on losing money most of the time.

To become good at the stock trading business, you need to consider the overall direction of the trend. In this content, we will share some professional techniques by which you can ride a major trend without having any major obstacles. So, read this article very carefully.

Evaluating the daily time frame

You need to start evaluating the higher time frame to find the overall direction of the trend. If you keep on relying on the lower time frame, chances are high you will never learn to find the good trade signals in the market. The professional traders usually determine the trend in the daily time frame as it gives a much more accurate reading.

Since the daily time frame is a bit boring some traders often rely on the hourly time frame. But if you chose to trade in the hourly time frame, you should be extremely cautious about your trade execution process. In fact, the risk factor should be less than 1% of your account balance.

Learning the candlestick patterns

Japanese candlestick is very popular in the investment business. Most of the experienced traders rely on Japanese candlestick patterns to find the best trade setups in the market. Navigate to this website and learn about the importance of Japanese candlestick patterns in trend trading methods. Once you know about the basics of the price action trading strategy, you can use this technique to trade the major trend.

Instead of setting up pending orders at the trend line support or resistance level, you should be looking for reliable price action confirmation signals. As you learn to use this technique, you will become much more confident with your actions, and thus making regular profit is not going to be a tough task.

Focus on the prime indicators

You might be thinking about what the prime indicators in the stock market are. Since you are discussing the trend trading method, the prime indicators are going to be the moving average. With the help of the moving average, you can easily determine whether you have assessed the trend line in an effective way or not. For instance, you may use the 200 period SMA to determine the overall direction of the trend in the daily time frame.

If the price trades above the 200 SMA, you should be looking for the long trade setup only. On the contrary, if the price trades below it, look for the short trade setup. You may also use the oscillators to find the strength of the trend and it will definitely help you to ride the key trend.

Use the trailing stop loss

The use of trailing stop loss is a must when it comes to riding the trend in the stock market. By using the simple trailing stop loss you should be able to ride the major trend with a high level of accuracy. Some novice traders often think that using the trailing stop loss is not a good idea to ride the major trend. But this is not all true. If you do some digging on the internet, you will realize that using the trailing stop loss features is by far the most effective way to ride the trend.

While using it, make sure you rely on the minor support and resistance level. If you place the stops in a random way, you will keep on losing money most of the time and thus you will never learn the proper way to execute the trades in favor of the key trend.

If you are a novice who is interested in learning about stock trading, there are many educational platforms that can help you get started. Before you dabble in doing stock transactions, start off with choosing a brokerage account. Many brokerage platforms help you in the process of starting to trade, though there are certain aspects that you should know first.

Different Ways to Invest in Stocks

There are several approaches that you can take towards investing in the stock market. You can choose the kind of funds that you wish to put your money in. You might decide, for example, to opt for a robo advisory service. That is often the best choice for beginners. Such expert-guided investment comes at a low cost and can also provide choices with minimum risk. The other option is to invest in the retirement benefits or schemes that your employer provides. To learn and get started, the use of stock market trading apps is also a good idea.

Guide to stock trading

Source: stocktradingschool.com

Steps to Get Started

Basic steps involve picking the right brokerage to trade through, placing trades and understanding how it impacts your budget and taxes.

• Choose an Online Brokerage

Find a reputed and reliable stock brokerage online, preferably one that has educational demo modes to offer. Hence, you can see demos of how trade actions are executed on such a platform. You also need to compare trading commissions charged by the different sites. Once you feel confident, you can sign up for a membership account. Many offer a seamless trading experience, through desktop as well as through mobile apps.

• Research Stocks

Once you have signed up on an online brokerage, you can choose the kind of stocks you wish to trade. For those who are new to this, it is safer to start with exchange-traded funds or ETFs. These are stock bundles that investors buy. It helps those who are not confident enough to choose a single company. It also helps give your portfolio a larger exposure. Traders can also diversify holdings with different kinds of assets such as bonds. That way, you can hedge against risks, especially when stock markets have a downturn. You also need to check financial analysis ratios which compare the performance of a company against that of competitors.

• Know the Costs

Success in stock trading comes from optimal spending. First, you need to know the cost of owning or trading in securities. There are also commission fees involved. Once you have an estimate of such expenses, compare the same against the average returns that your choice of funds potentially provides. Also, plan your budget so you spend only what you can afford to lose.

Stock trading comes from optimal spending

Source: nbcnews.com

• Effects on Taxes

Know that profits you make will attract capital gains taxes. If you hold stocks for less than a single year, you pay more in terms of such taxes. Hence, such taxes are designed to encourage long term investments.

Conclusion

There is much to know and learn about stock trading. However, the expert brokerages make it easy and can assist beginners through the entire process. It is important, though, to be mindful of the expenses and taxes applicable.