Know Your Taxes

In the budget of 2015, the Indian Government had increased the Service Tax rate from 12.36% to 14%. Moreover, it introduced Swachh Bharat Cess (0.5%) to be levied from 15th November, 2015 and Krishi Kalyan Cess (0.5%) came into effect from 1st June, 2016. Thus, the effective rate of Service Tax has become 15%, increasing the burden…

The Power of Compounding

No knowledge of finance is complete without knowing the power of compounding. It is one of the biggest financial advantages existing and is incredibly powerful. Its contribution towards achieving one’s financial goals, simply cannot be overlooked. It lays down the foundation of Time Value of Money and is an investor’s best friend. It’s so powerful…

Time Value of Money

All of us want to live a good life and we often wish we had more wealth. We save money thinking that in future we’ll be able to live comfortably. Little do we pay heed to the importance of financial knowledge. As a consequence, we don’t take proper financial decisions and our dreams remain unfulfilled. One…

Do you know the different types of Interest Rate?

In our search for a safe haven to park our money, we are often lured by the banks offering high interest rates on our savings. We understand little about the actual interest rate that is being offered. Yes, you read it right. The interest rates that are advertised with such pomp are not the interest rates…

Confused about making an investment? Factors you should keep in mind

In the journey to become financially affluent, wealth generation is as crucial as wealth preservation. There are multiple ways to generate wealth, investment being the most important one. So what is investment? According to Investopedia, an investment is an asset or item that is purchased with the hope that it will generate income or appreciate in the…

How to calculate Income Tax from Salary

How is tax calculated on our salary? The calculation often eludes us, especially the freshers. Thus in this post, I intend to explain the tax liability calculation in a very simple manner. Read on. So let us understand certain terms, before going over to the calculation part: Gross Total Income (GTI): The total personal income…

Know your CTC (Cost to Company)

Before joining a company as fresher employees, we often have the common misconception of the Cost to Company being our monthly take-home salary. We use a simple calculation of CTC/12. However, the excitement of first salary gets marred when we actually receive our in-hand pay which is usually less than what we had expected. So,…

Emergency Fund: Where to store it?

In my last post, I talked about emergency fund, its need and how to create it. I mentioned liquidity and wealth preservation being two very important factors in determining where to store one’s emergency fund. Liquidity of emergency fund is crucial because in crisis, the fund should be readily available for withdrawal and utilization. Wealth…

Emergency Fund: What is it, Why you need it and How to build it.

What is emergency? According to Merriam-Webster, an emergency is an unforeseen combination of circumstances or the resulting state that calls for an immediate action. Also, it is an urgent need for assistance or relief. Combining both, we can say that an emergency is an unforeseen combination of circumstances that calls for an immediate assistance or…