Author: Priyanka Anand

Priyanka Anand is a Post Graduate Diploma in Management with Specialization in Finance and Marketing.She likes to share her thoughts with the world. www.priyankablogthoughts.com is a blog site . Blogs are based on the subjects of Business , Finance, Banking, Insurance, Trading & Marketing. The Author gives her own view in her blogs. E-Mail ID : impanand1988@gmail.com

Investing Your Money as a Young Family: How to Screw It Up

Economy, planning, budget: these words seem boring and too prosaic when it comes to a young family. But one who neglects family prose risks the welfare of his family. Living as luck would get it, without taking into account the financial possibilities and the ability to spend money, creates many additional difficulties.

We all know there are naughty children who always do the opposite. It seems that such children grow up to be disobedient adults. Tell them, “Save money,” and they will spend everything out of principle! For such stubborn people, we have compiled some “nonsense vaccines:” anti-advice on how to manage the family budget.

Personal financial plan? Budget management? Please, this is for those who have high wages. Having received a monthly salary, spend it randomly. It is time for spontaneous purchases and expensive gifts for yourself and a loved one. You earned it and deserved it!

Surely, you can save on something else. Yes, even on the residential rental. Nasty utility service providers can wait; there is no way around it for them.

Get used to spending more than you earn. In which case, you can always borrow money. Banks are created just for that! Spending other people’s money is much more pleasant than yours.

Sign the loan agreement without looking. This is just a bunch of sheets! When it turns out that the bank has changed your rate or accrued charges twice as much as the payment itself, then you can read the agreement. Still, you have some time!

And finally, if you have no opportunity to pay the bank, just forget about it. Do not bother with depressive thoughts. Bank employees are ordinary people. They will forget too!

First of all, make purchases spontaneously. You need no lists and other tediousness. When shopping, choose a bigger cart and fill it with any goods you see, saying, “Someday, it will come in handy.” Moreover, it is better to go to the supermarket when you are hungry. An empty stomach will prompt you what to buy.

Pay attention to all the discounts and sales. Take the third bar of chocolate at a 5% discount, even if you need only one. Never mind that the expiration date is tomorrow, you will try harder and have time to eat everything.

Only a strict financial “diet” will save you. Distributing your monthly budget, allocate money only for the most necessary. And it is better to curb the nondiscretionary expenses. In this case, there is no entertainment and concessions – you save money! You should stop not just going to restaurants but also leaving the house. There, outside of the apartment, spending could take you anywhere. In case you want to find a woman who knows how to manage a family budget properly, ask Russian women for marriage.

If you feel that you cannot withstand the austerity regime, so be it! Give it up. Score a full ride! Show off in the most expensive restaurant or go on a week-long vacation and spend all the earned money there. Buy seats in the first-class section, live in the most expensive hotel, eat shrimps the size of a lamb leg – take it easy! Money is still running out, and it remains only to give this process an atmosphere of fun.

When the funds completely run out, start saving on everything again. The most advanced people can swing on the swings “save – spend” throughout life.

Do not make unnecessary movements. Today, there are many companies that offer to do all the routine work for you. Use their services when applying for a visa, renting an apartment, looking for a job, organizing a wedding, and traveling. Do not do anything by yourself. What if suddenly it turns out that it is not only cheaper but faster and easier? What then should these poor people do? Do not be cruel, do not take their bread away. Keep on paying 15 – 20% for saving your time. Indeed, your time is as precious as that of Bill Gates, is not it?

Let’s face it: passive income is for passive people. You do not need to invest money; it is better to keep your savings under the pillow. After all, it’s so reliable. Even bank deposits insured by the state should not inspire confidence. Banks burst one after another, and the pillow will not crack.

Before you rent an apartment or sell something unnecessary, ask yourself the question, “Maybe it is still useful?” You did not buy it all for strangers. Hide all the extra stuff in the balcony, bury on the shelf, and keep far from prying eyes in the garage. Accidentally, find all this in 20 years. Then you can throw it away, together with the stupid tips we have given you now!

Benami Properties

Benami in Hindi means without name. Benami property means any property which is the subject matter of a benami transaction and also includes the proceeds from such property. So, benami property is a property bought by an individual not under his or her name. Benamidar means a person or a fictitious person, as the case may be, in whose name the benami property is transferred or held and includes a person who lends his name. It can include property held in the name of spouse or child for which the amount is paid out of known sources of income. A joint property with brother, sister or other relatives for which the amount is paid out of known sources of income also falls under benami property. The transaction involved in the same is called benami transaction.

Benami transaction means (A) A transaction or an arrangement—

  • where a property is transferred to, or is held by, a person, and the consideration for such property has been provided, or paid by, another person; and
  • the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the consideration.

(B) A transaction or an arrangement in respect of a property carried out or made in a fictitious name.  

(C) A transaction or an arrangement in respect of a property where the owner of the property is not aware of, or, denies knowledge of, such ownership.

(D) A transaction or an arrangement in respect of a property where the person providing the consideration is not traceable or is fictitious.

          Benami Transaction Prohibition (Amendment) Act, 2016

An Act to prohibit benami transactions and the right to recover property held benami and for matters connected therewith or incidental thereto. It extends to the whole of India except the State of Jammu and Kashmir.

The benami act was introduced to curb on black money and to brings people with unaccounted income under the scanner.

Secured and Unsecured Business Loans: Choosing the best fit for your business

The age that we live in is very entrepreneur friendly and is considered as the age of startups. With support and aid from governmental and private institutions, it is no longer a daunting task for business aspirants to raise debts. With incubators and accelerators in place to offer aid in mentor-ship and business expansion, it is no longer a daunting task to break even, clear debts, and skyrocket into profits. With thousands of startups and small and micro enterprises raising capital through public and private institutions, the options are more flexible and are oriented to help the applicant go through the journey with maximum ease.

Mostly applied for by entrepreneurs and business aspirants, these are for starting a company or for raising working capital or for business expansion or for purchasing new machinery/technology. While these are the broadly categorized buckets, any needs for additional capital are provided to as long as the necessity of instant additional funding is justified.

Types of business loans:

When you are out in the market looking to get the loan that best fits your needs, a thorough research on the types of loans available and the paperwork they come with falls in the preliminary things to do. In this competitive market, there are a plethora of lending institutions that will offer you the funds you looking to raise. That said, walking into a discussion with them without doing some back-end research could turn out to be overwhelming.  To help you get the foundation right, this paper will touch-base the different kinds of loans available and the steps involved in picking the one that’s the right fit for you.

Secured business loan: As the name suggests, these kinds of loans are available from lending institutions when the applicant is willing to offer residential, commercial, or industrial property as collateral. Apart from Gold, stocks, and Bonds are also accepted as collateral by lenders. These loans are generally for longer intervals and are available at a lesser rate of interest due to the absence of risk. If you are willing to offer a collateral for raising those immediate funds, this is an apt solution for your business. Else, you could always choose for unsecured business loans.

Unsecured business loans:

To explain in layman terms, unsecured business loans are like personal loans for individuals. Like personal loans, these are easy to apply, swift disbursement, and come with a higher rate of interest as they do not require any sort of collateral from the applicant.

Credit cards, Payday loans, Line of Credit, Cash Advance, Signature loans, Peer to Peer loans, Student loans, Small business loans, Business loans with guarantor, and Term loans are the few types of unsecured business loans that are available for applicants to choose from. Please note, except Peer-to-Peer loans, all the other kinds are offered by private and public institutions. Running a thorough research on these across various competitors is a good practice.

Off the lot, Line of Credit, Credit cards, Signature loans, term loans, small business loans are the kinds we will be talking about to realize if they are the best fit for your business.

Line of Credit:

This is a prominent unsecured business loan entrepreneurs opt for, as it offers them the flexibility to choose from a pool of funds and pay interest levied on the funds withdrawn. This is a good fit if you are looking to back your working capital with this as emergency funds. Also, with LOC (Line of Credit) the applicant will not have to offer collateral depending on his/her credit score and relationship with the lending institution. 

In this model, the user can also choose to alter the payment method depending on the cash inflow, thus making it flexible.

Term Loans: 

Term loans mostly fall under secured business loans but in certain circumstances can be offered as unsecured business loans depending on the credit score of the applicant, amount of capital requested, current banking structure and nature of the relationship with the lender. With term loans, the rate of interest could either be fixed or be floating in nature, depending on the terms agreed upon by the applicant and the lender. These come with a fixed maturity date and can either be repaid in weekly, monthly or quarterly instalments. The tenure for these loans range between 1 to 25 years and are apt if you are looking to build the business from scratch or are looking to expand the current business module.

Signature loans:

Breaking down the nomenclature, this form of unsecured business loans are granted by taking just the signature of the applicant as the collateral. These types of unsecured business loans often offer a lesser rate of interests when compared to credit cards and are opted in the case of medical emergencies, to tackle unexpected expenses or for vacations. Studies have proven that these kinds of loans are the preferred method when the need arises to close another lending with a higher rate of interest. 

Signature loans can offer your business that sudden funding to tackle unforeseen expenses or implement measures to accommodate sudden business expansion opportunities.

Small Business Loans:

Small Business loans have more than often been seen as a secured business loan but there are many tips that can help you get this as an unsecured business loan. While we will not dive deep into what those tips are in this paper, information on these kinds of loans will be shared. Small Business loans are available to applicants with an excellent credit score with a consistent lack of defaulting. These loans come with a varied or fixed rate of interest and when undertaken in an unsecured business loan can be obtained from Peer to Peer lender, private lending institutions, and cash advances. 

These are the various kinds of unsecured business loans you could choose from as an applicant if you are looking to raise funds without offering any property as collateral.  Hope this article has helped you zero-in on the type of loan that is the best fit for your business. If you there are queries you’d like our team to answer, feel free to get in touch with us here.

Do I Really need Motor Insurance?

According to the Supreme Court Committee on Road Safety, in 2017, about1.4 lakh people died in road accidents in India. This is quite a shocking statistic. It is also a key reason why a motor insurance policy is mandatory when…

Meaning of Contract for Sale of Goods

According to Sec. 4, a contract of sale is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. A contract of sale includes both a sell and an agreement…

10 bright ways to finance your startup for its growth

Receiving funding for a business can always be challenging no matter what the economic and business conditions are. Once you realize you cannot bootstrap your business any longer you are then torn between whether to go for equity funding options…

8 Common Myths About Personal Loans

For people who need instant access to money, yet don’t have any sizeable assets, a personal loan can be a huge, huge blessing. Unfortunately, as with many financial topics, there are plenty of myths surrounding personal loans which often intimidate…

What is Economic Environment?

Economic environment refers to all economic factors affecting business and external to and often beyond the control or influence of individual business enterprises. Business is an economic activity and it conducts its activities in the market system. Hence, a business…

Accounting Rate of Return and Its Merits and Demerits

This method is designated to consider the relative profitability of different capital investment proposals as the basis for ranking them – the fact neglected by the payout period technique. Since this method uses accounting rate of return. It is sometimes…

Managing Financial Risks

Managing finances can be a difficult task for many. This may be due to an increasing number of needs. Bills can be a burden, and this will deter people from saving money. Other financial needs can also arise. You need…