Category: Finance

With times, your income levels change due to annual increase in salaries or business income, leaving surplus money to invest. A mutual fund SIP Top-up allows you to increase the SIP amount annually by a fixed amount or as percentage over the original SIP amount. Mostly SIP top up can be done with minimum Rs 500 annually or 5-10% increase on the original SIP amount.

Let us understand through an example –

Mohanraj wants to start a monthly SIP of RS. 20,000 for 20 years to build his retirement corpus in a mutual fund scheme. To arrive at this amount he used a SIP Calculator to know the amount required to be saved on assumption of 11% annual returns. SIP calculator shows that he can create a corpus of approximately Rs 1.75 Crore against an SIP investment of Rs 48 Lakhs during the 20 years period.

What if Mohanraj decides to Top-up his monthly SIP mutual fund investment amount by 10% every year?

He can create a corpus of approx Rs 2.82 Crores against an SIP investment of Rs 93.60 Lakhs. That means an additional corpus of over Rs 1 Crore by increasing the monthly mutual fund SIP by only 10% annually.

SIP type	Amount	Annual Top Up %	SIP Tenure	Total Amount Invested	Corpus Value at end
Normal SIP	20,000	0	20 years	Rs 48.00 Lakhs	Rs 1.75 Crores
SIP -Top Up	20,000	10	20 years	Rs 93.60 Lakhs	Rs 2.82 Crores

 (Notes: 10% Top-up amount on Rs 20,000 SIP means that every year the amount will increase by Rs 2,000. For example – First year Rs 20,000, second year Rs 22,000, third year Rs 24,000 and so on…)

Advantages of Top up SIP

Easily fights inflation – As inflation consistently erodes the value of your money, it is advisable to raise the mutual fund SIP contributions at least equivalent to the inflation rate if not more. Therefore, when you are planning the goal amount you should input the expected inflation rate in the SIP calculator.

Higher savings as income increases – Your income increases annually so if you top-up your mutual fund SIP annually by the expected increase in your income, then it auto adapts to your rising income.

Operational convenience – No need to start a new SIP account when your income increases. Fill up the SIP top up form while starting the SIP and it is done. The mutual fund company will increase the SIP amount every year automatically.

Reach goals faster – From the above example we saw how your SIP mutual fund investment can increase the target corpus amount. The other way to look at it is that you can reach the goal earlier than planned.

Invest in SIP and use the top-up option which can help you build a superior corpus faster and accelerate the journey to reach your goals. It also helps your annual savings keep pace with inflation while striking the right balance between discipline and flexibility.

Before you head over to find out what Maxlend reviews have to say, you should consider changing your relationship with money. It’s essential for you to limit taking out a loan anytime when you’re strapped for cash. Not only is it a bad habit to have, but it also affects your credit profile. As a result, you end up using whatever little money that you should be saving to pay off your short-term loan interest. If you’re tired of mismanaging your money, you’re not alone. This is why using these easy, yet helpful tips should benefit you. Keep on reading to find out more. 

Have a Budget and Use It

It’s easy to say that you don’t need a budget. Nobody wants a reality check of listing out what they spend on frivolous things. You’re no exception. The guilt when you see how much you spend monthly to keep up with your latte cravings should shock you. Yet, if you want to find an effective way to manage your money, creating a budget is the most important step. 

But it doesn’t end there. You should use your budget. Yes, don’t wait for it to sit there and collect dust after you’ve spent hours writing it. You should be using your budget monthly. This is the easiest way to get yourself into the habit of using your money wisely. 

Limit Spending too Much

This is likely the most crucial part of your journey towards financial freedom. You should ensure that you know how to limit overspending on things that aren’t essential. This doesn’t mean that you should splurge on what you consider essential. If you have any money left after you pay your expenses, you should think of putting this money into your savings. This doesn’t mean that you shouldn’t enjoy having some money after you pay your expenses. What you should be doing though, is limiting yourself from any spending that you haven’t budgeted for. 

Track the Money You Spend 

One of the easiest ways to overspend your money is when you make small purchases here and there. This is why you should start tracking how you spend your money. It should help you to make better decisions and to reach your financial management goals sooner than you think. The simplest way for you to achieve this is by using a journal to record everything. Be sure to keep your receipts so that you can categorize them into different expenses. This way, it should be easier for you to focus more on the areas where you’re spending the most money. 

Don’t Create any New Expenses 

Knowing that you qualify for a loan because of your income and credit score makes it easier for you to get into unplanned debt. It’s always essential for you to avoid visiting the bank to find out what loan you can qualify for. I’m most cases, creating new expenses is the simplest way to mismanage your funds. Even though it’s exciting knowing that you qualify for credit that you didn’t expect, you should remember that you can use the money you’ll spend on the repayments on something else. 

In summary, you don’t have to be a financial expert to make your money work for you. You just need to make sure that you’re committed to making better financial decisions. In the end, the rewards of your consistency are far greater than that daily trip to Starbucks for your latte. You’d be surprised to find out how much saving a bit of money can help you with your savings journey in the end. 

Financial services industry firms are learning essential lessons on how to manage crises and plan for contingencies during this period of the COVID-19 pandemic. Firms have started relying on institutional memory, creativity, and lots of hard work to ensure that their workforce is safe, and that daily business is going on. Nonetheless, a few trends can help the firms rebuild to continue playing a huge role in economic re-growth. These trends include:

Digitalization

As a result of lockdown, people have embraced services such as online banking to help reduce the spread of the virus. The pandemic has diminished the traditional customer-centered operation due to the lockdown. Therefore, firms have had to guarantee the same level of support and services as they shift to digital tools.

The lockdown has increased mobile and online banking use, and traditional customers are requesting phone and video-call support. Ultimately, this will increase investments in remote and digital abilities, particularly regarding commercial banks.

Agile Workforce

The pandemic has reduced old models of crowded spaces in the office significantly. Working from home helps the productivity in teams to increase or remain stable, as the employees have the flexibility to work while doing other tasks. However, there are several challenges in the management of teams, and there’s a high demand for new skills. Relationship managers use video calls to engage with customers, and trading experts use online platforms to manage deal flows.

Through his financial service industry firm, Cane Bay Partners CEO recently launched the transitioning of employees to work from home, which helps build a more agile workforce. The move has helped to keep the crew safe while meeting business needs. If more companies joined in such a move, the firms would record increased productivity, thus more sales.

Employees prefer a flexible working environment, a critical motivator to their productivity. Employees say that they get fewer distractions and short breaks while working remotely. Therefore, they enjoy the added perks, including the flexibility to take care of their families. An agile workforce can also reduce the cost of office space and improve the ability to access a geographically diversified talent pool.

Flexible Innovation Approach

Some companies still believe that the pandemic will pass, and they can move back to their pre-COVID world. With this solid fidelity to traditional business practices, a company may miss the opportunity to transform their reimaging infrastructure, workforce organization, rethinking products, and offering services. Companies that embrace the new digital solutions have a safe approach to innovation and will be more ready for an uncertain future.

Firms can use contingency planning to outline a sequential course of action. Contingency plans work together with crisis management plans, explaining a firm’s process to respond to and manage the crisis.

As society reopens, the real-time experience of this worldwide pandemic has made organizations understand how to evaluate and enhance their capabilities. There is an increased need to improve the existing resilience plans in a company by having better plan coordination, regular simulation exercises, and a lot of comprehensive documentation.

The COVID-19 pandemic has influenced the decisions that firms make regarding their workforce, work patterns, and locations. Most CEOs believe that the benefits include increased access to a diverse talent pool as there are no restrictions to a single office location. Although companies are responding differently to the crisis, many organizations globally are joining hands and innovating to reduce the impact on public health and limit the interruptions to the economy and supply chains.

The possibility of making a profit by short-selling Bitcoins intrigues numerous investors to take the risk. But is it an effortless process? Investors keep wondering how to short Bitcoin in the most convenient way possible. Well, in simple terms, short-selling is the process of buying Bitcoin when the price is low and selling it when the price hikes. The problem is, this simple procedure is highly complicated to maneuver. Many factors influence shorting Bitcoin, and investors need to take care of every aspect to make money from it. Let us understand how to short Bitcoin and when is the perfect time to do the same.

How To Short Bitcoin: Learn Effective Ways

One can use different strategies to learn how to short Bitcoin. The fundamental and technical analysis of the short-selling process helps us understand the effective ways to apply these strategies.

Use The CFD Method

CFD (Contract For Difference) trading means shorting Bitcoin by creating a contract between two traders, wherein they both agree to pay/receive the price difference. So, if a buyer forms the contract when the price of Bitcoin is INR 5 lakh, and the price hikes up to INR 10 lakh, the buyer has to pay INR 5 lakh (the difference).

Go For The Direct Sales

If one wants to learn how to short Bitcoin most easily, they should go for direct sales. It means one can buy Bitcoin when the prices are low and then sell them when the market rises. This process is less risky when a trader knows how to judge the market conditions.

Choose Margin Trading

Investors who do not have any monetary backup can utilize a margin trading strategy to short Bitcoin. In this case, traders can borrow money from brokers and use it to buy Bitcoins and then sell them in a short period to make more money. This process is extremely risky as one may have to repay the money from his pocket if the market does not pick up!

Use Futures Trading Method

Every investment industry has a futures market, and the Bitcoin market is no exception to it. Here, investors who are learning how to short Bitcoin buy a futures contract with the expectation that Bitcoin prices will rise in the future. So, when the contract expires, they can buy Bitcoins below the market price and sell them at the prevailing rate.

Try Prediction Market

Prediction markets allow investors to predict the rise and fall in the prices of Bitcoins. This market is not preferable for beginners as they are less likely to understand the nature of the market. It can be a risky move as they are still learning how to short Bitcoin.

The Binary Options Trading Method

Binary options trading has two ways of short-selling Bitcoin, “put” and “call”. The put option allows an investor to sell Bitcoin at a certain price even when the price changes in the future. Call option lets them buy Bitcoin at the said price until the predefined expiration date of the Bitcoin.

Know The Perfect Time To Short Bitcoin

The perfect time to short-sell Bitcoin is when an investor is sure that he can sell the “borrowed” Bitcoin at a lower price. Traders can become successful by finding trends and following the market condition without compromising their strategies. It is crucial to do the technical and financial analysis before making any move. The critical people have a higher chance to succeed as short-seller.

Investors can choose any of the given ways to learn how to short Bitcoin. But if there are any doubts and confusions about taking the risk, it is better to take the help and assistance of a certified advisor. Shorting Bitcoin is beneficial only when one becomes successful in analyzing the process.

Successful small business managers often wear a lot of hats and perform different duties. Accounting is one such extremely important yet often overlooked task needed to keep the small business running and thriving. This can be time-consuming and even tricky at times. Further, incorrect accounting can present many challenges in the future, with only little for you to do to overcome those challenges.

The solution, in that case, is to move towards small business accounting software. The best accounting software for your small business will aid you in all the financial activities and ensure that you have enough time to focus on the other important aspects of your business.

If you are confused about whether or not your small business needs accounting software, you are in the right place. Here are five signs for you to look for in your small business, and switch to accounting software if you notice any of these signs!

Sign #1: Increased workload

More workload undoubtedly means that your business is flourishing, but it also means that you need to prioritize time and resources to generate more profits. Initially, this might seem like an easy task. However, as your business grows, so will the duties that you need to take. In such a scenario, working on the financial management aspect of your business becomes a big task, especially since you will already have a lot on your plate.

Suppose you switch to using software for all your small business accounting needs. In that case, you will have a tool to aid across all the aspects of financial management – from receipt scanning, expense management, automated bookkeeping and invoicing, and much more. Accounting software is easy to set up and operate. It provides you a bird’s-eye view of all the aspects of your business’s financial health – thereby ensuring that you’re up-to-date with the finances even amidst an increasing workload!

Sign #2: Soaring company expenses

Your business expenses grow alongside your company. Whether it is to accommodate more sales, partnering with vendors, hiring and retaining staff, or investing in marketing campaigns; as a result, your business will have a lot more payments and financial transactions to monitor. If not managed properly, all of these expenses can lead to increased taxes and fees at a later date.

To help you with that, accounting software manages all of your financial documents properly, allows you to scan and save receipts in real-time, and ensures that you have all the documents you need to save your taxes!

Sign #3: A greater number of bookkeeping responsibilities

Storing and organizing receipts, managing bills, recording transactions are only some of the bookkeeping responsibilities. These duties, too, evolve as your business grows. As a result, you can expect your bookkeeping responsibilities to only increase with every passing month. Manually taking care of all these responsibilities is not only difficult but also borderline impossible.

Using small business accounting software gives you a lot more flexibility in this aspect and allows you to focus on other important responsibilities while taking care of all your bookkeeping duties.

Sign #4: Inability to meet legal needs

Apart from managing expenses and revenues, small business owners also need to consider legal compliance and taxes. As your company grows, you will have an increasing number of rules and regulations to abide by, and you’ll need to report your finances and present documents accordingly. If you are managing your bookkeeping needs manually, this will become a monumental task.

Small business accounting software brings a breath of fresh air by guiding and helping you across all your legal needs as well. Using small business accounting software, you can rest assured that all of your financial documents will be easily searchable and retrievable so that you can access any document that you need for legal purposes.

In conclusion

If you are either currently experiencing these signs or are anticipating them for the near future and you want to switch to a small business accounting software, click https://dext.com/uk/business-owners. It’s easy to set up and use and saves you a lot of time, energy, effort, and eventually – money!

Pick the best small business accounting software for your company today!

Moving is a very stressful event. It’s not just packing and loading your belongings in the car, but also have to plan for the logistics of where you are going to move them when they arrive at their destination.

What are some tips for budgeting moving expenses? Read on to find out! This article will provide an overview of how to prepare for a move financially and what steps should be taken during the process. In addition, it will cover common mistakes that people often make when planning a move- which could result in running into unexpected costs or getting scammed by dishonest movers. You must know these things before starting your search because this way, you’ll have more time and energy left to devote to finding the perfect home!

Things to Do Before You Move: Budgeting for Moving Expenses

The first thing you need to do is determine how much money you need for the move. The best way for estimating the cost of moving is by listing all of your expenses. For example, figure out everything it will cost you to move your car, boxes, and furniture. Next, consider how much it will cost you to have the movers load and unload them at each end of your journey. In addition, include costs for cartons for packing fragile items, food costs for the trip (if you’re driving), or meal deliveries if you’ll be renting a moving truck, gas, and tolls if you have to drive long distances.

After that, it’s a good idea to determine how much you’ll need for the packing supplies (such as boxes, tape, markers, bubble wrap, etc.). It may seem like a lot of money, but it’s better to have enough and not need it than to run out and have to make a return trip.

After you’ve made a list of everything, add up all those costs together and then deduct them from the total amount you’re getting for your house or apartment. If there’s money left over, Congratulations! Now you can use it for something else like furniture or a vacation (or maybe even a new house).

But if there’s not enough money for the moving expenses, you’re going to need to start looking at your budget and trying to figure out where you can cut down. See if you can move some things in with friends or family members. Ask your employer about switching shifts so that you have more money left over for the move. Figure out what you can do to get more money: sell your old furniture, find a better-paying job, or even possibly start a side business (like babysitting). If necessary, take on a second job and cut down on some of the luxuries in your life- vacations, eating out at restaurants too much, getting your car washed, etc.

Common Moving Scams to Avoid: Budgeting for Moving Expenses

One of the biggest financial mistakes people make is signing a contract with a moving company before checking out their credentials. There are thousands of dishonest movers who want to rip you off by charging too much or even stealing from you. Conducting a thorough check on the company’s history and credentials is very important.

Here are some things to consider during your research: how long has the company been in business? (the longer- the better), do they have any complaints posted online by former clients yet? (if there are many of them, you might want to consider that), and finally- how long will it take them to move you? (if the company tells you that they’ll be able to do everything in 24 hours, chances are there’s something suspicious going on).

If a company charges too much or says that it can do things overnight, it should raise a red flag. Take your time and do your research. Read online reviews (and if there aren’t any- consider that a red flag as well). Check with the Better Business Bureau to see what their reputation is like.

If you’re not comfortable with the price, don’t be afraid to negotiate with them or find another company altogether. Remember that they want your business just as much as you want theirs. If a company is charging too much, chances are another one will charge less, so don’t feel trapped into accepting whatever they’re offering.

Always try to stick with a reputable mover and remember that it’s better to be safe than sorry!

Conclusion

Budgeting for moving expenses is not as hard as it may seem. There are a few things you need to keep in mind when making your list of expenditures, and the first thing you need to decide on is how much money you can put aside for this particular budget item. You will also have to determine where exactly you would like to move and estimate the cost of moving your belongings from the old location to the new one. Once you’ve made a list, it’s time for some research.

After pricing out several moving companies in your area, you should be able to come up with an accurate budget that will cover any expenses related to this move, but if something is missing from your budget- be sure to add it in. You might not know exactly what you need and may not have even considered all the expenses associated with a move but run through this list a few times to make sure that you haven’t missed anything because any small oversight could end up costing you big bucks.

Financial requirements are universal and don’t wait for the right time to arise. Any person can have a crisis or any occasion when he/she needs money at the earliest or a lumpsum amount for any particular reason. Whatever may be the requirement, people need monetary help from the leading banks and lending organizations always. 

Though numerous banks and financial organizations are available, finding the best among them is a complicated job. You can consult with financial experts from different loan distributor companies and take those suggestions seriously. 

Top 5 Lending Institutions

Following institutions is the one who is offering loans at a lower interest rate comparatively and providing various amenities to the customers. 

• Apnapaisa.com 

India’s largest loan distributor company that disburses more than 18 000 crores annually is the leading one in this list. The company has a team of experts who have experience in the market and regularly keep knowledge about the market to provide the best possible services. Using the latest technologies, they provide the best financial plans to make your experience convenient. 

You can apply online at Apnapaisa.com for any kind of loan. The company has a legacy of 30 years and works throughout the nation. It offers convenient options to get loans with various facilities for the customers. 

• Paisabazaar.com

This is India’s one of the largest markets for loans and credit cards. Though it is comparatively new in the market and has begun its operations in 2014, but has earned goodwill among its target consumers with high trustworthy nature. The brand promises to keep all your data safe and secured. The company also prioritizes customer satisfaction above everything, and they also provide doorstep services.

• Bajaj FinServ

Bajaj Finance is another leading website for handling loan distribution and other monetary services and providing wealth management services to both personal and corporate levels. The company also has its legacy of the brand name, which is working relentlessly to provide the customers with all kinds of financial services. 

They claim to provide the largest variety of financial services to meet different people’s standards in society. This institution also pioneered interest-free loans with monthly installment options. 

• Muthoot Finance

 India’s one of the trusted brands in financial resources and planning, Muthoot finance offers various varieties to Indian customers at the best possible rate. They serve more than 2.5 lakh customers a day on average. From gold loans to foreign exchange, their versatile services are much praised in the industry. As they are working with millions of customers, they make sure that customer services are the best. 

• Shriram City Union Finance 

From an urgent loan to some short-term loans, you can trust the service from Shriram city within India. The company has lived up to its tagline, which says, ‘money whenever you need it’ literally with their immediate and trustworthy quality loan and other financial services. The expert team of employees promises you to provide financial security for future life. 

If you are familiar with the invoicing process, you then understand the importance of a credit note in business. Whenever a supplier sends a wrong invoice to the intended customer due to some specific reason, a credit note is issued to rectify the mistakes or make any sort of adjustments during payment. It is an additional legal, supplementary to the original invoice.

What is a Credit Note?

Credit notes are legal documents or vouchers, similar to invoices that allow you to adjust the invoice differences. Generally, it consists of reasons related to the canceling or adjustment of the original invoices. The actual difference in an invoice varies, depending on the case or situation. 

Since the supplier cannot cancel an invoice already sent to the buyer or customer, a credit note is issued as a legal document to make adjustments or nullify the original invoice.

For example, if the supplier AB finds out that the product dispatched is faulty to the buyer CD. Therefore, AB issues credit notes to CD, thereby adjusting the amount of debt.

Situations When Credit Notes is being Raised

A supplier can send a credit note to an intended buyer or customer due to various reasons or specific situations. Some of the following cases where it can be issued:

• The tax charged in the invoice exceeds the actual tax payable.
• The taxable value displayed in the original invoice is more than the original taxable amount.
• Customer or recipients returns the goods to the supplier (Sales Return).
• Goods are found to defective, deficient, or not as per the customer’s satisfaction

Mistakes To Avoid While Generating Credit Notes

As a supplier, if you are going to generate or issue a credit note, you will need to find out the authentic reason for the purpose. Here are some mistakes that you need to avoid while generating a credit note:

Wrong Invoice Number and Incorrect Details

A credit note is supplementary to sales invoices. The supplier should be extremely cautious while generating a credit note. All the requisite information should be in adherence to the original sales invoice. Also, it is important to keep the invoice number sequence intact, i.e if the original incorrect invoice was step number one, then the credit note must be a step two.

Having Factual Error

A credit note is an essential document and all the information should be relevant and factual. It is an interactive document between buyer and seller and can be produced as evidence whenever needed. If there is an error in the document, the supplier has to bear the adjustment loss during final GST returns. 

Raising It Without Mentioning Any Reason

A supplier issues a credit note for several reasons such as for an incorrect invoice, good returns were faulty, the client accidentally paid more, etc. Therefore, while generating the note, you should specifically mention the reason. It should be authentic and precise. 

Deleted the Original Invoice While Generating

As a supplier, you should not delete the original invoice. A credit note is supplementary to the original invoice, not an alternative. An invoice is a legal document that you have sent to the buyer, even if it has an error, you should not delete it.

Generating After Time Limit

According to the GST Act 2017, a supplier can issue a credit note against an invoice on or before 30 September of the coming financial year or the intended date of filing the annual return, whichever is earlier. Therefore, you must remember the stipulated period for generating a credit note, otherwise, it has no relevance at all. 

A credit note helps to maintain clarity and the credible transaction of goods in a business. This enhances the business relationship between the supplier and the recipient. In a nation full of complexities, the government has formulated new rules and regulations by introducing GST to facilitate smooth tax procedures. Therefore, a stable and trustable business ecosystem is essential to become a prosperous nation.