Disease-Free But In Debt? Ways to Pay Off Medical Debt After COVID-19 and Other Conditions

The COVID-19 crisis has affected every area of our lives--not only our health, but also our finances. If you’re someone who has gone through getting sick with COVID-19 or other illness that required hospitalization, your burden may even be heavier. NBC news reported that many patients received unexpected medical bills after recovering from the novel virus, as their documents state several out-of-pocket expenses not covered by their policies.

The case isn’t isolated with COVID-19 patients. With hundreds of thousands of insurance claims during this challenging time, a lot of companies are trying to keep up fulfilling these policies. Even after COVID-19 recovery, many families and individuals are faced with out-of-pocket medical debt, on top of unemployment, and other personal struggles related to the effects of the pandemic.

Thankfully, there are ways to be strategic in your finances when trying to pay off medical expenses. Below are some tips that could help.

Ensure mistake-free medical bill

Have you received a medical bill that made you fall off your chair, literally? Perhaps it is time to reassess the balance and confirm if the bill is accurate. Since there is a surge of patients for COVID-19 along with others being treated for non-related conditions, there may be cases where some of the input in people’s bills was a mistake.

Read through your balances and check the procedures and medications provided, and see if there is anything unclear. You can call the billing department of your hospital to ask for a re-calculation or clarification if there’s a particular matter to be settled.

Reconfirm your insurance coverage

If you have a health plan, it is ideal to read through your policy again and look for information about the coverage you have for the condition. Some insurance companies may need extra clarification about the treatments or medications you took, which turns out to be covered by your policy. The federal government is even asking insurance companies to be more transparent about the policies they offer to avoid confusion with clients.

To settle matters, you may call your insurance provider and ask about the non-covered items in your medical bill. Given the right information, they may consider to cover some of the expenses which are actually stated in your policy, but were missed when preparing your out-of-pocket bill.

Don’t use credit cards

Tempted to pay off your medical debt using credit cards? It may not be the best option. Many cases happen where people get into a never-ending cycle of credit card debt with high interest, and you don’t want to be in that situation.

What are some of the disadvantages of paying through credit card?

• High-interest payments: A lot of credit card companies have staggeringly high interest annually. If you cannot realistically pay the rates, do not give in settling for a credit card debt.

• Affects your credit score: Having unpaid credit card debt lowers your credit score, even making it more difficult to secure a low-interest payment plan.

• Other options for medical debt: Unlike other types of debt, medical bills are more negotiable and flexible by nature. You can use no interest or low-interest payment options, so it is ideal to explore more routes.

Choose no interest or low-interest payment plans

Having access to healthcare is a basic human right. Thus, it is justified that medical debt should be paid with no interest or low-interest rates as much as possible. There are several options you can choose from when looking for an affordable medical debt payment plan:

Hospital or healthcare facility offer

Your own hospital or healthcare facility may have payment options that are interest-free or longer terms that make monthly payments more realistic. An article published in Modern Healthcare revealed that some major hospital networks offer a wider level of financial assistance for patients that fit eligibility requirements.

If your medical bills overwhelm you, it is best to get in touch with your hospital or healthcare facility if they have any affordable payment plans.

Interest-free financing companies

There are also other financing companies that specialize in medical bills. They have payment plans which are interest-free for a period of time, making it possible for you to pay medical debt as affordably as possible.

In fact, you can use these financing options not just for COVID-19 hospitalizations, but for other healthcare facilities such as rehabs for alcoholics and urgent care centers.

Personal loans

Taking out a personal loan can be done for a variety of reasons, such as covering out-of-pocket medical expenses. The great thing about this type of financing is the flexibility and the amount of companies offering this option. If you have a good credit score, there is a higher chance that you’ll secure a low-interest personal loan plan.

However, if you have a less-than-stellar credit score, there are still ways to secure affordable personal loan options. You can compare rates and see which one fits your budget depending on your credit score.

Paying Off Medical Debt? You Can Do It!

Paying off out-of-pocket medical expenses may be challenging, but using these strategies can make this undertaking so much easier. Make sure to clarify your bill, negotiate with your insurance provider and explore affordable options to get the best payment plan.

6 statistics about employee compensation and benefits you should know

If you are a business owner then before devising an employee compensation plan you need to keep certain things in mind so that all the company employees remain satisfied with the job offer. This article covers the 6 aspects which are deemed as beneficial for the employees.

Benefits of pay in employee compensation

As being an authority you must know that what appeals largely to the workers. You must know that they would not appreciate an increase in a pay rate to that extent but they will highly love the additional perks and benefits in the comparison. In the true sense of the word, these employees need freedom and the additional packages and other add on can grant them that. The additional perks make them happier than you think. So whoever devises the employee compensation plan one must keep in mind the importance of this statistic for increasing the satisfaction level. At the end of the day, the happiness of the employee is all that matters. After all, they are responsible for boosting the productivity of the company. For 90 % of the employee, enjoyment comes before.

Importance of work balance

60% of women enjoy the balance in work life so during the recruiting process the hirer can highlight the aspects and elements which contribute to this balance. Even 48% of the men appreciate the work-life balance so there is a high chance of satisfaction if employees are recruited on this basis.

Perks in employee compensation

57% of new job seekers love the perks offered. If you will be offering additional benefits along with the salary package as part of the employee compensation then there are high chances that you will land up hiring competent people. The top tier talent will be attracted to this employee compensation and thus the productivity of your company will receive a boost. Such a perk will ensure that the employee owns a sense of ownership while remaining loyal.

Transparent Salary in employee compensation

If you want to build the trust level with the employees then you must be extremely clear and transparent about the employee compensation. many organizations are not at all comfortable regarding this matter and thus they fail to build up that trust level.you should never hide the information from the employees but instead, become as transparent in employee compensation as possible so that there remains no room for false hope.

Men get 24.1% Higher Pay

One may know that on average men earn 24.1% more than women. If this is the case in your organization too then you got to fix this air of inequality.

Employee compensation should be fair

This is one of the most shocking yet appreciable facts that about 67 % of the employee in the US is not willing to work in a place where inequality exists. Many don't apply or even leave early due to this unfair attitude of several organizations. Thus this clause must must never be present in employee compensation strategy.

Ways to Earn Extra Income During a Financial Hardship

Life is much like riding a roller coaster with many ups and downs. Because of this, many people who don't have a budget in place, and live paycheck to paycheck, often experience a severe financial hardship that can be difficult to survive. The good news is that there are many ways to bring in additional money to help ease your financial woes.

Take Out a Loan

During an emergency, if you need access to funds immediately, you can reach out to a family member and ask to borrow money for a few weeks. If this is not something available to you, then you can apply for personal installment loans. In many cases, even if your credit isn't at the preferred level to lenders, these types of loans are easier to acquire.

Sell Things You No Longer Need

A fast way to put some money into your pocket is to sell things you no longer want or need. Check around in your attic, basement or garage and see what you have stored away. If you've resided at the place residence for more than a few years, chances are pretty good, that you have things that others will want to buy. You can have a yard sale or you can take advantage of the computer age and post pictures with a description online at sites such as Craigslist, eBay or the Facebook Marketplace.

Use Your Skills

Most people have acquired skills that they can use to earn additional income. Maybe you enjoy working on cars or you're able to fix just about anything around the house, like a handyman. There's an abundance of public need for services such as lawn care, babysitting and tutoring. You can also check online and apply to do things like take surveys or write for blogs. While they won't make you rich, they will supplement your income and help pull you over the hurdle.

Pay Your Bills on Time

Yes paying your bills on time saves you money, and surprisingly in more ways than you might imagine. When you pay them on time you don't incur a late fee and with some companies that can add up to hundreds over the course of a single year. Beyond the late fees, late payments can cause your credit score to take a hit. Suddenly, you are no longer on the "A" list for lenders so you pay more for things like a mortgage or a car loan and insurance. A low credit score can even prevent you from getting hired at a new company.

Trim the Fat

Every household has areas that need improving. When you find yourself in a tough financial time, trimming the waste can help you make it through. For instance, if you dine out or order take-out at least once a week, cut it back to once or twice a month. The same applies to buying coffee on the way to the office and eating lunch out.

Additionally, start paying close attention to your monthly bills, more specifically your cable bill. This is an excellent starting place for removing wasted money. Instead of paying for many extra channels, half of which you don't ever watch, remove them, and go to basic service until you free up monies to live more comfortably.

Most people will have a period of time in their lives where money is tight. Luckily, when these pitfalls occur there are ways to increase your income and continue to enjoy a comfortable life.

Common Financial Worries Families Face

As you grow older, you start to learn that there are many responsibilities as an adult. With those responsibilities tends to come concerns and worries. It could be anything as small as what you’re going to do on the weekend to something more significant like the future of your family.

One worry that is quite common for many families relates to their finances. At one point or another, you’ve probably caught yourself worrying about your financial situation. Money tends to be one of, if not the top concern for many.

What about finances that make families so concerned? Take a look at some of the common financial worries families face.

Unexpected Expenses

The unexpected is something that can make even the strongest person worry, especially when it comes to finances. Even if you have an emergency fund and are prepared for any expense thrown your way, you’re likely to be still somewhat concerned over if you can or cannot afford it.

A 2017 study from Bankrate found that 24 percent of Americans have no emergency fund set up in case of unexpected expenses. However, only 31 percent say they have enough of a cushion to cover six months of expenses.

Preparing for unexpected expenses can be tricky. For starters, you may need that money right at this moment. However, if you don’t set aside an emergency fund, if the time comes that you do have unexpected expenses, it could throw you deep into debt.

Healthcare and Insurance Costs

A significant financial worry involves your healthcare coverage and insurance policies. Paying for coverage that you either rarely use or hope to not use at all can be frustrating. There are likely many other things that you could use the money for.

When it comes to things like life insurance, for many families it is a necessity that they budget for. Even though they know the expense is coming every month, they may still worry about if they can afford the coverage. If you’re in this situation, there are things you can do to help reduce the cost of your premiums. If you’re looking at getting insurance, shop around and get quotes to find an affordable policy.

Losing an Income

Losing an income can be catastrophic for many families, especially if it is your only source of an income. If you lost your job and didn’t have that income anymore, would you be able to continue with your lifestyle?

The concern of losing an income is a reality for many. However, it is one that could be prevented by that emergency fund mentioned before. Another way to protect yourself against this is by getting the right insurance to help cover expenses.

Paying Off Debt

Another big worry for many is debt. At one point or another in life, you’ve likely come face to face with debt. It could be big or small. Either way though, you're bound to worry about it.

Debt puts a kink in many families plans. It can prevent you from doing something you love or even getting a mortgage for your first home. Trying to pay off debt as quickly as possible is a big worry.

Hands On Investing with P2P Lending

There are many different attitudes investors have towards the type of investments they make and how they manage them. Some investors do not have the time or skill to manage their own investments so they use investment advisors. This can include everything from a highly paid investment advisor to a simple low cost mutual fund. This approach is by far the most common and serves to make investing easy enough that anyone can do it.

Of course, there is also the small segment of the investing population who prefer to actively manage their money. While this can be risky, these people believe that they can equal or exceed the returns provided by advisors and institutions. In addition, many of them enjoy the challenge and effort required to find and manage great investments. There are a lot of different ways to invest money and people who can find certain options may be able to do very well.

One popular way to invest that is very attractive to the hands-on investor is peer to peer lending. Peer to peer loans are rapidly becoming the most popular way for consumers to get personal loans to pay off credit cards, pay medical expenses, make improvements to their home or get money for virtually anything. In the past, banks were the only place to go for these loans. Now, the peer to peer lending industry provides an alternative. What makes them different is that the money to fund the loans does not come from large institutions. Thousands of investors provide a small amount of money each, and when it is pulled together they have millions of dollars to loan.

The investors deposit a small amount on money with the lending platform (a website like Lending Club). They can then choose which loans that their money will fund with lending club investing. This is the hands-on part. The investor can view information from each borrower’s application and decide which loans are the best investment for them. Loans vary by risk of default and interest rate so an investor must first decide how much of a risk taker they are. For example, some who wants to make a lot of money may invest in higher interest rate but riskier loans. They may have more loans that are not paid back but the higher interest rates will probably give their portfolio a higher return.

Once an investor has decided on the type of borrower they want to lend to, then they will pick specific loans. This is done by looking at the information on the application and the borrowers credit information that the platform has researched and provided. One key piece of data is the borrower’s credit score. Also, it is good to look at how much debt they have, what their income is and if they have made all of their payments on time in the past. There is a lot of information to analyze and the investors who do it well can make money.

If you are looking for a relatively safe but hands-on investment, then peer to peer lending may be right for you. There are many websites that offer this service but they are usually pretty much the same. So, set up your account today and you can be investing tomorrow!

A look at the human psyche when creating formulas for successful Financial Market Trading

Any financial market trader knows how vital a trading formula is. According to one of Wilkins Finance’s top financial advisor, every trader should have guidelines on how to go about placing trades and closing them. After, all that is what a trading formula is all about. It is also referred to as a trading strategy.

As a trader, you will have to have a way of knowing when the time to place a particular trade is ripe and also know when it is time to close the trade. This what trading entails. It is not just clicking buy and sell buttons haphazardly. No! There has to be a reason for placing and closing of every order.

Most traders dwell too much on when to place an order and forget that they should also concentrate on when to close the order. Closing an order at the wrong time will result in reduced profits and, at times, even losses.

Let us look at an example. Assume that you place a buy on the EUR/USD at 1.34567 and the market moves up to 1.34723. You decide to close the order at that level only to realise that the markets are still moving up and the bullish trend seems to be strong. You will have lost the opportunity to make more profits. If you would have made your market analysis well, then you would have waited for the trend to give signals of changing to bearish. Only then you would have exited the market, thus maximising your profits.

However, you should also not ignore any signal indicating a change in the market conditions. Assuming that you ignore such a signal, the market trend will change and your profits will end up being losses.

When coming up with your trading formula, you will have to put all this into consideration plus many other factors. We are going to discuss the process of creating a formula for successful financial market trading and the psychology behind it.

Steps of creating a formula for successful financial trading

First, you will have to choose the markets that you want to trade. It will help you to come up with a formula that is best suited to the market. Remember that all markets do not behave in the same manner. Forex markets are different from stock markets, derivative markets or cryptocurrency markets. Some markets are more liquid than others. Also, some markets are more volatile than others. For the volatile markets, they have larger daily ranges compare to those which are not very volatile. Therefore, volatile markets would be better for short-term to intraday trading while the less volatile markets would suit those traders who want to do long-term trading.

With, the market, you should go ahead and choose the specific assets you aspire to trade. For example, if you decided to trade the stock markets, you should choose the particular stocks that you want to trade. If it is the Forex markets, you should choose select currency pairs and mostly the most traded currency pairs. Whichever market you decided to trade, pick a few assets that you want to trade.

Next, find a way of getting the trading signals. If you want to automate your trading process, then the trading robot will be responsible for creating and executing the trading signals. But if you are trading manually, you will have to choose the specific indicators to use or enrol with a Trading Signal service provider to provide you with the signals.

You should ensure that the indicators that you choose will give you both entry points and exit points. The same applies to the signals that you receive from your signal service provider. Since you might not be in front of the computer all through, you should place stop levels at the exit point given.

With all the above, you will be good to go. But remember to test the strategy on a demo account for a period of time to analyse its results (whether it is making losses or profits). On the demo account, you will be able to see if the strategy is profitable or not. If not, do not tire of changing it until you come up with a profitable trading strategy.

How Dividend Investing Can Change Your Life

This is a guest post by Millionaire Mob, a blog focused on investing in dividend growth stocks and travel hacking. We have helped thousands of people with bettering their financial future through passive income and dividend investing.

I am on a path to achieve financial freedom through dividend investing and passive income. I am seeking to secure my financial future through these two methods to build income. I seek to have multiple side income streams to be used to recycle into my dividend portfolio. The average millionaire has at least seven different income streams to live off of, so get find yours. Time to go get mine, which is dividend growth investing!

With dividend investing, I like to think of it as a second job. Dividend investing allows me to build an income stream, but also gives an opportunity to realize long-term capital appreciation as stock prices rise. Thus, this results in the ultimate total return scenario.

What is dividend investing?

Dividend investing is a proven strategy that is focused on solely investing in dividend growth stocks that pay a dividend. Usually a company has two options use their cash flow from operations: one is paying a dividend to shareholders and the other is reinvesting the cash flow into the business. A dividend is a payment made by a company to reward shareholders. We’ve built the ultimate guide to building a dividend portfolio to help you succeed in your path to financial freedom.

Why is dividend investing life changing?

If you turn your focus to building a dividend portfolio, you enable yourself to live free. Building a dividend portfolio takes time and effort. However, if you have a specialized plan, you can build your wealth rapidly. Warren Buffett invested in Coca-Cola over 25 years ago. The stock and dividend has increased so much in value that Warren Buffett receives over a 40% dividend yield from his initial investment! I doubt Warren Buffett will ever sell a share of Coca-Cola.

If you look at Warren Buffet’s portfolio, nearly all stocks pay a dividend.

Where do you start to build a dividend portfolio?

• Find a brokerage that you like and one that offers low-commission trading. There are a number of different sites out there that will allow you to trade completely commission-free.

• Write down on paper how much you plan to allocate to the portfolio each month. Try to exceed that amount each month and increase it each year.

• Find the best undervalued dividend growth stocks to start building your portfolio. I suggest having at least 3-4 Dividend Kings in your portfolio. Dividend Kings are safe, high-quality dividend growth stocks that have at least 50 years of increasing their dividends.

• Make your initial investment in the companies that you understand. 

• When you receive your first dividend payment, reinvest it back into your portfolio of stocks! Make sure you are fully invested at all times and continue to allocate your balance transfers.

• Sit back and enjoy the show. Follow the plan and before you know it, your income will continue increase over time.

Please note that you should make these considerations after you have funded your retirement accounts in full or as much as possible. I always advocate for tax-advantaged accounts like a 401(k), Roth IRA or IRA should be fully invested first. After that, you can allocate the remaining to the dividend portfolio as a “sidecar” to build your income.

Dividend investing is not easy and is not a get rich quick method. It takes time and patience, but it is extremely rewarding. What are you going to do to achieve financial freedom? Please let us know in the comments below. We’d love to hear from you.

Follow us on our journey to achieve financial freedom through dividend investing. You can follow along as well with each stock purchase that we make! We look forward to growing with you.

Millionaire Mob is a blog focused on everything online income including: Travel Photography, Travel Rewards, Passive Income, Dividend Growth Investing and Personal Finance advice. I hope to provide the best advice to help you learn and grow along the way. Join the mob of financial freedom experts and escalate your life.Follow us on Twitter or Instagram!

How refinancing student loans frees up money for investing or to start your own business

Where can I get more capital? For the investor, startup, or entrepreneur this question is on your mind constantly. In some cases, the answer might be reducing your cash outflow. Plus, the benefits extend beyond just having more money to invest. Let’s find out more.

Monthly expenses

What if you could cut your utility bills in half? What would you do with the savings? While reducing energy consumption is always a good idea, there are limits to how much you can cut back. One of the biggest checks many people write each month is their student loan payment. 

If a significant portion of your monthly income is devoted to paying down student debt, that can increase your debt-to-income (DTI) ratio and make it harder to borrow money to start a business, or buy a car or house. Many graduates with student loan debt even forgo marriage or having children due to the financial strain of their student loans. 

In many cases though, refinancing can remove this limitation. If you were to reduce your monthly student loan payment, you might end up with hundreds or thousands of dollars more to invest each year. 

How refinancing works

When you refinance your student loan, you basically swap your current loan for one with a lower interest rate. The end result is a smaller monthly student loan payment. This lets you free up capital to put towards personal investments or startup projects. An alternate strategy is to keep paying the same monthly payment, but shorten the overall payment terms. This allows you to pay off your debt faster. 

What method you choose depends on your overall investment horizon. If you need the cash now, then lowering your monthly payment is probably best. 

How much refinancing can save you

In many cases, the savings from refinancing student loans at lower interest rates can be substantial. Your savings will depend on how much of an interest rate reduction you can qualify for, and how long you take to pay your loan off.

When you refinance, you may choose to:

● Lower your monthly payments, but take more time to repay your loan. This will lower your DTI, but could increase your overall repayment costs.

● Get the most savings by increasing your monthly payments, paying off your loan faster. This could increase your monthly payment, and your DTI.

● Stay on the same repayment schedule, but with a lower monthly payment and overall repayment costs. 

Borrowers who have used the Credible marketplace to refinance into loans with shorter repayment terms have reduced their interest rate by 1.71 percentage points, and are on track to pay $18,668 less over the life of their new loan, on average. 

Debt-to-Income ratio benefit

Besides freeing up cash, refinancing your student loan may have other benefits. For example, when you apply for a loan, lenders don’t look at your credit score alone. For many lenders your debt-to-income (DTI) ratio is even more important than your FICO score. It’s simple to calculate your DTI ratio; just take your total debt and divide it by your total income. 

When you refinance your student loan, your overall debt burden goes down. This means your DTI improves in the eyes of lenders. So if you need to take out more credit in the future, your chances of getting approved are better after refinancing. Also, the stronger your credit profile, the higher the chance you qualify for lower interest rates. This is a great strategy if you think you might need to inject cash into a future business venture. 

What are your priorities?

For some, investing means buying a property, starting a business, or purchasing stocks. For others, it’s buying a home to invest in your family’s future. No matter what your priorities are, refinancing your student loan can give you more financial freedom.

Anyone Can Make A Recovery From A Serious Injury

Accidents happen

Everyone who’s been involved in an accident knows how horrible it is to have to deal with it. You’ve been dealt a great deal of damage, and it can possibly even be life-changing, so how do you ensure you get the best recovery possible in this situation? First of all, you need to look at your situation. If you’ve been severely injured, is money going to be a concern for you? For many people, sustaining these permanent damages can mean being out of a job, as they’re not physically able to do it anymore; so finding the money to cover the medical bills and insurance is a real pain and can work out to be a stressful endeavor. However, you shouldn’t panic, as there are a number of options out there you can have a go at, and possibly secure your future!

Compensation

If you’ve been in an accident that wasn’t your fault, you may be entitled to a legal compensation from the individual or organisation who is at fault, Whether it was intentional or not, there are certain safety procedures and laws out there to prevent this kind of thing. Contact a professional like the DBA law firm to see if you could get help with your case. It might seem like a big investment to make, but if you’re going to be struggling with an income,  you should try your hardest to get that compensation money. Professionals can give you their insight on the case, and also offer a wide range of resources and connections to help you win it.

Incomes

Well, if you’ve been forced to find money elsewhere and you don’t know where to go, you might want to start looking at options you may not have considered before. Surprisingly, there’s a lot of ways to make money from your home, which means if you struggle to get around because of your afflictions, you don’t have to give up hope in surviving. First of all, it’s quite common for people to start up their own blog so that they can generate an income. The way it works is, the blogger generally keeps a public diary/journal in a sense and writes for the world to see. Typically, it’s done with a personality and pictures to entertain the readers, and sometimes they even provide tips and advice for everyday living. You can bet that you can find all kinds of information on a blog, so don’t be afraid if you feel you have nothing to offer!

You shouldn’t let an injury beat you, even if it’s had the worst effect on you. You may feel damaged and vulnerable, but there’s still a lot out there for you, you just have to look for it! No matter the affliction, people from all kinds and corners of the world are achieving their goals and dreams without letting their disabilities get in the way. It might seem harsh to look at it that way but, you can’t get through your problems if you don’t head forwards!

How Does Indexation Impact Tax Charged on Gains from Debt Mutual Funds?

When you invest, you aim to maximize your returns. However, inflation eats into your actual returns. Additionally, when you exit your investments, you need to pay capital gains tax. Fortunately, the government offers a solution for this, which is known as the indexation benefit.

The basic reasoning for indexation benefit is to ensure you pay tax only on your returns after being adjusted for inflation. This allows you to pay 20% capital gains tax after taking advantage of indexation benefit.

Indexation plays a pivotal role in taxation when it comes to debt mutual fund investments. You may wonder what indexation is. In simple terms, it considers the rate of inflation when you calculate your returns on investments. Indexation results in a significant impact on your actual returns earned when you exit your investments in debt funds. Through indexation, your investment price is adjusted for inflation for the purpose of determining your tax liability when you exit. Indexation offers you several benefits because of the inflation adjustment.

Benefit of indexation

The indexed cost of your investment in debt mutual funds is based on the ratio of the inflation index at the time when you exit your investment. Therefore, a higher value means a reduction in your tax liability. During the long-term, the rising inflation adds up to the purchase cost of your debt funds. On a cumulative basis, it may result in the reduction of your taxable returns when you redeem your investment.

In case of smaller returns over a longer period, your entire returns on investments may be eaten up due to rising inflation. It is likely that in such a situation, you may not have to pay any taxes. It is beneficial because if most of your returns are erased due to inflation, paying taxes is not logical. Furthermore, the returns are only notional and not real due to the rising inflation.

Working of indexation

Indexation takes into account the date on which you invested your funds and the rate of inflation since then. When you apply the indexation benefit, your purchase cost increases. As a result, your profits at the time of exit reduce thereby reducing your tax liability.

Indexation and debt funds

Mutual fund investments are liable either to short-term or long-term capital gains tax. When you opt for tax-saving investments, long-term is defined as at least three years. Therefore, when you stay invested for at least three years, you will be liable to pay long-term capital gains tax. The current applicable rate is 20% post-indexation benefit.

For applicability of indexation, the formula is:

Original investment cost X Cost of Inflation Index (CII) at the time of exit/CII at the time of purchase

Let us understand this further with an example.

Assume that you invested INR 20,000 in tax-saving investments in May 2010. Further, assume that you redeemed your investment in June 2013 to earn INR 40,000. Therefore, your long-term capital gains before indexation are INR 20,000. However, your entire returns are not liable to tax because you remained invested for a period exceeding three years. You are allowed to avail of the indexation benefit, which reduces your long-term capital gains tax.

The indexed returns will be (20000*220)/167, which is equal to INR 26347 (CII was 167 in 2010-11and 220 in 2013-14).

Therefore, your taxable profits = 40000 – 26347 = INR 13653, which is a reduction of INR 6347 (20000 – 13653).

Until recently, the indexation base year was 1981, which is now modified to 2001. Therefore, if you invested before April 1, 1981, your profits may be calculated based on 1981 fair value. However, all investments after April 1 2017 will use 2001 as the base year to calculate the fair value.

In addition to earning profits, investments aim to determine how to save tax. One way is to use the indexation benefits on your long-term investments. You may also choose to pay taxes without taking the indexation benefit at a pre-specified tax rate.

You may choose from several mutual fund schemes. However, you may not have the experience or expertise to compare different schemes. In such a situation, you may consider using the ARQ investment engine, the core feature of Angel Wealth’s mobile application.

One major differentiation of ARQ from other available options is that all the recommendations originate through machines without any human bias or intervention. Based on your personal requirements and risk appetite, ARQ offers investment options that only deliver better returns but also help you know how to save tax.

Download the Angel Wealth app today and enjoy smart and quick investment tips.

The 3 Costliest Banking Mistakes Entrepreneurs Must Avoid

Poor money management is one of the biggest reasons why new entrepreneurs fail. And key to successful money management is the relationship you build with your bank. If you still consider the bank as simply a place to store and borrow money, then you’re missing a huge opportunity to access resources that will empower your small business.

To make the most out of what your bank has to offer, make sure to avoid the following most expensive banking mistakes small businesses commonly make.

1. Mingling personal and business finances

It’s not enough that you have a separate personal and corporate bank account. You also have to be diligent about making sure transactions are made using the right account. Business expenses must only be charged through your business credit cards and checking accounts, without exceptions. And should there be a need to move money between your personal and business accounts, then such transfers must be properly explained and documented.

A clean and clear separation between your business and personal finances allows you to:

● Establish a more efficient tax return process, allowing you to easily see and access tax benefits and cut accounting costs

● Manage your business account better by establishing separate accounts for categories such as tax, revenue, payroll, and so on, as needed

● Make business audits easier

● Obtain a clearer understanding of your business’s financial standing, which equips you with the information you need to evaluate and drive profitability for your company

2. Failing to maximize services that lead to healthy cash flow

While profit may be an easy measure of business success, it’s cash flow that will keep your business up and running. But managing cash flow is known to be one of the toughest and most daunting tasks entrepreneurs face. It is thus important for your business to take advantage of the right financial tools and expertise from your bank that are designed to boost cash flow and address cash flow challenges.

Take advantage of cash management services from your bank, that help you manage incoming and outgoing cash. For instance, end-to-end global disbursements and receivables services can simplify your domestic and foreign payments and collections so you can enjoy lower operating costs and improve business efficiency.

Other examples of banking services that help you manage good cash flow are:

● Payment and account solutions that streamline local and foreign currency transactions

● Global corporate credit cards that help you effectively control your working capital, from goods and services cost to travel and entertainment

● Global payables solutions that allow quick and easy electronic and paper-based payments from local and international customers

● Virtual accounts, cheque management, and paper and electronic collections for managing receivables, so you can quickly turn them into cash

● Other solutions that protect you from financial shortfalls: business loans, guarantees and standby letters of credit, and import and export finance

3. Neglecting to invest in building a relationship with your business bank

There is no “one service fits all” option when it comes to banking. What may work for another business may be irrelevant for yours. And even if it worked for you last time, it doesn’t mean it will continue to be effective at all times. That’s why it’s imperative that you communicate your needs and goals to your bank, as they have the capacity to come up with the exact solutions according to your situation at the moment.

When you start to view your bank as an integral part of your business’s ecosystem, they can deliver more personalized and extra-value support such as:

● Connecting you with contacts, clients, partners and potential investors that are part of their vast local and international network

● Identifying useful tools and products that may not be easily available to ordinary clients

● Referring you to external solutions and experts to address even non-financial challenges you may have

● Offering easier and faster processes, thanks to their familiarity with your business requirements

The best business bank you can find for your small venture can be your growth partner. Your bankers can help you unlock solutions to your biggest challenges, and provide you the support you need as you work toward achieving your business goals.

When it Comes to Your Finances, Doing Nothing is the Worst Thing You Can Do

If you’re currently dealing with a troubling financial situation, you need to think carefully about what you should do next. The one thing that you should definitely not do is nothing at all. If you allow bad situations to develop at their own pace without intervening, you will live to regret it. Here’s why you should never do nothing when the situation concerns your personal finances.

Inaction Comes From Complacency and Overconfidence

The first thing to note is that people’s inaction so often comes because they are complacent about the situation they find themselves in and they don’t feel that anything too bad could possibly happen to them and their finances. If only that were true. To put it simply, your overconfidence and complacency will cost you if you take things too far and become too relaxed about serious situations.

Bad Situations Tend to Get Worse When Nothing is Done

When you do nothing in a situation regarding your finances, you will find that bad situations tend to get worse. This is the golden rule that you should always assume is true for you and your situation. You can’t just close your eyes and hope things will get better. Maybe 5% of the time issues will resolve themselves. But in the vast majority of cases, real action is required.

There Are Plenty of Ways to Get Yourself Out of Financial Trouble if You’re Willing to Act

There are so many things out there that you can do in order to get yourself and your finances back on track. That’s what it’s most important to recognise and realise. You don't have to remain trapped in the negative situation you find yourself in. It’s all about acting when the time is right for you to do so. Places like debtconsolidation.co can help you with consolidation. And you might even be able to get the debt reduced if you talk to your creditors.

Talk to People if You’re Unsure of the Next Step

Independent debt advice is out there waiting to be taken advantage of, and that’s what you need to do. If you’re willing to be aware enough to reach out and ask for the help you need, without your pride ever stopping you from doing that, you will get yourself back on the right path sooner rather than later.

Don’t Expect Something to Arrive Out of Nothing

There is never going to be a situation in which you can expect something to magically emerge that will solve all your problems for you. If you want to learn how to be more realistic and practical in life, head to theemotionmachine.com/a-realistic-approach-to-thinking. It might give you the advice you need to start taking action and stop waiting for things to simply resolve themselves for you.

Your finances are precious and you need to be looking after them properly at all times. If you just allow things to become problematic and you don’t do anything to put those situation right, you’re only going to land yourself in even more trouble before long.

3 Ways To Get The Most Out Of Your Money

Looking to make that extra cash?

There are many ways out there for you to make more out of your money, so why not give it a try? We’re going to look over a few of the ways you can make money without working, and just investing. Usually, you wouldn’t look for this kind of opportunity if you have a tight budget, as it may take quite a large start-up investment. So be prepared to fork out some of your savings if you want to get your income started.

The way investing usually works is, the more you can put into it, the more you can get out of it; which is what we’re going to go over below, so look out for the method that would suit you and your budget the most.

Real estate

It’s quite common for people to invest in real estate, as there is money to be made with it. Real estate would definitely be one of the most expensive options you can pick when it comes to investing, but the more you can put into it, the more you can get from it; so take your time and pick the best place for you! There are many factors to consider when it comes to renting out a building (check over at http://www.yourfinanceformulas.com/2017/10/home-zone-how-will-you-buy-yours.html), as it doesn’t always have to be for residential use, nor does it have to be used for one singular tenant. Some landlords have their buildings turned into apartments, which in turn could generate more revenue with two tenants paying a percentage of the full price. You also need to make sure that the area is right for what you want to use it for, which can really affect the income you get. Typically, the nicer the area, the more you’ll have to pay for the building, that said, you should be asking for more from the tenants in return.

Commodities

Commodity trading can vary a lot in price, as you’re not really buying a fixed product. If you visit https://commodity.com/, you’ll see that you can invest in a great many things and many of which can come at either a cheap or expensive price. With commodity trading, it’s very important to do your research into what you’re buying, as you want to make sure you can make back what you spent on it, and some. You need to look into the demand of what you’re buying, and sustainability of it, otherwise you could end up out of pocket. For example, if you invest in Bitcoin, you want to know if the value of it is likely to rise, and you need to make sure that you’re not gambling blindly. Just like real estate, the more you put in, the more you can make in return, so pick wisely.

Shares

Just like commodity trading, you really need to do your market research. You’re not necessarily investing in a product as such, but a business as a whole. When you buy a share of a business, you technically become one of the owners, and you are liable for that percentage of the business. If the worth of the business increases, your share also increases, and the same as if the business decreases in worth. So make sure you know about the business’s activities, and learn where you’re putting your money.

3 Tips To Get Through Tax Return Season

Filing your tax return is boring, thankless task that takes up valuable time. However, it does not need to be so painful. Here are some helpful tips for getting your tax return done.

Records

You should be keeping records of everything. You need to know the exact amount of income you have had over the year as well as any business expenses. These can be stored in a spreadsheet for ease of access and backed up to prevent data loss. If you keep these records up to date throughout the year, then when it comes down to file your tax return you are prepared and know exactly what your finances have been throughout the year. You can use something like Google Sheets to automatically tall various columns and sums together so that you have even less work to do. If you look on the Internet or through Microsoft Office, then you will be able to find templates for tracking and monitoring all your incomings and outgoings. This will be helpful in your daily life and not just when filing your tax forms.

Use Automatic Generation

There are a lot of free online calculator services available on the internet which can automatically do parts of your tax return for you. If you have employees, then one example is getting your W2 forms automatically completed. This needs to be sent to your employees each year, and it breaks down their annual wages and tax payments. If you have other people’s tax to worry about, then something like this can save you a lot of time. Plenty of these kinds of sites make the W2 form 2017 printable, so you do not need to worry about making it fit to a certain page size. There are other sites that can automatically tally up your income similar to what is done through a spreadsheet as mentioned above, but they can go into more detail and provide the exact information that you need. Doing a bit of research could end up saving you a lot of time.

Start Early

There is nothing worse than having a deadline loom over you and for you to not have enough time to complete your forms. If you start early, then you will not get into a situation where you need to rush through them in the last few days. This will help to prevent any mistakes and errors when submitting your tax return and it will make the entire process far less stressful. If you start early, then you can set aside an hour a week to work through it and by the time the deadline comes around you will have finished ages ago. Taking this approach is especially effective if you often struggle with understanding and remember what needs to be done when filing your tax. This is because it allows time to seek advice and work your way through all of the requirements. Starting early can save you a headache and make the entire process far less annoying.

Handling the 3 big Spenders in Life

Unless you are thinking big business and making major investments for tens of thousands on a weekly basis, chances are that the main big spendings in your life are going to be the same as most other people’s. No one wants a to have a budget wedding in a rundown venue with dirty drapes and a shortage of food and drinks. Everyone would prefer to have that moment remembered in their heads as a very ceremonious and special moment. Another thing no one really wants to cheap out on is a house. Getting a mortgage is something most people are going to go through at one point in their lives and when spending a large sum of money, a relatively small sum does not make that much difference. Then there is the one that is purely dependant on your personal needs and wants. a car. Nearly anyone can go and buy a car without much issue, but a lot of those people would rather get either a nice, comfortable, spacious car for the whole family. Alternatively a sleek modern sports car which is sure to turn heads. No matter which of these you are thinking of investing in first, chances are you will want to be money-wise, not letting your hard earned money go to waste for no reason. Let us look at some of the ways in which you can cut costs and not make silly typical mistakes on the 3 spenders.

The House

If you are the average joe, with a decently paying job but nothing out of the ordinary which would have you flying to Vegas every other week, you probably would like a house which does is nothing to scoff at, but it’s no villa in the Hollywood hills. Probably something cosy, relatively spacious with a good connection to the city. Even then, it will probably cost you more than a pretty penny. Now there is no need to hurry with this, presumably you will not be buying more than 1 house for yourself so let’s make this one count. Before actually laying down the cash or taking out that loan from somewhere like this personal lending site or a bank, you should be researching the trends in property prices. Be this in the city or town you live in, or somewhere else which would be a great place for your dream home. Paying attention to the prices of properties fluctuating gives you a great opportunity to buy at a moment where everything is considerably cheaper. This just opens the door to a better start from the get-go, putting you in a better position than most buyers in your situation.

Before buying, check out the house thoroughly. Make sure to pay attention to everything, don't fall for the usual tricks of the estate agent where they “only have time during the day”. Make sure to thoroughly explore the house during the day, and the night. See if the sun really does rise in front of your bedroom window, see if the house isn't dark and gloomy but well lit and spacious during the day. At night, see if nothing suddenly looks considerably worse. Do the ceilings not feel strangely low? Does the paint used for the walls not look discoloured when it is dark? If so, it may lead to extra fees from your side, repainting everything usually not only takes time but also drills a hole in your pocket due to the sheer amount of paint needed to cover everything. Calculate the real cost of buying the house, all the fees that come with the house might as well just be added onto the price tag in the first place. Carefully look over the walls, for any cracks, deformations or weird “bumps” which are often caused by moisture and damp air in the house. Damp spots on walls, in corners and wherever else are usually a big concern as they tend to house mould. Removing mould in itself is a huge order and cannot really be done through regular home means, needing the involvement of a third party and paid professionals. And yes, it is most definitely worth getting rid of mould, not only does it look unsightly, it also poses a plethora of health risks to you, your partner and potential future children. If you want to read more about things to keep in mind when buying a house, look no further than this comprehensive guide.

The start of the beginning of your new life

As aforementioned, no one wants to have a shoddy two-bit wedding where you are too ashamed of the venue to even invite guests to it. Another thing no one wants is to put all their life savings into the wedding alone. There are some smart ways to cut costs on a wedding without necessarily needing to lower its overall quality. When booking a venue, make sure to look how much the prices differ out of season. Hiring a venue is almost always considerably cheaper outside of summer, booking in advance also helps to lower the price-tag quite a bit. If you want to go through with hiring a photographer for the occasion, then consider hiring them only for crucial moments of rather than the whole day. Think about what you need and don't need from the leftovers, if you have an overabundant amount of tablecloths which you will probably never use afterwards, sell them online. Got some questionable presents which you know have literally no use and will just clutter up the house? Get rid of those too. This not only frees up space in your new house, but allows you to make back a decent chunk of the money with not much effort. Once again there are many other ways of going about this, there are some more listed here if you want to keep investigating.

Family transport or car of your dreams?

Cars are a common enough commodity in the world that there is almost an overabundance of chances to save on them. If you know where to look that is. There are lots of choices when it comes to savings accounts for cars, or loans and just about anything you can think of. Websites like Money Saving Experts, Money Supermarket or Which?, are a great starting point for seeing how much money you’re going to have to work with, or how much you are willing to get a loan for. This allows you to start looking within a more specific price range rather than at the overwhelming amount of cars on the market. Go for a car that fits your needs, are you after a car that is good for city use? Does it have to be very fuel efficient or Eco-friendly? Cars with better fuel consumption obviously save you more money in the long run and also tend to last longer. Petrol cars are also usually cheaper than diesel ones, much like manual cars being cheaper than automatic ones. The running trend being able to buy for cheaper during specific times carries over from the housing and wedding scenario. Try to avoid weekends near the start of the month as they are usually packed to the brim with people who just got paid and want to finally make the jump. Sellers often take advantage of that and bump up the prices a bit knowing it’s easier to convince very excited people to buy rather than calm and composed ones.

Cozy And Bespoke Affordable Home Options For Retirement

Going out to a certain part of the world when you’re booking a holiday is the joy of what relaxation is all about. You simply want to shed away all your fears and the troubles that life routinely plants at your feet, and just run away. Whats gathering steam these days are the holiday homes, especially around coastal parts of the world. No more so than in Europe because Greece, Spain and Italy are the kings of the Mediterranean. As such this craze had gone wild and many more people want the chance to live in a luxury home. However even if you’re staying just for a short while, the prices are always going to be up in the higher echelon of the bracket. So what could possibly be the more affordable alternatives to a personal retirement home, that would be perhaps more permanent as well? When you’re retiring, there are in fact quite a few options that can feel as if they are hidden gems.

Coastal cottage

Many coastal communities were born out of the industrial revolution. This was the time where seaports were the main way by which trade could leave and enter the country. As such small, warm and cosy cottages were built as a result, for families that had fathers and husbands that worked down at the docks and ports. A great alternative to a holiday mansion would be a far more affordable but just as enjoyable. The key when you’re retiring is to actually spend money on other things, that are not involved with your home. Such as holidays and cruises, food and travelling. No one really wants to be stuck at home, no matter how welcoming and comfortable it is. This is why a cheap and cheerful cottage by the coast is a brilliant option.

Custom built

The only way for retirees to design a home totally to their liking for a truly bespoke living space, and still have it be affordable is to look into mobile homes. The ability to choose which rooms are going to go where, and completely decide the interior design of your home, even before you get it delivered, can be what many choosy people want. It's also a bungalow so as you get older and the joints start to wear out, rather than putting in an expensive stair lift, the toilets and bedrooms will never be too far out of reach. As the prices for a full home are in the tens of thousands, it's perhaps one of the most affordable options which won’t take a giant chunk out of your savings. On the inside, it's just like a regular home, with proper high-quality building standards adhered to giving the home a rock-steady feel.

Choosing a home that is affordable and still providing enough space to make life in retirement enjoyable, is often a decision so many people leave too late. Living in a big house where perhaps you raised children, can seem too large and hollow as you grow older. Suddenly these two options will start to look refreshing and cosy.

Why Aren't You Rich Yet?

Whether you’re a business owner or simply somebody who is attempting to build personal wealth, you might be wondering why you’re not taking papery baths in tubs full of the green stuff yet. There are a few reasons this could be, which we will discuss in this post. Perhaps your mindset isn’t in the right place, or you’re making some fatal mistake that you don’t realize just yet. 

Read on if you want to know why you aren’t rich yet:

Your Mindset And Attitude Don’t Match Up

If you want to be rich, your attitude and mindset really need to match up with that. Would a rich person walk around talking about how rubbish their financial state is, and how badly they are struggling? No, they wouldn’t. This doesn’t mean you should ignore what’s really going on. It simply means you need to stop wallowing in it. Talking about it and really sinking into that depressing ‘broke’ feeling will only make things worse. 

Change your attitude to that of a ‘can-do’ and you’ll get far more done, helping you to overcome the obstacles in your way to getting rich. There are all kinds of books that back this up, such as Think And Grow Rich by Napoleon Hill, and Rich Dad Poor Dad.

You’re Wasting Time

Perhaps you’re wasting time in some way. You know what you’re good at, so you should be doing that. If you’re wasting time struggling through your accounts, then hire somebody else to do it. Not only will you be able to spend more time doing what you’re good at, you’ll minimize mistakes first time round. Not to mention, mistakes can be seriously costly. If you don’t want to hire a person, there are even programs that can do these things for you, such as accounts receivable software. When you automate and outsource these processes, you will spend more money initially, but in the long run you’ll be doing yourself a huge favor.

You’re Wasting Money 

Perhaps you’re wasting money. If you don’t have a budget, it’s almost certain you’re wasting money. If you're not working on where you can cut costs, you’re wasting money. Take a long hard look at where your money is going and figure out where you can cut back. The key to becoming rich is building wealth. You only build wealth by spending less and being sensible with your cash, not by spending as much as possible on fancy cars and gadgets. You may look rich to others this way, but you’ll be spending a whole lot of money on something that doesn’t actually serve you any more than a regular car!

You’re Not Diversifying 

One thing many wealthy people will tell you, is that you need to diversify. Make cash through different streams and you will eventually build wealth. If you can find ways to make cash while you sleep, that’s even better. What can you invest in? How can you make passive income? Attempt to diversify as much as possible!

Becoming rich takes time, but if you use these tips, you’ll get there!