Wizley Blog

Pat yourself if you are here and reading this blog. We love that you are really committed towards making a budget and tracking your expenses. If you are still unsure about how making a budget can help you, then check out our blog: Why Is Budgeting Important? 5 Key Benefits If you want a free budget and expense tracking tool, then signup on our app right now: Let us now look at five budgeting hacks that you cannot go wrong with: Always Save Before You Spend - The 50/30/20 rule is an easy budgeting method that can help you to manage your money effectively, the rule is to divide your salary into three categories - 50% for needs, 30% for wants, and 20% for savings, or paying off debt. With just these three categories in hand, you’ll save yourself the time and stress of digging into the details every time you spend. Sticking to the 50/30/20 rule will make it easier to stay on track and reach your financial goals. Avoid Debts - If you start keeping track of how much money o...

How well a person manages their performance does not judge money during good times, but by their performance during difficult times. The crisis that the world is fighting today shows us exactly why it is so important to have an emergency fund and save money for uncertain times. Many major economies are under economic stress, while the health situation is still not clearly under control. We are witnessing significant shifts in government policies and consumer trends throughout the world to withstand this crisis best. With the world adapting so quickly to the pandemic, let us look at some tips to help us adjust the management of our finances during the epidemic. Save Money From Salary Saving money for an emergency fund and keeping a check on unnecessary expenses is one of the first steps to take during uncertain times like these. We are all aware of the economic stress that most economies and companies are in these times, and it is better to be prepared just in case the ...

Investing in the stock market is one of the best ways to build your wealth over time, but with some advantages come risks, which one has to take care of before investing in the stock market. Nowadays, investing is much easier as compared to the old times. Earlier, one had to work with the brokers charging hefty commissions and still not have the best interest in mind. Today, anyone can start investing with a small amount of money on the Internet, which consumes Wealth Investing Information and Advice for new investors to help them understand the basics of the market and make them undergo each investment’s risk factors in the process. Many people think of investing in the stock market as a cash pool or casino with quick-access to cash without any risks. One can invest in multiple options, doubling their investments in less time, but they are equally risky. One should always use time-tested techniques to grow their wealth over the years. Let’s take you to how you can build yo...

Building good credit is essential to your long-term financial health. But building your credit health from scratch can be a bit of a Catch-22 situation since you need to have a credit card or a loan in order to build a credit history, but it’s hard to get an approval on a new card or loan without an established credit history. While you can’t get an excellent credit score overnight, you can work on systematically building your credit and the process might take 1-2 years, depending on your credit and payment history. When you need to apply for a credit card account or a loan, the credit card company or lender will check your credit report and credit score to get an understanding of how you've managed credit in the past. If you have a long history of effectively managing credit and making your EMI payments on time, you're likely to have a good credit score and will be more likely to be preferred by the lender or financial institution with favourable terms and rates. ...

  If you are a salaried employee, then you are definitely asked to submit proof of investments made over the year to adjust tax deducted at source (TDS). The last date to submit evidence of assets varies across employers. It is generally required to be submitted between January and March. If you don’t offer these documents, your employer will deduct more TDS from your salary. Consequently, it will not appear in your Form 16, but you can still save and get a refund from the ITR in such cases. Following are the exemptions and deductions that one can claim if one missed the deadline for submitting the proof of investments: Claim HRA Exemption You don’t have to worry if you have not submitted rent receipts to your employer. You can still claim a house rent allowance (HRA) when filing your income tax returns and adjust the taxable portion of your HRA. You just need to have rent receipts and PAN of the house owner if your rent exceeds Rs 1 lakh. Claim Deductions Under Section 80C With No...

What is Opportunity Cost? Have you ever faced life’s most difficult dilemma? What to buy and what to let go? You know the struggle - order take away or save for a wardrobe change. Or worry for more long term problems like credit card debt or student loan EMI. Don’t worry, we totally get it. Prioritizing expenses can be hard, but when done right, it can be beneficial in the long run. Opportunity Cost meaning -  O pportunity cost is the price of the next best thing you could have done had you not made your first choice. To figure out where to spend is an important decision. We all use an economic theory, without realising it, known as the ‘opportunity cost’. Have you ever found yourself debating ‘Whether I should spend on x or go for y?’ If you spend money on x, then opportunity cost is y, which you had to forego. Let’s take a look at a few opportunity cost examples. Watch a movie in a multiplex, or have a meal at a restaurant. Take a vacation, or save money to invest...

  Ayush and Rohan were good friends in college. Ayush used to be careful with his spendings, while Rohan was a lavish spender. After college, they both got a job. Ayush got an Rs. 10 lakh package while Rohan got an Rs.12 lakh/annum box. Ayush being a financially wise person, started saving Rs.20,000/month, while Rohan only saved Rs. 5000/month. While it looked like Rohan was a wealthier person and would lead a lavish life, the reality turned out to be different. Ten years later, while Ayush had over Rs. 46 Lakhs in savings, Rohan had only Rs. 11 lakh 60 thousand. Ayush could afford to invest in a business, pay for his child's education or make a big-ticket purchase, while Rohan still had to depend on his income to pay for every expense. Ayush had enough savings to help him feel financially secure in a difficult time while Rohan always worried about maintaining his income to maintain his current lifestyle. One of the most influential financial books of all time ‘The Richest Man in B...

The festival of Diwali is here, and some of us might be looking forward to a Diwali Bonus. At the same time, it might be tempting to spend all the bonus on impulse purchases or a few Diwali parties; however, a financially wise decision in moments like these can go a long way in taking you closer to your financial goals. Let us look at some ways you can spend your Diwali bonus for the best deal. Build an Emergency Fund  – This is the first fund you should focus on if you are a salaried employee and have family responsibilities. Your emergency fund should ideally have at least six months of your income. You should park your money for the emergency fund in liquid and safe instruments like FD or RD. A Diwali bonus could be an excellent way to start building this fund. Get Insurance  – If you do not have health or medical insurance, then this is the fund that you should save to pay the premiums for the insurance cover you choose. The Covid-19 pandemic has made many of us realize th...

Mutual funds offer different types of investment solutions to suit every investor’s needs and risk appetites. Wizely has partnered with ICICI Prudential Mutual Fund to bring to you a video series on ‘Understanding Mutual Funds’. This series will answer all your questions on mutual funds and help you make well-informed investments decisions. Types of Mutual Funds Mutual funds can be broadly classified under two categories: Based on the scheme structure Based on the asset class in which the scheme invests Based on the Scheme Structure There are two types of schemes based on structure : Open Ended Schemes are open for investments on an ongoing basis i.e. they can be bought or sold continuously. Close Ended Schemes have a lock in period which may vary from one to five years depending on the objective of the scheme. Based on Asset Class Based on asset class, mutual funds can be sub-categorised into various types of schemes which can be either open ended or close ended. Equity Schemes are su...

  Saving, as a habit , has been a part of the human psyche since Stone Age. Even when surviving in caves, humans had the basic understanding to store or save their resources and utilise them in need. But all this while, we were never taught how our resources would or in today’s age, money will grow with time. The money that you invest fetches you additional monetary returns as years pass. But there are several factors to be considered before and after investing your money. Evaluation of Investment Products There is always going to be a certain level of uncertainty that affects the ultimate outcome of any investment. That is something we cannot control. But we can control the quality of our investment decisions. Below are some factors to be considered while evaluating your investment products: Investment Period   –It is important to understand the time period of investments. There are many investment products which have a lock-in period. For e.g.: Equity Linked Saving Scheme (E...

The festive season is here, and we could not be more excited. The pandemic has forced people to stay indoors for way too long, and people do not want to miss this opportunity to enjoy their hearts out. Festival season, however, comes with its own set of expenses. The rituals, the parties, and the outings can easily disturb your months old budget in just a few weeks. It is essential to understand one's needs and spending habits and find a balance between the two. It is possible to save money while spending on all our wants only if we do some essential pre-planning. Also read: 6 Ways to Stop Yourself From Impulse Shopping Most companies manage to pay their employees some Diwali bonus each year. This money should not be treated any differently from how you treat your salary. You must divide it into categories and spend it wisely. While the way you divide your expenses is your discretion, you could follow this simple rule: You could allocate 20% of the amount to Diwali spe...

  Making and managing a household budget is an important part of your financial planning. This means that everything - from your rent to utilities - needs to be budgeted and accounted for. We know there might be certain expenses that slide through the cracks but the key is to minimize such expenses and make a smart household budget that can cater to all your needs. So here are a few simple yet effective ways of how you can manage your household budget. 1. Set a Realistic Budget It is easy to get carried away while you are budgeting for your household but the key is to   set a realistic budget.   Split your expenses into categories such as rent, utilities, bills, grocery, entertainment etc. and set aside money as per your spending histories. You must always aim to look for areas in which you can cut costs and increase your savings. 2. Ensure Your Family is Onboard If you are staying with your partner or your family, it is essential that everyone is on the same page with th...