Wizley Blog

As the name suggests, an emergency fund is a fund that you build for yourself that will help you in time of an emergency . One of the most crucial components of financial planning is planning for risk, precisely what an emergency fund is for. The recent Covid-19 pandemic has made many us realise the importance of maintaining such a fund. Why Do You Need an Emergency Fund? An emergency fund comes in handy in situations like a job loss, an accident, theft etc. While we take all necessary precautions to avoid such cases, we must also prepare ourselves for such situations. Financial institutions or banks do not offer an investment option called an emergency fund. People have to save and invest their money in a separate account and treat it as an emergency fund. This means that you should commit to yourself that you will only use this money in case of an emergency. What you consider an emergency is totally up to you. An emergency fund is money that you save for yourself to use in ti

Ever wondered how the stock market functions? It is not always the company performance, global scenarios, or for that matter a simple demand-supply that impacts the trend in the market, one of the biggest factors are psychological influences, biases, and sentiments of investors and practitioners which is termed as Behavioral finance. What is the Meaning of Behavioral Finance? Behavioral Finance is about the study of how psychology and beliefs affect the decision making of investors and Financial Analysts. Investors and financial analysts both are major influencing factors when it comes to setting a trend in financial markets. Behavioral finance also explains how influences and biases or any sentiment can lead to market irregularities especially in the stock market which can lead to severe rise and fall in stock prices. Example: How the news of a potential COVID 19 vaccine developed by “Glen mark Pharmaceuticals in the name of Fabiflu” led to a tremendous surge i

  A basic understanding of financial concepts and personal finance is essential to manage your money well. Whether you are paying your bills or doing your taxes or saving for a home, financial literacy will help you make better decisions at every step of your financial journey.   Money management is an important skill that will benefit you throughout your life so it is important that you understand the basics of personal finance and gradually build your knowledge from there. In this chapter, we will aim to understand the basics of personal finance along with its different elements and know some of the principles of personal finance. What is Personal Finance? Personal finance is the process of planning, organizing and managing money in one’s life. Personal finance includes savings, budgeting, investing, credit management, insurance, retirement and tax planning. The primary aim of personal finance is to help you reach your financial goals, both short-term (buying a car, or a gadget) and

  We all have seen a million reactions when the bill hits the table after a long lazy meal with friends. The time taken to get the wallets out differs, there is never a consensus on the mode of payment, 1 wise guy indicating the contribution figure while the other is snatching the bill screaming he will pay it off! Ever wondered that even when you all are in the same age bracket and maybe earn around the same yet, why the way you handle money is so different? Why is one always prompt in payments while the other nose deep in debt? So what exactly defines these behaviour patterns and attitudes? Let’s first understand what we mean when we say financial behaviour and financial attitude. Financial attitude  is a state of mind of a person about finances which is generally a resultant of his background and environment. Financial behaviour  concerns with a humans action with respect to money management. We can say that both are closely related and part of the same family. The first affecting t

You have a magic number, each one of you. You may have heard of it. Maybe, checked it too. But do you really understand the magic behind Credit Score. We will break it down for you answering every question you ever had. What is Credit Score? Credit Score: It is a measure of your ability to return any loan or credit.In other words, a credit score is intended to measure your credit-worthiness. It is a three-digit number ranging between 300-900, 900 being the highest. Which means something between 700-900 is a very good credit score. Where to Find Your Credit Score? The Credit Information Companies calculate the credit scores for anyone eligible. There are four credit score agencies in India, that will calculate your credit score - CIBIL TransUnion, Experian, Equifax, and High Mark. You can either make an inquiry directly from these companies, or from any financial organization, for free. You can check your Credit Score for free here. You can also visit Bajaj Finserv, HDFC Bank, P

  ‘‘Banking’’ in simple terms   can be defined as ‘‘the business of banking,’’ a vibrant business that continually evolves to meet the latest financial needs and economic conditions. What is a Bank? A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers that have capital deficits to customers with capital surpluses. While banks play a critical role in financial intermediation and in the creation of money, banking’s primary focus is the satisfaction of customers’ financial needs. Banking services satisfy financial needs such as: Earning a return on idle funds Borrowing money to achieve goals Preventing losses Managing money conveniently and efficiently Now that we’re clear on banking and it’s main functions, let’s look at some of the basic banking concepts and terminologies. Automated Teller Machine (ATM) ATM is an electronic banking ou

  In this chapter, let’s talk about GST and what it means. India is notorious for its complex tax systems. This problem gets even more aggravated when constant changes are made to taxes with each financial year. But things changed with the new Goods and Services Tax, commonly known as GST, implemented in the Goods and Services Act, 2017.   Features of GST GST is a consumption-based tax which is levied on sale, manufacture and consumption of goods and services at a national level. The tax system takes the form of dual GST which is concurrently levied by the Central and State government. This will comprise of Central GST (CGST), State GST (SGST) and Integrated GST (IGST). In the case of intra-state transactions, the seller collects both CGST and SGST from the buyer. In the case of inter-state transactions, IGST is levied, which will be collected by the central government. The below chart depicts the GST rates for different goods: Example of GST Mr. A has his soap business in Mumbai. He s

  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 (ELSS) mutu

  It is time to pat yourself on the back. When it comes to personal finance, people beat themselves up whenever they fall short of perfection. There are no financial advisory blogs or professionals that will stop you from having your occasional Starbucks coffee still; the reality is the all-or-nothing approach to money is counterproductive at worst. If you’ve experienced a recent setback or are struggling to make meaningful progress towards your goals, giving yourself credit for what you are doing right motivates you to keep going further with it. Here are 15 signs that you’re better at managing your money than you think: 1. You Are Prepared for a Financial Emergency Only 40% of Indians can afford a $500 emergency. If you achieve this, you’re less likely to rely on credit cards. Always keep a starter emergency fund of $1,000 at all times can provide you with a safety debt as you look for alternatives. 2. No Alterations in Savings This shows that your income is stable and sufficient to

  It is time to pat yourself on the back. When it comes to personal finance, people beat themselves up whenever they fall short of perfection. There are no financial advisory blogs or professionals that will stop you from having your occasional Starbucks coffee still; the reality is the all-or-nothing approach to money is counterproductive at worst. If you’ve experienced a recent setback or are struggling to make meaningful progress towards your goals, giving yourself credit for what you are doing right motivates you to keep going further with it. Here are 15 signs that you’re better at managing your money than you think: 1. You Are Prepared for a Financial Emergency Only 40% of Indians can afford a $500 emergency. If you achieve this, you’re less likely to rely on credit cards. Always keep a starter emergency fund of $1,000 at all times can provide you with a safety debt as you look for alternatives. 2. No Alterations in Savings This shows that your income is stable and sufficient to