Wizley Blog

 The coronavirus pandemic has thrown the world into a state of crisis and naturally, we all are trying to trim down our expenses and save up as much as possible to survive these times. While it is natural to feel anxious about finances during such a crisis, thankfully staying at home has its own benefits too. Working from home and cooking at home means that you are neither spending on petrol or diesel nor on dining out. In addition to these, here are some more ways that can help you stay on track during such trying times. Strategies to Save Money During the COVID-19 Crisis Lower Your Insurance Premium Payments If you have a life or a car insurance premium that needs to be paid between April or May, then check if there’s a way for you to defer the payment by a month or so. Try to contact your insurance provider and check what options can they help you out with. It can take off some burden from your current month’s budget. Plan Your Meals & Visits to the Groc...

 Are you a little worked up about the potential economic slowdown? With all the news circulating around this, you are certainly not alone. On the flip side, it’s in these times, where you actually wake up and take an honest look at where your money is going and how you are investing it. So don’t panic, and instead, see this as a reminder to take stock of your finances. Read on to find 6 things you can do to make sure your finances are in place and you’re fully prepared to tackle these economic changes. Watch Your Expenses At this time, it is not just crucial to keep a close track of your expenses, but it’s something you must do. If you have a handle over budgeting, then you won’t find this difficult at all! Once you have a clear understanding of where your money goes, you’ll be able to make more insightful changes. Often times when you look closely at your expenses, you’ll realize that it’s the small expenses that are adding up and hitting you hard. Perhaps it’s time t...

 Learning to make a budget is the first step in any financial journey. Whether we like it or not, we are all part of a complex economic system. We live in it and interact with it every single day of our lives. In such an environment, if one wants to grow, it is crucial to understand how this system works and what are the best tools that one can use to navigate this system smoothly. One such tool is a budget planner. But what is a budget? How do we create a budget? In this blog, we are going to cover these questions. Consider it a beginner's guide on how to start creating a budget from scratch. There are a lot of budgeting tools and budget planners available on the internet. Some of these are complicated and could make budgeting seem difficult, but if one understands what a budget is and the essential components that a reasonable budget should cover, a pen and paper are all you would need to create an easy budget that works well. So let us get right into it. What is...

 When you retire, your salary stops, but your expenses don't. Ensuring your daily expenses are taken care of and that your lifestyle is maintained as before, a good retirement corpus is necessary. This is where the Employee Provident Fund comes to the rescue. The Employee Provident Fund (EPF) helps people save up sufficient for their retirement. It was introduced with the Employees' Provident Funds Act in 1952 & managed by the Employees' Provident Fund Organisation. An employer's contribution towards the employee's EPF account is 12% of the salary (basic plus salary dearness allowance retaining allowance). The EPF is regarded as a low-risk investment as Government of India manages it and assures a fixed rate of return. The employee also has the choice to contribute more to his/her EPF account. There is no such prescribed value to which employees can contribute towards EPF as per the law. The contribution over the mandated 12% goes towards the Volunt...

You know that thing you start using when your dad stops giving you pocket money? Yup, today we’re talking all about credit cards. First, let’s start with the basics. What is a Credit Card? A credit card allows you to borrow money from a bank to make purchases - whether it’s dining at your favourite restaurant or booking an international trip. The bank gives you a credit limit based on your monthly income, to make sure you’ll be able to repay the borrowed money on time. Credit limit enhancement can be requested and depends on various factors, like your credit history, credit score and income. Smart use of credit cards is a necessary habit to cultivate for your credit and financial health. Using a credit card irresponsibly can lead to endless credit card debt traps. Therefore, being aware how to use this tool efficiently is crucial. So let’s deep dive into some of the pros and cons to consider before incorporating credit cards into your financial plan. #1 - It he...

 Taking a decision to start your investment journey is a big one and we want to make sure that you are well prepared for it. Investments are a part of your financial wellness journey, but not the beginning. So before you take the plunge into the world of stocks, bonds and portfolios, consider the following things. Things to Consider Before You Start Investing The Budget Check Do you make and follow a monthly budget? Do you have clarity on your fixed and discretionary expenses every month? Tracking your monthly budget closely can help you determine how financially fit you are. Are you spending on the right things or do you need to trim certain expenses? Your saving and spending habits will help you plan better for your long-term and short-term goals and accordingly, prioritize your investments. The Debt Check Are you currently in debt? Do you have loans that you still need to pay off? It won’t help your financial situation if you begin investing your money without clearing ...

 The more you have, the more you need. The less you have, the more you need. The truth is, we are often never happy with what we have. Somewhere, we are left feeling like we need more. Think about it - Even when you have a wardrobe full of clothes, you still feel like you’ve nothing to wear. Or when you purchase a new gadget, a year later you want an upgrade to the latest model. Even when you’ve just come back from a beautiful trip to Goa and you see a social media post of a friend who’s enjoying a cocktail in the Maldives, you automatically feel like your trip wasn’t good enough. Let’s face it - any materialistic need never quenches our thirst for wanting more. And the foundation of any materialistic need is money. When I talk about money, there is an analogy that comes to mind. Imagine that our desires are like seeds and money is like water. To nurture that seed, you need to keep watering. And as you see one seed beautifully grow, you sow more see...

 Financial planning is essential. Most of us spend the most critical years of our life working for money but do not even spend some time managing it well to work for us. Retirement planning can add a much-needed sense of financial security in our lives, and it is essential to work on it from time to time. Working on your personal finance to plan and achieve your financial goals is something you should put on your monthly calendar. Let us look at ten tips that you can use for a financial cleanse. Track Your Expenses - Keeping track of your expenses is the first step you should take on your finance journey. You can only manage your money if you know where it’s going. You can use the wizely app to track and analyze your expenses efficiently. Review Your Budget - Once you get in control of your finances, it is now time to budget for the future. Decide how much you wish to save each month and put that money aside as soon as your salary arrives. Plan clearly how much y...

 Fixed deposits (FDs) are a favourite investment tool for many people. With its no-risk factor and a guaranteed return, individuals prefer fixed deposits for the short-term solution. Over the past few years, interest rates on fixed deposits have decreased; and individuals are looking for other options to hold their money and maximize their wealth. This is where mutual funds are taken into consideration. Liquid fund is a popular category of mutual funds, which offers a better return than fixed deposits. These are handled by professional fund managers who work to diversify your portfolio and reduce risk. They invest in equity and debt to consistently choose funds that are performing well. Read more: Explained: What Are Liquid Mutual Funds? Liquid Funds Vs Fixed Deposits A brief comparison of both liquid funds and mutual funds will allow investors to make the right choice. Here are some of the many factors that may help you in your decision making: Risk Factor Funds A...

 Keeping your debt at a manageable level is one of the foundations of good financial health. But how can you tell when your debt is starting to get out of control? Fortunately, there’s a way to estimate if you have too much debt without waiting until you realize you can’t afford your monthly payments or your credit score starts slipping. What is Debt-to-Income Ratio? Debt-to-income (DTI) ratio is a measure of your ability to make your loan payments every month. It’s a snapshot that shows how much debt you carry relative to your income on a monthly basis. When you apply for a loan, most lenders will evaluate your DTI ratio when deciding whether to extend you a loan. Deciding upon your “creditworthiness” is a matter of predicting future behaviour. Since recent past behaviour is the best predictor of future behaviour, lenders will look at your current and recent debt and income behaviours in order to predict how you will repay your future obligations to them. How to C...

The festive season is here, and we are all buckled up to get on our shopping spree. From clothes to gadgets to home decoration products, we all have a long list of things we want to purchase and have been waiting for all year long. The month of November is full of sales and offers from Myntra, Amazon, and Flipkart. There are some things that you should keep in mind to get the best deals during these offers. Let’s find out what those are. The Right Debit/Credit Card - Most e-commerce websites have tie-ups with some specific bank/ credit card company. If you use their menu, you can often get an additional 5% discount. Always be on the lookout for such offers and choose the card that you pay with wisely. You might even want to share the company's cards you have with your friends and ask them about it. This way, you can mutually benefit whenever someone gets an offer from a menu that someone else has. Expand the 'More Offers' Section - Below the product description...

 It’s that time of the year again! With the financial year around the corner, all of us have started planning our tax savings. Saving taxes can be a complicated process, if not planned in advance. If you feel you are paying too much tax, then the good news is that, with the help of some tax planning tips, you can make a remarkable difference to the tax amount you pay. After all, saving money is as important as earning, and that is achievable through proper tax planning. Keep a Check on Your Salary Slip You need to pay an Income Tax on your basic pay. Your HRA is exempt from taxes. However, the HRA exemption is only applicable if you are living in a rented house and paying a monthly rent. Make Optimum Use of Section 80C Having a more in-depth look at Section 80C can help you maximise your takeaway salary. You can invest up to INR 1.5 lac in various tax-saving instruments. If you’re trying to figure out where you need to invest to maximize your deduction under Section 80C, t...

 We all have been often charmed by the magical figure called the ‘credit score’. Even if we aren’t sure of why or how, a high credit score gets a solid nod of approval from us. And not just that, we feel great about our financial health because we have a high credit score. Now, just to be clear, it isn’t unnatural to feel good about having a good credit score. A credit score is a measure of your ability to return any loan or credit. So a good credit score can help you get more loans, more credit cards, increased credit limit etc. But all these are just an aspect of your spending and repaying capabilities, not your entire financial health. So, the fact is that your credit score is not a measure of your overall financial wellness. Let’s try to understand it. What Your Credit Score Measures 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 ...

 The much awaited Amazon Great Indian Festival and Flipkart Big Billion Days sales have been on and we are all too excited shopping for our favourite products. E-commerce has changed shopping experience in unimaginable ways. The tech giants have become so influential that customers now postpone their purchases awaiting the Amazon Diwali sale each year. Have you also been postponing your Diwali purchases to get best deals during these online shopping sales? If yes, then let us look at 8 quick tips that you can use to find the best deals shopping online. Use the Right Credit/Debit Card - Both these websites offer different additional discounts on using a particular credit/debit card. If you have the given card then you should keep it handy while making the purchase. Even if you do not have that particular card, it would make sense to ask for it from your friend if the discount is close to 5%. You can easily Google Pay him the amount for no cost. Read Product Description Care...

 Congratulations on coming so far in understanding the basics of financial wellness. If you are still not comfortable with the idea of economic health, check out our blog here. In this blog, we will discuss five reasons you need to build an emergency fund. If you are unaware of what an emergency fund is and how you can create one check out our blog on the same here. What Is an Emergency Fund and Why It Matters? So let us begin: Five Reasons Why You Should Make an Emergency Fund Stability of Income - If you are a working employee, then the risk of a job loss should always be considered. Even if you work at a stable company and have a secure position, you must not take lightly external risks that might affect your job security. The recent Covid-19 pandemic has shown how suddenly things can change in the jobs markets. Even if you are self-employed or own a business, the risk of income instability and a business loss is always there. It is wise to have an emergency...

For some of us, money slips right through our fingers the moment we have access to it. For others, we are all about saving. But we tend to save in different ways. Whether a habitual saver, or a short-term saver or even a part-time saver – what’s your saving pattern like? In this blog, we present to you the four kinds of savers who we’ve seen! The Fanatical Saver Saving is in this person’s blood. Before he/she spends on anything, they save a sizeable chunk of their income. This saver derives genuine pleasure from checking his nest egg and watching his savings grow manifold. Self-discipline and a can-do attitude drive this sort of person. The Inconsistent Saver A pinch here and a dash there! Saving is about consistency but this eludes the inconsistent saver. They have a haphazard approach to saving. In fact, saving once in a few months is the way forward for this type of saver. The Forced Saver Saving is not really the preferred option but when credit options are limited and...

 It’s December again, and we are all probably planning all the good things that we are going to start doing from the next year. While plans like exercising, waking up early, or reading a book each month are all pretty standard, there is a new kind of detox that you can try this year. A financial detox. Much like many parts of our lives, our finances can also get messy sometimes. Financial planning is not something that most people do in routine. Money management is one of the many good habits that one should work on. Let us learn what a financial detox is and how we can take one before this new year. Financial detox is taking some time out to get rid of your unhealthy financial habits and streamlining all your financial documents and practices. Have you been tracking your expenses well? Did you check your credit score this year? Do you have all your bank papers complete and up to date? Have you been saving regularly? If the answer to most of these is no, you ne...

 Kudos on having reached so far. We hope by now, you understand what are saving goals. Suppose you are still not entirely sure of the concept of goal-based savings, then do check out our blog on the same here. What are Goal-Based Savings? If you are looking for some tips to help you get started with savings then read our blog on '10 Simple Savings Hacks to Inspire You to Save'. You are a goal-getter, and you know it! With consistency and the right approach, you can reach your goals in no time. Give yourself time and decide the category your goals comes in, whether it’s a short term, mid-term or a long term goal. Identifying it is the first step to save for your future. So, How to Make a Savings Plan on Wizely? Creating a saving plan shouldn’t be just for significant expenses. It could be anything a phone, your wedding or a house - you can save for all these goals on Wizely. Follow the steps below to create a savings plan with Wizely: Go to the ‘...

 Today, we are super excited to begin rolling out Financial Recommendations 🌱 & SmartTips⚡️. Over the past few months we’ve come to realize through our conversations with you that getting started with your finances can be really confusing. You hear so many different opinions & you see so many advertisements for products & services you may not even understand how to use. Some of your friends tell you to invest in the stock market, others tell you they are taking a loan to travel and your roommate just bought a new smartphone on EMI. Each of you are at different stages in your financial life & each one of you has your own unique life situations to deal with. That’s why, the financial decisions that work for your friends do not always work for you. We thought about this for a while & decided that we wanted to do something to help you prioritize the right financial decisions based on your own finances. Now with Wizely, by answering a few simple que...

When we invest our money, we look for investment opportunities which can help us generate wealth, get regular returns and/or save taxes. While there are numerous investment schemes available in the market, most of them offer returns which are taxed according to the Income Tax rules. This is where ELSS funds step in. Let’s look at some commonly asked questions about ELSS investments. What are ELSS Investments? ELSS or Equity Linked Savings Schemes are Mutual fund investment schemes that help you save income tax. That’s why they are also known as tax-saving funds. Other than deduction benefits and the lock-in period, an ELSS is quite the same as a diversified equity fund. It invests in equity shares of companies across sectors and market capitalisations. The Income Tax Act, under section 80C, allows taxpayers to invest up to Rs.1.5 lakh in specific securities and claim it as a deduction from their taxable income. While there are numerous investment instruments availa...

 Being 'financially literate' means knowing how to manage your money, but what does it mean when we say how to manage your money? This means learning how to pay your bills, borrow and save money responsibly, and how to invest and plan for retirement. It is a life skill that one must grasp for good financial wellbeing. Putting time into your economic development will improve your saving and investing decisions and establish a good habit—you can build a long-lasting nest egg. What is Financial Literacy? The skill and ability to understand one’s money and effectively using it is called 'Financial Literacy'. It’s a skill that one learns on their own and can benefit you for the rest of your life, with uncountable bills each month and daily cash flow on little expenses and continuously thinking about saving & investing is daunting. Financial literacy teaches an individual how to make major financial decisions. With increased financial discipline and capabilit...