Wizley Blog

  ‘ All humans are motivated to seek pleasure and avoid pain, seek social acceptance, and avoid rejection ‘ – this line from the book ‘Hooked’ by Nir Eyal explains a lot about consumer psychology. Companies are building products that people want to buy because other people are buying it. When a product becomes a topic of free discussion, and its use starts to get associated with social status, people begin to convince themselves that it is a necessity when it’s not. The success story of online subscriptions for almost everything is based on a similar foundation. Let us look at some of the reasons why it is difficult to stop wasting money on unnecessary subscriptions and how you can  save up  instead. FOMO Fear of missing out has always been a driving force behind much unnecessary expenditure. When Netflix is about to launch the next episode of the show that everyone in your group loves, naturally you want to watch it first and have a discussion about it. It is just that c...

Reading and talking about personal finance is the easy part but making financial decisions in your daily life can be quite overwhelming. But the good news is that with the right knowledge and guidance you can take small and effective steps towards making smart financial decisions. In this chapter, we will explore the different ways of making decisions and the various steps that you can take to make well informed financial decisions. How to Make Better Financial Decisions According to the Nobel laureate and economist, Daniel Kahneman, people often follow one of the two ways of decision making: either they make fast, instinctive and emotional decisions or slow, deliberate and logical decisions. Based on your need, you might choose different approaches for different financial and life decisions. But experts often advise to be rational and exercise caution while making important financial decisions that may have a significant impact on your life. So what can you do to make ...

If you have recently started working and have no clue about how the whole taxing system works, there are a few things that you must know. If you’re wondering how to reduce taxable income, there are a number of deductions available under various sections. In this blog, let’s explore deductions under section 80C and 80D. 80C investments are the most common deductions. It’s one of the best ways to save tax. The maximum limit under this deduction is Rs.1,50,000 per annum. The instruments that let you avail 80C deductions are as follows. PPF (Public Pension Fund) PPF is a long-term investment with a lock-in of 15 years. The return on PPF is determined by the government and is currently in the range of 7-8% annually. An individual can invest any amount in PPF but will be eligible for tax benefits of up to Rs 1.5 Lakh only. Also, the interest earned on the amount at the end of the term is tax-free. Life Insurance Premiums If you are paying a premium for yourself and your depende...

  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 in a hou...

  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:  Download Wizely 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 keepi...

  Credit cards can be a great asset when used responsibly. But if you are new to using credit cards or have been using one without knowing what a bunch of words on your statement means, you could be in for some unpleasant surprises. If you want to make the most out of your credit card, it's essential to know the lingo. Building your credit card vocabulary not only makes you an informed consumer, but also allows you to maximise the value you get out of every credit card you'll ever own. Here are some credit card terms and their definitions, so you can better understand how your card works and avoid any financial traps. 1. Annual Maintenance Charge This is popularly known as ‘annual fee’ and is not really a ‘hidden’ charge. The annual fee is charged once in a year and the amount varies card to card. Sometimes, banks offer free credit cards which means that there will be no joining fee or annual fee on the card for a certain time period or for a lifetime. 2. APR (Annual Percentage...

  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 fir...