The one thing that most people aspire to do is being able to own their own home. It’s on nearly every individual’s bucket list, and not a single day goes by without people thinking about the kind of space they’d like to call their own. The increasing cost of real estate has forced individuals to opt for a home loan to be able to afford their dream home. While applying for a loan isn’t too difficult, what most individuals struggle with is figuring out the kind of EMIs they’d need to pay every month to pay off the loan. This is where a home loan calculator comes into the picture.

Image Source – MoneyControl

A home loan calculator helps you assess the Equated Monthly Instalments [EMIs] that need to be paid to the lending company each month until the loan is fully repaid. This EMI amount is calculated on the basis of the home loan amount, interest rate and tenure.

Before we show you how they work, here below are ten important things to know about them:

  1. A home loan EMI calculator is an easy-to-use tool that allows you to instantly get an estimate of your EMIs.
  2. The formula used for this is:

EMI = [P . R . (1+R) ^n] / [(1+R)^ n-1]

Where, P denotes principle amount, R indicates the rate of  interest charged every month, and N is the tenure of the home loan.

  1. The EMI calculator also helps calculate your loan eligibility, and lets you know how much finance you can apply for as your loan amount.
  2. Besides providing some personal details, you will need to feed in a few standard details such as the property value, the amount you wish to avail, and the repayment period.
  3. You can find these calculators on the websites of all financial institutions and banks.
  4. Advanced EMI calculators also consider local and state taxes, insurance, and your running loan EMI, if any.
  5. Typically, all the information that needs to be entered in the calculator can be easily found in the loan agreement details.
  6. The calculator also shows you your amortization schedule. This includes your monthly EMI with a break-up of the principal amount paid out and the interest attached. Further, the schedule indicates what the outstanding balance will be after paying each month’s EMI.
  7. Usually, an EMI is calculated on a fixed interest rate. However, in the case of a floating rate, the EMI amount would fluctuate based on prevailing market conditions.
  8. Using the home loan EMI calculator, you can simplify the financial data and get results instantly.

Now, to put things into perspective, let’s cite a simple example on how the home loan calculator works:

Assuming that your principal is Rs. 30 lakh, rate of interest is 9% per annum (9/12=0.75 per month), and tenure is 180 months,

Your EMI = ((300000*.75 /100*(1+.75 /100) ^180/((1+.75 /100)^180-1))) = Rs 30,428

Nowadays, purchasing your dream home has been made easier thanks to the home loan facility. To better plan your finances and your EMI outgo, it would be wise to use a home loan EMI calculator before signing on the dotted line. With the right figures on hand, you can plan a home loan package that works best for you.

The biggest challenge enterprises face today is dealing with fast-paced change in all spheres of business. There needs to be a fundamental shift in thinking and dealing with disruptive changes in the business environment.

Enterprise Agility – Being Agile In A Changing World by Sunil Mundra presents a core belief that enterprises are open and living systems. And, these living systems, also known as Complex Adaptive Systems [CAS] are ideally suited to deal with change very effectively.

Given that, ‘agility is to enterprises what health is to humans,’ there are some foundational principles of good health that can be broadly applied. But, the specific definition of ‘being healthy’ for a specific individual can and will vary. Enterprise Agility puts forward a similar approach where foundational practices can improve the overall health of the ‘body’ – read, culture, mindset and leadership, and the health of its various ‘organs’ – read, people, process, governance, structure, technology, and customers.

Image Source – Enterprise Agility

Enterprise Agility discusses how to avoid the mechanistic construction of existing enterprises, that focus on predictability and certainty. It also delivers practical advice on responding and adapting to scale, and disruption. The book goes on to suggest a practical framework with which leaders can create a plan to enhance agility. Today, we have a chat with Sunil about his book and his work with ThoughtWorks. So let’s get started with the Q&A…

Please talk about yourself, your association with ThoughtWorks [which is considered a leader when it comes to paired programming and other agile methodologies] and the learnings from that association ?

I have been with ThoughtWorks for eight years now. I have 28 years of experience, with 18 years in the IT industry and 10 years spent working with traditional businesses and startups.

My passion has been solving client problems. I am happy when I am working with leaders, understanding their problems and working at solving them. At ThoughtWorks, as a consultant, I have the room to do what I love. And, what’s interesting is the company does not expect me to accept a business issue as stated – I have the freedom to question and really dig deep and discover the true problem vs. symptoms of a business issue. Which lets me be extremely effective in my role!

I would say, ThoughtWorks’ niche is solving clients’ mission critical problems. And, my role in this process allowed me to learn about ‘Being Agile’ and ‘Business Agility’.

There are obvious learnings when one is working in an environment that believes in the power of its people; the knowledge workers and their knowledge work. Here, people pursue their passions [like myself] and are empowered. Also, ThoughtWorkers are true client partners and not people sitting on one side of the table. There is openness and transparency when working with clients, and all these progressive ‘habits’ are focussed on ensuring value to the client relationship.

Kindly give a small glimpse about your newly released book ‘Enterprise Agility’ and how can enterprises [SME’s, startups and huge corporations] incorporate the learnings into their development culture ?

The book, Enterprise Agility talks about how an organization needs to build capabilities that sense the fast changing environment and adapt, and respond to it.  And, that means the organization needs to function like a living entity – a Complex Adaptive System.

Today, most organizations have converted into or have become machines and are rooted in Frederick Taylor’s philosophy of separating the thinker and the doer –  focusing on efficiency and specialization. And, while that may have worked in an era when the market was stable, when the organization’s primary constraint was capacity, when everything that was produced was consumed. Clearly a seller’s market. But today it is very different. An organization has to adapt to change, when one cannot always and accurately anticipate the emergent future.

Sunil Mundra

For SMEs, startups and large corporations, the principle to ensuring agility stays the same – be focused on the customer and have an overarching purpose. By purpose, I mean the organization should enable a win-win with every stakeholder in the ecosystem – employees, customers, vendors, society etc. Once this purpose is defined, then we identify capabilities and draw out the strategy.

Businesses are changing at a breath-neck speed and in order to adapt, they need to be more agile [and same is applicable for their teams]. How can ‘Agile Methodologies’ be adopted in companies with large-scale teams [business, development, testing, etc.] since they are more resistant to openness and change ?

Agile has its origins in software development, and the underlying methodologies are designed to improve effectiveness and efficiency of software delivery. What is often forgotten is that agile is not just about ‘doing’ the practices, but about ‘being’ agile, i.e. about a mindset and culture which is focused on achieving the desired outcomes. And, practices which lead to collaboration, timely and effective communication, ensuring visibility and transparency support this culture.

Let’s look at an example of distributed development which has its pain points depending on where the teams are sitting – different floors, geographies, time zones, across different cultures or even across organizations. The complexity increases alongside the increasing variables. Here, agile practices, processes and techniques can help alleviate pain points by enabling the needed mindset or culture change.

The wrong way to go about things is ‘doing’ agile without understanding why or its value. That leads to no sustainable benefit, not unlike the waterfall methodology which requires following a preset process. Agile, in comparison has more to do with ‘knowledge work’, and places prime importance on the people on the ground – the most powerful in the hierarchy. This means, while the traditional model has a worker and a manager to manage the worker, and a senior manager to manage the manager, and a vice president to manage the senior manager – it’s actually the information the worker is sending up that defines business strategy. Now, this requires that the manager should stop [traditionally managing or] directing and be a facilitator and enabler.

Whether a business is large or small, it must create cross functional and autonomous teams that are organized around outcomes and supported by the right mindset and culture across the entire enterprise.

How can companies already following ‘Agile approach’ take the next leap and move to ‘Enterprise Agility’ for better productivity and employee management [and engagement] ? Also, how can an enterprise agility mindset help get the most out of distributed teams [that are spread across different countries with time-zone difference] ?

Agility is a set of capabilities that help an organization deliver value. Agility can exist at enterprise level or even within smaller units of the enterprise, where people work on input to create something of value. [In comparison, agile is more focussed on the software development process].

Expanding on agility, there are three basic capabilities [in no particular order] it is defined by.  One is the ability to sense the environment, second is the ability to adapt and third is the ability to respond. However, enterprises may need additional capabilities which enable their agility. For example, Apple, also considered a master of innovation would call ‘being innovative’ a desired capability. For an organization that produces something in mass numbers, efficiency could be a capability.

This is also a key takeaway from my book where I talk about how every organization has to come up with a set of capabilities [specific to their context] that improves agility.

Please walk us through Complex Adaptive Systems [CAS] model and how the model can be used to enhance enterprise agility ?

Let me begin with an example. Nokia was a leader in the mobile handset space.  But, Apple’s iPhone, a smartphone with apps came to market and changed the status quo. Evidently, Nokia had become complacent and had failed to sense the change in the environment, in customer mindset/expectations and failed to respond to it. A similar story is of Kodak’s and the digital revolution – when they were the ones that invented the digital camera.  But, the technology was raw and they had failed to sense the potential opportunity.

In comparison, natural and socio-economic systems have been adapting and evolving. For example, transportation was predominantly animal-bound, then came vehicles that run on fuel and now, we are moving into an age of electric vehicles and soon it will be self-driven cars. Another example is human beings. We began as apes and today, we are a jumble of several races. We had a tail that we gave up as part of our physical evolution. And, like all Complex Adaptive Systems, we are still evolving and geared to improve the chances of survival.

Some characteristics of these systems include having agents that are autonomous in nature – mostly free but bound by some basic rules. For example, the traffic system is bound by some basic rules like red means stop, drive on one side of the road, use an indicator when making a turn and more. And, the ‘free agents’ are the make of the car, the route you take, the speed you drive at etc. The objective is to get from one place to the other with a fair amount of freedom.

When such freedom exists, there is value created from the interacting between agents. This calls for flexibility because detailed plans can quickly become obsolete in such environments. Meaning, something new emerges and the CAS has to figure out what to do next – evolve and adapt.

How can your book ‘Enterprise Agility’ be of help to an entrepreneur leading an early-stage or a growth stage startup ?

Startups by definition have greater agility, are usually based on a purpose that the founders passionately believe in, and are smaller during their initial stages. I would advise startups is to avoid scaling the based-on-enterprise principles of Taylorism, and ensure their purpose creates the ‘win-win’ for all stakeholders. Another key advice would be to build teams that are outcome driven.

Many companies have stringent policies, mindset, culture and once they adapt to change [by embracing agile], there would be a tendency to measure the ROI [either in terms of bug inflow, man hours reduction, etc.], how can ROI be measured for adoption of ‘Agile’ or ‘Enterprise Agile’ approach ?

Let’s explain this with an analogy – how would one measure the ROI of being healthy?  One can’t.  The investment could be calculated on gym membership fees, organic food etc. But, how would one calculate the returns of feeling healthy and having avoided disease?

That is how it is with agility.  Agility is the health of the company and it’s hard to calculate the returns. How would one calculate the cost of something that has not happened or the benefit of something bad that has been avoided.

Enterprises continue to practice such anti-patterns. For example, if the company is doing financially well, the assumption is that they are successful. But, the fact could be that the enterprise is slowing drowning because they are not ready for change. And, eventually, it’s only when organizations are in crisis are they ready to embrace change.

Can agile approach be applied to Product companies/Startups [Products which are in the Hardware space e.g. mobiles, e-scooters, etc.] where dependencies are on hardware, software, OEM’s, board manufacturers and what are some approaches that leaders can follow in order to bring-in agile mindset in product organizations [not pure software/SAAS based products] ?

Being agile ensures an environment in which people are given the most importance, because they are the thinking, living and breathing free agents who do the knowledge work. And, this is applicable to all types of organizations.

Toyota is a great example of applying agile principles to a manufacturing activity. Every worker is free to validate a problem that they see in the production line, with their manager, but they are equally empowered to pull the cord that stops the entire production line when they see an obvious problem on the line. This is an example of having a process but empower the people to break that process, if needed, in pursuit of the right outcome.

And, this is connected to one of the agile principles that talks motivated individuals, and that’s especially important when living in the knowledge world. This is because, a lot of jobs that we used to do can be done by machines. Software has so many tools that has automated several parts of software development. And, this has freed up the human brain for bolder creativity and expression.

In effect, I believe that agile principles can be applied beyond the scope of software development. The processes, techniques, standup meetings, MVP etc. are all about delivering an outcome that pleases the customer and harnesses the potential of motivated employees to the fullest, within the framework of appropriate governance, and intelligently planned innovation and experimentation.

Before we sign-off, please let us know the intended audience of the book ‘Enterprise Aglity’ i.e. whether it could be engineers, team leaders, team managers, CXO’s, etc. ?

Enterprise Agility is intended to be more thought provoking for leaders, rather than a step-by-step prescriptive playbook. My goal is to make a leader or influencer say, “Oh, I didn’t think of it like that! And, I see it’s relevance for my enterprise.”

We thank Sunil Mundra for sharing his insights with our readers. If you have any questions for him about agile programming, his new book, application of agile for distributed teams, etc. please email them here or share them via a comment to this article.

While early stage crypto investors have multiplied their investments, many people who have started a couple of months ago have suffered heavy losses in their crypto portfolios. Cryptoprofiler bridges the gap of investor protection framework between traditional investment world and crypto space, by transferring investor risk profiling into the latter. In addition, the product risk classification provides insights into market risk, liquidity risk and product risk of cryptocurrencies.

The beta solution provides a light version of the suitability assessment to determine investor’s knowledge, experience, risk capacity and risk tolerance. The more comprehensive and in-depth assessment will become shortly available to users in the login area. Learning resources covering crypto risks and behavioral biases are aimed to enhance investor understanding of the dynamic crypto market. The latest feature is a portfolio risk analysis tool with alert function.

Aside from clearly risk focused approach, users are welcome to plugin with their Twitter account to unleash their potential topics of interest in crypto space with the help of Cryptoprofiler proprietary algorithm as well as to get an insight into public opinion of certain cryptocurrencies through social sentiment analysis.

While various platforms are providing data about cryptocurrencies, Cryptoprofiler is the first provider leveraging banking-grade investor risk profiling to focus on the investor as individual and providing actionable insights. Enhanced risk metrics about cryptocurrencies and comparison function are saving time for investment research and empower better investment decisions.

About Cryptoprofiler

Cryptoprofiler is bringing banking-grade investor risk profiling and product risk classification into the crypto space to help investors to make sound investment decisions in the ever-changing and ever-growing crypto market. Cryptoprofiler is powered by Riskifier a MiFID II compliant suitability assessment for banks and wealth managers which has been included in the list of RegTech 100: The world’s most innovative RegTech companies by FINTECH GLOBAL. The Swiss start-up was born in a hackathon and has successfully completed accelerator programs in Switzerland, Germany and Asia.

On Anant Chaturdashi, every town and city in the country reverberates with the chants of ‘Ganapati Bappa Morya’. Lord Ganesh, the remover of obstacles is taken on a beautiful parade before being immersed in water. Moreover as you immerse your [eco-friendly] Ganesh into the water, remember that He takes away only your ill-luck and not your dreams and goals. On this auspicious day, let’s discuss why investing in mutual funds is a great way to finance your future goals.

Image Source – Mutual Funds

Here are the benefits of investing in mutual funds.

Investing in mutual funds is safe

The Securities Exchange Board of India [SEBI] regulates mutual funds in India. It monitors the fund houses and ensures that they are safe for investors. However, there is still a small possibility that a mutual fund scheme can shut down. In such cases, the fund pays you a sum based on your current Net Asset Value [NAV]. This means, your money is safe, and you will receive it. But it is important to know that mutual funds come with a varying degree of risk. So, if capital protection is a significant concern, you can consider investing in debt mutual funds or liquid funds.

Easy way to diversify your portfolio

One of the first lessons in investment is, ‘Don’t put all your eggs in one basket’. Your investment portfolio should be well diversified to minimize your risk exposure in the market. For example, if you are looking to invest in individual securities, carefully select a dozen stocks [or more] to balance the risk and return equation of your portfolio cautiously. It can be a long and tedious process [especially if you are a new investor]. On the other hand, you can simply invest in an index fund that tracks the Sensex or the Nifty 50. This way, you can gain exposure to the 50 best stocks in the market through a single fund.

Professional management

If you are working at a regular job, you may not have the time or expertise to analyze stocks or study market movements. In that case, mutual fund investments are a good choice for you because a professional fund manager manages your investments. The fund manager must ensure that your fund earns the required returns in a specified duration.

Invest in small amounts

Many people delay their investment journey because of the belief that a large amount of money is needed to invest. This widely believed myth needs to be dispelled, because mutual funds allow you to invest with limited amounts. Fund houses allow investors to begin investing through Systematic Investment Plans [SIPs] with as little as Rs. 1,000 per month. In some cases, the investment threshold is even lower at just Rs. 500. So if wealth creation is your goal, all you need is to select a fund and invest right away. You can increase the investment amount as your income rises over the years.

Transparency

Before you invest in a mutual fund, go through all the required information about the fund such as the fund’s past performance, list of the fund’s holdings, fund manager’s performance history and so on. In addition, you can also check the list of charges you have to pay. There are no hidden charges attached to a fund. This is why investing in mutual funds is smooth and transparent.

Conclusion

As an individual, you may have many goals you wish to achieve in your life. Whether they are short-term goals or long-term goals, mutual funds can help you attain your goals. Hence, on this Anant Chaturdashi, invoke the blessings of Lord Ganesh and start investing in mutual funds to create wealth and enjoy a great future.

Your brand is what other people say about you when you are not in the room Jeff Bezos

Completely agreed! I know several startups who have created an attractive website, their business is located at prime location, they spent a good amount of money on digital marketing, they are owning a team of skilled staff but still waiting for calls from customers. Is it happening to you too ?

If your answer is a big yes, don’t worry! You are at the right place. But before diving into the article, remember what Jeff Bezos has said. According to him, it’s all about your brand. Your brand represents your business and reputation. So, be sure to have a good one.

Many people argue that they already have a good and attractive logo, what else is needed in branding? Do you really think having a good logo is enough for the branding? No, definitely not.

Here I am going to mention some common startup blunders that businesses are making and how one can fix it.

Blunder #1 – Inconsistency

What is the color of the logo of social media giant Facebook? Blue, right? Did you ever see Facebook using its logo color as red in any of its marketing campaigns? No, I am sure. Consistency is very important in building a brand. If you are using yellow as your logo color on the website, keep it yellow everywhere. Otherwise, it confuses users and perhaps they won’t be able to recognize your brand at a glance. Inconsistent branding can lead to customer confusion and a high bounce rate.

Solution – Be consistent. Be consistent with your designs and brand color. It will not only help you in building brand image but also provides recognition.

Blunder #2 – Replicating competitors

This is another blunder that most of the startups make. It is good to know and research what your competitors are doing but copying exactly their marketing strategies lead you to a pitfall. Understand first, you are in the starting stages of your business. You don’t have enough capital like your already established competitors to spend a lot on everything. It is also possible that their marketing styles and trends will not work for your business.

Solution – Do a good competitor research, try to understand what they are doing in promoting their business. But don’t copy everything from them. Don’t try to replicate their marketing styles in hope of getting better results. You can also try some DIY. Tools like Canva help you create your own visual identity.

Blunder #3 – Marketing it everywhere

Do you join every function you are invited to? Certainly not. Likewise, every marketing platform is not a perfect place for showcasing your products. Just because, your company’s name can be somewhere, you started posting everywhere. Representing your brand at wrong places can directly affect your branding campaign.

Solution – Research and figure out what are the best-suited places for running your marketing campaign. Don’t try to be present everywhere.

Blunder #4 – Ignoring social media

Today, everybody has gone online. Even a 10 years old kid is hanging out with friends on several social media platforms. Social media has enormous power. Businesses, politicians, and everybody is seeking the help of social media in promoting their brand name. One can’t ignore the power of it especially startups should be more active on such social media platforms to reach out to the targeted audience. They are the best platforms to build your brand value.

Solution – Be active on social media platforms. Figure out which one works best for you out of a lot. Not every platform is of use to you. Post offers, spread awareness and post attractive contents regularly.

Blunder #5 – Neglecting the power of analytics

Do you really think posting and commenting on social media platforms is enough in branding? It is not. If you ask any digital marketing expert, he will explain to you the importance of analytics. The analytics will help you in knowing which type of content is driving more traffic than other.

Solution: Always have an eye on analytics. With the help of analytic tools, you should know what type of content you need to post and who is your targeted audience.

These are some blunders that most of the startups are making while building their brand. Try to avoid such mistakes and show your customers your real value. Build a brand in a right way. Don’t forget Jeff Bezos.

Don’t make these mistakes and before doing anything, do analyze your business well.

About the Author

Kavita Paliwal is Independent Marketing Analyst and Blogger. When not glued to her laptop, she can be found making travel plans that rarely happen. Connect with Kavita on Twitter & Linkedin

Jio announced a five year partnership with India’s leading broadcaster, Star India to unleash a new era in sports entertainment. Jio and Star will make all televised India-cricket matches available to users of JioTV and Hotstar in India. Not just this, for the first time ever, cricket production, a streaming platform and a high-speed data network has come together to deliver the best of cricketing content with connectivity to benefit the Indian consumers.

This partnership will cover T20, One Day Internationals [ODI], International Test Cricket and Premier Domestic Competitions of the BCCI. Jio and Star have been instrumental in leading many such disruptive initiatives, where it has put the consumer in the centre of innovation.

Akash Ambani, Director – Jio, said

Jio continues to bring the most exclusive content to its users, this time around through the JioTV app. Cricket is not just played, its worshipped in India. Every Indian must have access to the best sporting events as well as quality and affordable bandwidth to consume the content.

With this partnership, we intend to address both these objectives of providing the best sporting content with the best digital infrastructure to the Jio users. Jio promises to and will continue to bring a superlative customer experience in the areas of sports, AR, VR, Immersive viewing and more in the coming days.

Sanjay Gupta, Managing Director – Star India, said

Over the last five years, we have re-invented the sports experience in India across screens, both television and digital. Indian cricket under BCCI is one of the most compelling properties in the world and we are excited to apply the same lens of innovation and re-invention to the property that we have applied to other sports in the last few years. And, with a new partner in Reliance Jio, we will have even more opportunities to raise the bar for cricket fans.

About Reliance Jio

Jio will bring transformational changes in the Indian digital services space to enable the vision of Digital India for 1.2 billion Indians and propel India into global leadership in digital economy. It has created an eco-system comprising network, devices, applications and content, service experience and affordable tariffs for everyone to live the Jio Digital Life. As part of its customer offers, Jio has revolutionized the Indian telecom landscape by making voice calls for Jio customers absolutely free, across India, to any network, and always. Jio makes India the highest quality, most affordable data market in the world so that every Indian can do Datagiri.

Elemential Labs Pvt Ltd announced that it’s participating in Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies hosted by The Linux Foundation.

Julian Gordon, Vice President, Asia Pacific, Hyperledger, Linux Foundation APAC Limited, said

Elemential is a key contributor in the Indian ecosystem. They are building large projects with major enterprises across a multitude of industries including KYC, capital markets and trade finance. We are delighted to have them on board as part of our open source community and are even happier to see them using our frameworks for their use cases.

The Linux Foundation is a non-profit organization and dedicated to building sustainable ecosystems around open source projects to accelerate technology development and industry adoption. Hyperledger is a global collaboration, hosted by the Linux Foundation and started in 2015.  At present, it has more than 250 members worldwide. Hyperledger aims to build an ecosystem where members and non members can collectively maintain open, cross-industry, code bases and frameworks built upon blockchain technologies.

Speaking about the membership, Raunaq Vaisoha, CEO of Elemential Labs Pvt Ltd said

Hyperledger has recognized that in order for Blockchain to get mainstream adoption in the enterprise world, it has to separate itself from permissionless ledgers like Bitcoin and Ethereum. Distributed systems require trust between parties to succeed. Permissioned ledgers create an environment of trust. We are excited to be members of an ever growing global community of blockchain evangelists from enterprises all over the world.

Elemential is currently building NSE’s CKYC Blockchain implementation to transform the KYC process in India. Beyond this, it is also building three other projects with NSE and its clearing and settlement subsidiary NSE Clearing, tackling the issues of collateral management, institutional trade confirmations and proxy voting, all powered by Hyperledger Fabric.

About Elemential

Elemential is a blockchain start-up based out of Mumbai. It enables enterprise engineering teams to build, deploy and manage blockchain networks seamlessly using its product suite – Elements [Smart Contract Framework], Command Centre [Administration Console] and Hadron [Open Source Installer]. Elemential’s platform has been trusted by several major Financial Institutions and has been leveraged by NSE. It is backed by major investors such as Matrix Partners, Lightspeed Venture Partners, Hinduja Group and DCG.

Each individual wishes to be financially strong. In order to achieve such a goal, it is necessary to make smart saving and investing decisions.

Image Source

Quite often, individuals are led to believe certain things that are not true. False pre-conceived notions about saving and investing may hurt your finances in the long run. Following are six myths and the truth about them that you may keep in mind while planning your personal finances.

  1. Only rich people invest

This is completely a myth. Any individual may save a portion of their earnings and may further invest it. There are numerous investment schemes that allow small investments such as Systematic Investment Plans [SIPs]. Based on your finances, you may begin with a small amount and work your way up by making higher investments over a period of time.

  1. Cash is king

In this era of digitalization, cash transactions are being replaced by plastic money. You may opt for a debit card or a credit card to make your purchases. You may also use your bank cards to book tickets, make online purchases, to shop at physical stores, and for other purposes. Using plastic money eliminates the risk of theft or loss of cash. Besides, it is a secure and convenient payment method.

  1. Budgeting is not important

Believing in this myth can result in serious consequences on your finances. It is necessary to determine your cash inflow and outflow. By doing so, you may be able to identify whether your income is sufficient to meet your expenses. If not, you may either consider getting an additional source of income or may cut down on unnecessary expenses.

  1. Having a saving account is not necessary

Having a saving account helps in building a solid financial future. There are numerous reasons to have such an account such as easy access, the growth of money, a disciplined habit of saving, and low fees, among others. Moreover, you may dip into your account in case you need liquid cash. You may also access funds in your savings account for emergency purposes such as unexpected hospitalization, job loss, or vehicle breakdown, among others. You may choose the most suited account from a plethora of options offered by banks.

  1. Small purchases are fine

Though you may believe that small purchases will not harm your finances, the same is not true. Making purchases more than you are able to afford will burn a huge hole in your pocket. Instead, you may set a budget and stick to the set amount. This will help reduce unnecessary spending and help you spend wisely.

The road to financial freedom begins with making wise money decisions. You may dispel any money myths that you have and enjoy a strong financial future.