12 Money Tips

Keep your bank balance healthy with these simple tips :

1. Never lose control over your assets as long as you live. Think thrice before you give a power of attorney, or write property away even to your nearest and dearest. Relationships can change over time, so it’s wiser to will it instead.

2. Write a will anyway. It’s not unlucky. Most people postpone writing one, or never do so.

3. Not all banks are “as safe as a bank.” Your money is safest in the public sector banks. Each year you hear of a cooperative bank or two going down.

4. Keep track of your credit card statements and bank accounts. Don’t go by bank statements alone: verify each transaction yourself against bills and your own books or computer entries.

5. You no longer have to buy gold to invest in gold. Buy into a gold exchange traded fund (ETF) instead. This way you can’t be robbed of the gold, you don’t have to worry about storing it, and there’s no wealth tax or long-term capital gains tax.

6. Don’t fall for very high interest rates when you take a fixed deposit. If somebody offers you incredibly high rates, it’s only because others don’t trust them enough to lend them money. The higher the interest rate, the greater will be your chance of losing all your money.

7. Buying shares online is usually cheaper and faster than buying from a broker. And you get to have more control.

8. Read up about tax deductions. Many, like expenses on treatment of disabled parents, special tax concessions for senior citizens, or donations to certain charities, are often overlooked.

9. Debit cards that don’t require a PIN for shopping are not as secure as those that require a PIN. Anybody who finds it may use it at a shop.

10. Make a note of whether your credit card offers accident and disability insurance. Reports say that there are fewer claims on such insurance, because many cardholders are not aware of it.

11. A zero-interest loan is never what it claims. 

12. If you own shares that pay dividends, a good growth strategy is to reinvest all the dividends back into more shares. If it’s mutual funds, choose a dividend reinvestment plan.