7 Important Factors in Choosing the Right Life Insurance Policy

7 Important Factors in Choosing the Right Life Insurance Policy
Life risk cover i.e. financial protection to the family in case of an unforeseen event- say death, illness, disability on account of accident, etc –is the main purpose of taking an  insurance policy. In order to meet various socio-economic needs of different people, it is suggested that every individual should plan their insurance products based on the human life value of the life assured. 

What are the important factors in choosing the right life insurance policy  is based upon different needs of the different people. Though insurance is seen as a ‘compulsory savings’ leading to creation of wealth which can be utilized for education/marriage of children; for old age provision; for construction of house; etc. but policies are also taken to get exemption from Income Tax and to assign these to financial institutions as collateral security while availing different type of credit facilities including housing loan.

Therefore while choosing the right life insurance policy; following factors need to be given a thought: 

Do You Need Life Insurance?

Nothing could be more devastating to a family than to lose the bread winner prematurely. While the emotional impact is huge, the impact on finances can be equally overwhelming. A way of understanding the magnitude of the risks involved is to consider how much you earn a year and multiply it by the number of years to your retirement. Ignoring insurance means that you have made a decision to live with the risk.

The alternatives to properly insuring your life may be either inadequate or impractical. Saving to provide an emergency nest egg may not accumulate enough funds in time. Relying on Social Security will provide at best a basic survival income. Life insurance may be the only efficient way of creating the ready funds to replace your ‘life value’. 

Check Your Financial Position

In the initial phases of earning life, people are careless about making provision for the life ahead. They want to enjoy and have fun with all the money they have. Those who are born with silver spoon in their mouth may not think about financial planning but not all are so blessed. Another key factor in deciding the life insurance policy is to check your own financial status whether you family can sustain the loss of income in case of sudden stoppage of regular income.

Check Your Assets and Liabilities

Your current assets and liabilities would help you assess how much insurance you would need. One should keep in mind that there should always be a balancing factor for the assets you are creating by availing mortgage etc or by raising other liabilities. If it is not binding upon you to pay for the assets you have like house, car etc, then no insurance cover is necessary but if you have raised loans then it is necessary to have your Net Worth checked. More liabilities than your assets means indicate that you should go for a right life insurance policy.

How Much Life Insurance Do You Need?

The most important factor that comes into mind is the question that how much life insurance do I need. This can be decided by calculating your current income. The first general rule about how much life insurance you need to buy is to take your income, multiply it by 10 and that will then determine how much you should buy. 

Another way you can determine how much you need to buy is dependent upon the style of living the family has become used to. Life insurance, is not just a lump of cash, it represents food on the table, a comfortable home, a school of choice for your kids, a reliable car – everything that makes up your lifestyle. For that amount of insurance to decide, you should know how much you want your wife to have as an annual income in case something happened to you. Then take that number and divide it at least by 5% thinking that if she invested the money she could earn at least 5% and that should get her that number. 

How Long of a Term Do You Need? 

Individual insurance needs change with every stage in life. However, the known fact is that the earlier one buys a life cover, the cheaper it works out for him. So buying life insurance even if you are currently a young professional is a wise option. Typically, you’re going to see 10-year, 20-year, and 30-year policies. Depending on your situation, your age, how long you plan on living for, how much debt you have will determine how long of a term you should go for.

Who will be the Beneficiary of Your Insurance Amount?

The money received in lieu of your life should not become financial windfall for those who do not deserve it. You should think before taking a life insurance policy whether someone is going to suffer in case of loss of your life like wife, kids or old dependent parents etc. as funds are required to pay out large debts such as a mortgage, and the balance invested to provide an ongoing income for the family. But if none of these are going to be the beneficiaries, think twice before opting for an insurance policy.

Which is the Right life Insurance Policy?

Currently most of the insurance companies are providing different insurance plans according to the diverse needs of the public. Mainly, you can choose a Term Plan, Whole Life Plan, Endowment Plan, ULIP and Pension Plan as per your needs and financial conditions


Finally, it is good to review your income changes and needs periodically and checking regularly the insurance arrangement , to ensure that you’re getting the most out of your life insurance policy.

Last Date for Filing Income Tax Returns is 31-03-2014 : e-file Your Tax Returns

Last Date for Filing Income Tax Returns is 31-03-2014 : e-file Your Tax Returns
Last date for income tax return filing for 2013-14 is approaching fast. For those who had not filed their income tax returns during the year, 31st March 2014 is the last opportunity to file tax returns online. You can file your tax return for the Asst Year 2013-13 and 2013-14 without any penalty and minimize payment of interest.

As such , from the current Assessment Year 2013-14, it has  become mandatory to e-file your tax return for income above 5 lacs.

Usually to file tax returns, some people tend to take the help of consultants, tax return prepares(TRP) and practicing CAs but it is worthwhile to know the bit of procedure about filing IT returns electronically.

The type of return forms which are required to file your income tax return, can be understood from the list as following:

Types of Income Tax Return Forms:


ITR 1: For Individuals having Income from Salary / Pension, Income from One House Property (excluding loss brought forward from previous years) / Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)]

This form CANNOT BE USED by an individual if income for FY 2012-13 includes:
  • Income from more than one house property or
  • Income from Winnings from Lottery / Race Horses or
  • Income from Capital Gains, which are not exempt from tax or
  • Income from Agriculture in excess of Rs. 5000/- or
  • Exempt Income (includes exempt amount of Conveyance Allowance, HRA, Other Exempt Allowances, Maturity amount of Insurance etc. ) in excess of Rs. 5000/- or
  • Loss under Head "income from Other Sources" or
  • Person claiming benefit of Foreign Tax paid u/s 90, 90A or 91 or
  • Income from Business or Profession or
  • A resident having any asset located outside India or signing authority in any account located outside India.

ITR 2: This form is applicable for Individuals and HUFs having Income from:
  • Income from Salary/Pension;
  • Income from House Property;
  • Income from Capital Gains;
  • Income from Other Sources

This form should not be used by an individual or HUF whose income includes income from Business or Profession.

ITR 3: For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship.

ITR 4: This form is applicable for an individual who has income from business/profession.

SUGAM -ITR 4S: This return form is to be used by an Individual/HUF having income from:
  • Business income where such income is computed in accordance with special provisions referred to in Section 44AD and 44AE.
  • Income from one house property (excluding loss brought forward from previous years)
  • Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses)

ITR 5: For Firms, Co-operative Banks, Co-operative Societies, Limited Liability Partnerships (LLP), Associaltion of Persons (AOP), Body of Individuals (BOI) and Artificial Judicial Persons.

ITR 6: This form is applicable for a Company.

ITR 7: This form  is applicable for a Trust.

ITR 8: This form is used for filing only Fringe Benefit Tax Return.

ITR V: Acknowledgement Form for all ITR Forms except ITR 7.


Avail the last minute chance for filling income  tax return online to avoid imposition of penalty and interest.You can also check the status of  tax return subsequently and for that you can login to Status

New Bima Bachat Plan-No 816 – Insurance with Fixed Deposit Benefits

LIC's New Bima Bachat Plan-No 816
New Bima Bachat Plan, Table No 816 has been recently introduced as fixed deposit scheme by LIC. New Bima Bachat is a single premium money back policy meant for people looking for options to save money which is offering attractive returns and benefits. In addition to being a single premium investment plan, it has an in built provision of the risk coverage of the investor which offers financial security and assurance to the policy holder and his family

A policy with dual benefits, as it is known is suitable for the benefits of investors who are keen to have safe option along with value addition to their returns.

Main features of the New Bima Bachat plan are:




Example:

Suppose “A” aged 30 years takes a policy of 9 years term for 2 Lakh Sum Assured, pays a premium of Rs 1,41,634, his periodical benefits will be: 


Benefit paid on 3rd year = 30,000



                                 6th year = 30,000



                                 9th year = 1,41,634 (Return of Premium)



                                      Total = 2,01,634



               Loyalty Addition = 72,000 @ 4% of Sum Assured (Assumed)



                                   ------------------

                          Grand Total = 2,73,634

Hence return on investment = 273634/141634 =10.35% Per Annum 

(Actual yield will depend upon the tax slab of the investor after tax)

Investment in New Bima Bachat Plan with an added advantage of insurance element is one of the best option available as a fixed deposit and a good measure to save money. 


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How to Save Interest On Your Credit Cards Balance?

Tips to Save Interest On Credit Cards Balance
You have received the credit card bill for the smartphone purchased last month and the payment of the bill has become due. If you are not having enough money to pay, you are given an option to make payment of minimum amount due instead of the total bill by the card provider. Most of the buyers who use credit card to purchase high priced goods face this situation once in a while.

If you prefer to live on credit cards spending and don’t know the ins and out of credit cards, you are more likely to jeopardise your financial planning as the higher rate of interest charged for the unsecured credit card debt is going to cost you dearly. 

There is no doubt that Credit card is an easy alternative of carrying cash for shopping as well as for emergency purpose, but if you do not use your credit card wisely and falter on timely payments, it can spoil your personal credit reports. 

Tips to Save Interest On Credit Cards Balance


Credit card interest can become very costly burden, so knowing how to avoid it is important. Whether you’re new to credit cards or an experienced one, these tips can help you save money :

Use Interest Free Periods


Most credit cards offer interest free periods on purchases from the date of purchase to pay your bill. This can be a great way of saving money on interest if you are buying an expensive item. The grace period usually varies between 45 to 55 days depending on the card you have. To avail this, you need to check the billing cycle i.e. the period of your bill. The interest free period will usually start on the first day of the new billing period and if effectively used it can give a benefit of interest free payment upto 55 day on your purchases.

Pay Off Your Balance Debt


If you wish to save money on credit card interest, most important thing to remember is to pay off your balance in full at the end of each month. While it can be easy to only pay the minimum amount payment, you will only be paying off the interest and not your actual debt. Most credit card companies are charging hefty interest rates from 24% to 36% annually on the balance debt in your card. When you pay off your balance, you won’t have to worry about interest accumulating – and your credit card will be all the more healthy and improving your personal credit history. 

Always Make Your Payments On Time


It is always advisable to make payment of your credit card bill on time and at least two days before your payment due date in order to get your payment cleared. By this way you can do lot of savings on credit card balance as all the credit card issuers charge interest on balance as well as late payment fees which is usually quite high. You should know that credit card companies are not gaining from those customers who are paying on time but those who miss their payment due dates.

Pay Off the Highest Interest Rate First


In addition to making minimum payments on all cards, pay more on the card with the highest interest rate, so you pay off the total amount on that card first. Then work your way through your other cards. This will save you the most money.

Pay Off the Smallest Debt First


Keep making minimum payments on all cards, and pay more on the card with the smallest debt, so you pay off the total amount on that card first and make it debt free.

Balance Transfer Credit Cards


If you are having a couple of cards and are not comfortable of paying the credit card debt in one go, one way to start on paying off your credit card debt is with a balance transfer credit card. These days almost all the credit card issuers are offering balance transfer facility to the existing card holders. By transferring the balance of your existing credit card with a new balance transfer card, you will pay less interest, and can start paying off more of your debt and increase savings. Try to choose a balance transfer card that offers the lowest interest rate for the longest period of time. 

Attractive Offers


There is a wide range of introductory offers available on many credit cards for purchase of expensive consumer items. If you want to save money on interest, check out intro offers on purchases. With this type of offers on card, you will pay low or no interest on purchases for a certain period of time. As with balance transfer offers, be sure to pay off your debt before the offer period ends.

Choose Low Interest Credit Cards


Always try to find the cards which have no frills attached to it such as rewards points and complimentary insurances. They are usually a cheaper way of getting credit especially if you tend to carry forward your balance month-to-month. 

Close multiple Cards


Finally, stop using all of your credit cards except one, and try to only use it for emergencies. Keeping many cards may tempt you to make purchases on impulse which you may not need and add to your debt. Dispose off the card by cutting it up and close the account by contacting your card provider. This is important because if you just cut up the card , you may still have to pay fees, even if you are no longer using the card.

By using above tips, you can do a lot of savings on your interest payment and increase your personal credit report to improve your personal credit history for your future financial transactions. 

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Cost to Study Abroad

How much it costs to study in another country can vary a lot. It depends on a few major factors, including the type of program, the duration and the location. There are various types of cost involved in your decision to go for studying abroad.
Are you planning to study abroad in the coveted institution ?? Have you got any scholarship from any university for studying in a foreign country? Have you received any offer for study abroad from any University under educational exchange program? If the answer to any of these is Yes, then you ought to know the pros and cons of shifting to a different country for studies mainly the cost of studying abroad. 

There are many factors that should be considered before you take a decision for studying abroad. Not only the issue of relocating to an unknown land is involved but the most important and crucial one is the cost factor as to how much money you may need to bear the cost for studies abroad in the specific country. Cost is obviously a factor students need to consider when selecting a program—or deciding whether or not to study abroad.

What are the Funding options for Cost to study abroad?


As far as funding for studying abroad is concerned, there are usually two types of funding option: 

  • One, where the study programme is sponsored by the institution under exchange  programme or scholarships,
  • Second, when you have to bear the entire cost form your own personal savings or educational loans.

                          Read this for educational loan : Taking A Student Loan ? Be Careful!

Here we will be discussing only the second part i.e. when you have to bear the entire cost form your own personal savings or educational loans taken to save tax.

How much does  it cost to study abroad?


How much it costs to study in another country can vary a lot. It depends on a few major factors, including the type of program, the duration and the location. There are various types of cost involved in your decision to go for studying abroad:

Traveling cost: Travelling cost is the most important component of the total education budget for the students. Since this is not a one time expanse and you may have to visit your place of residence twice or thrice during the total study duration, it can prove to be burden and substantial cost. 

Travel Insurance cost: Before your embark on a journey to the destination country, you are required to take a travel insurance to safeguard yourself from the unexpected loss of baggage and other belongings. Depending on the country profile, the cost of travel policy may be different for each country escalating the cost of study abroad.

Travel vaccination cost: In many countries, rather all, vaccination for certain types of sickness is mandatory which can add up to the total cost.

Administrative fees for the institution for joining: All the foreign institute have their own administrative fees structure which is to be paid by all the students before joining the course of study. The fee may vary for different institute and  Universities.

Type of course you are joining:  The cost of studying abroad depends on the type of course you have joined. If it is a medico, technical, engineering or research based programme, the cost of study will be different and heavy.

Tution fee: The amount of tuition fee depends on the course you are pursuing and can vary from course to course and duration of the study.

Study material cost: As it depends on the course of study, the cost will go high if you have to purchase study material and books for reference.

Housing expanses: Housing is one of the basic expenditure while studying abroad. The cost will differ if you rent a house, take a paying guest accommodation or get a student hostel. This can add substantially your cost of study. 

Cost of living for the period of stay: The day to day living expenditure like food, clothing, hobbies etc form a major portion of your cost for studying in a foreign country.

Transportation cost within the city or place or residence: You need to travel from your place of residence to the place of study as well as other sundry travelling will add up to your total cost.

Communication cost: When your are staying away from your family, you would like to be in contact with your near and dear ones. So the cost of keeping in touch like phone, internet and other snailmail can add up to your cost of study abroad.

Entertainment expanses:  It is not possible to have all work and no play. So the cost of entertainment has to be factored in.

Loan interest cost for the educational loan taken if any:  If you have taken an educational loan, then EMI for the loan is definitely going to increase your cost for studying abroad.

Loan amount taken for studying abroad: After all the cost taken into account, the principal loan amount taken stands to be repaid which again the most burdensome cost. Since it to be repaid after your studies are over, it should be factored in  total cost.

Cultural issues: Cultural issues also may add to the cost of studies as you have to follow the lifestyle and other norms of the place of study which may compel you to shell out extra money. Though you can curtail your expanses and Save Money, but you cannot altogether avoid such expanses.

Costs due to the climate of the place of study: The cost can also add up depending upon the specific country. In cold weather countries, or with uncomfortable climatic conditions, you may need to buy expensive clothes and other essential items to safeguard yourself in those circumstances.

The list is not exhaustive and there may be several other cost which involve emotional agony, loss of familial ties and disenchantment from the country of origin etc which cannot be enumerated in financial terms but which carry equivalent importance in terms of cost for studying abroad.

Press Release by AIBOC Regarding Wage Comparison with Govt Employees!!!

Wage revision of bank officers and employees
AIBOC has released a Press release in the captioned subject and requested to circulate among public and employees of other sectors. Dated 21/02/2014

A CASE FOR SALARY REVISION
FOR 10 LAC BANK OFFICERS AND WORKMEN IN BANKING INDUSTRY

Historically, salary revision for bank officers from Assistant Manager to General Manager is being done at industry level by IBA once in five years and so far nine Bipartite Settlements have taken place and Joint Notes were signed between IBA and representatives of Officers’ Organisations.

The four Officers’ Organisation have submitted a combined Charter of Demands to IBA  on 30th

October 2012, before the due date for the commencement of negotiation for the 10th Bipartite Settlement which was due from 01.11.2012.

Even though one and a half year have passed, no forward movement has taken place with regard to our Charter of Demand except an understanding arrived at on two issues Viz. 1) Date of Effect from 01.11.2012 and 2) Merger of DA at 4440 points.

This time, it has been consciously decided by IBA and Unions that the negotiation will be on Salary components only and its impact on Superannuation Cost will be borne by the banks. Accordingly, IBA has decided to offer salary increase on Payslip Components (Basic Pay, DA, HRA, CCA and Annual Medical Aid) as against Total Establishment Expenses hitherto being followed.

Having settled for 17.50% on Total Establishment Expenses ( higher quantum) during last Bipartite, IBA has made an initial offer of only 5% salary increase on “pay slip component”

(lower quantum) which was enhanced to 9.5% after a Strike Call and finally improved the offer by 0.50% i.e. from 9.50% to 10% on 27th January 2014. Since the offer of 10% amounting to Rs.3150 Crore was lower than the last settlement commencing from 01.11.2007 amounting to Rs.3300 Crore and IBA was not willing to negotiate further on load factor, we were forced to go for 48 hours strike on 10th and 11th February 2014.

PARITY ON SALARY WITH CENTRAL GOVERNMENT EMPLOYEES :

Salary Revision for Central Government employees will be effected based on Pay Commission recommendations once in ten years and their present salary is as per Sixth Pay Commission recommendations. Before 1979, bank officer’s salary used to be higher than the Group “A” officer of Central Government. To have a parity with Government employees, Pillai Committee was constituted in 1979 and as per the Committee’s recommendations the pay scales of bank officers were rationalised and made at par and aligned with Pay Scales of Government Officers. Such parity was distorted to the disadvantage of bank officers by implementing 4th, 5th and 6th Pay Commission Recommendations at much higher levels and the salary difference at all levels is alarmingly high. To quote, the bank officers’ gross pay slip amount at initial stage is about

Rs.30700/- as against Rs.56400/- for Government officers. Similar differences exist at different stages in the hierarchy. It has caused serious impact on the quality of recruits in a highly sensitive sector like banking which involves dealing with public money.

Many State governments have adopted 6th Pay Commission recommendations and many Public Sector Undertakings have also adopted them as bench mark for salary revision which has created a huge gap between the bankmen on one hand and government employees and PSU employees on the other.

Even though the Seventh Pay Commission is due from 01.01.2016 only, the Government has approved composition of Commission well before its due date to decide about the pay structure of Central Government employees which will be revised after the report is submitted by the 7th Pay Commission with effect from 01.01.2016. (This in addition to the provision of 50% merger of DA with Basic Pay during the intervening period) The comparative scales since 1979 are as under:-

Year
Group-A Officers of
Scale-I Officer in a
Govt. of India
Bank
Prior to 1979
Rs.450/-
Rs.500/-
In 1979
Rs.700/-
Rs.700/-
In 1986
Rs.2,200/-
Rs.2,100/-
(4th pay commission from 1987)
Rs.8,000/-
Rs.7,100/-
In 1996
Rs.12,500/-
Rs.10,000/-
(5th pay commission from 1997)
In 2006
Rs.15,600/- + GP
Rs.14,500/-
(6th pay commission)
Rs.5,400/-
Total Rs.21,000/-


YEOMEN SERVICE RENDERED BY PUBLIC SECTOR BANKS :

The Nationalisation of major commercial banks in July 1969/1982 was one of the bold decision taken by the then Prime Minister Mrs. Indira Ghandhi just to prevent concentration of wealth in private hands and mobilize more resources for economic development and chanalize the same to the needy / neglected Sectors of Indian economy namely Agriculture , Small and Village Industries etc.

Consequent to nationalization, Public Sector Banks have done a commendable job in enhancing the penetration level of bank branches in remote villages, Financial Inclusion, implementation of various schemes of the Government etc. The number of bank branches has gone up from 8262 to 74200 branches as of 31stMarch 2013 with more presence in rural India.

The priority sector lending was given more thrust as a part of social objectives which has helped to uplift the rural poor. To fall in line with global standards, nationalized banks also adopted Prudential accounting norms, Income recognition and Asset Classification and became strong and healthy. Apart from undertaking the Social Banking, the Public Sector Banks are equally competitive at International Banking landscape.

Public Sector Banks operate in a disciplined manner by observing compliance of regulatory requirements and in fact it was because of this that the Indian banks have emerged relatively unharmed from the recent global financial crisis.

The ten lac officer and workmen employees of banking sector have actively involved in nation building by effectively implementing national agenda of employment creation and economic & Industrial growth and enjoy lot of respect and popularity particularly in Rural & Semi Urban areas.

PRESENT OFFER :

In all the previous settlements, salary increase was given as a load to Total Establishment Expenses and presently we have been offered salary increase on Fixed Pay Components. If the percentage increase is offered on Total Establishment Expenses, the total quantum will be more when compared to Fixed Pay components as explained below.

Total Establishment Expenses
Payslip component
Rs.56292 Crore
Rs.31503 Crore
Offer of 10% on Rs.56292 Cr
10% on Rs.31503 Cr
Quantum available Rs.5629 Cr
Quantum offered RS.3150 Cr

IBA’s present offer of Rs.3150 Crore for one million employees is far below the amount offered during last bipartite settlement. The percentage offer on Fixed Pay Components (Pay slip) has to be improved so as to match with market related salary in view of the following.

The work force of Public Sector Banks are responsible for increase :

1.    In the Business Mix of the Public Sector Banks from Rs.53,71,959 Crore during the year 2008-2009 to Rs.102,18,471 Crore during the year 2012-2013.

2.    In Operating profit from Rs.45,495 Crore during 2008-2009 to Rs.1,21,917 Crore during 2012-2013.

3.    In Net Profit has gone up from Rs.34,382 Crore during 2008-2009 to Rs.50,583 Crore during 2012-2013.

4.    In Total Income (interest and other income) has gone up from Rs.3,15,554 crore during 2008-2009 to Rs.6,11,658 Crore during 2012-2013.

5.    The Net Profit for the year 2012-2013 is Rs.50,583 Crore after providing for NPA Rs.46,021 Crore due to huge slippages during the year 2012-13 of Rs.1,19,613 Crore. Addition to NPA has affected the net Profit in two ways. It has not generated income and the provision has further drained the income.

Thus it is imperative that bank officers and workmen are adequately compensated due to their growing responsibility, transferability and accountability in order to maintain high standards of honesty and integrity, as their job demands, in highly competitive and sensitive sector of the Indian economy, particularly in view of the following facts:

1.   That bank officers who were getting more than government officials earlier, were brought at par with Government officers on implementation of Pillai Committee report in, 1979, are now getting approximately Rs. 20 thousand less than government officials at first stage of the pay.

2.   It is pertinent to mention here that 7th pay commission has been constituted for revision in salaries of Central Government employees, whereas Bank employees have yet to catch the salaries they are getting as per 6th pay commission report.

3.  There is steep rise in the CPI inflation and the salaries in absolute terms have also been eroded. Consumer price index has already increased by 1501 numbers over 4440 which was prevailing on 01/11/2012 i.e. the level at which IBA has agreed to merge the DA with basic pay.

4.   The productivity per employee, the business per employee and branch and profitability of the public sector banks has enhanced many folds.

5.   There is a danger of pouching of the existing young and trained staff of the Public Sector Banks by the new generation Private Sector Banks and Foreign Banks which will emerge as per new Banking Policy.

(HARVINDER SINGH) GENERAL SECRETARY

What are the Best Alternative Sources of Income

Alternative sources of income
Almost everyone desires to make more money to achieve his financial goals in life. If you are wondering how your colleague at work, who earns the same salary as you, has bought a new house, car and other expensive amenities even when you are struggling to manage your finances somehow, chances are your colleague has utilized his or her time and knowledge smartly to generate passive sources of income. 

But the idea of taking on a second job or even third one can sound a little cumbersome. After all, if you’re already short of time, you cannot take up more responsibilities. But making more money, or multi-streaming your income doesn’t have to be quite as overwhelming as it first sounds. By generating alternative passive income you can achieve financial freedom and flexibility through the creation of alternative sources of income that can complement your salary income. 


Building multiple streams of income is no longer a luxury, it has become a necessity for all individuals whether employed or professionals. In the current situation of widespread unemployment and mounting job losses, depending on their only source of income from their job can be a risky way to live. 


The list below details a few alternatives sources of income:


Earn Higher Interest on Your Savings

One of the easiest ways to increase your passive income is to shift your savings to a bank that pays a higher yield on your savings. Although it doesn’t sound like much (especially in this low interest environment), little things do add up and eventually interest rates will rise.This is also important to 

Invest in Dividend Paying Stocks or Funds

If you’re looking for current income, investing in the dividend paying stocks (or dividend funds) is a good way to earn money regularly. Pay particular attention to those companies that have long histories of increasing their dividend payouts each year. This is also important to know what are The Best Ways To Control Your Finances

Rental Income

Generating rental income from house and real estate can reap huge benefits. If you buy a house at rock bottom prices and put it out on rent and your rental income is substantially more than the EMI you pay each month, then you have made a killing. If you have no loan/mortgage on the house then all the rental income can be used for either living expenses or saving for long term goals.

Start your own blog or website

Owning a blog or website is big business these days in cyber world. For those who don’t understand, blogging is simply an art of writing short articles about various sources of interest and publishing them online. Blogs can be about your personal life, the society, politics, entertainment, gossip or a combination of all of them. All you need is a computer, phone, laptop or tablet. You earn money from blogs when you have a lot of visitors.

Provide Consultancy

As a lawyer, accountant or engineer working full time, it is not unlikely that your services may still be required on an ad hoc basis. You can provide these services at your spare time upon request in exchange for a decent fee.

Be an Insurance Agent

Insurance Agency is one of the most profitable assignment offered by the insurance companies. You can have a licence to sell insurance products, selling life insurance policies, general insurance and annuity products. This will not only serve the people’s interest but will also be providing an extra source of income to you.

Be a Real Estate Agent

If you’re willing to put in the time and have an interest in real estate , why not become a real estate agent? This can bring good financial rewards, depending on how hard you work it, and how good you are in communicating.

Part time Teaching or Coaching

Teach a class, or offer coaching and consulting services, to help other people do what you already know how to do. For example, if you’re a writer, offer to be a writing coach to graduate students who are writing their dissertations. Web consultant and online marketer earn a substantial income from intranet-based training courses. . 

Work as an Editor

You can also offer to edit papers or provide tutoring for a course you already had success in. Many printing houses need freelancers to edit their articles. You can also write reviews of events and If you’re a tech whiz, offer to review and comment on latest computer Apps.

Write Articles and books

If you’re a writer it seems perfectly natural to start writing your own articles and books. It’s now easier than ever. You can write articles for websites, blogs and paid reviews and can earn extra money.

Start an online business

The likes of Facebook, Google and Amazon are all online businesses. Online businesses make money through advertisements on the websites, commissions or selling a product or service. To make money from an online business, you must either have a forum where people regularly interact, sell products or services people need etc. Most successful online businesses started from people’s bedrooms.

Be a virtual assistant

Virtual assistants are people who are employed to remotely work from home or in any location that is not your typical office place. All you need is a laptop, Internet and telephone. It’s increasingly getting popular as a source of earning income for stay-at-home mums.

Become a paid Chauffeur on weekends

If you have passion for driving and you want to earn an extra buck, then professional driving can be considered to generate extra money. Though this is a kind of low key assignment but If you have the strength to work an extra day or two, then why not try ? These days many high profile person prefer to hire part time Chauffeurs . 

Plasma Donation 

Consult your physician first and if you’re cleared you might be paid handsome amount for each donation. In some countries you get rewarded for donation of plasma but not in all countries Generally, you are allowed to donate up to two or three times per week in the U.S.A.

These are some of the alternative sources of income to compensate your regular income and live comfortably as depending on the only source of income from your employment cannot be viable in current scenario.

If any other important source has escaped attention, kindly share your valuable ideas.

Car Prices Slashed: Is It the Right Time to Buy your Dream Car

Price of cars and two-wheelers in India were set to come down after Finance Minister P Chidambaram announced a reduction in excise duty on small cars, motorcycles and scooters from 12 per cent 8 per cent.
Price of cars and two-wheelers in India were set to come down after Finance Minister P Chidambaram announced a reduction in excise duty on small cars, motorcycles and scooters from 12 per cent 8 per cent.

This has proved to be a major relief to all the auto companies in the red, as the industry could see a pick-up in sales with major manufacturers reducing prices up to a maximum of six per cent.

On reduction of excise duty on passenger cars in the Interim Budget, the country’s biggest carmakers Maruti Suzuki India and Hyundai Motor India (HMI) reduced prices across product portfolios.

While Maruti’s price reduction ranges between Rs 8,502 and Rs 30,984 across models, Hyundai slashed prices by between Rs 10,000 and Rs 1,35,300. The petrol variant of Maruti Swift will be cheaper by Rs 15,000-Rs 17,000 and the diesel one about Rs 20,000-Rs 24,000.

The entire benefit of the excise duty cut is being passed on to customers for the full range of models as stated by Maruti in a statement.

Alto hatchback will be cheaper by Rs 8,502, SX4 by a maximum Rs 30,984, Celerio Rs 13,615, Alto K10 Rs 11,304, Omni Rs 8,698, Eeco Rs 10,881, WagonR Rs 12,578, A-Star by Rs 13,482, Estillo Rs 12,148, Ritz Rs 15,130 and Ertiga Rs 18,747.

Honda Cars India, Volkswagen, Mahindra & Mahindra (M&M) and Fiat also announced price cuts.

Hyundai’s Santa Fe will be cheaper by Rs 135,000. Volkswagen reduced the price of Polo by a minimum Rs 18,000 and that of Jetta by a maximum Rs 51,000.

M&M reduced prices of its passenger vehicles between Rs 13,000 and Rs 49,000. The company also lowered prices of its premium sport utility vehicle Rexton by up to Rs 92,000.

Remaining carmakers are expected to reduce prices in the next couple of days. 

However the cut in duty will be applicable up to June 20, 2014, when the new government is likely to present the full year budget.

So decide whether this is the right time to buy your dream car.??

Provident Fund's Minimum Pension of Rs 1000 approved by EPFO Trustees

Employees' Provident Fund Organisation (EPFO) have approved the proposal to provide a monthly pension of minimum Rs 1,000 to all the members, a decision that will immediately benefit all the concerned pensioners.
Finally, the Trustees of retirement fund body Employees' Provident Fund Organisation (EPFO) have approved the proposal to provide a monthly pension of minimum Rs 1,000 to all the members, a decision that will immediately benefit all the concerned pensioners. Presently, there are about 44 lakh pensioners. Out of this, 27 lakh get less than Rs 1,000 a month.


Pensioners are expected to get benefit with effect from April 1, 2014.



The Labour Ministry's proposal on giving a minimum monthly pension of Rs 1,000 under the EPS-95, run by the Employees' Provident Fund Organisation (EPFO), had been pending for a long time as the government would have to make fund provisions for the purpose.



Now the Finance Ministry has approved the proposal for providing a minimum monthly pension of Rs 1,000 under the Employees Pension Scheme 1995 (EPS-95) run by EPFO. 




As per the directions of the Finance Ministry, the Central Board of Trustees (CBT), the apex decision making body of EPFO, also decided to raise the monthly wage ceiling to Rs 15,000 from Rs 6,500 by recommending an amendment of the EPF scheme, 1952, so that more workers can be brought under its various social security programmes. At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit of EPFO.

According an EPFO official, the labour ministry will soon move proposal before the Union cabinet for its approval for the Rs 1,000 minimum monthly pension.


This new amendment in pension provision will pave the way for inclusion of many employees who were earlier omitted out of the benefits due to low level of eligible wages.