How do Fixed Deposits Affect your Financial Stability?

Following the demonetization drive, a lot of banks have seen an increase in investment in fixed deposits. Fixed deposits are a safer option as opposed to market stocks and mutual funds, and they are rarely affected by the volatility of the market.

Investing in the fixed deposit is easier since you have to invest your funds only once throughout the tenure of the deposit as opposed to recurring deposits where you have to keep investing some part of your limited monthly income.

Fixed Deposits

Different banks offer different interest rates which are dependent on their policies, the tenure of the fixed deposit and the amount of money that you want to invest. Not only banks but companies also offer fixed deposits.

The company fixed deposits provide you with a higher rate of interest as compared to bank fixed deposits. Whenever you decide to invest in fixed deposits, it is necessary that you choose a financial institution, lender or company based on their reputation in the market and the rate of interest that they provide.

It is necessary to keep in mind that the income that if you receive more than INR 10, 000 in one financial year, you will have to pay tax on this extra income and the tax amount will be decided based on the tax bracket that you fall into.

Financial Goals

The tenure of the fixed deposit depends on your financial goals. A fixed deposit is dependent on the amount that you invest in and the rate of interest that is paid to you by the financial institutions or lenders. The term of your fixed deposit can range anywhere from 7 days to 20 years.

If you have a large amount of cash that you want to invest, it is advised that you invest in different investment options. This will provide you with financial security since all your investments will not be affected by the volatility of the market.

If you have opted for a short-term fixed deposit, you can extend the tenure of this fixed deposit once it matures and this will help you in increasing your liquidity. 

Whenever you invest your funds, make sure you choose the tenure in such a way that you keep receiving the benefits of your investment in a timely fashion. 

Rate of Interest

The best type of fixed deposit in which you can earn go rate of interest is the one where the rate of interest is calculated the compound interest, with the help of online fd calculator you can check your returns of invested your saving in FD . 

If you are opting for a Non-Banking Financial Institution (NBFC) or a Housing Finance Companies (HFCs) you should consider the nature and stability of their business, the services provided by these companies and credit rating of the companies. 

As credit rating has very less impact on the interest offered by the company’s fixed deposit, it's the investor’s responsibility to check the rating of the company should be AAA rated. 

Financial Emergency

If you are facing a financial emergency, you can break the fixed deposit and use this money. No penalty charges are usually applied by the financial institutions or lenders if you break your fixed deposit before its maturity. 

It offers attractive features like cashless hospitalization benefits, discount rating from 5% to 25% on medical services, doctor on call. In company deposits, new customized options are available for each customer, as per their goals and budget, specialized offers for women, free accidental insurances for the individual investor.

6 Unexpected Stresses of Retirement

Many of us paint this idealistic picture of retirement in our minds, where retirement is a beautiful place untouched by the everyday stresses of life. 

Unfortunately, retirement isn’t quite as idealistic as this, and people who are retired face just as many stresses as working individuals—but different stresses. Here is a brief look at some of the most common unexpected stresses of retirement.

Financial concerns

Though retirement is ideally a time for you to enjoy a lifetime’s worth of invested savings, financial concerns remain a top stressor for retired individuals. 

Retirees must adjust to living on a fixed income, and oftentimes that adjustment is more dramatic than expected. Unexpected expenses may drain your retirement fund more quickly than anticipated, for example, or lack of portfolio diversification (a concept discussed in this article) might have undermined the wealth of your retirement account. 

Because financial concerns are so prevalent in retirement, it’s important to remain in close contact with a financial adviser to ensure you will be taken care of once you retire.

Health problems

Many of us expect to encounter health issues as we get older, but we still get this idea in our minds that old age happens to everyone other than ourselves. 

Age-related health problems develop in even the most active adults, however, so it’s important to approach retirement with the mindset that you are going to do what you can to preserve your health. 

Experts suggest regular exercise for retirement-age individuals—even if that is simply light stretching, walking, or yoga. The CDC, in particular, recommends engaging in at least 150 minutes of aerobic exercise per week.

Caregiving

Perhaps you expect to encounter more personal health issues as you get older, but what you might forget to consider is having to take care of a spouse, parent, or other relative once you’re retired. 

Caring for a loved one, particularly from an illness involving cognitive impairment such as Alzheimer’s disease, can become very stressful. Experts suggest that the best way to cope with this unexpected stress of retirement is to seek help from others, including family members, friends, and professionals.

Relationship issues

Retirement is a major lifestyle change, and as such it can change the dynamic of a relationship—be it marriage or a family relationship. 

A newly retired spouse, for example, might suddenly feel isolated and lonely once they are not spending as much time with their colleagues. The changing dynamic that comes with retirement can easily result in relationship issues. 

Experts say that the best way to cope with relationship issues brought on by retirement is to appreciate retirement as a time to nurture relationships, and to seek counseling if necessary.

Identity loss

Many who are newly retired experience stress from suddenly not having something to work for. These individuals feel less valuable and struggle to maintain a firm grasp on their personal identity. 

These types of feelings are perfectly natural as, again, retirement is a major life adjustment. To maintain a strong sense of value and identity during retirement, it’s important to seek new pursuits and to use your time to nurture cherished relationships. 

Experts suggest picking up an old hobby to occupy your newfound time, finding a new hobby, joining a local organization, or getting a low-stress part-time job.

Substance abuse

Did you know that the elderly are at especially high risk for substance abuse? According to this article, rates of alcohol abuse actually spike at retirement age. The reasons for this are several. 

First, retirement itself is a major life adjustment, and it can leave one feeling useless or without identity. Alcohol abuse becomes a coping mechanism for these negative emotions. 

In addition, those at retirement age tend to start experiencing more physical pain, which can also lead to alcohol use as a coping mechanism.

Alcohol isn’t the only substance that sees high abuse rates among retired individuals, either. Prescription painkiller abuse is also remarkably high, as the elderly are prescribed relatively more painkillers than other demographics.

Substance abuse is highly dangerous for a person’s health and finances, so if you or a loved one begin to develop substance abuse after retirement, it’s vitally important to seek professional help as soon as possible.

4 Money Management Ideas to Employ When Injured and Out of Work

When you are injured and out of work, your finances will quickly take a big hit. Being out of work usually means having no health insurance, which further compounds your financial distress. 

These four money management ideas offer some help so that you can stay on your feet for as long as possible.

Applying for Worker's Compensation or Unemployment Benefits

If you were injured on the job, contact human resources and find out if you could qualify for worker's compensation. If you were let go because of your inability to do the job, find out if you could receive unemployment benefits. If your employer is uncooperative, consider a consultation with a worker's compensation or disability attorney.

Receiving a Personal Injury

Receiving a personal injury can be an overwhelming experience. You might feel frustrated, stressed and worried about what the future holds. Professionals, like those at D Chadwick Calvert Law Office, know that you should be sure to make the most of the insurance benefits that you have. 

Counseling may also help you to get through the experience of receiving a severe injury and loss of your job. You may also find a free support group in your community.

Cutting All But the Essentials

If your disability payments or unemployment benefits run out or never pan out, you could quickly run out of money. 

As soon as you are out of work, cut all but the essentials. Even if it means that you have to cut out the cable TV and other fun stuff, you can survive without it. Stick with the essentials at the grocery store and cut back wherever possible.

Find Work to Do from Home

There are only so many expenses that you can cut. At some point, you will have to be bringing some money into your bank account. Consider whether there is work you could do from home, even with your injury. 

Keep in mind that if you start working before a disability determination is made, the work could disqualify you from being eligible for the benefit. Some work options to do from home could include tutoring, sewing, dog sitting, house sitting or medical transcription.

When you are injured and out of work, take advantage of all of the resources available to you. Attorneys offer free consultations, and government employees at the disability and unemployment offices may be able to link you with community assistance. 

Focus on getting better and developing some new technology-oriented employment skills that could help you to find work that you can do as you recover.

5 Frugal Ways New Families Can Conserve Money

Many families today struggle to save enough money for the future. With the rising costs of many products and services, it is more important than ever to figure out a plan in this area. 

Many families also have to have both parents carrying full time jobs and for some, that might not even be enough to bring in enough money to make sure all of their bills are paid. 

The good news is that there are many ways that you can conserve money as a family.

Cook at Home

Perhaps the easiest way to save money for your family is to cook at home instead of going out to eat. 

There are a lot of people who spend way too much money going out to eat at restaurants in their local area. Not only is this less healthy, but it also costs a lot of time and money. 

Start working on meals each week that your family can cook and enjoy together. This will allow you to figure out a way to make things for less money.

Shop Insurance

Few people know that they can continually shop for cheaper insurance throughout the year. 

The average family spends hundreds of dollars per month on auto and home insurance. It only makes sense to look at ways that you can save money in this area. Many insurance companies are willing to lower the costs of care if you will bundle your coverage.

Budget

One of the things that all families can do to be better with their money is set and stick to a strict budget. 

Many families spend too much money on products and services because they do not keep and maintain a budget. This is never a good idea, and you need to make sure you have a financial plan for your money at all times. 

Simply writing down your financial goals has a huge impact on your financial future. You should also be doing simple things like taking ten percent of your income and dedicating that to savings. It may not seem like very much, but it will add up over time. 

You also may need to consider tightening up on unnecessary expenses. These usually include extras or guilty pleasures that you might enjoy. Eliminating these things will help stop unnecessary spending and thus helping you have more money in the long run. 

Buy a Used Car

One of the best things you can do is not waste your money on a brand new car. Rather, it is more frugal to buy used as you will have lower monthly payments each month allowing you to dedicate your budget to more important financial areas for your family. 

Dealerships like the Young Automotive Group can help you find the right and reliable used car for you and your family.

Coupons

Some people thing couponing is crazy, but if you put in the work, and you can save a lot of money, then why not take advantage of them? 

Another great way to save money on groceries is to look for coupons. These are easier to use than ever before because of all of the online options. If you are ready to start saving money, look for coupons in your area to clip for products that you can buy. 

A lot of people have high levels of success with this strategy.

Overall, saving money is possible with the stress of a new family. Simply stick to a plan and follow these tips to save more money each month. 

The more financially organized you are, the easier your overall life will be. 

Living The Dream Or Counting Every Penny: What Will Your Retirement Look Like?

What do you want your life to look like in retirement? Do you picture yourself retiring to the coast or the countryside? Reconnecting with your spouse whilst vacationing or taking a cruise? Or picking back up some hobbies like gardening or golf? 

Sounds great, but whilst you might have the dream, have you thought about how you will pay for it in reality? 

According to a recent study, one-third of American adults have no retirement savings at all, with many choosing to stick their head in the sand and spend today rather than save for tomorrow.

Picture The Life You Want

The first step to a stress-free retirement is to take the time to sit down and think about what you would actually like your life in your later years to look like. Some key things to think about might be what age you'd like to retire at, where you'd like to live, what little luxuries you would like to have. 

Next (and one of the most important steps) is to realistically work out what it may cost you - there are many calculators available online to help with this process, and it's a very valuable exercise: many people either vastly over or under-estimate how much retirement may cost them. 

Remember, it's difficult to start planning if you don't know what goals you are aiming for!

Make Changes Now!

Obviously, the older you are when you start, the less time you have to save. In an ideal world, everyone would start to save for retirement when they first start earning - the compound interest effect means that you will build up a much bigger pot this way, but few people actually start then. 

The main thing is that you start now, whatever age you are at - you are only going to get older, and starting to save for retirement at age 45 is better than starting at age 50! Look at any little ways you can save like bringing lunch from home instead of buying it when you're at work, or foregoing your daily latte habit, and put the cash straight into your savings pot. 

Another great way to save is to have a small amount paid straight from your paycheck into a savings account - if you can only manage 2% to begin with then start with that, but commit to growing it on your next pay increase, that way you'll get the benefit of more money going into your savings without feeling like you're paying more into it. 

Make sure to take advantage of any employer contribution for your 401K too - many will match what you put in, and that's free money!

Insured For Life?

One thing to think about is investing in a life insurance product - not just from your own point of view (many policies pay out early in cases of terminal illness), but also for what you might want to leave behind for any family members in the event of your early death. 

Life insurance can be quite complicated - how much you want, whether you want whole, universal or term life coverage, if critical illness cover is included etc, so it's important to use reputable sources to do your research, or use an trusted independent advisor.

Start Today!

Retirement planning can be confusing and stressful, but don't put it off another day - make the first move today and take it step-by step. 

Think about key things like the lifestyle you want, how much money you need to achieve it and life insurance, and either do your own thorough research or consult an independent financial advisor to talk you through it all.

7 Ways To Save Money On Your Monthly Expenses

Well, I won’t be wrong in saying that one of the greatest challenges in personal finance is finding out the ways in which you can spend less money. One of the best and tangible ways of doing this is to save money on your monthly expenses. 

Even though some of your bills seem small and insignificant on their own, but cumulatively the effect can be massive and worst of all it can become a leading reason for a huge drain on your resources.

In order to cut down the damage caused on a monthly basis, most of the people look for varied easy to implement & effective methods in which they can cut their expenses. So, I am going to discuss top 7 ways to save on your monthly expenses. 

Try Using Public Transportation

When you use public transportation, you get to save a significant amount of gas, petrol, diesel, and maintenance over time. 

Remember each time you are leaving your car behind, you are saving money. I have tried this strategy of using public transportation myself and trust me it really helped me save money. 

Sell Unwanted Stuff

You must be having stuff in your home you don’t use often. Selling all that stuff on eBay can be a smart way to earn some quick money. 

You can use this money to pay off your debt and get rid of it once and for all. I have also sold some of my stuff, that includes selling off my Cricket Gear when my debt really got unmanageable. 

Installing A Programmable Thermostat

Using a programmable thermostat, you can easily program both the heating and cooling of your home, even when you are not at home or when you are asleep, thus saving on heating and cooling bills. Setting it to cool or heat before arriving home from work will surely come handy.

Go For CFLs And LED Bulbs

Incandescent bulbs are history, LEDs (light-emitting diode) and CFLs (compact fluorescent light) are the new trends in lighting. Update your house’s light bulbs and switch to LEDs and CFLs. 

The best thing about them is that they are four times more energy efficient than incandescent bulbs and most importantly lasts longer. Make sure you consider Lumens Number when you are comparing the bulbs. Lumens will tell you the actual light emitted by the bulb. 

Benefits of CFL –

• Save Energy – CFLs are four times more energy efficient as compared to incandescent bulbs. This means that these bulbs use 50 to 80 percent less energy. 
• Cost Element – Yes, initially it will cost you more, but it will prove less expensive in the longer run. The main reason behind this is that CFLs last longer. 
• Environment-Friendly – Using CFLs also cut down carbon monoxide emission to the atmosphere by 1,000 pounds. 

Benefits of LEDs –

• Longevity – LEDs are known to have impressive operational life i.e. 100.000 hours. 
• Energy Efficiency – Consuming 80% less power as compared to incandescent bulbs, LEDs are highly energy efficient. 
• Longevity – A LED light can last up to 7 years. 
• Safety – There is no heat produced by LEDs but on the other hand incandescent bulbs heat up and they are not comfortable to hold. 

Cancel All Your Club Memberships

You might be having gym membership and a local club membership. Ask yourself, how often do you use these memberships? 

I am sure you are using a gym membership not more than once in a week and club membership not more than once in a month, you are probably spending money indiscriminately. Cancel all your memberships and see how much you have saved. 

Cancel Newspaper And Magazine Subscriptions

If you receive newspaper and magazines in your daily mail, but don’t read them often, make sure you have opted to cancel the subscriptions without giving it a second thought. 

If you really want the reading material, you can either go to the library or you can read them online as well.

With the advancement in the field of technology, lots of newspapers, news channels, and magazines have their online versions. So, it makes it easier to go through the latest news and gossips while you are on the go. 

Compare The Prices Of Electricity And Gas

Take some time out and find out are you really getting best deals on your electricity and gas? Today, there are numerous comparison websites where you can compare the prices, so make the utmost use of such websites.

Author Bio

Sophia Jones tries to live her life like the sun – setting her sights high and vowing to always rise up again. Always game for an adventure, Sophia loves widening readers and her own expectations of our vast, beautiful world. As a journalist, Sophia writes to inform. As a creative writer, Sophia strives to inspire. Overall, she hopes to captivate. She currently writes for sites like alwaysreview etc.