Top Things to Consider Before Buying a Second Home

Are you pining for a vacation or retirement home? Or, do you simply wish to invest in an appreciating asset for the future? If your answer is yes to any of these questions, it is time to consider purchasing a second home.

Is Buying a Second Home a Good Investment?

It depends on several factors – property location, buying purpose, overhead charges such as maintenance cost, resale value, etc. Generally, investing in a second property can bring-in higher ROIs via rental income and also offer your family a recreational space. 
Besides, housing loan eligibility is higher for second-home buyers. Add to it the spectrum of tax benefits they can avail on their home loan interest rate. Thus, invest in a second home if you’re financially capable of bearing its cost.

Here are the top points to consider before buying a second home.

Objective of Purchase

Buyers should have a clear goal of purchase (for rental or self-use) before investing in a second home. Only then, they should decide on the location, type, and size of the property for better returns. Moreover, this factor is significant as it also figures into your housing loan eligibility.

Potential Rental Income

If you’re planning to rent out the property for income generation, choose a location where the rental demand is high to earn enhanced monetary benefits. Besides, if you decide to take a full or partial home loan for the second property, rental income can help with paying off EMIs. Here is some advice - before applying for a home loan, use a home loan EMI calculator online to accurately calculate your monthly installments.

Property Value

Usually, the location of the property determines its market value. If you plan to use it as a weekend home or vacation home, consider factors like climate, views, maintenance need, potential rent, etc. These factors can estimate property appreciation that can enhance its resale value. Moreover, from the standpoint of finance, the property value is important as lenders also check your housing loan eligibility through property valuation.

Maintenance Cost

For any property, timely maintenance is essential to ensure functionality as well as resale prospects. Besides, improperly kept properties bring lower rental returns and sabotage capital appreciation. Therefore, do consider the maintenance cost of the second home as your home loan won’t cover it.

Cost of Borrowing

Depending on your savings and property value, you can take a housing loan to purchase a second home. Accordingly, you can choose a loan plan with suitable home loan interest rates and EMIs. However, in most cases, a home loan does not cover hidden charges like processing fee, registration charges, stamp duty, etc. Also, remember that the overall cost you incur on servicing the housing loan will impact the cost of your property as well.

Over to You

As examined above, buying a second home can be a good investment but overlooking the cost of borrowing is not a smart move. Therefore, use a home loan EMI calculator to estimate the cost of servicing a suitable home loan as various loan plans like the tailor-made home loan for self-employed, are available in the market.

Are you looking for housing finance? If yes, then turn to Tata Capital! We offer an attractive home loan interest rate and a hassle-free process. Check loan eligibility online on our website and file your application today!

How to Help Your Business Manage Taxes

Owning and maintaining a business is a challenging job. Business entails numerous things. As a business owner, a lot is expected of you, especially decision making. Different businesses have different taxes to manage. It can be a daunting task if you are not organized.

Understanding the Type of Business you have

First, you need to understand where your business stands. Is it a sole proprietorship, a partnership, or a corporation type of business? Once you are clear about the position, you will know the right kind of tax to pay. Additionally, you will avoid paying unnecessary taxes. Knowing the precise taxes, you ought to pay will also assist you in keeping proper records, i.e., business finances and financial documents.

Knowing the Different Types of Taxes you have to pay

Apart from the common types of taxes, different businesses have diverse types of taxes. Knowing the exact tax to pay will ease you the struggle of paying unnecessary penalties that you are oblivious of. For instance, in some states like New York, businesses have to pay temporary disability insurance. If you have a large business that requires employees, it’s your obligation to pay the workers’ compensation and unemployment insurance.

You also need to know the type of forms you are required to file. For example, a sole proprietor business uses form 1040, while a partnership business uses form 1065 to report their business income to the IRS.

Therefore, you must know the federal license of your business in your state.

Calculate Your Income

You must know how to calculate your gross income so that you get your taxable income. Clearly understand the difference between net and gross income. If you do not know accounts, it is highly recommended that you hire a professional accountant or use tax accounting services.




Professional accountants offer numerous services that can assist you with all tax challenges. You can also employ certified accounting software. Such software is helpful if you have knowledge in accounting.

Other Important Steps

•Get employer Identification Number (EIN)

This form is acquired from the Internal Revenue Service (IRS). You need a valid Taxpayer Identification Number (TIN) to apply. You can apply for it online and get it fast.

•Acquire business and professional licenses

Only acquire a license that is required in your state. Remember, these licenses may have other separate taxes attached to them.

•Claim your tax credits

This claim will reduce the amount of tax you pay. But, you can only claim if you qualify.

•Claim the income reported to the IRS

The IRS has records of the 1099 forms that you get. They match the income you report against what they know you receive. Ensure that the income in the form matches what you report.

•Decide when and how you are going to pay your taxes.

The frequency of filling your tax returns depends on your state, but you decide how and when you will file the revenues. Don’t wait until the deadline. File your tax returns in advance.

As a business owner, you might get distracted or engaged in work and forget to file in time, getting yourself into more debt.

Tax Debt

Failing to meet deadlines could lead to penalties or other dire consequences. If this happens, seek legal help. Such situations are tricky. The IRS Fresh Start Initiative will give you a second chance to clear the tax debt.

If you have a revenue debt and are unable to pay, you can report the situation to the IRS as Currently Not Collectable. After convincing them that you cannot pay and guaranteeing them you will pay back, they will offer you more time to clear the tax debt.

Balancing your books will give you heads-up to avoid late fees or penalties. If you don’t qualify for the fresh start relief, acquire legal help to help you get a penalty relief.

It is advisable to keep your business in order. You wouldn’t wish to crumble your hard-earned business because of tax debts. If you can’t handle taxes due to workload, seek help. This way, you will have a sober mind as you focus your energy on other important components of your business.

How Does a Personal Loan Help in Your Business?

Running a business comes with its fair share of responsibilities; right from more significant issues like hiring staff, finding suppliers, advertising to smaller expenses like buying a coffee machine for the office. As an entrepreneur, your job is a coming together of many responsibilities and duties. 

Adding support to your entrepreneurial journey is a quick personal loan. It can be used to cover any and every expenditure of a business and allows a company to flourish and touch new milestones.

Here is how a personal loan can help you run your business better:

It gets approved quickly: It is relatively simpler to meet personal loan eligibility rules. The lenders check your CIBIL score to accept or reject the application. You can get a loan by submitting necessary documents such as your bank statements, identity, and address proofs and income statements.

It covers urgent shortfalls: When you apply for a personal loan online, the approval process takes the least possible time. This is useful to cover any immediate financial crisis that you might face in your business. Any other form of credit can require a longer approval time.

It offers flexibility: An instant personal loan can be used for multiple needs. When you submit your application, the loan provider does not inquire about the reason for your requirement. 

You can use the funds for many miscellaneous expenses of your business. Personal loans offer a lot of flexibility to entrepreneurs. They can cover a broad spectrum of costs. This is particularly helpful for small companies or sole proprietors.

It does not need collateral: One of the biggest concerns faced by entrepreneurs is having to sign an asset as collateral when taking a loan. Not only is this risky for the business, but many small enterprises may also not own enough assets to show as collateral. 

Personal loans are unsecured. Hence, you do not require a security or third-party guarantor when you apply for one.

It provides convenient repayment methods: You can choose a suitable loan tenure and equated monthly installment (EMI) amount as per your business’s ability to settle the loan. 

You can also repay a specific portion of the funds with the option of part-prepayment. Personal loans offer different ways to repay the money. These match with most businesses’ capabilities and constraints.

To sum it up

A personal loan can help your business in many ways. It can offer increased financial stability to overcome many economic hurdles. The consumer-friendly nature of personal loans and the carefully designed features can aid both big and small companies in times of need.

If you are an entrepreneur and require capital for the growth and expansion of your business, you can apply for a Tata Capital instant personal loan. With rates of interest starting from 10.99%, you can secure a loan up to Rs 25,00,000 with a loan tenure of up to 72 months.

A Few Small Changes to Increase Your Car's Mileage

Many people are spending too much money at the pump. The cost of gas is always fluctuating and it often feels that there is nothing you can do to reduce the costs of your transportation except wait for them to go down. However, there are still things that you can do in order to increase your gas mileage.

Drive Slower

Many people drive quickly because they are eager to get to where they need to go. However, it is a good idea to drive more slowly. Your car will use more fuel when you drive fast. That is why you should keep your speed at or below 55 miles per hour unless you are on the interstate. 

You may also want to use cruise control whenever possible. Of course, you can also make the mistake of driving too slow as well, as driving in a lower gear takes more gas than in a higher gear.

Use Your Air Conditioner

Driving with the window down on a hot day can create a nice breeze. However, this will create a drag. Your engine will have to work harder, and your vehicle will use more gas. 

That is why it is best to use an air conditioner instead of driving with the window down. Your air conditioner will still cause your vehicle to use more fuel, but it is more efficient than driving with the windows down.



It is important to make sure that your air conditioner is working properly. If your unit needs to be replaced, then you will need to get AC installation services as soon as possible.

Replace the Air Filter Often

A dirty filter will cause the engine to work a lot harder. That is why you will need to check the air filter on a regular basis. It will need to be replaced at least once a year for the best performance, though few people remember to do this. Because of the strain on your engine, this not only lowers your mileage but causes gradual damage to the engine.
Watch the Weight

Many people use their cars and trucks to transport things. While this can make your life a lot more convenient, it will cause you to burn more gas than usual. It is a lot harder for your car to move when it is carrying a heavy load. That means that if you’re using your trunk as extra storage, you’re going to be paying for that in gas whenever you drive.

You will need to limit what you put inside of your trunk. You should familiarize yourself with the weight limits of your vehicle. Do not exceed the recommended weight limit and don’t store heavy objects in the car if you can avoid it.

You do not have to spend a fortune at the pump. You can make a few small changes in order to increase your gas mileage. You will need to drive more slowly. You will also need to replace the air filter and use your air conditioner instead of the driving with the window down. Furthermore, you will need to watch the weight.

5 Steps For Making A Solid Financial Plan for Your Family

Most family heads would list financial stability as one of their key priorities. A stable financial situation is not something that happens accidentally. It requires planning. Thankfully, financial planning is not as difficult as some might think. The following are five steps for making a solid financial plan for your family.

1. Keep Track of Where You Are Spending Your Money

The first step toward creating a financial plan is making a budget that lays out how you are spending your money and where your money is coming from every month.

Budget creation can be simple. You could use a pen and paper to track your income and expenses in a notebook. There are budget template spreadsheets readily available online that can help you record your spending. 

There are budgeting apps that link to your bank account, investment accounts, and credit cards to help you automatically track your income and expenses. Once you have a clear picture of your expenses, you can make a plan.

2. Set Goals

Now that you have a comprehensive report of your income and expenses, it’s time to think about your financial goals. Most financial experts recommend that your first goal be to build an emergency fund that you can use during a personal financial crisis. It is recommended that you have enough money to live on for three to six months.

Ask yourself, where do you want your family to be five or 10 years from now? Avoid generalities. Instead, write down specifics, like you want to have your mortgage paid off in 10 years, have a $700,000 investment portfolio, or want to visit 10 countries. If you have specific goals, you can stay on track with your financial plan.

3. Make Your Debt Disappear

With a clear picture of your finances in hand, an emergency fund set aside for a few months, and your specific goals for the future, the next step is to make your debt disappear.




There are several proven methods for attacking debt. One method is the snowball method. You will pay the minimum on all of your credit cards or other sources of debt, but you aggressively pay the source of debt that has the lowest balance. 

If you have four credit cards and the first one has a balance of $5,000, the second has a balance of $4,000, the third has a balance of $3,000, and the fourth has a balance of $1,000, you would pay the minimum payment on the highest three cards, but you would aggressively put all of your extra money into paying off the card with the $1,000 balance. 

Once that card has been paid off, you will switch to aggressively attacking the card with the $3,000 balance and so on.

It may be beneficial to do a debt assessment. Many people have been able to achieve financial stability by settling their debts for less than what they owe.

4. Start Saving for Major Goals

Once you have an emergency fund and your debt paid off, it’s time to start saving for your long-term goals. You may need to re-examine how you are spending your money and see if there are ways to cut expenses or increase your income.

Many have turned to the gig economy to add more money to their budget. It’s important to make sure that the extra income you are earning is being put into some form of savings account directed toward your goals.

5. Monitor and Adjust Your Financial Plan

The financial planning steps that are being discussed are not just a one and done type of system. You will always need to review your personal financial situation. With time, your goals might change. Your income might increase, or your debt might drastically go down. You may see that your investments are performing better than expected, or there may be pressing financial situations, like health issues, that require you to divert from your original plan.

As you make a financial plan for your family or as you review your plan, don’t confuse your long-term goals with short-term fluctuations in your personal situation. Don’t change your family’s financial plan without considering the entire picture.

The sooner you make a financial plan for your family, the more control you will have over all your money. You will soon see that instead of working for your money, your money is working for you.

Tips for Starting a Food Business From Home

Do you dream about owning your own food business? You don't need to set up an entire company or hire several team members. The best way to begin is from your kitchen. A home business has several advantages. For example, you can prepare, package, and sell food items from the comfort of your home. You also work for yourself and set your business hours.

However, there are some things to consider before you begin. First, you have to decide what food products you want to sell. You then have to focus on food packaging and food safety. And finally, you have to promote your brand to help run a successful business. Here’s more information on the best practices for starting a food business from home.

Consider all of your options.

Will you cook the food items from scratch, or source them? You don’t have to be a kitchen expert to start a food business from home. If you love food, have a knack for business, and don’t want to use your kitchen, consider food curation. You can partner with local chefs or home-cooks who can make artisanal food products.

If you do plan to cook your food items, source ingredients wisely. Instead of visiting local grocery stores, go to the source. Partnering with a supplier or a local farmer are some of the best ways to do this. If you don’t have the brand name for this yet, visit wholesale stores.

Make sure it’s legal.

Did you know that states have different laws when it comes to home or small-scale food businesses? In some parts of the United States, local artisan food laws help small businesses flourish. However, check that what you plan to sell is legally allowed in your location. There are different laws regarding home-based and commercial kitchens as well. You can get around some of these laws with a co-op commercial kitchen space.

Once you’ve made sure you can sell your food items, don’t forget to register your business. Check the FDA regulations around home-based businesses, food safety, and food packaging laws. Get all your licenses and permits before you begin, so there’s no legal trouble in your future.

Save on the little things.

Do you have a favorite store for your cupcake boxes? Do you want to put handmade, personalized labels on each container? Most of your ingredient and packaging decisions will depend on demand. 

However, saving on packaging and delivery will help you focus on quality ingredients. However, you will have to package food items in a material that is free of any adverse health effects. Remember that saving doesn’t mean buying poor packaging, as this can compromise the food safety of your products.

While cute packaging can help sell your food products, it can also bankrupt you. So, make wise food packaging decisions. Branding is also important — your food packaging should appeal to customers. 

After all, how you present your food matters almost as much as the food items. To buy in bulk, search for companies that supply food contact materials to fast food restaurants. If you’re starting small, search for independent companies. Buy everything from grease-resistant food packaging to food contact materials from one place.

Focus on your business plan.

So, you’re a good cook, and everyone loves your food. And, you enjoy cooking for a crowd. While that’s important, it’s not enough for a successful food business. Goal setting is the best way to ensure success. A solid business plan and ambitious goals will help keep your business afloat — even if it is out of your kitchen.

Also, you should conduct market research before you begin. Will the food products you like to cook sell well? How much can you price the food items? How long before you break even? Some food spaces are over-saturated and will be hard to break into as a newcomer. Unless you are rich or have proper funding, it’s best to tap into a specific niche. Think of how you will promote the business. Can you do all the cooking yourself? If you have a small kitchen, consider how much it will cost to rent out a commercial kitchen space.

Continue to focus on your company strategy even after you set up your business. Track your key results and have team members (if any) take part in future goal setting. If you need help, invest in OKRs. 

An OKR system will allow you to work with a sales team to set ambitious goals and focus on measurable results. You can track your progress, and find different ways to improve profit margins. Invest in business planning tools now so that you can plan for success rather than simply hoping for it.

Sell your brand.

You will sell more food products if more people know about and are inspired by your brand. Focus on everything from your logo to your name. And make sure you spread the word. Don’t just depend on referrals and word of mouth. 

The internet plays an important role in home-business marketing. List your food products online and offer giveaways and discounts. Set up a website, social media pages, and reach out to local publications.

You don’t need a PR team to promote your business. Local newspapers and magazines often profile home business owners. Contact them to help spread the word. Connect with customers online, post regularly, and comment on reviews. An excellent online presence will translate well into sales for your food products.