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It is really cool.

http://mGinger.com/index.jsp?inviteId=962218

Click on the link ,Register yourself, and start getting money per text message you receive from mginger.
It may not be quick money to riches, but I know its working, and you can see your earnings.

Insurance policies

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When we sit in the car, first thing to do is putting the seat belt.When you are making your kid sit on a swing , you advice "hold firm". Why ? Its for minimizing the risk. If we take care of a risk of fall, why don't the life.


Tip 1. Everybody needs an insurance cover.
Yes, Everyone needs it .The coverage amount , years and type varies with the risk cover required.This is the only thing which you can do to help your loved ones to sail through.

Tip 2. Insurance is not an investment.
I do not think anyone will pay an extra amount to have seat belt laced with gold , or a seat belt with stereo controls. Why?
The purpose of seat belt is not that and there are good methods for stereo controls available in the market.Similarly the purpose of insurance policies are risk coverage and there are many other good investment instruments available.

Tip 3. Market linked Insurance Policies only for very long term.
Market linked Insurance policies are only for very long term (10-20 years)
These Policies popularly known as ULIPs are highly front loaded. If you pay 10k only 8.5k will be going to your account, remaining goes to various commissions. The commissions will reduce as time passes and will be profitable if your investment horizon is 10+ years.

Tip 4. Money back policies not better than any other type.
Popular belief is that Money back policies are better as you can fund the remaining premium with money you get back.
If you are not taking the money back, you will get better returns . You are taking some money which has potential to grow big .Also the premiums of such policies are higher.

To know further about other riskfree investment options read How to become a millionare http://tips-personal-finance-advice.blogspot.com/2009/07/how-to-become-multi-millionare-risk.html

How to become a Multi millionaire risk free

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Everybody likes to be a multimillionaire in a low risk route. Is it possible to become one ?

In this blog we will explore a method to become a multi millionaire through risk free methods.

Is investing in stock market the way , doesn't seems to be in this downward spiral. Interest rates are also not high to provide a good return.



Power of compounding

If you are 25 you can expect to have 10 million in your kitty by the time you turn 60.
Of this the amount you actually need to invest is only 2 million. Remaining 8 million is from the interest earned over years. This is the power of compounding.


What is compounding?
In a simple interest scenario you earn only against the principal. But in Compounding you earn for your interest also. this is one of the best tools an average investor can look at for amassing wealth.Compouding grows your money exponentially where simple interest grows your money linearly.



Here the key is not investment vehicle you choose but 2 other things

1.Start early

2. Invest regularly



Start Early

Earlier you start earlier you reach your target. If you start early the lesser will be your outgo.


Age you start -----Years to 60 ------------Investment per month

25-----------------35--------------------- 5000
30---------------- 30----------------------7000
35---------------- 25---------------------11000
40---------------- 20---------------------18000

Investment per month to reach 10 million by 60 ,assuming 8% yield every year compounded


Invest regularly

Investing regularly is another most important factor . Your investments will grow faster if you save 5000 every month rather than 60,000 every year because, 5000 every month earns another 2000 every year as monthly interest every year. In effect if you invest 5000 every month it is equivalent to 62000 in a year.

At 8% you reach 1 million in 11 years at 12% in 10 years and at 20% in 8 years. What it matters is the number of years.

Please feel free to comment using the comment link .

How to manage credit cards

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Credit cards

They give the power of tomorrow today, If managed well. But the usual problem is the user try to manage beyond his earning powers and fall in credit card traps.In tis blog I will discuss about how to manage such things.



Tip 1. Selecting the cards.

If you have any card which requires annual fee think twice about it.Now a days there are so many card providers who offer them for free.If it is for a fee , what privilage am I getting because of that? The point system and rewards are just baits to catch new prey. After the financial meltdown the rewards and points are becoming less rewarding for user.

Tip 2. Sign immediately on receipt of card.

This feature if not done you are leaving it open you are actually inviting everybody who see it to sign on it. The signature is an important safety feature to prevent frauds.


Tip 3.Once you selected your credit card keep a log

Yes , make it a habit to log in the expenses met with the card in a diary. It will help you to cross check the statement. It is important because sometime it may happen that you give one credit card to the merchant and he returned it to you telling, "Transaction not accepting give me another card" and you gave another card and done with the transaction. In most cases you will get charged for the failed transaction.

Tip 4. Use photo card

It will reduce your risk and puts the risk to merchant to verify the person. This will be useful if you have lost your credit card and want to prevent somebody else to pretend as you and use your credit card.


Tip 5. Use it only if it is required

If you have loose cash use it. If you have debit card use it. After this only try using credit card. By reducing your credit card usage you are not only reducing your risk , but also your extra expense.


Tip 6.Pay it full

Pay your staement due fully, do not allow the credit card balance to roll over to next month by paying a part payment now.

Tip 7.Do not wait for statement

Donot wait for the statement to come to you to pay. Have your own schedule say 5th to pay credit card dues ,irrespective of the fact you received or not received the statement.This will totally take out the risk of statement not reaching you away.

Some Credit card providers will start calculating the interest from the day you used for ATM transactions. In this case earlier you pay the better.

Tip 8. Use it only for purchasing and not as a substitute of bank

Credit card Money is not yours. It's only a facility to use your money in advance.Do not use value added services like taking cash out from ATM , getting a Demand Draft issued , Home delivery of tickets purchased etc. using credit card. All of these services comes with a price normally higher than what is available in the market.

Not only that cash withdrawal is an expensive use which attracts more charges, but also it disrupts your own cash flow. remember you are fooling your own cash flow by withdrawing money from ATM.

Please feel free to comment using the comment link .

How to manage your Homeloan

Home loans are much needed when you need house badly. But the loans may go beyond your control if not properly managed. There are few tips to keep in mind while managing a housing loan.

Tip1. Calculate the actual monthly instalment while comparing loan offers
Loan rates are deceptive. There are different methods of calculating the EMI amount from loan rate . It may happen that a higher rate loan will have lower outgo it it is daily reducing balance than a lower rate one which is monthly or yearly rest.

Tip 2. Bargain Hard, Get as many competitor quotes
Get Quotes from probable loan providers. Let them fight each other and reduce the EMI amount to get you.

Tip 3. Read the Loan Document carefully before taking a loan.
Yes , I mean read the loan document including the small grey letters at bottom. Do not get carried away by the agent's or agencies words. In case of any dispute, only valid is what is written in the loan document. Donot sign at the places shown to you without fully understanding what is written.Look for penalties if prepay, How many times you can prepay etc.

Tip 4. Prepay maximum in the initial period
During initial period most of your EMI is utilized as interest rather than principal repayment. But any amount you prepay is going entirely into reducing the outstanding principal.So when you get your performance payout, use that to reduce your principal amount outstanding.

Tip 5. Reduce repayment period rather than repayment amount
As interest rates decreases your outstanding also decreases month after month in a better way.
When this happens or when you prepay an amount Loan provider will "offer" to reduce the EMI and keep the period unchanged.Do not opt for this unless there is a reduction in your earning or you are unable to maintain the original amount.
Opt for reducing the pending period when interest rates reduce or when you make a prepayment.

Tip6. Keep all the relevant documents safe
It may happen that you need some of the loan related documents after some years. So keep a file exclusively for Loan related papers and keep that in an easy accessible area.

Please feel free to comment using the comment button .