Couples can effectively save together by adopting a strategic and collaborative approach to their finances. Here are some practical tips:

Set Common Financial Goals:
Discuss and Align: Have open conversations about what you want to achieve together, whether it’s buying a house, saving for a vacation, or planning for retirement.
Create a Vision Board: Visualize your goals together to keep motivation high and ensure you’re both on the same page.

Create a Joint Budget:
Track Expenses Together: List all income sources, regular expenses, and discretionary spending to understand your combined financial picture.
Allocate Savings: Decide how much to save each month for your joint goals and make it a non-negotiable part of your budget.

Open Joint Accounts for Shared Goals:
Savings Account: Consider opening a joint savings account dedicated to your shared goals. This makes tracking progress easier and keeps you both accountable.
Emergency Fund: Establish a joint emergency fund to handle unexpected expenses, ensuring that financial stress doesn’t impact your relationship.

Automate Savings:
Set Up Automatic Transfers: Automate monthly contributions to your savings and investment accounts to ensure consistency and avoid the temptation to spend.
Use Apps: Utilize budgeting and saving apps that can help both of you stay on track and get alerts on spending.

Regular Financial Check-Ins:
Monthly Review: Schedule monthly or quarterly check-ins to review your progress, adjust your budget, and discuss any financial concerns or changes.
Celebrate Milestones: Acknowledge when you reach small goals; it keeps the process rewarding and motivating.

Divide and Conquer Responsibilities:
Shared Responsibilities: Assign roles, such as one partner handling investments while the other manages the budget. This ensures both are involved and contributing actively.

Be Transparent and Communicative:
Open Dialogue: Be honest about your financial habits, fears, and expectations. Transparency builds trust and helps you work together more effectively.

Prioritize Debt Repayment:
Attack Debt Together: If either of you has debts, prioritize paying them down together. This not only reduces financial stress but also strengthens your teamwork.

Plan for the Unexpected:
Insurance and Wills: Secure life and health insurance for both of you and consider setting up a will. These measures protect your financial future.

Invest in Your Future:
Long-Term Investments:Consider investing in mutual funds, stocks, or real estate to grow your wealth. Plan for retirement together and make contributions to secure your golden years.

By working together, setting clear goals, and maintaining open communication, couples can create a strong financial foundation that supports both their current lifestyle and future aspirations.

Here are the key updates from the RBI, presented in a straightforward and easy-to-understand bullet point format:

Delegate UPI Payments to a Trusted Person:

• RBI has introduced a feature called “Delegated Payments” for UPI.
• You can authorize someone else, like a family member, to make UPI payments using your bank account.
• You control the spending limit for these transactions.

This feature simplifies managing digital payments within families, allowing children or senior citizens to make payments without needing a separate bank account.
Example: Parents can allow their children to pay for school expenses directly from the parents’ bank account.

Cheques Will Clear Faster—Within Hours:
Currently, the Cheque Truncation System (CTS) takes up to two days to clear cheques. CTS processes cheques electronically, speeding up the clearing process by transmitting a digital image of the cheque.RBI’s new measures will ensure that cheques are cleared within a few hours, significantly reducing the waiting time.

Public Database to Identify Safe Digital Lending Apps:
Many digital lending apps falsely claim they are regulated by RBI, leading to issues like high interest rates and data privacy concerns.RBI will create a public repository of verified digital lending apps (DLAs) connected to RBI-regulated entities.This database will be available on RBI’s website, helping users identify legitimate apps and avoid scams.

Higher UPI Limit for Tax Payments:
UPI is widely used for its convenience, but there’s currently a ₹1 lakh limit per transaction.
RBI has raised this limit to ₹5 lakh for tax payments, making it easier to pay larger amounts through UPI.

This adjustment aligns with similar increases made for transactions like buying stocks, IPOs, and paying for insurance or education.

These updates from the RBI could significantly impact how you manage your finances, making transactions more convenient and secure.

The 2024 Summer Olympics in Paris has been a remarkable event for India, showcasing the incredible talent, determination, and perseverance of our athletes. India’s impressive performance, highlighted by several medal-winning moments, offers valuable insights into investing. By drawing parallels between the journey of our athletes and the path to successful investing, we can glean lessons that are both inspiring and practical.

Medals and Achievements

India’s athletes have delivered outstanding performances in various disciplines, bringing home medals and making the nation proud. Here are some of the highlights:

*Neeraj Chopra – Gold in Javelin Throw*: Neeraj Chopra once again demonstrated his prowess by clinching the gold medal in the javelin throw, defending his title from the Tokyo 2020 Olympics. His consistent performance and ability to peak at the right moment reflect the importance of patience and timing in investing.

*Mirabai Chanu – Gold in Weightlifting*: Mirabai Chanu achieved a historic gold in weightlifting, breaking records and showcasing her extraordinary strength and dedication. Her journey underscores the significance of discipline and hard work, key attributes for successful investors.

*PV Sindhu – Silver in Badminton*: PV Sindhu added another Olympic medal to her collection with a silver in badminton. Her resilience and ability to stay focused under pressure highlight the importance of perseverance and strategic planning in investment.

*Bajrang Punia – Bronze in Wrestling*: Bajrang Punia’s bronze medal in wrestling is a testament to his grit and determination. His ability to bounce back from setbacks is a valuable lesson for investors, emphasizing the need to stay the course despite market fluctuations.

*Bajrang Punia – Bronze in Wrestling*: Bajrang Punia’s bronze medal in wrestling is a testament to his grit and determination. His ability to bounce back from setbacks is a valuable lesson for investors, emphasizing the need to stay the course despite market fluctuations.

Investing Lessons from Olympians:

*Discipline and Consistency*: Athletes like Mirabai Chanu and Bajrang Punia have shown that discipline and consistency are crucial for achieving long-term goals. Similarly, investors need to maintain a disciplined approach, regularly investing and sticking to their financial plans to achieve their objectives.

*Patience and Timing*: Neeraj Chopra’s ability to deliver when it matters most is a lesson in the importance of patience and timing. In investing, waiting for the right opportunities and not rushing into decisions can significantly impact the returns on investments.

*Resilience and Adaptability*: The journey of PV Sindhu and Lovlina Borgohain demonstrates the importance of resilience and adaptability. Markets can be volatile, and investors must be prepared to adapt to changing conditions and stay resilient in the face of downturns.

*Long-Term Vision*: The training and preparation that go into an Olympic journey are extensive and long-term. Similarly, successful investing requires a long-term vision and the ability to look beyond short-term market movements.

*Learning and Improvement*: Continuous learning and improvement are integral to an athlete’s success, as shown by all our medalists. Investors should also strive to learn from their experiences, stay informed about market trends, and continually refine their strategies.

Conclusion:

India’s latest performance in the Paris Olympics serves as a powerful reminder of what can be achieved with dedication, strategy, and perseverance. Just as our athletes have reached new heights through their hard work and determination, investors can also achieve financial success by applying these same principles to their investment journey. Let us draw inspiration from our Olympians and strive to achieve our financial goals with the same spirit of excellence and resilience.

“I have corporate health insurance of ₹5 lakhs from my office. What’s the need for personal health insurance?”

This is a common question many people have, especially when their employers provide a substantial health cover. However, relying solely on corporate health insurance might not be the best strategy for long-term financial security.

🏢 What is Corporate Health Insurance?
A Corporate Health Insurance Policy, often called a Group Health Insurance Plan, covers a group of professionals working under an organization. It protects against illnesses, accidents, and other health issues, typically extending coverage to the employee’s spouse and children. Some companies also offer coverage for parents at an additional premium.

✨ Key Features of Corporate Health Insurance

• 👵 Inclusion of Senior Citizens: Even with pre-existing conditions, senior citizens can be enrolled in group policies more easily than in individual plans.
• ⏳ No Waiting Periods: Corporate policies usually have no waiting periods, making it easier to claim for pre-existing conditions right from the start.
• ✅ Waiver of Medical Checks: Most corporate plans waive the need for medical examinations, which is especially beneficial for older employees.
• 💸 Employer-Paid Premiums: Your employer pays the premium, unless you opt to increase the coverage or add a supplementary plan.

⚠ Limitations of Corporate Health Insurance:

• 🏥 Caps and Co-Pays: These policies often have caps on room rent, co-pays, and sub-limits on specific treatments, which can limit your coverage.
• 🔄 Changing Terms: Employers can change the terms of the policy based on their premium budgets, leading to potential reductions in coverage.
• 💰 Insufficient Coverage Amount: A ₹5 lakh cover might be sufficient today, but it may not be adequate in the future due to rising medical costs.

• 🕒 Limited Policy Tenure: Coverage lasts only as long as you are employed with the organization. Once your employment ends, so does your insurance coverage.

📈 Should You Top Up Your Corporate Cover?
Topping up your corporate health insurance with a super top-up policy can be beneficial. However, if your employment is terminated, you will have to pay the deductible amount out of pocket, which can be substantial.

🔄 Can Corporate Policies Be Ported After Employment?
Some insurers allow corporate policies to be converted to individual plans for a premium. However, not all insurers offer this option, and the conditions can be restrictive.

🔍 Why You Need a Personal Health Insurance Policy:
While corporate health insurance provides valuable coverage, it should not be your sole safety net. Having a personal health insurance policy ensures that you are protected regardless of your employment status. This is especially important if you develop a serious illness, as it can be difficult to obtain new coverage later in life.

In conclusion, securing a personal health insurance policy alongside your corporate cover is a prudent strategy to ensure comprehensive protection for you and your family, now and in the future.

Investments Solely for Tax Savings: A Double-Edged Sword?
When it comes to tax-saving investments, it’s essential to differentiate between creating assets and liabilities. The choices you make under Section 80C of the Income Tax Act can either enhance your financial health or burden you with low-yield, high-cost commitments.

Equity-Linked Savings Scheme (ELSS) vs. PPF vs. Low-Interest Fixed Deposits vs. High-Cost Insurance Policies:

Equity-Linked Savings Scheme (ELSS):

• Pros: ELSS funds offer the dual benefit of tax savings and potential for high returns due to equity exposure. They have a relatively short lock-in period of three years.
• Cons: The risk associated with equity markets might not be suitable for all investors.

Public Provident Fund (PPF):

• Pros: PPF is a government-backed, long-term investment with tax benefits on the invested amount, interest earned, and maturity proceeds. It’s safe and reliable, with decent returns.
• Cons: The 15-year lock-in period might be too long for some investors.

Low-Interest Fixed Deposits:

• Pros: These offer safety and assured returns, suitable for risk-averse investors.
• Cons: The returns are often low and may not keep up with inflation, making them less effective in wealth creation.

High-Cost Insurance Policies:

• Pros: Some insurance policies provide a combination of insurance and investment benefits.
• Cons: The high cost and low returns on the investment component often make them less attractive compared to other options.

Insurance: Asset or Liability?

Insurance can be both an asset and a liability, depending on the policy type and terms. Policies with cash value or those protecting significant assets can be valuable. However, if premiums are high without adequate coverage, it becomes a liability.

Good Insurance:

• Provides adequate, cost-effective coverage.
• Protects against significant financial risks.
• Policies with a cash value component can act as an asset.

Bad Insurance:

• Offers inadequate coverage.
• Comes at an unreasonable cost.

Understanding Good and Bad Assets:

Bad Assets:

• Definition: Investments that do not generate income or appreciate and often require more money to maintain.
• Examples: Depreciating assets like cars and electronics, non-performing loans, unproductive real estate.
• Key Characteristics: Negative cash flow, high opportunity cost, financial risk.

Good Liabilities:

• Definition: Debts used to finance investments or assets that generate income or appreciate.
• Examples: Mortgages on rental properties, business loans, controlled leveraged investing.
• Benefits:Facilitate financial growth, enhance wealth, potentially tax-deductible

Strategic Financial Decisions:

Making informed decisions about assets and liabilities is crucial for financial health and long-term success. While bad assets can drain resources, good liabilities can be leveraged to create wealth.

Government Perspective:

• Good Assets:Infrastructure, education, healthcare, research and development.
• Bad Assets: White elephant projects.

Conclusion:

Investing wisely under Section 80C involves evaluating potential returns, risks, and alignment with financial goals. By making strategic decisions, you can transform potential liabilities into powerful tools for wealth creation, laying the foundation for a prosperous future.

Takeaways for Investors:

• Evaluate investments carefully: Consider their potential to generate income or appreciate.|

• Leverage wisely:Use debt for investments with solid returns.

• Monitor cash flow: Ensure investments contribute positively.

• Seek professional advice: Work with a financial planner to tailor strategies to your goals.

Informed choices today lay the foundation for a prosperous tomorrow. Make strategic decisions to harness the power of assets and liabilities for wealth creation.

Introduction

The stock market has experienced significant changes since the onset of the COVID-19 pandemic. Market capitalizations (mcaps) of companies have surged, reflecting a broader economic recovery and investor optimism. Here, we delve into how the classifications of large, mid, and small-cap companies have evolved since 2019.

Large Cap Companies

Before the pandemic, the cutoff for large-cap companies was around Rs 27,454 crore. Fast forward to mid-2024, and this threshold has surged to over Rs 83,000 crore. This sharp increase signifies how the upper echelon of the stock market has expanded, with more companies achieving higher valuations.

Mid Cap Companies

Mid-cap companies have also seen a substantial rise in their cutoff, moving from Rs 8,801 crore in 2019 to approximately Rs 27,700 crore. This threefold increase highlights the growth and resilience of medium-sized enterprises, which are increasingly attracting investor interest.

Small Cap Companies

While the article doesn’t detail the specific figures for small-cap cutoffs, it’s clear that the bottom tier of the stock market has also expanded. As the market grows, smaller companies are pushing higher into the mid-cap range, reshaping the investment landscape.

Industry Insights

The Association of Mutual Funds in India (Amfi) revises the market cap classifications biannually. The adjustments reflect the previous six months’ average market caps, ensuring that the classifications stay relevant amidst dynamic market conditions. Analysts suggest that expanding the large and mid-cap universes could provide fund managers with more flexibility to outperform benchmarks.

Conclusion

The post-COVID era has seen a dramatic shift in market caps across the board. Large, mid, and small-cap companies are growing, reflecting broader economic trends and increased investor confidence. Keeping abreast of these changes is crucial for making informed investment decisions.

Source: Business Standard

We all want to make the most of our hard-earned money, but sometimes it’s easier said than done. There’s a common money mistake that many people make without realizing it, and it could be holding you back from achieving your financial goals.

The mistake is not having a budget. It’s simple, yet so many people overlook the importance of creating and sticking to a budget. Without a budget, it’s easy to overspend, rack up credit card debt, and live paycheck to paycheck.

But with a budget, you can take control of your finances and start making progress towards your financial goals.

𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐚 𝐟𝐞𝐰 𝐭𝐢𝐩𝐬 𝐭𝐨 𝐠𝐞𝐭 𝐲𝐨𝐮 𝐬𝐭𝐚𝐫𝐭𝐞𝐝:

📌 𝐓𝐫𝐚𝐜𝐤 𝐲𝐨𝐮𝐫 𝐞𝐱𝐩𝐞𝐧𝐬𝐞𝐬: Start by writing down everything you spend money on for a month. This will give you a clear picture of where your money is going and where you can cut back.
📌 𝐒𝐞𝐭 𝐠𝐨𝐚𝐥𝐬: Whether it’s paying off debt, saving for a down payment on a house, or building an emergency fund, set specific financial goals that you can work towards.
📌 𝐌𝐚𝐤𝐞 𝐚 𝐩𝐥𝐚𝐧: Once you know your income and expenses, create a budget that works for you. Allocate your money towards your goals first, and then prioritize your other expenses.

By creating a budget and sticking to it, you can avoid the common money mistake that so many people make. It takes discipline and commitment, but the rewards are worth it.

If you need help getting started, there are plenty of budgeting tools and apps available to make the process easier. Personally, I have found the moneylover app to be immensely helpful in creating and sticking to a budget. This app allows me to easily log my income and expenses, set budgets and financial goals, and track my progress over time. By using this app, I have been able to stay on top of my finances and make informed decisions about my spending.

And remember, it’s never too late to start taking control of your finances.