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Budgeting Myths Busted: 7 Common Misconceptions Revealed

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  Creating a budget is one of the best habits that can assist you in managing your finances more effectively. A budget can help you see where your money is going and what you need to do to control your expenses and increase your savings. Moreover, sometimes what not to do is just as important as how to manage your finances. Let’s delve into what a budget is, why it is necessary, and how to create one. Not only that, but we will also discuss 7 common myths about budgets that are prevalent among people. What is a Budget? Money holds significant importance in life, but managing it properly is equally crucial. Sometimes, expenses seem to escalate to the point where it becomes unclear where the money is going. That’s where budgeting comes in! In simple terms, a budget is an estimate of your future income and expenses. You can create it for a month, a year, or for a specific goal. Governments create budgets, companies create budgets, and you can create your own budget, regardless of
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3 Investment Strategies for Financial Independence!

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  Dreaming of a life free from financial worries? Achieving financial independence, where you can pursue dreams and secure your family’s future, often feels out of reach amidst debts and expenses. But fear not. This guide offers actionable steps to help you break free from financial constraints and embrace true freedom. Financial freedom is the power that allows you to live life on your terms, fulfilling dreams for yourself and your family without the pressures of a job, with the freedom to choose any path. But this dream remains out of reach for many. Growing debt, and unwanted expenses, there are many paths that lead us away from financial freedom. But worry not. If you are about to take your first step towards financial independence , we are here to support you. Let’s dive in. What is Financial Independence? The definition of financial independence can vary for everyone. For some, it could mean a debt-free life. For others, it could be having a stable job that meets their
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How to implement 50-30-20 budget rule

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  Today we are going to talk about budgeting because, without a systematic budget, your financial plan can go awry. To understand how to create a good budget, you should know about the 50/30/20 rule. Let’s discuss this rule in detail. What is the 50/30/20 rule? If you are someone who finds it difficult to control spending habits and save enough for investments, then you should know about the 50/30/20 rule. By following this rule, you can significantly improve your personal finances. Let’s understand this rule in simple terms. According to this rule, a person should allocate 50% of their income for basic necessities, 30% for wants or desires, and the remaining 20% for savings and investments. This rule helps in setting a cap on each of these categories and ensures that you are capable of fulfilling your needs without compromising on savings and investments for the future. It also brings discipline to your financial management because you will already know how much to spend and h
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How To Create a Monthly Investment Plan (and Stick to It)?

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Welcome, October! Diwali is just around the corner. You might have some travel plans this month. Why not we together create a plan? Not a travel plan, but a monthly investment plan! Here are five guidelines for creating a monthly investment plan and sticking to it: Take Note of Your Current Financial Position To start something, you should first assess where you stand. Similarly, to create a monthly investment plan, you should examine your income, savings, and expenses. If one’s standard of living is growing faster than income, then there’s a need to either increase income or decrease expenses. It will also help you prioritise which expenses are necessary and which ones you can cut down. Failing to do this can derail one’s financial well-being. Account for Festive Expenses With the onset of festivals such as Dussehra and Diwali, it is better to draw up a festival budget where you can list down all your necessary spending needs and thus make provisions for your investments to be made i
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How To Create a Monthly Investment Plan (and Stick to It)?

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  How To Create a Monthly Investment Plan (and Stick to It)? Welcome, October! Diwali is just around the corner. You might have some travel plans this month. Why not we together create a plan? Not a travel plan, but a monthly investment plan! Here are five guidelines for creating a monthly investment plan and sticking to it: Take Note of Your Current Financial Position To start something, you should first assess where you stand. Similarly, to create a monthly investment plan, you should examine your income, savings, and expenses. If one’s standard of living is growing faster than income, then there’s a need to either increase income or decrease expenses. It will also help you prioritise which expenses are necessary and which ones you can cut down. Failing to do this can derail one’s financial well-being. Account for Festive Expenses With the onset of festivals such as Dussehra and Diwali, it is better to draw up a festival budget where you can list down all your necessary s
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Efficient market hypothesis: A unique market perspective

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You must have heard stock market pundits often emphasizing on the importance of research and finding the value in a stock. There will be people out there vouching for their expertise with fundamental or technical analysis. However, there is a 0theory in the market that rubbishes all these claims. It’s called the efficient market hypothesis (EMH). EMH as the name suggests is a hypothetical theory. It essentially says that all known information is already factored into the stock price. Hence, no amount of analysis can give one investor an edge over the other. As per the EMH theory, stocks always trade at their fair value on exchanges. Hence, it is impossible for investors to purchase undervalued stocks. Or, sell stocks for inflated prices. It raises a few direct questions on popular analysis techniques. It asserts that with all new information priced in, neither technical nor fundamental analysis can generate excess returns. Therefore, it should be impossible to outperform the overall m
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How to determine portfolio risk?

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Every financial investor will encounter a trade-off between returns and risks. The reward for greater risk is greater returns. However, it would be best to consider your risk appetite before making any investment. Each investment has a different level of risk. The more you diversify your investments in your portfolio, the lower your overall risk will be. Let us understand what affects the performance of assets and how you can quantify the amount of risk you may face. What is portfolio risk? Portfolio Risk is the total risk determined by the individual risk associated with each asset you hold in your portfolio. The assets you own may fail to perform financially as expected. As a result, it leads to a substantial amount of loss. There are multiple causes for it and different ways to mitigate each category of risk. Let us see what the various types of risks are. Types of portfolio risks Risks involved with individual securities To understand the overall risks involved in portfolios, let
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