The saving-spending Dilemma: Are you saving for a luxurious future while neglecting present needs?
The saving-spending Dilemma: Are you saving for a luxurious future while neglecting present needs?
The concept of saving for the future is deeply ingrained in our societal psyche. From a young age, we are taught the virtues of thriftiness and the importance of planning ahead. While these principles are undoubtedly crucial for long-term financial stability, the emphasis on saving for the future can sometimes overshadow the significance of enjoying the present moment. The dream vacation is postponed, dining at beloved restaurants becomes a rare indulgence, and purchases that could improve daily life are deferred-all in the pursuit of securing a distant future through savings.
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Let's explore some tips on how to find the right balance between enjoying your money and long-term investing, so that you can make the most of your financial resources both now and in the future.
Start by outlining income, fixed expenses, and discretionary spending. Allocate a portion of income towards savings and investments while earmarking funds for daily needs and occasional indulgences. Sticking to your budget by not spending impulsively might help you stay a disciplined investor.
Establish short-term and long-term financial needs. This could include saving for emergencies, retirement, education, or a major purchase. Clear objectives provide clarity and motivation for both saving and spending decisions.
Over Wants: Differentiate between essential expenses (needs) and discretionary spending (wants). Ensure that essential needs are addressed before allocating funds to discretionary wants, thereby preserving financial discipline without compromising on enjoyment. Make a checklist of your needs priority wise. Having a checklist may help you spend and save wisely.
Once you have defined your needs and assessed your risk tolerance, develop an investment plan that aligns with your needs and risk tolerance. Your investment plan should include asset allocation, diversification, and a timeline for achieving your needs. Aligning your investments with your financial needs and consistently monitoring them will provide you with peace of mind, reducing concerns about market fluctuations and uncertainties ahead.
Whenever you find it challenging to plan for your finances, it may be preferred to get in touch with the experts and seek their advice. Consult an advisor and discuss your goals with them to draw a holistic financial plan for achieving those goals. A piece of expert advice can guide you on the right path.
While saving for the future is prudent and necessary, it is equally important to enjoy the present moment and prioritize current needs. By striking a harmonious balance between saving and spending, individuals can cultivate financial security without sacrificing the richness of everyday life. Ultimately, mastering this dilemma entails not only planning for a luxurious future but also cherishing the journey towards it.
NJ E-wealth
Debunking 7 Misconceptions About Investing
Debunking 7 Misconceptions About Investing
Investing wisely is not just about knowing what to do; it's also about understanding what not to do. In the world of finance, myths and misconceptions abound, often clouding the path to financial success. These myths can make investing seem daunting or even unattainable for many aspiring investors. But fear not! By shedding light on these misconceptions, we can empower ourselves to make informed decisions and navigate the investment landscape more confidently.
Contrary to widespread belief, you don't need to be swimming in gold coins like Scrooge McDuck to start investing. In fact, anyone with a modest sum can dip their toes into the investment pool. Today, there's a plethora of investment avenues tailored for beginners and individuals with limited incomes, making investing more accessible than ever before. For instance, you can initiate a mutual fund SIP with as little as Rs. 100 per month. You may wonder how far such a modest amount can take you in the realm of investing.
Here's where the magic of compounding comes into play. Imagine you invested Rs. 2000 every month, 15 years ago into a fund that returns 12.64%. Today, your investment would have grown to over Rs. 10 lakh! If you started this SIP 30 years back, your investment would have reached over Rs. 70 lakh. That's the incredible power of compound interest. (
While saving is essential for financial security, it's just the beginning. If you don't invest your savings in products that outpace inflation, your wealth could diminish over time.
For example, if inflation averages 5-6% annually and your savings lie in a bank account yielding 3-4% annually, your wealth will effectively erode.
Even if you opt for fixed deposits, most reputable banks now offer returns around 6-7%. (1-3 years Bank FD Rates as on September 2023). After factoring in taxes (30% tax slab yields post-tax returns of 4.2-4.9%), these returns may fall short of the decade's average inflation rate of 5%. (Period of Inflation Rate: FY2014 - FY2024; Source: RBI) Therefore, it's prudent to diversify your savings across different asset classes such as equities, bonds, gold, and real estate. This strategy aims to outpace inflation significantly and build long-term wealth. It's not just about saving; it's about strategically investing in the right financial instruments to ensure a secure financial future.
Timing the market involves attempting to forecast future market movements and making buy or sell decisions based on these predictions. While occasional success in market timing is possible through luck, consistently trying to time the market exposes investors to higher risks relative to potential returns.
For long-term investors, investing regularly is often more beneficial than waiting for significant market corrections. Long-term investors are better off investing regularly, as opposed to waiting for a big correction. Predicting when or if such corrections will occur is uncertain, and markets can continue to rise for extended periods before any downturn occurs. Therefore, waiting for a market crash may cause investors to miss out on substantial gains during upward market trends.
So, instead of playing the guessing game, it's wiser to focus on long-term investment strategies and remain invested through market fluctuations. Keep in mind, being in the market consistently surpasses trying to time the market.
While it's enticing to try and pick the next big winner, stock picking is a risky endeavor that often results in disappointment. Rather than focusing on individual stocks, consider investing in mutual funds.
Some liken investing to gambling because both carry the risk of losing money, and involve uncertain outcomes. However, investing is not akin to rolling dice—it's a deliberate pursuit grounded in research, analysis, and strategic planning. While risk is inherent, investing differs significantly from gambling. Unlike games of chance, investing empowers individuals to make informed decisions and exert some level of control over outcomes. Therefore, it's best to leave gambling to the casinos and approach investing with a rational mindset and a carefully crafted strategy.
While historical performance can provide insights, it's not a reliable indicator of future results. Market conditions, economic factors, and other variables can change over time.
There's a common misconception that successful investing requires expertise in finance. Investing can seem daunting at first, but it is no rocket science. With basic education and guidance, anyone can grasp fundamental principles and build a successful investment strategy. Another effective route is to consult an advisor. They can provide valuable guidance on various strategies tailored to your long-term objectives.
Investing is a path marked by unexpected twists, turns, and occasional misinformation. By dispelling these 7 investing myths, you can navigate this landscape with enhanced clarity and confidence. Don't allow these misconceptions to hinder you from investing and securing your financial future.
Stay disciplined, exercise patience, and ensure your investment approach suits your financial circumstances. Focus on acquiring knowledge, begin with modest investments, and remain committed to a long-term strategy.
NJ E-wealth
Season of Monsoon, Mosquitoes & Medical Insurance
Season of Monsoon, Mosquitoes & Medical Insurance
The monsoon season brings beauty and relief from the heat, it brings a welcome change from the hot summer, but it also increases the risk of various weather related illnesses. Common problems include respiratory issues, waterborne diseases, and vector-borne diseases like dengue and malaria.
There are many reasons why health insurance is undoubtedly crucial during the rainy season. Here are a few:
The damp and humid conditions during monsoon are ideal for the growth of disease-causing organisms. This leads to a rise in infections and the spread of viruses. Stagnant water can breed bacteria, leading to illnesses like diarrhea, typhoid, and cholera.
Mosquitoes thrive in damp conditions, increasing the risk of dengue, malaria, and chikungunya.Vector borne diseases are particularly challenging to control due to the complex interactions between the vectors, pathogens (virus/bacteria) and the environment. Climate change, urbanization and increased commute (travel) time have contributed to the spread of these diseases.
Slippery roads can cause vehicle crashes and injuries. While car insurance covers vehicle damage, a health insurance plan protects you financially for medical needs arising from such accidents. Electrocution - Excessive rains and collateral flooding, open/damaged wires pose a serious risk of electrocution.
Medical treatment for covid-19, monsoon-related illnesses can be expensive, especially for vector-borne diseases. Sample Dengue Fever treatment costs – diagnosis, hospital room rent and doctor's fee

Particulars Zone A Cities (i.e. Mumbai, and New Delhi) Zone B Cities (i.e. Bangalore, Pune Hyderabad and others) Zone C Cities (i.e. Indore, Agra, Aurangabad, etc)
Medical test to diagnose Dengue Fever (Dengue IgG test) Rs 823 - Rs 2500 Rs 817 - Rs 3600 Rs 700 - Rs 1800
Hospital room rent per day (single private room) Rs 5206 Rs 4879 Rs 2344
Doctor’s fee (average price for one-time visit during hospitalization) Rs 1076 Rs 688 Rs 727
On an average, when you add up all expenses (and based on the number of days you have to be hospitalized, and the severity of your condition and the medicines) treatment for dengue fever and malaria can cost up to Rs 30,000 to Rs 70,000 or more.

The above are only approximate average costs and can still differ based on the severity of your health condition, city you live in and the hospital you choose to get treated in.

No matter how much you try to escape these ailments or accidents, it is quite possible that you will fall prey to any during the monsoon season. A good health insurance plan can ease the burden of unexpected medical expenses. Here's how it helps:
Protects you from high costs associated with medical treatment, including hospital accommodation, medical care, nursing, and medications.
Covers necessary tests like blood, stool samples, urine analysis, and imaging scans to diagnose illnesses.
Takes care of the pharmacy costs of prescribed medications for treatment.
Many times, you don't need to get admitted for treatment of vector borne disease. However, there may be a few doctor consultations and related outpatient medical expenses. That can be covered under an OPD cover.
Quality healthcare is expensive and the last thing one wants to compromise on when they are ill is their health treatment! You can choose and go for quality healthcare without any worries!
Premium paid for health insurance policy is allowed for tax deduction upto Rs 25,000/*-.
If you don't claim in your health insurance you still get benefits like no claim bonus, discount on renewal premium for maintaining good health.
So all in all Health Insurance is a win-win situation!
Having health insurance is crucial throughout the year, but it's especially important during monsoon. If there's a good time for getting a health insurance policy, then it is now! Don't limit an insurance policy to seasons as you never know how they might help you. You may need a health insurance policy anytime and anywhere. Don't wait for emergencies to get health insurance. It's a year-round necessity that safeguards your well-being and finances. By taking precautions and having the right insurance plan, you can enjoy the monsoon season without risking your health or finances. Carefully research health insurance plans or contact your insurance expert to understand various benefits and exclusions before choosing one.

Invest in Your Health, Get Insured

*Disclaimer: As per income tax act 1961. Source of treatment costs: Medifee
loans
In compliance with the Know Your Customer (KYC) Guidelines issued by the RBI, NJ Capital has introduced a Video-based Customer Identification Process (V-CIP) for KYC at the time of processing loan applications.

This change is aimed at improving security, making the KYC process more efficient, and reducing fraud risk. It is designed to be seamless and user-friendly, enabling customers to complete the verification from the comfort of their places.

Consequently, w.e.f. 01 July 2024, all customers applying for a loan will need to mandatorily complete a Video Customer Identification Process (V-CIP) before the loan disbursement.

During the KYC process, NJC representatives will assist the customers to ensure a seamless V-CIP.

Prerequisites for V-CIP
  • A stable internet connection
  • A smartphone or computer with a webcam and proper audio connections
  • Original PAN Card of all holders
  • For optimal call quality, situated in a quiet environment with a white or light background and ample lighting.
Please find the V-CIP Guide.
Fund Manager INTERVIEW
patner Interview
Mr. Rahul Singh
Chief Investment Officer (CIO) - Equities, Tata Asset Management
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Suresh Arjun Bhatode (ARN-94897)
AMFI REGISTERED MUTUAL FUND DISTRIBUTOR

Suresh Arjun Bhatode

  • Financial Assessment
  • Retirement Assessment
  • Child Future Assessment
  • Portfolio Review
  • NRI INVESTMENTS
  • mutual fund : debt/equity/elss
  • insurance : general/health/life
  • realty : plots/villas/flats
  • portfolio management services (pms)
  • fixed deposit : company fixed deposit
  • bonds : tax saving bonds

"We have taken due care and caution in compilation of this E Newsletter. The information has been obtained from various reliable sources. However it does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions of the results obtained from the use of such information. Investors should seek proper financial advise regarding the appropriateness of investing in any of the schemes stated, discussed or recommended in this newsletter and should realise that the statements regarding future prospects July or July not realise. Mutual fund investments are subject to market risks. Please read the offer document carefully before investing. Past performance is for indicative purpose only and is not necessarily a guide to the future performance."

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