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Old 27th July 2018, 14:04   #541
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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In our country they very much are. What benefits does the average tax payer get? The government has pretty much given up on providing quality education or healthcare. Let us not kid ourselves about government schools or hospitals which are usually the last place where anyone would go to study/ get treated. We pay toll separately for usage of roads after paying vehicle tax. The list just goes on and on. Except for the defence budget, I don't see any worthwhile use of public money. For every rupee spent on infrastructure, there are many more rupees that end up lining the pockets of other influential people.

If basic economics were applied here, we would not have scores of people wanting to live off subsidies rather than doing something themselves.
If you had cared to quote the rest of my post, or at least read it, you could have saved that diatribe against the system. Here is the pertinent part.

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It is another matter that taxes are channelled into useless stuff called welfare, which is mostly for the welfare of politicians.
Anyway, I am not a fan of welfare or even the tax system. I am of the opinion that government should, just govern, and keep away from welfare.

Since this thread is not about charity, welfare or government, its is better that we leave it and move on.
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Old 27th July 2018, 14:14   #542
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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If you had cared to quote the rest of my post, or at least read it, you could have saved that diatribe against the system.
I did read your entire post. But you are right, I did not care about it much.
Especially because there is no farce about charity-tax. Some people do consider their taxes support freeloaders, and neither of us can grudge them about that. And yes, people will not pay tax unless deducted at source. This is anyway happening with 95 plus % of people, as less than 5% of people have been reported to pay tax.
If I try to save that diatribe or this one, it is not going to help contribute to my retirement fund.

I do agree though that this thread is not about that, so let us move on.
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Old 11th September 2018, 11:44   #543
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

Team - what can I gift my newborn nephew as an investment gift ? Something that is possible for an uncle to give and does not have tax implications. This will be a long term investment (15 years +).
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Old 11th September 2018, 11:47   #544
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

You could open PPF account in the name of a minor. Lock in is 15 years. And ROI is good compared to Fixed deposits.
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Old 11th September 2018, 12:08   #545
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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Team - what can I gift my newborn nephew as an investment gift ? Something that is possible for an uncle to give and does not have tax implications. This will be a long term investment (15 years +).
AFAIK you can gift money in excess of Rs. 50K directly to your nephew without tax implications. As per the Income-tax Act, definition of relatives (From whom any sum of money can be accepted as gift) includes

(a) Spouse of the individual;

(b) Brother or sister of the individual;

(c) Brother or sister of the spouse of the individual;

(d) Brother or sister of either of the parents of the individual;

(e) Any lineal ascendant or descendent of the individual;

(f) Any lineal ascendant or descendent of the spouse of the individual;

(g) Spouse of the persons referred to in (b) to (f).

For more clarification visit this

For long term investments LIC policy and PPF are the best choices.

Last edited by Ry_der : 11th September 2018 at 12:14. Reason: Corrected
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Old 11th September 2018, 13:41   #546
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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Team - what can I gift my newborn nephew as an investment gift ? Something that is possible for an uncle to give and does not have tax implications. This will be a long term investment (15 years +).
Let me go the other way. Avoid traditional "investment" gifts like insurance policies or PPFs. Those children's plans or ULIPs will have huge costs added to it which is coming from your premium. Have you seen the profit margins of some of these insurance companies?

More importantly, a financial product as a gift is a bit bleh. It's just a piece of document or booklet, which doesn't add to much after 15 years anyway. Instead, gift your nephew a nice cold slab of silver or gold. Because -

1) Over 15 years, Gold & silver value is likely to grow at minimum inflation rate. Historically, over a long term, precious metals have offered 12% returns per annum. Rupee depreciation helps too.
2) Gold coins or Silver bars have much more "personal" feel to it as a gift. It is something you can touch and see. Your nephew will actually own "family silver", that he can sell anytime

Go to reputed jewellers that offer purity certificate or buy online at www.bullionindia.in. Avoid buying from flipkart or Snapdeal.
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Old 11th September 2018, 14:02   #547
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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You could open PPF account in the name of a minor. Lock in is 15 years. And ROI is good compared to Fixed deposits.
Only the parents can do that, not uncles.


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Originally Posted by Ry_der View Post
AFAIK you can gift money in excess of Rs. 50K directly to your nephew without tax implications. As per the Income-tax Act, definition of relatives (From whom any sum of money can be accepted as gift) includes

For long term investments LIC policy and PPF are the best choices.
Upto 50k is tax free

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Originally Posted by smartcat View Post
Let me go the other way. Avoid traditional "investment" gifts like insurance policies or PPFs. Those children's plans or ULIPs will have huge costs added to it which is coming from your premium. Have you seen the profit margins of some of these insurance companies?

More importantly, a financial product as a gift is a bit bleh. It's just a piece of document or booklet, which doesn't add to much after 15 years anyway. Instead, gift your nephew a nice cold slab of silver or gold. Because -

1) Over 15 years, Gold & silver value is likely to grow at minimum inflation rate. Historically, over a long term, precious metals have offered 12% returns per annum. Rupee depreciation helps too.
2) Gold coins or Silver bars have much more "personal" feel to it as a gift. It is something you can touch and see. Your nephew will actually own "family silver", that he can sell anytime

Go to reputed jewellers that offer purity certificate or buy online at www.bullionindia.in. Avoid buying from flipkart or Snapdeal.
I am definitely not going for any ULIP plan. I was thinking more on the lines of an equity based one time investment. Is that possible somehow ?

We got some gold coins as gifts when our daughter was born. To liquefy it takes effort and hence procrastination. I can easily give cash, but it just gets spent on useless things mostly.
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Old 11th September 2018, 14:36   #548
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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I was thinking more on the lines of an equity based one time investment. Is that possible somehow ?
HDFC Children's Gift Fund
http://www.hdfcfund.com/scheme-detai...f-29bc77608573

You can invest on your nephew's name and he can redeem the funds when he is 18. The fund uses a mix of debt and equity, and has returned 16% per year so far since 2001
https://www.valueresearchonline.com/...schemecode=936

Make sure you invest directly via HDFC website, rather than through a broker since there is "gifting" involved. You need to check with HDFC regarding the process of gifting.

Last edited by SmartCat : 11th September 2018 at 14:39.
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Old 11th September 2018, 14:38   #549
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

Buy HDFC bank shares and forget it for 15 years. Its one of the most consistent performer in our stock market. Since you are thinking equity.
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Old 11th September 2018, 20:41   #550
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

I have been putting off making an investment for my son for 2 years now, and this thread has served as a timely reminder.

I have 1 Lin his bank account now (had 2 L but the financial wreck that I am, half is spent and I want to park the remaining ASAP before it gets spent). Please advise what to invest in. This will be used for his education. Going forward, from the next month I want to set aside 5-10k monthly. Again, for his education. Please advise what to do.
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Old 11th September 2018, 21:22   #551
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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Originally Posted by digitalnirvana View Post
I have been putting off making an investment for my son for 2 years now, and this thread has served as a timely reminder.

I have 1 Lin his bank account now (had 2 L but the financial wreck that I am, half is spent and I want to park the remaining ASAP before it gets spent). Please advise what to invest in. This will be used for his education. Going forward, from the next month I want to set aside 5-10k monthly. Again, for his education. Please advise what to do.
Start with basics like getting term and health insurance.

For son's long term education goals, work backwards to get the amount required and start monthly SIPs in good mutual funds, don't touch that for the long term. Keep reviewing performance on a regular, annual basis.

Shore up financial awareness by leveraging good blogs like the simple dollar, subramoney, get rich slowly etc.

Just a few pointers, hope this helps.

Cheers.
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Old 11th September 2018, 22:25   #552
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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Team - what can I gift my newborn nephew as an investment gift ? Something that is possible for an uncle to give and does not have tax implications. This will be a long term investment (15 years +).
Take a lesson from our time honoured traditions and gift gold.

OR

Blood relative of father ,mother can give cash as gift which can be invested anywhere.Best long term passive investment is a low cost ETF.

Last edited by drsingh : 11th September 2018 at 22:29.
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Old 12th August 2019, 12:53   #553
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

Guys!! Of late, I feel that I am living on the edge.
Hence, I am looking at opportunities where I can work from home in my free time and earn money. I want to use this additional income to meet my daily small expenditures.
I am reluctant to play with stocks as that will involve engaging my money first and also market is very vulnerable.
While browsing internet I found that websites like shuttershock.com , freelancer.com provides opportunities for work from home.
Any experience with these sites?
Also, any new idea or opportunity is welcome.
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Old 12th August 2019, 13:03   #554
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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Guys!! Of late, I feel that I am living on the edge. Hence, I am looking at opportunities where I can work from home in my free time and earn money.While browsing internet I found that websites like shuttershock.com , freelancer.com provides opportunities for work from home. Any experience with these sites?
Freelancer.com, guru.com and elance.com were good choices in early 2000s. There was hardly any competition and snagging projects was relatively easy. But now, when a client puts up a project, there are 30 or 40 bids from providers all over the world. Even if you bid low, it is likely that experienced providers with star ratings & reviews are likely to be picked.

But give this a shot and see how it goes. When you bid for projects, try to be a bit creative with your pitch. Your pitch should stand out from the rest to attract the attention of the client. If you can see the bids of your competitors, set a price in the lower to mid band.

Another lesser known method of earning money is saving money . Write down all your expenses in an Excel sheet and do some data crunching. You can classify your expenses into discretionary (clothes, holidays etc) and non-discretionary (rent, petrol, groceries, food etc). You can slash both expenses by just spending smarter (eg: actually looking at price before picking up the detergent, switching phone company or selecting a lower priced plan, buying clothes from amazon etc).

Just remember that saving even Rs. 200 per month in one expense (say internet expenses) adds up to a significant amount eventually, because there are so many different things one spends money on. It is easy to shave off a significant percentage of your expenses by just figuring out where your money is going. When companies do data mining to improve efficiencies, there is no reason why you should not either.

Last edited by SmartCat : 12th August 2019 at 13:16.
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Old 12th August 2019, 15:34   #555
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Default Re: Are most of us living on the edge? Let's talk about income, expenses & savings

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Another lesser known method of earning money is saving money
I will more than strongly agree that saving money is THE BEST & simplest way to earn more.

I never believed in saving first & spend rest until I actually started applying & its quite amazing to see how the one's determination can lead up to saving from mere numbers to a chunk percentage of the earnings into savings.
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