First Bitcoin Billionaires: Winklevoss Twins

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The twins Cameron and Tyler Winklevoss invested early in bitcoin, and thanks to this, they have been two of the first virtual coin billionaires. So let’s read their super successful story.

Before telling you the story, here’s what bitcoin is all about, according to the digital forex site:

It is a kind of virtual currency that uses peer-to-peer technology to operate without a central authority or banks. Transaction management and issuing of bitcoins is carried out collectively by the network. This coin is open source; its design is public and no one would own or control it. And at the same time everyone could participate.

Now the success story of the twin brothers – The beginning:

The Winklevoss brothers, today’s leading digital entrepreneurs, were Harvard students when they became world-renowned in 2011, suing Mark Zuckerberg for Facebook idea rights.

They won the lawsuit by obtaining $65 million, of which they used part to buy $11 million in bitcoins in 2013. How much was that? About 1% of all those in circulation at the time.

Now the reason for their fortune:

When the Winklevoss twins invested in bitcoin, the coin was trading at only $120. And at the time of writing this article, the value of single bitcoin was $17,800, according to Coindesk, an informative site on this technology.

So you can calculate the wealth of Winklevoss twins and laugh at yourself or become jealous of the twins or start thinking about investing in bitcoins.

(On a lighter note: Use a calculator. As your brain won’t be able to do such a huge calculation :):)

Such is the growth, that today bitcoin has a market capitalization of over $191 billion, according to the finance site Coinmarketcap. Among the most valued shares of this currency are the iconic McDonald’s hamburger chain, with $138 billion, investment bank Morgan Stanley, with $95 billion, and Target retailer $34 billion.

Bitcoin is now the world’s leading digital currency by market capitalization and will continue to be a leader in this space. And such is its growth of bitcoin that the market cap has now surpassed Citi, Goldman Sachs and Morgan Stanley and the whole economy of Qatar.

The market cap of bitcoin is $96.7 billion.

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“Do Not Retire” – Says Dr. Shigeaki Hinohara

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Shigeaki Hinohara, the Japanese physician who lived 105 years always recommended: “Do not retire”

Life expectancy has increased in recent decades and it is actually a wake-up call for each one of us. And especially the one who have reached 55 years of age, one question for those: When would you retire?

This question is best answered by Dr. Shigeaki Hinohara who lived 105 years and has redefined ageing!

For those who don’t know who Dr. Shigeaki Hinohara is – This energetic man was a physician from Japan and most renowned and respected personality in Japan. In fact, he was considered as a national treasure who served his country’s people till he lived i.e. till the age of 105 years. He passed away in July 2017.

When he was 97, in 2009, Shigeaki Hinohara was one of the doctors and educators with more years of experience and service in the world, according to The Japan Times.

Hinohara worked since 1941 at St. Luke International Hospital in Tokyo, where he also taught, institution that was honorary director since 1990. And this is not enough, he also published about 150 books.

Hinohara died in July 2017 at 105 years. The doctor worked about 18 hours a day until the last months of his life and evinced his great passion for his profession.

Here’s the message from the respected Shigeaki Hinohara –

The Japanese doctor gave some advice on lifestyle in a 2009 interview with The Japan Times: “There is no need to retire, but, if you really want, it should be much after 65 years”. Why?

According to Hinohara, in Japan the current retirement age (65 years) was established half a century ago, when the average life expectancy in the country was 68 years and only 125 Japanese had more than 100.

“In Japan, women today live about 86 years and men 80 years. There are even 36 thousand centenarians in the country, “the doctor said in that interview.

Life expectancy and retirement

In the case of the US, most people stop working at age 63. However, to Suze Orman, personal finance expert, the new retirement age is 70 years, according to CNBC.

Orman has extended what Hinohara pointed in financial terms: As people live longer, the retirement savings should also last longer.

“If you stop working in your sixties, your retirement fund should be sufficient to feed you for about 30 years, not 15,” Orman says.

The secret? – “The energy comes from feeling good,” according to Hinohara. What do you think?

Irrespective of the country you live in, give a deep thought about retirement for a happy living during your golden years.

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3 Easiest Ways to Get Credit Card for Students in India with No Income

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Credit card is actually a very good way to start building credit history. Although it is being criticized being a spoiler, but still offers benefits which can fulfill anyone’s future aspirations.

For e.g. if you want to buy a home and request bank for a loan then depending on your credit history, the loan will be approved or rejected and loan amount would be decided. So building a credit history is very important and is possible only when someone has taken credit from financial institution.

The early you start working towards building a credit history, better are benefits in the later part of your life. This is the reason credit card is a stepping stone to build credit history for every earning individual or with no income source. This includes students as well. Although credit card for students is not recommended but from a future perspective, it is good for a student to have a credit card provided the usage is wise.

But in India (infact across the world), income is one of most important criteria considered by the bank before approving a credit card. This is the reason credit card for student with no income in India is extremely difficult. Because an individual with no income has no way to prove his/her credit worthiness.

So can an Indian student get credit card?

Answer is YES. Students in India can get plastic money through two different ways as follows:

Against fixed deposit:

It is actually a secured credit card in which the FD account plays the role of security with the bank. Parents can open fixed deposit account in the name of student and then apply for credit card against the FD. The biggest advantage is that, deposit in FD is not very high.

Listed in the below are few credit cards against fixed deposit and the minimum amount required:

Sr. No.Credit Card NameMinimum Fixed Deposit Amount RequiredIssuing Bank
1SignatureRs. 10,000Andhra Bank
2PaylessRs. 15,000Development Credit Bank
3AspireRs. 16,000Central Bank
4CoralRs. 20,000ICICI Bank
5Instant PlatinumRs. 20,000ICICI Bank
6Insta EasyRs. 20,000Axis Bank
7AssureRs. 25,000Bank of Baroda
8UsecureRs. 25,000Union Bank of India
9UnnatiRs. 25,000State Bank of India
10SolarisRs. 25,000Kotak Mahindra Bank (ING Vysya)
11Aqua GoldRs. 25,000Kotak Mahindra Bank (ING Vysya)
12Advantage PlusRs. 25,000State Bank of India

The credit limit is calculated on the basis of the amount kept in FD and is typically 80% – 85% of the FD amount. Higher the amount, higher would be the limit.

Add-on card:

If the parents or elder brother/sister is already using a credit card with excellent track record of repayment then they can apply for add-on card. These supplemental cards are offered to select customers only. But key points to remember are:

  • If there is a default in the payment, then the primary card holder is held responsible and their credit history gets impacted.
  • Primary card holder will have to pay any balance amount, if the add-on card holder makes default.
  • Credit limit is split between primary and secondary card.

If student is earning but has low income then there are many cards for such low income earners.

Credit card exclusively for students:

  1. SBI Student Plus Advantage Card is one such card offered by State Bank of India but only to the education loan customers. This card has zero annual fee and offers easily encashable cash points which are redeemable at the time of paying the outstanding balance. One cash point is earned on spending Rs. 100.
  2. ICICI Bank Student Travel Card: Best recommended for someone going abroad for studies. When used abroad student can start building credit score in foreign country which will help him/her in getting credit card from foreign banks
  3. HDFC ForexPlus Card: Again recommended for students who would be transacting in multiple currencies. E.g. if a student is pursuing education in USA and UK or any other country. The money is directly debited from the card account.

Advantages of giving credit card at an early age to students:

Anything used wisely will reap benefits. And same holds true with credit card. If used honestly within the limit and balances are paid on time and fully, you can get range of benefits such as cash points, rewards points, fuel surcharge waiver and others.

However there are other benefits for students using credit card as well:

  • Right from young age they can start building credit history
  • Spends can be tracked easily
  • Aids in learning money management skills
  • It makes them a responsible individual as they can monitor their expenses and then stop them from making unnecessary purchases.
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Personal Loan against FD: 7 Reasons to Apply

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Emergency money requirement can be fulfilled through various options such as personal savings, lending money from relatives or friends, using credit card. But if these options do not fulfill the emergency money demand, then taking personal loan is the best option. You can get personal loan from financial institutions such as banks/financial service companies and others or peer to peer lenders or private money lenders.

Not many of us are aware that banks offer multiple options to take personal loan and one of the option is personal loan against fixed deposit, which is nothing but a secured loan in which you pledge your FD account as a security.

But when should someone choose for this type of loan. Listed below are the reasons when to prefer loan against term deposit.

Low CIBIL score: An individual who defaults monthly EMIs consistently or over-crosses the credit limit or does not pay the EMI fully is more likely to have a low CIBIL score. So in future, whenever they apply for personal loan, chances of rejection are very high. Such individuals are risky for any lender as they are predicted to default in the future as well and turn out loss making for a financial institution.

Although a default can be due to many reasons such as job loss, other emergency or financial instability etc. but banks do not care about this. They want their money back along with the interest applied (as high as possible). So for such individuals, personal loan against fixed deposit is the most recommended option. There is no credit history check and neither the banks will ask for any income proof.

Loan rejected: If someone applies for a regular personal loan but faces rejection due to whatsoever reason, then applying for a loan against FD is a better alternative. The success rate is quite high and eligibility criteria are not very stricter compared to a normal personal loan.

Loan amount required is small: One of the biggest difference between personal loan against FD and regular loan is that the interest rate charged is very high in case of normal personal loan. E.g. if you take personal loan of Rs. 3, 00,000 then interest charged would be between 16%-20% whereas in case of FD, interest would be 4% – 5% less but higher than 2%-3% of the interest received on FD. So loan against FD should be preferred over normal one, if the loan amount is small, as you will save money on interest. But remember that, you can get higher loan amount in case of FD, only when the investment in fixed deposit account is very high. This is typically not the case i.e. investing huge sum of money in FD is not a recommended investment avenue.

For short term: If someone wants money for short term and is ready to close the loan within a short time period, then choose for loan against term deposit. Early closure of a regular loan will result in pre-closure charge which is not the case in overdraft loan. You can close it anytime and there won’t be any charges.

No CIBIL score: Lenders first check CIBIL score and then take decision on approval or rejection. Individuals with no credit history will naturally have no credit score. And lenders have no way to judge their financial history and evaluate credit worthiness. Typically individuals fitting in such categories are students, housewives, recent graduate with no job at present. Such individuals can choose for taking loan against FD. Of course they will need to money to open FD account, which they can do by using their own savings or asking their friends or relatives.

Additional reading: Various 8 options to get personal loan when you have no or low CIBIL score.

Save money: Other reason loan against FD is recommended is that it is a money saver. When someone applies for and receives personal loan then there is a processing fee applied. But in case of loan against FD, there is no processing fee and also very few banks charge a prepayment penalty which is always charged in a normal loan.

No salary slip or income proof: Lenders always ask for income proof for evaluating the repayment capacity of the applicant. However not everyone gets income proof or salary slip from their employers or file IT returns. So such individuals can choose term deposit loan which requires no income proof documents or tax proof.

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14 Differences: Personal Loan Vs. Overdraft Against Fixed Deposit

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There are multiple options to get personal loan in India each different from the other. The options are as follows:

  • Regular personal loan
  • Loan against fixed deposit
  • Loan against shares or mutual fund
  • Loan against LIC policy and others

And in this article, we’ll compare two most widely used options: regular personal loan and overdraft against fixed deposit (or loan against term deposit).

Type of loan (secured and unsecured):

Money kept in FD acts as a security when taking loan against it. So this is a secured type of loan. Whereas personal loan is an unsecured loan since borrower does not have to keep any type of security with the bank.

Application process:

In case of conventional loan, banks follow a lengthy and time consuming process before granting the approval. This includes filling application form, verification of address, income, employment details by the banks, and few others. But in case of overdraft loan, there is no need of address verification as banks already have this detail. Moreover income or IT return proof is not mandatory in case of overdraft loan. As most of the other details are already with the bank, no re-verification is required.

Processing time:

FD loan is processed at a faster pace compared to regular loan which is more time consuming.

Loan amount:

There are multiple criteria taken into consideration when loan amount is decided. But the two main criteria in case of personal loan are – income/salary and CIBIL score. But in case of overdraft loan, amount is dependent on the fixed deposit amount kept with the financial institution. So you can get high loan amount in case of personal loan but not in case of OD loan.

Documentation:

In case of regular personal loan, financiers ask for various documents such as income proof, bank statement, IT returns, address proof, ID proof etc. in addition to the application form. In comparison, when you take loan against term deposit, very less documents are required. This includes pledge/lien letter, deposit receipt/certificate, and few others.

Must read: Consequences of submitting fake income documents for personal loan.

Interest rate:

Higher rate is charged by the bank when granting a regular personal loan and is typically 16% minimum to as high as 24%. But in case of personal loan against fixed deposit the rates are lower but minimum 2% higher than the interest offered on FD. So FD offering a 9% interest can offer loan at 11% which is lower than a normal loan. The reason for high interest is that, a conventional loan is an unsecured loan i.e. financial institutions do not demand pledging any security. So the risk of granting money remains high till its closure. But overdraft loan is a secured loan in which FD acts a security with the bank.

Interest calculation:

When you take term deposit loan, the interest is applied only on the balance loan amount and not on the entire FD amount kept with the bank. In case of traditional loan, interest is applied on the entire loan amount and other factors such as tenure, credit score of the borrower, etc. is taken into consideration.

No credit score check:

Whenever a loan or credit card application is made, banks contact credit bureau (CIBIL) and verify the financial history of the borrower. This process is very important and helps banks in evaluating whether the applicant is credit worthy or not, based on the credit score calculated for the applicant. But while applying for personal loan against fixed deposit, there is no credit bureau check because FD is a security kept with the bank.

Additional reading: Tips on getting personal loan when you don’t have salary slip.

Eligibility criteria:

Anyone aged above 18 years can apply for a loan. But only an individual with FD account on his/her name can apply for loan against FD.

Processing fee:

Every loan application involves human efforts, this is the one of the reason banks charge processing fee. But in case of overdraft loan there is no processing fee charged by many of the banks e.g. SBI and Federal bank. But there are some banks (e.g. Axis bank) who charge a very nominal fee.

No prepayment penalty:

Higher the loan tenure, higher would be the interest earned by the bank and so would be their profitability and vice versa. There is a pre-penalty fee applied if borrower wants to make payment before the standard period and close the account early. This fee is not applied when you want to close the overdraft loan prematurely. For e.g. if the loan tenure is 3 years and borrower wants to close the loan account within 1 year then banks will be at loss because they will not be able to make money, as interest income will stop. This is not the case when taking loan against term deposit, there is no pre-closure charge applied.

Loan application timeframe:

You can apply for personal loan anytime. But against FD, you can apply only minimum 3 months after opening the fixed deposit account.

No need to specify the reason for loan:

While personal loan requires the applicant to specify the reason, the same is not asked when taking personal loan against fixed deposit. So you can use money for any purpose such as travel, buying a vehicle, house renovation etc.

Recovery process:

If you default on loan against FD then bank has right to seize the FD account and recover money. But in case of traditionally granted personal loan, consequences are worst if default continues for a long period. Since the financial institution does not have any borrower’s asset kept as a security, they have nothing to seize. So in such situations banks employ recovery agents or in-house collection department, whose job is to recover money from the defaulting borrower by taking control of their personal assets, calling or personally visiting the house and other means, as per the law.

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9 Benefits of Overdraft (Personal Loan) against Fixed Deposit

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Typically when someone is in need of money on an urgent basis, they take help of their own savings or ask their friends or relatives. If both these options do not help, then such individuals contact bank for personal loan to meet the unforeseen money requirement. There are multiple ways to get personal loan from financial institutions such as traditional application, against securities such as fixed deposit, LIC policy, mutual fund and few others.

In this article, we’ll explore why personal loan against fixed deposit should be taken i.e. its advantages. Remember that, you can take loan against tax saver FD as well.

Overdraft i.e. loan is offered to individuals having term deposit with the financial institution.

Here are the advantages of taking loan against FD:

Simple application and faster processing:

When you apply for a personal loan through the conventional way, there is a standard process which is lengthy followed by the financial institutions. This involves filling the application form, submission of various kinds of documents, review by the financial institution and so on. However while applying for personal loan against FD, banks do not follow rigorous application and verification process. This is because most of the applicant’s details are already with the bank, so the latter does not ask for going through the same process again making the approval process fast.

Loan amount is dependent on the FD amount:

In case of personal loan, your limit is decided based on various factors such as income, CIBIL record etc. However in case of loan against FD, the loan amount is dependent on the money invested in the FD account. Higher the FD amount, higher would be the loan you will get and vice versa. Typical loan amount is 80%-85% of the deposit amount.

Read more: Loan for low salary earners from co-operative banks.

No CIBIL record check:

Most of the financial institutions check for CIBIL score to verify the applicant’s financial transaction history. And based on pre-determined criteria, loan/credit card is either approved or rejected. However in case personal loan against fixed deposit, the biggest benefit is no CIBIL record check by the financier. Your FD account acts as a security, so any default will result in bank recovering money from the FD. So you can get loan even if the credit score is poor.

Additional reading: Personal loan income required by 27 banks.

Minimum documentation:

As mentioned above, banks already have most of the details of the applicant, so documents required are very limited. And this typically includes – proof showing applicant has FD account with the bank, pledge/lien letter, deposit receipt/certificate and few others. There is no need to produce income proof or IT returns.

Low interest:

Is less by nearly 2%-2.5% than the normal personal loan but higher than (typically 2% higher) the interest offered by the banks on FD. This is because the FD acts a security making it a secured loan. So EMIs are typically lower.

Interest charged:

The calculation of interest rate in case of loan against term deposit is different than that of a traditional application. In case of FD, the interest is charged on the amount drawn and not on the FD amount and no standard rate applied. But in case of traditional loan, the interest rate is fixed and depends on the amount.

No processing fee:

Few banks (e.g. State Bank of India, Federal Bank) do not charge any processing fee. While some banks (e.g. Axis bank) charge a marginal fee. This fee is however always applied when loan is taken in a conventional way.

No prepayment penalty:

It’s loss making for every bank when borrower pays the balance loan amount in advance. This is because, banks lose out on interest amount which is the profit generating source. For e.g. if loan tenure is 5 years and someone pays entire loan amount in 1 year, then banks will lose out interest money which they could’ve generated in those 4 years. In case of loan against term deposit, there is no early closure penalty. Depending on your financial situation, the loan account can be closed at anytime.

No need to specify the reason for loan:

You can use it for any purpose – buying house, car, electronic appliance, home renovation, travel etc. And there is no requirement of specifying the purpose when applying for loan against term deposit.

However one thing to note is, overdraft against FD can be taken only after 3 months of opening. This prerequisite varies with each bank.

As you can see there are many benefits of overdraft against term deposit and is highly recommended for individuals with small amount and who are confident of closing it earlier.

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Inherited Wealth in India: What to do & what not

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Have you ever wondered what you would do with an inherited wealth such as cash/property/jewelry etc. in India ?

This article helps in how to make good use of inherited wealth and avoid wasting money.

Here are the tips:

Planning: The very first step is planning. Never start making use of money as soon as you get it. Take advantage of the first few months to develop a plan, along with expert advice to use and invest money. It can be naturally tempting to start spending your inheritance, but it may be smarter to set a waiting time and use this time to decide how to make the wealth grow.

Seek expert advice for financial planning: If you do not have knowledge of investments and financial terminologies, then seek a financial advisor’s help. A financial planner can help you develop a strategy that works best for your situation, and devise an investment plan according to your risk appetite.

Consider taxation: The good news is that, in India, there is no tax on inherited wealth or property. However when you make use of the inherited money or property in order to generate wealth then you become tax liable. And your financial consultant is the best person to guide on taxation, especially when you do not have knowledge of this subject. Do not think that generating a large sum will go unnoticed. Ask your advisor about the necessary taxes according to the type of inheritance received and income generated out of it. Anyone would love to stay rich and hate paying taxes. But still as a responsible citizen, paying taxes helps government in nation building.

Take legal help: We often hear long legal cases because of inherited wealth. And only a lawyer can help you resolve any potential legal issues. So before making any use of money received, consult a lawyer.

Invest wisely and make some extra profit: Everyone wants to make money out of money. You will come across various high return investment products but not every product will offer you guaranteed high returns. It’s likely to get attracted to risky, illegal, or possibly scammy investment products requiring high investment and claiming to give highest returns. So it is best advised to look for a safe investment, which earns a little each year and at the same time keeping pace with the market.

Do not show off: If you start talking about the money you’ve received, you may start noticing how your circle of friends and family growing. People from the past will suddenly want to come closer again, but they may only be interested in what they can get from you.

Do not invest in business: Even though you may have a substantial amount of money in your possession, don’t invest in a new business without knowing complete details. Take expert’s advice before putting money.

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These Millionaires Want their Children to Learn Chinese

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Do you think it’s important that your child knows more than one language? You could be right!

Learning a second language could improve cognitive development, creativity and academic performance, is indicated on the site of the University of Tennessee in Martin, USA. But what language should they learn?

Besides being the most talked about in the world, according to the Ethnologue publication, Mandarin Chinese is the most chosen by millionaires.

Some examples:

Jeff and MacKenzie Bezos: The founder of Amazon and his wife have four children. According to her in dialogue with Vogue magazine, one of the activities that children do is to learn Mandarin Chinese.

Mark Zuckerberg and Priscilla Chan: Inspired by his wife, the Facebook founder would have learned Chinese Mandarin self-taught, he reports on the Business Insider site. In addition, in 2016 he uploaded a video to his social network in which he sees how a personal assistant with artificial intelligence helps his daughter Max to practice that language:

Ivanka Trump and Jared Kushner: In an interview with the Hong Kong newspaper, South China Morning Post, the daughter of the current president of the United States said her daughter had a Chinese nanny who taught her Mandarin.

Prince William and Kate Middleton: The eldest son of the royal couple, Prince George, is expected to learn Mandarin at the school he attends in London, Business Insider reports.

Why choose mandarin

Are you already considering Mandarin language for your child? In addition to the millionaires, several experts endorse the decision.

“The tone of the language makes it sound like a song, which is a tool that is used when teaching young children other topics.” The written characters look like images, which is attractive to children, who usually learn in a visual way “, says Nicole St. Leger, a mandarin teacher, in dialogue with Parents magazine. And that’s not all!

“Learning Mandarin provides a key understanding of one of the oldest civilizations in the world, which is also one of the fastest growing economies globally,” explains Corinne Dillon, founder of the site to learn the language. Discover Mandarin.

“Employers need people to speak Mandarin in order to carry on their business, this is not a trend that is going to change soon,” adds St. Leger.

Finally, keep in mind some of the additional benefits extracurricular activities can bring for your children, such as learning a language:

  1. Flexible thinking
  2. Best investment for your child both from education and
  3. Chinese is the business language of the future. And learning it, will make you child more employable and give an added advantage in the ever increasing competitive world. China being the second largest economy in the world and biggest trading partner to the world’s biggest economy i.e. United States (in fact many other countries), every company wants a Chinese speaker to assist in their business.
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How Inflation Affects Savings & Why Never Keep Money Idle

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When we think about saving, the idea of ​​keeping the money idle in your house is not good. It is true that, if you put money in your cupboard/anywhere in the house for years, in the end you get a very important savings fund. The problem is the final value of that money saved at home. If you save Rs. 20,000, you will have the same Rs. 20,000, but that money may not allow you to buy the same stuff as before because of the inflation i.e. it’s value of your money goes down.

In this sense, when inflation is taken into account in our savings and consumption decisions, it is better explained why it is not a good idea to leave the money under the mattress.

What is inflation?

Inflation is the increase in the price of goods and services over time. Banks typically defines inflation as the increase in the general level of prices, for example, in the consumer price index (CPI).

This index, created from the price of different products and services in the shopping basket, marks inflation at all times. The CPI of a specific month is compared with that of a year earlier to see its variation. If prices increase there is inflation, but if prices fall, deflation occurs.

When inflation rises, prices are more expensive, while savings are lower because rupee is worth less and less. This means that with the same money you can buy fewer products and services and, therefore, you lose purchasing power.

How is inflation controlled?

There are different types of inflation that affect both the general and the personal economy. Depending on what inflation is, the measures adopted for its control affect us in one way or another. For example, high inflation is controlled by rising interest rates, which has negative consequences for those who have loans or mortgages.

When the rates rise, it tries to contain inflation and stabilize prices, because there is less demand for money through loans. On the contrary, when the rates fall, mortgages become cheaper, customer demand increases, but, at the same time, the profitability of savings is lower.

How does inflation affect savings?

The goal of saving money is to obtain the highest possible return. In general, the higher the interest rate, the greater the profits for the saver. However, this performance would have to be subtracted from inflation to know what the final gain is. That is, when rates are high, inflation is also high, so we must discount this, while, if inflation is 0, we should not subtract anything from the perceived returns.

For this same reason, it is not a good idea to save money i.e. keep it lying idle, because money loses value over time, suffering the effects of inflation. Money is devalued with inflation, which means that, if we keep Rs. 20,000 unused, with 3% inflation at the end of the year, even if we have the same amount, its purchasing power will be decreased by Rs. 600.

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Home Rental Cost in Top 30 Cities of the World

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Amongst the various plans people make, one is moving from one city to another and start a new life. This idea has become popular especially among young graduates. However the most important aspects to take into account while taking this important decision are the work and the place where you intend to live. Suppose you have already got the job, now comes the most complicated part and that causes thousands of headaches: rent a place to live.

If we rely on the generalized opinions and what can be found on the Internet, we will see that everything leads to almost the same, where cities such as London, New York or Tokyo always appear as the most expensive in the world. But thanks to research by RENT Cafe, you can have a little more light on this aspect, since it focuses specifically on the prices of rents within the 30 most important and attractive cities to live in the world – From $ 8.50 per square meter to more than $ 58.

First we must define what are these 30 cities. Thanks to the work of Institute of Urban Strategies of the Mori Memorial Foundation we have the ‘Global Power City Index‘. This research classifies each city in terms of its attractiveness based on six main criteria: economy, research and development, cultural interaction, habitability, environment and accessibility.

And the index is as follows:

Global Power City Index

As we see, London is the city with the highest rating within this research, since it has the highest offer within the six criteria that we already mentioned. Followed by London are New York, Tokyo, Paris, and Singapore completing the top 5.

Now, within the 30 most important cities, how is the rental situation?

This is where RENTCafé’s research comes in, which set a rent of 1,500 dollars a month, and based on this, we can now know how much space we can access depending on the city, with other interesting results.

In the following graph (Source: Statista) we can clearly see the size of the apartment, in square meters, which we will have access to in the different cities with a budget of 1,500 dollars per month. It should be noted that the image is limited to the first 25 cities.

As we can see, the price per square meter in Istanbul would be just 8.50 dollars, so $ 1,500 would give us access to a comfortable apartment of 176 square meters.

In contrast to Manhattan, where the square meter has a cost of $ 58.34, so we would only have the possibility of having a micro apartment of 26 square meters. That is, the size of an apartment in Istanbul is equal to the size of almost seven apartments in Manhattan.

Other conclusions we can draw is that for those $ 1,500 we can have three times more space in Shanghai than in Los Angeles, or that the price per square meter is five times more expensive in San Francisco than in Berlin. On the other hand, of the 30 cities covered by the study, four belong to Western Europe, which compete with Manhattan, San Francisco and Hong Kong to have the highest prices per square meter.

Additional reading: cost to raise a child in top 10 countries

Another interesting point is that outside the United States and Canada, no other city in America appears in the list, this despite of the fact that some of them have the lowest prices, but here we must remember that we are talking about cities capable of offering a Good life quality. On the other hand, Spain appears twice in the list thanks to Madrid and Barcelona, cities where the square meter has a price of $17.01 and $20.99 respectively.

If you wish to analyze these 30 cities from another perspective, the map alongside summarizes the study in a magnificent and clear way.

 

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