How to Turn Your Hobby into Business: Earn, Save Money on What You Love

Everyone has something to do and are passionate about even if you don’t make any money doing it. It could be writing, translating, editing, painting, and others. But what if you could turn your hobby into a business? What if you get paid to cook food or take pictures?

Check out what you need to know, before you set out to make money with what you love to do.

Ask yourself why?

It’s important that you know your goal, do you want to earn extra money while keeping your job, or are you looking to start a business that is your main source of income? Being clear about your goals would be helpful in the process.

Are you ready to handle stress?

Turning your hobby into an endeavor could cause you to stop liking it at times. Are you so passionate about it that you have to endure the stress, the deadlines and the financial repercussions, atleast in the initial days of starting the business? It’s one thing to practice your passion in a relaxed way, in your spare time, and quite another to practice it for years, every day, under pressure. Of course, as your business grows your motivation will also increase.

Make the most of your time

Between office work, children and other responsibilities, you may have little time left to start your business. That’s why, at first, you’ll need to use your creativity to find your free time. For example, you can wake up an hour early in the morning or, why not, ask your children for help.

But remember, if your schedule is too tight, you could lose productivity.

Research the market

Before you invest money in your idea, you should find out if there is demand for your product or service. Among other things, you should investigate how big the potential market is, who the people would be interested in, what their income would be, if there are other businesses offering the same thing as you and how much you are currently paying for that product or service.

Create a plan

To start monetizing your hobby, you need to put together a strategy. The clearer your path and outlook (including what you’ve found out about the market), the more likely you are to do well. Guitar teacher Tom Hess, for example, began teaching in the evenings and on weekends, while continuing his work and saving money, according to the magazine. Once he had enough funds to cover four to six months of expenses, he would have quit his job, devoting himself entirely to teaching. Your plan, of course, will depend on the business being planned.

If in doubt, you can consult a financial advisor.

Money Saving Tips for Small Businesses

Running a business (small or big) is no easy task, especially if costs increase every year. However, you can use some smart methods to reduce costs. Sounds good, doesn’t it? Let’s understand how small business owners can save money

1. Reduce space

The offices have become more efficient, because thanks to mobile devices and collaborative workstations, among other advances, space has been reduced.

Work from home?

If your business allows it, you can save money on insurance, taxes and services. Today, technology offers you a much more mobile way to manage yourself.

2. Save on employees

Look for interns or freelancers. You can also offer short-term jobs. If one of these employees stands out, you can hire him or her on a permanent basis.

3. Print less

In addition to ink and paper costs, you should also consider storage space. Instead, save your files digitally on a hard drive/cloud servers and print them out only if necessary.

4. Travel less

While you cannot avoid certain meetings, it makes sometimes worth to schedule meetings digitally with video calls, and avoid travel (and save the costs of doing so).

5. Negotiate with your suppliers

These are necessary expenses, but many suppliers are open to negotiate a better price, as they would rather do that than lose a customer.

6. Save on advertising

Traditional advertisements, such as those seen on television, are very expensive. On the other hand, paid ads on social networks tend to be cheaper and also capture a large audience, according to Money Crashers.

Free advertising

If you take the time to build an identity on social networks, gain followers and generate content, you could get a lot of attention for free, without paying for ads.

7. Insurance

Sit down with your insurance agent and detail all aspects of your business to find convenient coverage. You’ll be surprised at the difference in price between different companies.

8. Make the most of your time

Find out which tasks are priorities and better manage the time you spend on them. For example, work on your company’s marketing to attract new customers, which means more profits.

Other benefit: less stress

Making good use of time means understanding that some tasks, such as answering emails late at night, do not provide a benefit. If you work on this aspect, your health will also improve.

9. Prepare for your taxes well

Minimizing your tax bill can be the most efficient way to improve your business results. This means taking advantage of all available deductions in your favor.

10. Maintain business expense record

Get into the habit of keeping track of all business expenses by keeping receipts. You can also write down your vehicle’s mileage when you travel on business.

11. Use the cloud

If you want to reduce costs in maintaining your servers and everything related to technology, using “the cloud” is very beneficial, as it requires virtually no technical support.

Swiss National Bank offering Lowest (-0.75%) Interest Rate in the World

Parking your money in the bank earns you interest and is considered a safe haven amongst risk averse investors. However too much of money in the bank is not good for bank either, as they have to pay interest to the depositors. This is the reason banks keep on reducing the interest rate.

For e.g. when Reserve Bank of India (RBI) increased the interest rate the effect ultimately was seen on borrowers as banks also increased their interest rate on borrowings.

Since the interest rate on savings account is already low it is further making Indian consumers unhappy.

But do you know that similar to RBI, centralized banks across the world schedule meetings after a set time interval. And during these meetings, the decision to increase/decrease the rate is taken.

Recently (in Jun’18) Swiss National Bank (SNB) conducted meeting in which they decided to continue with the negative policy rate. SNB has maintained negative interest rate of -0.75%. This basically means that, account holders keeping deposit with the bank will have to pay interest to the bank. Strange isn’t it? Doing this, bank wants to entice consumers to invest more elsewhere and spend more with the money they had instead of depositing it in the bank. This rate is actually the lowest in the whole world.

Similar to Swiss National Bank, Bank of Japan has also followed the suit and has kept negative interest rates.

Reasons for Reducing Interest Rate

There are broadly two main reasons of banks reducing the interest rate as follows:

  1. Increase investment i.e. people will borrow more and hence more profit to the banks.
  2. Increase demand i.e. flow of money in the system. Since banks have more money they can lend more i.e. borrowing will increase. So consumers will start spending or invest in other investment products i.e. spend will increase and hence the employment will spurt. Ultimately economy will grow.

Listed in the below table is the interest rate charged by central banks across the world:

Name of Central BankInterest RateNext Meeting
Reserve Bank of India6.25%August 1, 2018
Bank of England0.50%August 2, 2018
European National Bank0.00%July 26, 2018
Federal Reserve2.00%August 1, 2018
Swiss National Bank-0.75%September 20, 2018
Reserve Bank of Australia1.50%July 3, 2018
Bank of Canada1.25%July 11, 2018
Bank of Japan-0.10%July 31, 2018
People's Bank of China4.35%NA

4 Ways to Save Money on Cancer Treatment: Free Insurance, Low Cost Treatment & more

Cancer is one the most deadly disease and leading cause of death worldwide. And even worse is the pain and emotion it brings and most importantly the treatment expenses.

Even after taking the treatment, every year more than 5 Lakh people die of cancer in India as per statistics from National Institute of Cancer Prevention and Research. Depending on the type of cancer, the cost of treatment varies. And the treatment expenses wipes-off significant amount of money from the individual’s pocket.

Although there are personal loan for medical treatments available but such a loan puts the borrower in a bigger debt as the overall treatment cost increases due to high interest rates since it is an unsecured loan. There are secured personal loans as well carrying lower interest but in either case, borrower will be in debt.

But there are other ways to save money on cancer treatment providing relief to the patient and his/her family members to a great extent.

The options are:

  1. Financial aid from the central and state government
  2. Low cost treatment centres
  3. Life Insurance – Free (no premium to be paid) & Paid
  4. Health Insurance – Free & Paid

Let’s get into detail of each of these ways to save money on cancer treatment.

Financial Aid from Government of India

Not many of us are aware of financial aid given by Indian government to the cancer patient for treating the disease. This financial assistance for cancer treatment is especially for the poor or individuals falling under below poverty line (BPL). Here is the list of schemes from the government and the financial aid provided:

Name of Government SchemeFinancial Aid
Rashtriya Arogya Nidhi (RAN)Up to Rs. 1,00,000/-
State Illness Assistance Fund (SIAF)Up to Rs. 1,50,000/- or more
Health Minister’s Cancer Patient Fund (HMCPF)Up to Rs. 2,00,000/-

Low Cost Treatment Centres

There are many hospitals where a cancer patient can be treated at a very low cost compared to private or other hospitals.

Tata Memorial Hospital, Mumbai & Kolkata: This world class cancer hospital and largest in Asia is the leading cancer treatment and research centre in the world. Being a non-profit hospital present in Mumbai and Kolkata; 70% of the poor and underprivileged patients are treated for free or at a highly subsidized rates. (https://tmc.gov.in/)

All India Institute of Medical Sciences (AIIMS), New Delhi: Offers various cancer medical tests and treatment procedures at lower rates compared to private hospitals.

Rajiv Gandhi Cancer Institute and Research Center, New Delhi: Is a non-profit treatment centre and offers diagnostic and therapeutic treatment at a very affordable rates. (http://www.rgcirc.org/)

Shree Santram Samdhi Sthan, Nadiad (Gujarat): Offers treatment to individuals from low or middle income at a very affordable cost. (http://www.santramhospital.in/)

Adyar Cancer Institute, Chennai: This charitable hospital offers free of cost treatment to 40% of the patients and charge a nominal amount for the rest. (http://cancerinstitutewia.in/CI-WIA/)

The Gujarat Cancer & Research Institute, Ahmedabad: Offers free treatment to individuals below poverty line and the institute’s staff. General category patient are treated at an extremely lower cost. (http://gcriindia.org/)

Indian Cancer Society, Mumbai: Provides cancer check-up/screening service at a very nominal charge. The society also supports patients with annual family income of less than Rs.1 Lakh. (http://www.indiancancersociety.org/)

Kidwai Memorial Institute of Oncology, Bangalore: Treatment cost at this institute is very nominal. Also the medications provided here are 40 to 60% cheaper than the market rates. (http://www.kidwai.kar.nic.in/)

Other treatment centres offering affordable cancer treatment are:

  • Netaji Subhash Chandra Bose Cancer Research Institute, Kolkata: (http://www.nscri.in/)
  • Regional Cancer Centre, Thiruvananthapuram (https://www.rcctvm.gov.in/
  • Sri Shankara Cancer Hospital and Research Centre (https://shankaracancerfoundation.org/)

Low Cost Life Insurance for Cancer

Insurance is the best money saving option when undergoing treatment for disease like cancer because of the treatment cost which is largely paid by the insurance company. Depending on the type, insurer will pay certain amount of money in return of premium paid by the insured person.

Person can buy either life insurance or health insurance for cancer.

Listed in the below table are the companies offering life insurance for cancer:

Life Insurance Plans for CancerPremiumPolicy Cover
Indian Cancer Society + New India Assurance CompanyRs. 421Rs. 50,000
ICICI Prudential Cancer Care PlusFor a cover of 10 Lac Rs. 4,604-Rs.8,945 (men) and Rs. 8602-Rs.14,845 (women)Rs. 5 Lacs – 25 Lacs
Max Life Cancer Insurance PlanRs. 8,050 for 20 Lac coverRs. 10 Lacs - Rs. 50 Lacs
AEGON Life iCancer Insurance PlanRs. 5,633 for 20 Lac coverRs. 10 Lacs - Rs. 50 Lacs
HDFC Life Cancer Care PlanRs. 3,400 - Rs. 8,700 for 20 Lac coverRs. 10 Lacs - Rs. 40 Lacs
Future General Cancer Protect PlanRs. 1,144Rs. 10 Lacs - Rs. 40 Lacs
SBI Life Sampoorn Cancer SurakshaRs. 660 for 10 Lakh coverRs. 10 Lacs - Rs. 50 Lacs
Shriram Life - Comprehensive Cancer Care PlanMinimum premium Rs. 500Rs. 5 Lacs - Rs. 50 Lacs

As you can see, insured person can get significant sum assured by paying a premium. This is why having a life cover is highly recommended.

However there is a waiting period of 180 days that comes with these life policies. Meaning, claim can be made only after 180 days of purchasing the policy. Any claim made within 180 days shall be considered invalid. And these life insurance policy has a maturity period beyond which policy ends and no claim will be honored. The premium depends on various factors such as age, smoking, gender, sum assured, policy term and few others.

Health Insurance for Cancer – Free & Paid

The above table lists life insurance plans specifically for cancer. Another way to save money on cancer is buying a comprehensive health insurance covering multiple health conditions including cancer or buy critical illness plan providing coverage for cancer. These medical cover for cancer can be bought from private insurers or from government run insurance companies as listed in the below table. You can also take benefits from free insurance cover offered by central or state government as listed below:

Sr. No.Health Insurance for Cancer - Name of PlanPolicy Cover
1Ayushman Bharat - Free Health Insurance by GovernmentCoverage upto 5 lakh rupees per year
2Rashtriya Swasthya Bima Yojana (RSBY)Cover of upto Rs. 30,000
3Star Cancer Care GoldRs. 3,00,000 - Rs. 5,00,000
4Dr NTR VaidyaSeva Health Insurance Scheme (Andhra Pradesh only)Cover of up to Rs.2.50 lakh per year
5Aarogyasri (Telangana only)Cover of up to 2 lakh per year
6Comprehensive Health Insurance Scheme (Tamilnadu only)Upto 1,50,000/

The premium varies according to the age, cover taken, and many other factors.

There is another medical cover especially designed for cancer offered by Star Health called as Star Cancer Care Gold. The insurance offered by Star Health is very unique and it is designed specifically for Cancer and offers coverage to individuals who have already been diagnosed with Cancer.

Plans 1 & 2 above are carry no premium and the cost is borne by the government.

Plans 4 – 6 above are offered by respective state governments for free. There are many other states where insurance for cancer is offered. This list would be definitely updated soon.

Hopefully these options to save money on cancer treatment will help you. Do share this with your friends/acquaintances so that everyone can benefit from it.

Ayushman Bharat: Free Insurance for Poor with 5 Lakh Cover, Features, & more

The world’s most populous country, India, has always faced a big problem of providing quality healthcare to the poor. This is because of lack of money, these people are not able to receive proper treatment and buy health insurance.

To solve this problem, during the budget 2018, central government had announced Ayushman Bharat Yojana with an objective to provide quality healthcare treatment and insurance cover to the poor reducing the expenses incurred by them.

Ayushman Bharat – National Health Protection Mission (AB – NHPM) scheme which is the largest health care scheme in the world comprises of the following two utilities for poor Indian citizens:

  1. Health and Wellness Treatment Centres
  2. National Health Protection Scheme i.e. health insurance for poor

Details of AB-NHPM

Launch Date: 15th August 2018

Target audience: Poor and vulnerable which includes:

  • Family living in only one room with kucha walls and kucha roof
  • Family with no adult member between age 16 to 59
  • Family headed by a female member
  • Family having disabled member and no able-bodied adult member
  • SC/ST households
  • Landless households deriving major part of their income from manual casual labour
  • Destitute/ living on alms
  • Manual scavenger families
  • Primitive tribal groups
  • Legally released bonded labour
  • Rag picker
  • Beggar
  • Domestic worker
  • Street vendor/ Cobbler/hawker / Other service provider working on streets
  • Construction worker/ Plumber/ Mason/ Labour/ Painter/ Welder/ Security guard/
  • Coolie and another head-load worker
  • Sweeper/ Sanitation worker / Mali
  • Home-based worker/ Artisan/ Handicrafts worker / Tailor
  • Transport worker/ Driver/ Conductor/ Helper to drivers and conductors/ Cart
    puller/ Rickshaw puller
  • Shop worker/ Assistant/ Peon in small establishment/ Helper/Delivery assistant /
  • Attendant/ Waiter
  • Electrician/ Mechanic/ Assembler/ Repair worker
  • Washer-man/ Chowkidar

Insurance Cover: Rs. 5 Lakhs (sum assured) per family per year will be the given.

Is it a fixed or floater type of insurance?

It is a floater type of insurance policy.

Will it cover pre-existing diseases or conditions?

Yes. But with certain exclusions.

What benefits would be given as a part of this Yojana?

The coverage offered to the beneficiaries of AB-NHPM will include:

  • Hospitalization expense benefits
  • Day care treatment benefits (as applicable)
  • Follow-up care benefits
  • Pre and post hospitalization expense benefits
  • New born child/ children benefits

Where can beneficiary patient or their family member go for the treatment?

Similar to a normal medical insurance, patient can get treatment in government as well as private hospital which are part of the network. The treatment would be 100% cashless at all the network hospitals.

Who will guide patients to understand the procedure?

Every network hospital will have ‘Ayushman Mitra’ with duty of assisting patients with all the procedures involved. This will help patient and their family members to get treated without any hassles.

In which state this Yojana will be launched?

Although many of the states in India have their own healthcare schemes, Ayushman Yojana will be launched in all the Indian states.

What would be considered as a proof to validate beneficiary?

Aadhaar number would be must to take all the benefits under the scheme. However those who do not have Aadhaar card will have to furnish secondary proof such as ration card, voter ID card. More information on this would be provided by the government soon.

Who will provide insurance?

Preference would be given to government insurance companies over private insurers.

List of government owned insurance companies in India are:

  1. Life Insurance Corporation of India
  2. General Insurance Corporation of India
  3. National Insurance
  4. Oriental Insurance
  5. New India Assurance
  6. United India Insurance

However all the participating insurers should be registered with IRDAI.

Who will pay for the premium?

Premium payment will be done annually by central and state government. Premium will be splitted between the two.

Will there be any separate fees for beneficiary?

No. All benefits offered under the scheme are free of cost.

For the period during which patient is in hospital, what will be included as a part of the cover?

Medications, medical tests, doctors consultation, procedures, room stay and food will be part of the package under AB – NHPM. All this will be provided by the empanelled hospitals.

When would insurance company settle the claim?

As per the guidelines, insurer will have to settle the claim within 30 days of receiving it from the hospital.

Who will file claim?

Claim has to be submitted by the empanelled hospitals within 24 hours of patient discharge.

How much will this Yojana cost government?

Although there is no approximate calculation yet, but the Yojana is estimated to cost Rs. 12,000 Crore.

For Poor Earners: Low Cost Treatments, Medicines, Pension, Insurance, Loans, Low Income Credit Cards

Being poor earning is sometimes a bane. These individuals and their families have to go through lots of sacrifices to meet up even their daily needs. This primarily includes not being able to:

  • Get access to quality healthcare
  • Buy expensive medicines
  • Buy Insurance – Especially life and health
  • Avail credit card and loans and many others.

However there are many social schemes in India and in fact, low cost options for poor salaried individuals or poor income earners to get access to above listed utilities.

In this article we’ll discuss various money saving tips for low income earners covering above listed utilities:

Low Cost Healthcare

The most expensive healthcare treatments are heart, cancer, kidney and liver transplant. There are many social security schemes or hospitals in India offering affordable cost treatment for low income group as follows:

Cheapest Heart Surgery in the World

The treatment cost from Narayana Hrudayalaya and All India Institute of Medical Sciences (AIIMS) with other private treatment centres in India are actually incomparable.

Not many of us are aware of Narayana Hrudayalaya, Mysore. This hospital is run by generous person Dr. Devi Shetty offering cheapest heart surgery in India (in fact, cheapest in the whole world). The cost of undergoing heart surgery is around Rs. 50,000 or $800 which definitely looks affordable and is amongst the cheapest heart surgery in India/World. For more details, you may visit their website: http://www.narayanahealth.org/.

Other healthcare centres offering affordable heart care facilities especially for low income earners are AIIMS, New Delhi.

Low priced heart treatments at AIIMS are:

  • Hole in the heart: Rs. 40,000
  • Bypass Surgery: Rs. 52,000
  • Congenital Heart Disease Surgery: Rs. 40,000 and Rs. 52,000
  • Repair of Conduits and Valves: Rs. 55,000

Many other cardiac tests and surgeries at AIIMS are made available at a very subsidized rates.

Liver Transplant

It’s treatment in government or private hospital costs minimum Rs. 18 Lac and above. However following hospitals offer low cost liver transplant:

  • King Edward Memorial (KEM) Hospital, Mumbai: Rs. 5 Lacs
  • Amrita Hospital, Kochi, Kerala: Rs.12-14 lakh
  • Lake Shore Hospital, Kochi, Kerala: Rs. 12 – 14 Lakh

Kidney Transplant

AIIMS, New Delhi: Kidney transplant procedure/surgery costs Rs. 8,000. Visit this AIIMS link for more details.

Please note the treatment cost keeps on changing. You should contact these hospitals for more details.

Opthalmic (Eye) Care

Four hospitals in India currently offer ophthalmic treatments (including surgery) at an extremely affordable cost.

  • Sir Jamshedjee Jeejeebhiy (JJ) Hospital, Mumbai: You can get Lasik surgery done at Rs. 7,000.
  • Sankara Nethralaya,Chennai: Opthalmic care at Rs. 21,000
  • Laser Vision Centre, Mumbai: First consulting involving pre-lasik/ESA evaluation free of cost
  • Ahalia Foundation Eye Hospital, Palakkad, Kerala: Is a non-profit hospital and have performed 32,000 free surgeries.

Low Cost Medicines

There are many initiatives run by Government of India offering generic medicines which are nothing but non-branded drugs with equivalent ingredients, strength, quality, performance as that of branded drug. But these generic medicines are sold at extremely cheap rates. You can buy these low cost drugs from following government backed medical stores:

1) Jan Aushadhi Stores

With stores across various Indian cities. For knowing the store at your nearest place, call on their National Toll Free Number: 1800-180-8080

2) Jeevandhara Stores & Akunuri Medicals:

Jeevandhara Stores

• Government Osmania Hospital, Hyderabad – M/s. Vyshnavi Medical and General Stores
• Gandhi Hospital Premises – M/s. Sri Sai Medical and General Stores, Secunderabad
• Osmania Hospital, Hyderabad – M/s. Quli Qutubsha Medical and General Stores

Akunuri Medicals – Ashok Nagar, Near RTC XRoads, Hyderabad

3) “Prabodhan Jeevanmitra” from Prabhodhan Goregaon Grahak Sahakari Sanstha Maryadit – Mumbai

Discounted generic medicines are offered by becoming member of the trust. Membership costs Rs. 50 only for 1 year. And generic medicines including anti-biotics, pain killers for various health problems are available at concessional rates.

There could be many more medicine centres in India offering generic medicines. More such names would be added to the above list soon.

After saving money on healthcare treatments and medicines, let’s get into the finance side. We’ll start with insurance.

Lowest Premium Insurance for Poor – Accident, Life, Cancer

Due to high premium charged by private insurers and lack of knowledge/benefits, uninsured individuals/families in India are very high. Because of this, when such a person gets hospitalized they have to pay all the money from their own pocket. Looking at this scenario, government of India has launched, accident and life insurance for poor.

Here are the details:

  • Pradhan Mantri Jeevan Jyoti Bima Yojana: Insurance cover of Rs. 2 Lacs at Rs. 330 per annum
  • Pradhan Mantri Suraksha Bima Yojana: Insurance cover of Rs. 2 Lacs at Rs. 12 per annum

The only requirement is that the applicant needs to have bank account on his/her name.

Cancer Insurance

Indian Cancer Society (ICS) and Cancer Patients Aid Association offers very low cost cancer insurance. ICS offers Rs. 50,000 sum assured at a premium of Rs. 496 only.

Pension for Poor

The most critical period is after retirement or when person is no longer earning. However for people from economically weaker section of the society, such a non-earning period is more painful. To assist such individuals, government of India has launched Atal Pension Yojana (APY), a pension scheme for citizens of India. Under this scheme, minimum pension of Rs. 1,000 or Rs. 2,000 or Rs. 3,000 or Rs. 4,000 or Rs. 5,000/- per month will be given to the subsriber.

Personal Loan and Home Loan for Poor Income Earners

Being poor is sometimes considered a scar, as the need of money is high with poor earners and money lenders are less in numbers.

Personal Loan

From a lender perspective, it practically makes sense to stay safe than putting themselves into risk by lending money to people with poor repayment capacity with no security since personal loan are unsecured loans. Although this is not true because poor salary doesn’t mean he/she will default.

However there are lenders who offer financial services to low income earners as well but loan amount is small, which should not be a problem since ultimate objective of getting money is achieved.

Many banks in India offer personal finance to low salaried or self-employed professionals.

Here’s the list of such lenders:

Name of BankMinimum Monthly Income Required
HDFC BankRs. 12,000
ICICI BankRs. 15,000
State Bank of IndiaRs. 10,000
State Bank of India (Xpress Credit Personal Loan)Rs. 7,500
Canara BankRs. 10,000
Dena BankRs. 15,000
Punjab National BankRs. 15,000
Fullerton India Credit Company LimitedRs. 15,000

There are many other options for poor salaried to get personal loan (with security) such as:

  • Against Fixed Deposit. Read in more detail about this here.
  • Against securities such equities, mutual funds, life insurance policy. Read more about this here.

Since these types of personal loan are secured, the interest rate is low and helps in saving good amount of money. The loan amount depends on the value of the securities kept with the bank.

Home Loan

Owning a home is a dream for everyone and this dream remains a dream due to never lowering real estate prices. However to make housing affordable for all, there are many lenders offering housing loans for low income earners as listed below:

Name of BankMinimum Monthly Income Required
Axis Bank (Asha Home Loan)Rs. 8,000 - Rs.10,000
Pradhan Mantri Awas Yojana (Scheme from Indian Government)Rs. 25,000 (Annual income upto Rs.3 Lacs)
Interest subsidy of 6.5%
ICICI Bank (Pragati Home Loan)Rs. 10,000
HDFC (Reach Scheme)Rs. 10,000
Tata Capital Housing (Prapti Scheme)Rs. 50,000 but at 4% interest rate

Credit Cards

Although a need of having a credit card is not at all required. But credit card is one way of building credit history. Similar to loan, credit card for low income earners are difficult due to poor repayment capacity. However there are banks offering credit card to poor income earning individuals as listed below:

Sr.No.Credit Card NameIssuing BankMonthly Income Required (INR)
1Visa ClassicVijaya Bank5,000
2Classic Syndicate Bank5,000
3India CardBank of India6,250
4EmpowermentJammu and Kashmir Bank6,666
5Canara Visa Classic / MasterCard StandardCanara Bank8,333
6Visa GlobalVijaya Bank10,000
7Visa GoldBank of India12,500
8Visa Gold InternationalBank of India12,500
9Axis Bank GoldAxis Bank12,500
10MasterCard TitaniumCentral Bank of India12,500
11Visa GoldCentral Bank of India12,500
12RuPay PlatinumCentral Bank of India12,500
13GoldIndian Bank12,500
14ClassicIndian Bank12,500
15Gold Syndicate Bank12,500
16EmpowermentJammu and Kashmir Bank12,500
17RuPay PlatinumAndhra Bank15,000
18Gold Corporation Bank15,000
19Canara GoldCanara Bank16,667
20TitaniumBank of Baroda16,667

Final Note:

Hope this article will help people especially low income earners to save money. If you know about any hospital/medical centre offering treatment and medicines at low or concessional rates then do share in the comment section below and same shall be considered and added to the list in this article.

Credit Card Insurance: Types, Making It Valid & more

The benefits and features offered by credit card are many and insurance cover is one of them. However many of the card users are unaware of the conditions under which they operate. When you buy a card, you get different types of insurance at the same time, some of them at an additional cost and others as part of the card services included in the annual fee.

In many cases, insurance benefits are included as part of the basic features such as travel cards that highlight protection abroad. In others, the benefits and conditions for validating the insurance are found in the contract, however, customers do not pay due attention to them. This causes the conditions to be unknown and in many cases a benefit that is already part of the credit card is missed.

What types of credit card insurance are there?

Each credit card offers different insurance policy. This depends on the profile of each user and the needs they consider indispensable for this. The insurance cover typically appearing with credit cards are as follows.

  • Insurance against theft, loss or cloning of cards: Prevents the cardholder from paying unrealized charges for any of the above reasons. At the same time it protects against misuse of banking information.
  • ATM Theft Protection: Covers losses around the ATM, before, during, or after a transaction.
  • Protected purchase insurance: It is used for purchase of long-life items. It covers the loss of products purchased with the card.
  • Travel medical and accident insurance: Protects the cardholder, spouse and minor children from unforeseen events that may arise while they are out of the country.
  • Baggage loss or delay insurance: Luggage cover for flights paid for with the card.
  • Car rental insurance: It works when card user is travelling and is applicable when the car rental was paid for with the card.

Depending on the type of card you have, it will be the insurance coverage you have. As an example, classic cards often offer services that protect the customer from theft or loss, while travel cards focus more on services outside the country. If you are not sure what your card includes, contact your bank.

How to make credit card insurance valid?

Each bank/card issuer establishes the conditions under which it will make the insurance valid. It is important to be clear about the requirements for applying. It is frequent that the client wants to make his insurance effective but does not know the mechanisms to make it effective.

The reasons for this are as follows:

No compliance with documentation

To make insurance valid, the bank sets conditions. Among them are the documents that allow validating the application of the insurance. If the documents are not in order, the petition does not proceed and the benefit is lost.

Unaware of the procedures

This can be from the way it should be requested or the frequency with which it is allowed to be used. In many cases the insurance works on limited occasions and if the user requests it more than once it will be rejected. Also, if any steps in the process is skipped there is a higher chance of losing the right.

Not Claiming Before the Time Limit

Many insurances give you a time limit to claim the benefits. This is the most commonly the case with death insurance that has a limit from the date of death of the user. And if the beneficiaries are unaware of the existence such insurance cover which is part of the card, then there could be delay in applying for the benefit and the application may get rejected.

In order to validate credit card insurance, it is important that you are clear about the benefits it offers, as well as the application process. Carefully review the conditions mentioned in the contract and if you have any questions contact your bank.

Finally, it is your right to take advantage of insurance that is part of your credit card.

7 Ways Millennials Should Save & Spend Less

We often hear the word Millennials. But who are these individuals?

Anyone born between 1980 and 2000 are called or fall under the bracket of millennials. They are characterized by adapting very well to change and delaying their transition to adulthood. That is why they have been given the name “Peter Pan” (i.e. an adult who does not want to grow). They have also been characterized by greater entrepreneurial skills.

But how careful are millenials with their money?

Young People and Money: An Impossible Relationship?

Studies have shown that most millennials spend more time in their parents’ home than they do at any other time in their lives. Although economic independence is one of their priorities, it is difficult for them to leave home and start their own family.

This generation is not usually very concerned about their long-term finances, but tend to take risks in short-term financial decisions. They prefer to choose to undertake businesses in which they are their own bosses or which allow them to fulfill their interests. Most of them are looking for businesses where they don’t need to invest money.

In this search for businesses that do not need investment, it is necessary to know how to save. This way, the gains will be greater.

Saving Will Save You

The vast majority of millennials do not save for their future as they do not worry about long-term finances. And from a financial perspective, this is a big concern. Because young people do not worry about money in the long run and if this continues, the future can become very difficult.

It is recommended to save small amount for retirement from the money you get from your first job. In addition, saving in the short term is also an advantage. Most prefer to save this way to make necessary investments in their businesses.

How to spend less being millennial?

This generation has managed to develop different methods to spend less money on their daily lives. This represents a saving that goes very well in your pocket.

Some of these methods are:

Using Coupons/Offers/Deals

Discount coupons have made life easier. From hairdressing services to the purchase of grocery, furniture, or gadgets, these discounts/deals are widely used. This method saves money on activities that can be very expensive. It has also allowed individuals to realize when there is or is not a good offer.

Saving Unexpected Profits

Many young people don’t really know how to allocate their windfall profits. Whether it’s the bonus from the job or the gift, unexpected earnings are a moment of doubt. While many choose to spend it all immediately, these gains are actually primary savings opportunity, as the accounts do not unbalance.

Using Apps

The digital technologies have enabled the development of applications for intelligent devices that provide the methods and knowledge needed to make the right and better use of the money earned. In these applications, they keep track of all your financial transactions. All this allows for greater control of spending, which is very useful for millennials, who do not tend to plan their monetary spending.

Research – Before Buying

They have access to the internet to research products, brands, prices and references, so they can make good buying decisions. A young person who has the agility to look for better prices and economic alternatives will always be able to save more on what he or she spends.

Avoid Credit Card Debt

Millennials love credit card more than anyone else and are often soft target of card companies. Having to pay high fees for their studies has given them the responsibility of debt. Because of this, they prefer not to owe banks with credit cards.

Having Several Small Jobs at the Same Time

The first job always seems to be a bit complicated. So many young people have directly chosen to have a number of low-demand jobs with which they can search for themselves and thus earn more income than they would earn in a full-time permanent job.

Buy only what you need

Although this is far from being an exclusive feature for millennials, waste is the main cause of small amount of money saving. The most relevant thing in this sense is to determine the need for an object or service and, based on this, to determine its purchase.

A very important general advice is not to overspend. Money is often spent on unnecessary items. In addition, many young people have stated that the salary earned does not allow them to make long-term savings.

Although this is an important factor, it is good to point out that you can always save a little. Learning how to save money is essential to life. The habit of saving and spending should be acquired from an early age so as not to have problems due to waste.

It is important to note that young people do not necessarily have to save directly for old age. They can do it in the short term for a business that leaves future profits, but you always have to keep in mind the long term finances, because you never know what the future may hold for you.

Fintech – Blockchain, Cryptocurrency, Digital Banking – The New Digital Technologies

The use of technology to make financial markets more efficient is one of Fintech’s priority objectives, a cutting-edge term that brings together all those companies dedicated to offering innovative financial services through new distribution channels.

Global investment in FinTech has been growing significantly in all the major countries and is expected to grow in the coming years.

What is Fintech?

The Fintech concept is derived from the terms Finance and Technology, referring to the financial and technological organizations that try to contribute new ideas and that reformulate, thanks to new information technologies, big data or mobile applications, the way of understanding and providing financial services.

The increase in financial literacy and new technologies is encouraging the emergence of new financing alternatives. At this point where fintechs appear, intervening in sectors such as mobile banking, crowdfunding, cryptocurrencies, alternative currencies, trading or risk management.

Digital Banking

Digital banking is one of the areas where fintechs have the greatest influence. The increase in the internet penetration and the use of mobile devices are hidden behind this new scenario, largely due to the closure of many different physical branches in recent years, one of the main causes of the crisis that also affected banks.

At the moment, significant number of people are digital banking users. One of the reasons for this is that they value the immediacy and convenience of online banking much more.

SMEs and the self-employed also turn to fintech for alternative financing solutions to traditional banking, as they are often more flexible.

Blockchain

The blockchain is one of the parts that make up the vast fintech universe. We are talking about a type of technology that will undoubtedly change the way financial institutions operate globally. This concept represents a major revolution not only in the field of economics, but also in many other areas.

The “block chain” to which we refer completely eliminates intermediaries, completely decentralizing management. Now, the control of this whole process is with the users and not so much with the banks.

In this chain, records or blocks are linked and encrypted to protect the security and privacy of the transactions themselves. It is a distributed and secure database, which can be applied to all types of transactions.

Cryptocurrency: The Bitcoin

In order to understand Bitcoin it is necessary to understand that it is based on a decentralized computer network, which involves nodes spread all over the world with copies of all transactions that have been made.

The bitcoin has overall higher value than other virtual currencies such as Ripple, Ethereum, Stellar and many others making it the king of cryptocurrency. The use of so called cryptocoins is a saving to be taken into account when avoiding third parties.

The objective should now be bringing the student closer to the changes that the financial sector is experiencing, with the eruption of disruptive technologies that come to change the way of doing and understanding the business of finance.

50 Most Influential People in Global Finance: Policy Makers, Bankers, Thinkers

The published report by Bloomberg Markets magazine on the annual ranking of the 50 most influential people in the financial world whose opinions are taken into account not only by the companies and organizations to which they belong, but also by the governments of all the countries, as their decisions influence the economy of the entire planet.

In times of crisis in the global economy, their presence is increasingly significant and their names are in many cases well known throughout the world.

Selection Process

In drawing up this list, account was taken of those men and women who are influential in the industries or sectors in which they participate, in governments and economies in general, and also those who have made it possible to achieve great results for their companies.

In making this selection, they have taken into account the most influential people in finance at the moment, rather than those who have been influential throughout their career.

The list was drawn up taking into account the opinions of reporters and editors in 146 different offices, reviewing the names that have appeared most frequently in Bloomberg’s news and consulting the different rankings published in the media.

The selection was made by dividing the 50 people into 5 categories:

  1. Policymakers
  2. Bankers
  3. Money Managers
  4. Innovators
  5. Thinkers

In this ranking you’ll find important names such as Christine Lagarde, Director of the International Monetary Fund (IMF), Steve Jobs, who has just left her position as CEO of Apple, or Jamie Dimon, CEO of JP Morgan Chase & Co.

So here’s the list:

Policy Makers

Ben S. Bernanke – Chairman of the Fed

Agustin Carstens – Director of Banco de México

Mario Draghi – Director Bank of Italy and next Director of the European Central Bank

Timothy F. Geithner – U.S. Secretary of the Treasury

Christine Lagarde – Director International Monetary Fund (IMF)

Ali al-Naimi – Minister of Petroleum of Saudi Arabia

Masaaki Shirakawa – Director, Bank of Japan

Wang Qishan – Deputy Prime Minister of China

Elizabeth Warren – Harvard Law School Professor and potential Senate candidate

Zhou Xiaochuan – Director, Bank of China

Bankers

Lloyd Blankfein – CEO Goldman Sachs Group Inc.

Robert Diamond – CEO Barclays Plc

Jamie Dimon – CEO JPMorgan Chase & Co.

James Gorman – CEO Morgan Stanley

Stuart Gulliver – CEO HSBC Holdings Plc

Anshu Jain – CEO Deutsche Bank AG

Jiang Jianqing – CEO Industrial & Commercial Bank of China Ltd.

Chanda Kochhar – CEO ICICI Bank Ltd.

Kenneth Moelis – CEO Moelis & Co.

Vikram Pandit – CEO Citigroup Inc.

Money Managers

Steven Cohen – CEO SAC Capital Advisors LP

Ray Dalio – Founder Bridgewater Associates LP

Laurence Fink – CEO BlackRock Inc.

Jeremy Grantham – Co-founder GMO LLC

William Gross – Co-Director of the Investment Office Pacific Investment Management Co.

Ho Ching – Executive Director Temasek Holdings Pte

Lou Jiwei – CEO China Investment Corp.

Mark Mobius – Managing Director Templeton Emerging Markets Group

James Simons – Director Renaissance Technologies LLC

George Soros – Director Soros Fund Management LLC

Corporate Innovators

Mukesh Ambani – President Reliance Industries Ltd.

Eike Batista – Chairman MMX Mineracao e Metalicos SA

Warren Buffett – CEO Berkshire Hathaway Inc.

Jeffrey Immelt – CEO General Electric Co.

Steve Jobs – Former CEO Apple Inc.

Mikhail Prokhorov – Founder Onexim Group (Russia)

Wilbur Ross – CEO W.L. Ross & Co.

David Rubenstein – Managing Director Carlyle Group

Carlos Slim Helu – Director America Movil SAB

Ratan Tata – Director Tata Group

Thinkers

Carson Block – Founder Muddy Waters Research

Martin Feldstein – Harvard University Professor

Jan Hatzius – Chief Economist Goldman Sachs Group Inc.

Daniel Kahneman – Professor Emeritus at Princeton University

Paul Krugman – Professor Princeton University

Jim O’Neill – Director Goldman Sachs Asset Management

Carmen Reinhart – Author of the book’This Time Is Different’.

Robert Shiller – Yale University Professor

Joseph Stiglitz – Columbia University Professor

Nassim Taleb – Professor New York University

Insurance in USA Basics: Auto, Tenant, Home, Life

There are several ways to purchase private insurance to cover incidents and emergencies. You can get information on the various types of insurance from insurers or brokers/advisors.

Keep in mind that most advisors work on commission, so their advice can be distorted. If you want good advice, contact an independent advisor. Some banks offer insurance advice with their financial advice.

Automobile Insurance

In many states in the United States, auto insurance is mandatory. Before you sign a contract, insurance companies usually make a thorough investigation that includes your driver history and claims history. If your record is bad, chances are your insurance will be more expensive.

Tenant Insurance

The landlord provides you with accommodation, but you need insurance to cover your belongings. Also, if someone is injured in your apartment, you may have to pay their hospital bills. Even if the accommodation is not yours, it is important to buy insurance.

Home Insurance

Home insurance covers you in the event of burglary, vandalism, storms and other incidents. It often reimburses damaged goods at their current value, such as furniture, appliances and money up to a certain amount. The insurance must correspond to the true cost of the insured items in your apartment. If you have valuable assets, it is recommended that you take out additional insurance.

Life Insurance

A life or “whole life” insurance policy guarantees that a fixed sum of money will be paid to the family upon the death of the insured. There is also term life insurance which do not include the sum of money as life insurances but which cover a person during a determined period which can go from one year to 10, 20 or 30 years. You can also purchase term insurance that covers you up to a certain age, often 65 or 70. Term insurance expires on a specific date.

This type of insurance is normally used to protect your loved ones from potential debts. For example, if you and your wife own a home, your wife may still have to pay the credit alone after you die. With this insurance, she will have enough money thanks to the insurance to finish paying the credit.