Canada: Bank Account, Debit, Credit Card for Students

Canada is becoming a favorable destination for students seeking education. But for international students, some basic information on banking system in Canada is very important.

This article discusses this information in a very basic manner.

When moving to Canada, there are three financial products everyone should have in his/her name:

  1. Bank account
  2. Debit card
  3. Credit card

Opening a bank account

Opening a bank account is first step towards entering into financial system of Canada and is essential for everyday transactions. To open it, simply go to the bank of your choice, preferably near your home or college. You will be asked to identify yourself using your social insurance number and/or passport. It is important to choose your financial institution carefully because the rates for transactions, cheques and other services vary from one institution to another.

Some banks allow remote account opening from your home country.

Several banks offer specific services to international students and this includes:

  • Scotiabank Student Banking Advantage Plan
  • CIBC Advantage for Students Account
  • Royal Bank of Canada (RBC) Student Banking Account
  • The Toronto Dominion Bank (TD Bank) Student Checking Account

Debit Card

In Canada, when you open a bank account, you will be typically offered a debit card for free which is directly linked to your bank account. You have to understand that there is a difference between a debit card and a credit card. Each one has its own functioning and features which is not always easy for the newcomer to grasp especially the students.

A debit card is mainly used to pay for purchases in stores (grocery, stationary, and others). And the amount spent is debited from your checking account the same day. You can also use your debit card to withdraw cash at ATMs (with a fee if you withdraw at a different financial institution). However, you will not be able to use it to make online purchases on the Internet. In this case, you will need a credit card. In many countries like India, you can make online purchase even using a debit card but this is not the case with most of the banks in Canada.

Credit Card

This is the most important financial product everyone moving to Canada should have as it helps in building the credit score which is a gateway to future financial needs in the country. Note that, just by having a bank account and debit card does not help in building a credit history.

Credit cards are widely used in Canada and also in many other countries. However they are not always linked to your bank account (like a debit card) but with a credit account from another organization. You will receive a monthly statement of the card account and the payment due date. You have no obligation to pay the full amount, but a minimum amount must be paid each month. The amount due is accompanied by fairly high monthly interest rates (between 9.9% and 19.9%) until the amount is fully repaid.

Major retail chains and some oil companies offer their own credit cards. Since the application for a credit card often involves historical credit analysis in Canada, it can be difficult for newcomers, for whom a “credit rating” does not exist.

Some financial institutions are more accommodating than others in this regard and some also offer secure deposit-guaranteed credit cards for new immigrants. Depending on the credit card choice, interest rates, authorization limits, payment terms and annual fees may vary from one institution to another.

Some of the secured credit cards in Canada are:

  • Capital One® Secured Card
  • Refresh Financial Secured Visa
  • Scotiabank Value® VISA Card
  • Home Trust Secured Visa Card
  • DCU Visa® Platinum Secured Credit Card
  • Peoples Trust Secured MasterCard

So these are the very basic financial products anyone moving to Canada should own. Getting a credit card in Canada should be the most important objective especially when you are planning to stay longer.

10 Small Investment Businesses for Low Income Earners

Typically when a person with low income, thinks of starting a business, the next question that comes into the mind is “do I even have the enough money to start a business?”. But remember that, not every business requires huge investment capital and there are low-cost businesses you can start today. That’s what this article is all about i.e. businesses requiring low investment especially for low income earning individuals, although anyone implement the businesses mentioned here.

Once you get to know the businesses requiring small investment, you’ll be convinced that, beyond just needing capital to get started, what you really need is a hard work, willingness to take risks, and start with whatever you have.

Businesses with little investment to start today

Here are 10 business ideas with little capital to start with. Some of these businesses will allow you to earn online from the comfort of your home whereas others offering your services and knowledge to people interested in what you know, among others.

1. Work as a freelancer

Are you artistic in nature and good at designing advertising creatives such as banners, logos, etc? Are you an expert in web designing and development? Is it easy for you to write on any topic?

One of the low investment businesses you can undertake, using your skills in your spare time to earn extra money, is freelancing.

The costs are minimal, since all you need is a good computer, internet connection and relevant tools required for that particular task. So you need to invest your time to create a portfolio of services and start looking for your first customers.

There are many online platforms for freelancers such as Freelancers, Fiverr, Upwork, Workana and Nubelo.

2. Personalized classes for college and university students

Teaching is a noble profession. And if you have acquired experience in a specific field after years of working, then why not use this knowledge to teach one-to-one classes to students. You can teach economics, design, programming, math or whatever subjects you’ve mastered in.

You can charge hourly and define the hours of study, something that helps you to undertake while you are working. For this type of business with little investment, it is important that you manage your travelling cost, food and time well.

For this, you can learn to create a personal budget and be very disciplined with your time.

3. Offer professional photography services

If you’re the type of person who likes to take pictures and share them on social networks, you could create a profitable business from these snaps.

For this low investment business, all you need is a good camera that allows you to take good pictures. This doesn’t have to cost thousands of dollars, but it can’t be your cell phone either as you need good quality images.

You can start offering your services for family or friends at their events, usually done in your spare time. Another alternative would be to sell your photos to image sites.

4. Weekend childcare

Do you like children and find it easy to take care of them? Then why not turn your taste into a business?

You can do it at night or on weekends, usually parents look to go out at night or have events where their children can’t attend. Start offering this service in your neighborhood, it doesn’t require investments beyond promoting your business.

In fact, once people know your skills they will begin to recommend you. Remember that businesses with little investment can become big companies if you start from the simplest, identify what the real added value is and do things well.

Once you identify what value you can exploit, you can start hiring other people, even in the future, if you develop a structure and a business model, you can start thinking up a cheap franchise model.

5. Being a dog walker

All you need are good shoes, dog leashes and fitness that you can develop in the first few weeks.

If you like dogs, you can turn this hobby into one of the low investment businesses you can enjoy while walking your neighbors’ pets.

You can charge by the day or by the week at a convenient time for both. It’s also a good way to exercise, as these walks will not only help dogs and you can take advantage of all the benefits of walking.

6. Offer house cleaning services

If you feel that your income is not enough, and you are looking for new alternatives to earn money quickly, you can propose to your friends that you clean their apartment or house.

You can start by doing it yourself and then create a whole cleaning system. That’s where the magic of creating business with little investment lies, initially you must do it yourself, but later you can delegate and focus on managing it.

When you develop a cleaning technique that is replicable and scalable, you can hire other people to do the cleaning and you can focus on winning new contracts.

In the future you will be able to expand your business to gardening, office cleaning, and restaurant services.

Remember that the largest empire began with the smallest idea.

7. Selling your knowledge: Consultancy or advice

Do you understand how digital marketing works, direct sales, how to optimize a process within your company? Do you have a knowledge and method that can be monetized?

You can provide consulting services to other companies or entrepreneurs that have a common problem and for which you have an alternative or solution.

This can be the first step in starting your own business or independent life; you don’t need to quit your job today to do it, you can use your free time to do it.

8. Be a virtual assistant

In this business with little investment, you need to have free time as you will have to assist several people at the same time.

You don’t have to be in an office to provide this service. In fact, this is one of the ways to make money from home, with your personal computer and an internet connection.

Maybe the company you are attending is in another city, or even another country, all you need to do is provide administrative support that allows the other person to focus on what adds value and makes a difference, and you provide the administrative service.

For this, the only investment you need is time to get to know yourself and present yourself to potential entrepreneurs or executives who require your service.

9. Create digital content

One of the businesses with little investment that most people don’t believe possible is to have a blog that generates income to live on.

So the first thing to do is to make it clear that you can create a blog and make a living from it, since digital content is a trend today and we all want to be informed, something that a blog can offer.

Creating a digital publication that doesn’t just require money, but also time. To start you need to define the topic you are going to talk about, choose a domain and buy a hosting plan.

10. Write an ebook or create digital products

Finally you can write a digital book or ebook and sell it on platforms like Amazon, where you can sell it for a commission.

Writing books is the kind of low-investment business that needs your hard work while you’re creating it, but once you get it ready, all you have to do is promote it.

Once you have the book ready, you can promote it and sell it on Amazon. Normally the commission is 30%, which is somewhat expensive, but you will have access to millions of buyers around the world.

These low-investment businesses are not just limited to books, as you can also create online courses and other digital products that you can promote on the web through affiliate marketing.

In the case of books, all you need is inspiration, knowledge and a lot of consistency to write a quality content. This can be the beginning of a successful career as a writer.

In conclusion, like any business, it requires an investment of time, resources and money to turn small business to a large business and most importantly it requires hard work to succeed in business or any area of life.

Cash Loan for Low Income Earners: Instant, Short Term, Secured

The need for money typically arises when the month end nears or in the mid of the month. But imagine unexpected crisis arise all of a sudden (e.g. a medical emergency, money gets stolen before marriage, etc.) requiring good amount of money to meet the demand. And at that time you don’t have enough money in your bank account to meet the purpose.

Ideally in such cases, you will approach your friends or relatives for money, which is the best recommended option because it saves time and is extremely cost effective but works on trust. If they are able to help you at the time of need, then nothing better than that. But what if every option fails including your personal savings not able to fulfil your money requirement and you need money only for a very short term. This is typically a scenario when you have small amount of money in your bank or wallet.

Cash Loan – Your Emergency Cash Partner

In such scenario, cash loan is the solution to your problem which acts as a rescuer and act as your emergency cash partners. For certain category of individuals, e.g. low income earners, cash loan is the perfect solution.

Cash loan is nothing but a personal loan or advance loan but typically offered for a very short tenure and small amount. Unlike personal loan, where the tenure is long and fixed and loan amount is high, cash loan repayment can be done anytime and loan account can be closed before the tenure and extended as well, on need basis.

Who offers cash loan in India?

There are few lending companies in India offering such type of financing. Most importantly financial institutions do not offer cash loans in India. But there are lenders who offer loan for a short period (minimum 3 months – 24 months) with amount ranging from Rs. 5,000 to Rs. 5 Lacs.

These are broadly categorized as:

  1. Peer to Peer Lending Companies
  2. Mobile Phone Based Payment Apps
  3. Credit finance companies

Let’s get into details of these companies.

Peer to Peer Lending (P2PL) – Online Lending Marketplaces

Peer to peer lenders are basically non-banking financial corporations but under control by Reserve Bank of India. Since there is no involvement of bank, the loan processing is fast. Few of the prominent P2PL in India are – Faircent, i2ifunding, lendbox.in, and others.

In case of peer to peer lenders, the company themselves do not offer loan. Instead, money is lent by pool of investors (i.e. individuals). P2PL basically create a platform to connect borrowers with lenders. And in return, such companies make money through various fees associated such as joining fee, etc.

Mobile Wallets or Digital Financial Services Platforms

These are the new age fintech companies who make use of latest technologies to make the complete process digital. However financing is one of the service provided by these wallets. Their main business/service is digital payment. Advantages of taking loan from mobile wallets are – Very minimal paperwork, speedy processing, quick disbursement, and so on.

Few of the prominent mobile wallet players in India offering quick credit are:

Paytm: If you are a Paytm user (website or mobile app) then you are likely to get pre-approved loan depending on the transaction history with them.

MobiKwik: Another mobile wallet in India which offers instant loan of upto Rs. 60,000

PayU: In partnership with Reliance Money, PayU offers the smallest loan amount of Rs. 100 extending upto Rs. 1 Lac with a smallest tenure of just 15 days to 2 years. This is an excellent opportunity of getting personal loan for low income earners.

Like P2PL, mobile wallet companies themselves do not offer quick cash loan. Rather they have a tie-up with third party creditors, who actually lend money. Wallets are basically middlemen. For e.g. Paytm has partnership with Home Credit India Finance Private Limited (HCIN) which offers loan instantly.

Credit Finance Companies

These are again non-banking financial organisations offering instant cash anytime, anywhere. The process is 100% online and paperless. Few of these companies are:

Home Credit India Finance Private Limited (HCIN): Offering quick loan of upto Rs. 50,000. So you can even apply when the money required is Rs. 10,000.

OptaCredit Fintech Private Limited: This NBFC also makes use of highly advanced technologies and offers short term loan ranging from Rs. 20,000 to Rs. 5,00,000.

Payme India: Another company offering short term loan starting from minimum Rs. 5000.

However one very important eligibility factor taken into consideration by all the above listed digital loan providers is the credit worthiness of the applicant. So even if you are a high income earner, there is a chance of loan application getting rejected because of poor credit score. However for a first time credit applicant, getting instant money through these lenders is highly recommended.

If you are a poor income earners and wish to take personal loan from bank, then here is the list of banks and minimum income required.

Documents Required

For getting quick credit, low income earners (or anyone) should furnish correct & valid documents for faster processing and quick approvals. Typically the documents required by salaried individuals are:

  • Last 3 months salary slip
  • ID proof
  • Current and permanent residential address proof
  • If the applicant is staying on rent, then he/she needs to produce utility bill in the name of the landlord in addition to home rent agreement, voter ID, driving license, etc. as asked by the lending institution

For self-employed or businessmen, the documents will vary.

Either the applicant has to upload documents on the website/app of the lender or executives from these companies will visit you for collecting the documents. This varies for each company.

How is the money paid by the cash loan providers?

Although the word “cash” sounds confusing but the money is never offered in cash. Once approved, the borrower gets money in his/her bank account via National Electronic Fund Transfer (NEFT) or any other payment transfer method.

How to apply for instant cash loan?

There are three ways to apply for fast credit when going through above listed lenders:

  • On website of the lender
  • On mobile app of the lender
  • Personally visit their branches. However with advanced technology, most of digital finance lenders do not even requires the applicant to visit their office for loan application or any other related work.

Digital fintech companies have made the complete lending process – loan application, verification, approval, disbursement, repayment, closure – speedy and hassle free. This saves money and time of both the parties i.e. loaner and loanee. And most importantly money can be used for online purchases, wedding, medical emergency, vacation, and others.

10 Reasons for Financial Problems in United States

If you have financial problems you are definitely doing something wrong with your personal finances either knowingly or unknowingly.

If you have certain income that allows you to lead a good quality of life, but you are still in debt and full of economic problems then you probably haven’t learned how to manage your money.

Economic problems are the result of bad financial decisions, ranging from not saving a portion of your income, believing that there is the perfect time to invest, making lifestyle too expensive and others.

Before knowing the causes of your financial problems, it is important that you recognize that the problem is with you; it is not the fault of the government, your parents, the business cycle or your boss.

It is your decision and action that has led you into this situation. So if you want to learn how to get out of debt and improve your economic life, you must recognize that the only person who can reverse this situation is the one reading this article.

The main reasons for financial problems

10. Not having an emergency fund

An emergency fund is your first line of defense against unexpected economic problems. And usually, these occur frequently.

Whether your car broke down, something in your apartment needs to be fixed, or a medical emergency for which you need medication.

What happens when an emergency occurs and you don’t have a way to cover it? Usually you have to take out personal loans.

If you want to start solving your financial problems, create an emergency fund with an amount equal to six months of your income.

Additionally, keep it in a place where you can dispose of it when you need it; it’s not about generating income with it, or investing your money from this disposable income in risky assets.

It’s all about having it available when you need it, so don’t think about its profitability.

9. Not having clarity about what will happen if you are not there

If you have a family, it is important to make it clear what will happen to your estate if you are not there.

A will, for example, can avoid many financial problems in your family, as they will know what they are entitled to, when and to what extent.

The worst diligence is the one you don’t do, and in the event of a lack of it, the government is in charge of making the distribution. Not an attractive idea at all.

8. Not having the right insurance

How many financial problems would you avoid if you had insurance? For many people, insurance is an unnecessary expense that impoverishes them.

Why not see it as an extension to your emergency fund?

Insurance is a kind of saving that helps and protects you from replacing and covering your most important material assets such as your house, car and even investments, to your life in the event of death or disability.

Insurance that can help you avoid financial problems includes insurance for your – car, home, life in the event of injury or death, and health.

Finally, don’t be “overprotected”. Many times, seeking good coverage ends up paying excessive amounts that are not worthwhile.

7. Marrying the wrong person

What economic problems are related to marriage? The first is to marry someone who wastes his/her money, and the second is to get divorced.

Choosing your partner is a crucial step in building wealth. And when your partner knows and applies the advice of good personal finance, it makes it much easier to reach your goals.

According to the Journal of Sociology, a divorce is a serious blow to any couple’s finances, as people who divorced saw their wealth decrease by 77%.

In short, as Napoleon Hill puts it in his book – Think and Get Rich, choosing your partner influences the level of wealth you achieve.

6. Not saving a portion of your income

To avoid economic problems, and to achieve financial prosperity you must do two things:

The first is to spend much less of the income you generate, and the second is to maintain this habit in the long run. I mean, doing it for a long time.

Why are you getting rich? Because you’re saving and investing this money. One of the keys is to start saving as soon as possible in your life, so that compound interest can improve on your finances.

How much should you save? At least 10% of your total income must be saved and over time increase this percentage.

You can invest this money in property, secure investments, a business you plan to start, or any other project that generates future income.

5. Buying a home that is too expensive

Many people dream of buying their own homes. As Thomas J. Stanley puts it, in his book Stop acting rich and start living like a real millionaire:

“If you’re not rich yet, but you want to become rich, never buy a house that requires a mortgage that’s twice your family’s annual income.”

In other words, never buy a home, with credit that will cause you to postpone the rest of your financial goals.

Many people get into debt beyond their ability to buy the home of their dreams. The problem with this is that you will end up living in debts giving you a nightmare full of financial worries.

4. Waiting for the perfect time to invest your money

Like many things in life, time ends up playing a fundamental role in the world of investments.

What are the determining factors in the return on your investments, or the money you have saved?

First is the amount invested. Second, the rate of return on your investments, that is, the profitability. And finally, the time during which they are invested.

Although the media and “experts” investors try to sell you the idea of getting rich overnight, the real factor that influences the construction of your wealth, and therefore the end of your economic problems, is the timing of your investments.

That’s why the longer you wait to find the right time to invest, the harder it will be to get the results you expect.

And the longer you wait to save and invest, the more you’re costing yourself.

3. Being over-indebted

It has been stated that “over a lifetime, the average American will pay over $600,000 in interest”

There is no other clearer way to show what debt can do to your quality of life and the financial problems it can cause you.

However, remember that there are good debts, those that allow you to generate other income and cover interest.

2. Not working to maximize your career

There are professional careers that will make you a millionaire faster than others.

It is said that the average American can earn two million dollars in his or her lifetime.

Now, if that same person works hard and increases his or her income by 8% per year, he or she could earn more than 3 million more than this figure.

While the figure may not apply to certain countries in Latin America, it does apply to finding ways to increase your income and avoid future economic problems.

So invest in your professional training, never stop learning and surround yourself with people better than you.

If you want to change jobs, never quit without another safe opportunity, and secondly, take care of your physical and mental health, as your ability to earn money depends on both.

1. Finally, spending more than you earn

It’s quite simple, financial problems occur when your spending exceeds your income.

The first step to being a millionaire and having wealth is to stop pretending to be one. Spending less than you earn is vital to financial progress.

Ask yourself what you spend your money on:

On the one hand, they can be small expenses: dining out, restaurants, clothes, cafés and other expenses that get bigger over time.

The other explanation is large expenses, such as an expensive house, cars, travel and poorly advised investments.

Most economic problems are due to how poorly they invest their money, not so much the amount they generate annually.

Simply when there are too many unnecessary expenses, there is no room to save and have financial projections.

India Post Payments Bank (IPPB): Features, Benefits, Services, FAQs

After the super successful, Pradhan Mantri Jan Dhan Yojana whose main objective was to provide one bank to every household in India, government of India is launching India Post Payments Bank (IPPB) targeting again the rural areas with more deeper penetration and range of financial services.

Objective of IPPB – Aapka Bank Aapke Dwaar

Provide banking and financial services especially to the unbanked and underbanked individuals from rural areas.

IPPB is nothing but a payments bank whose main objective is to provide financial services to the underserved individuals such as laborers, low income earning individuals, small and very small businesses and others.

For more details visit: https://www.ippbonline.com/

Features of IPPB

Launch Date: 21st August 2018

Type of Bank: Public Sector

Location: Services will be provided through 1.55 lakh post offices which would be acting as access points

Which employees will provide services: 3.0 lakh postal employees in every district, town and village

Government Share: 100%

Security: Transactions done through IPPB will happen on a secured technology driven environment.

Types of accounts individual can open: Four types of accounts can be opened broadly categorized as:

Savings Account:

  • Regular Account – Safal: Minimum deposit is Rs. 100
  • Basic Savings Bank Deposit Account (BSBDA) – Sugam: There is no minimum balance required.
  • BSBDA Small – Saral: There is no minimum balance required.

Current Account:

  • Current Account

Number of branches to be opened: 650. Two branches are already functioning.

Where are IPPB branches currently in operation: India Post Payments Bank (IPPB) branches are present in Ranchi and Raipur. And another 648 branches would be opened

Number of access points: 3,250. These access points will be located at post offices.

What services can be availed: It would be a digital bank and offer services similar to a normal bank such as:

  • Remittances (money transfer and receiving) within the same bank or other. Funds transfer can be done via IMPS, NEFT, AEPS, UPI and *99#.
  • Doorstep banking
  • Mobile banking
  • Phone banking
  • SMS banking
  • Missed call banking
  • ATM cum debit card
  • Mobile alerts
  • Branch banking

Maximum balance that can be kept: Rs. 1 Lakh in Safal and Sugam account. Rs 50,000 in Saral account.

Is it mandatory to have post office account for IPPB: No.

Other Benefits of India Post Payment Bank:

  • Government will give MGNREGA wages, benefits transfer such as gas and other subsidies, pension to retired government employees, doorstep banking etc.
  • Direct benefits transfer would be Aadhaar based
  • Money transfer would be simple & secure, instant and available 24×7
  • Individuals can use the IPPB app for making utility bill payments (telephone, electricity, etc.), mobile sim recharges.
  • Postal savings account will be linked to IPPB
  • Insurance, mutual fund, credit products, pension and other financial services can be availed through India Post Payments Bank.
  • Nominee can be added
  • 10,000+ doorstep service providers
  • 24×7 multilingual customer support
  • Joint account cannot be opened
  • There is no minimum balance required

How to contact IPPB

You can reach Indian Post Payment Bank through call and E-mail or visiting their branches

Call: 155299 (Existing Ranchi & Raipur Customers)
Call: 18001807980 (All New Customers)
Email: [email protected]

Gross Income Less than Rs.10,000 – Personal Loan from SBI, Canara & others

If you search your E-mail inbox or SMS inbox or think of how many call communications have happened for personal loan then it won’t be surprising that the count would be high. Definitely each one of us must have done numerous such communications either from lender or agencies who work on behalf of such lenders, forcing you to get personal loan at a lower interest rate and guaranteeing you with 100% approvals or pre-approved loan offers.

However what they don’t disclose is the eligibility criteria during the initial interaction. It is after submitting the application, you come to know that personal loan application is rejected.

One of the biggest factor for personal loan approval is the income (gross or net monthly) of the applicant in addition to documentation, employer, city, etc. In addition to this, there is one factor checked by the lender in the background without your consent is the credit score check done through credit rating agencies such as CIBIL, Experian, ICRA and few others which are prominent in India. However amongst all these factors, gross salary (or net salary) is the most important. This is because, repayment capacity of the applicant is judged on the basis of his/her income.

Here’s the table showing the gross or net monthly income required (less than Rs. 15,000 per month) for personal loan by various lenders in India, mainly the banks.

Name of Bank and Perosnal Loan ProductMonthly Income Required
State Bank of India (Xpress Credit)Rs. 5,000
Canara Bank (Consumer Loan)Rs. 6,000
Abhyudaya Co-operativeRs. 8,000 (after EMI payment)
Canara Bank (Canara Budget)Rs. 10,000
Canara Bank (Teachers Loan)Rs. 10,000
State Bank of IndiaRs. 10,000 (rural/semi-urban)
HDFC BankRs. 15,000
ICICI BankRs. 15,000
Axis BankRs. 15,000
Fullertoan loanRs. 15,000
Punjab National BankRs. 15,000
Dena Bank (Suvidha)Rs. 15,000

As you can see, State Bank of India offers personal loan for low income earning individuals with monthly net income of just Rs. 5,000. So gross income requirement in this case should be around Rs. 6,000.

Benefits of Personal Loan

  • Is the best solution for meeting emergency money requirement
  • It is easy and quick to get. Especially for working professionals it becomes easier due to regular monthly income, which lenders check while evaluating credit worthiness.
  • Tenure can be reduced.
  • It can be prepaid but with extra charges, in some cases.
  • Money can be used for any purpose.
  • These are unsecured meaning applicant does not have to keep any collateral with the lender. Although there are ways to get personal loan against securities.

How can low income earners stop themselves from falling into the personal loan trap:

Bank is at the profit: Remember that, personal loan is the most profitable business for the lender. This is because of the high interest rate charged in addition to the other charges. Although it carries highest risk for the lending financial institutions but that risk is balanced through high interest rate. And also banks have rights to recover money from the borrower through various means.

Should be the last option: Personal loan should be the last option for your money requirement because the EMI can hurt your budget badly. Before seeking the loan, try to ask for money from your friends/relatives and in return pay them interest which is small compared to the high rates charged by the banks over the money granted. This way both the parties at the advantage.

Never agree on paying less EMI in return of long tenure: This looks enticing initially but is very costly when you calculate the total money you have to shell out of your pocket at the end of the tenure. It is always recommended to end any credit line in a short time frame. Longer the tenure, higher the money you will end up paying.

Be aware of extra charges which are hidden in the loan documents: In addition to the EMI, there are many other fees charged by the banks. Although these fees are not hidden but are actually never disclosed at the time of application or are not paid attention by the applicant. Such fees further increases the cost of the loan. The charges include – processing fees, late payment, pre-payment, cheque bounce, etc.

Try other alternatives for personal loan: Apart from commercial bank, poor income earner can also approach co-operative banks for personal loan. Interest rate and income eligibility criteria is low compared to large banks. Peer to peer lenders is another solution for the loan.

Finally signing on dotted line means you are caught in the trap: Because after signing, it becomes extremely difficult to go and win the legal battle against big financial institutions. Chances of winning the legal case are actually very low. And in addition, you will have to pay money to the lawyer, etc.

10 Books Recommended by Billionaires – Gates, Buffet, Bezos, Zuckerber, Slim

You’ll be surprised to learn about the kinds of books that have impacted the richest and most popular entrepreneurs of the 21st century – did they help them to be inspired, to understand the world in a different way, or to achieve greater success?

To find out you will have to make your own list from their recommendations. Here’s the list of books recommended by the billionaires.

Bill Gates

First is Bill Gates, co-founder of Microsoft and the richest man in the world, who has repeatedly recommended The Rosie Project, a novel by Graeme Simsion.

If you’re too logical, you’ll identify with this story in which a genetics teacher with Asperger’s Syndrome looks for a partner. According to Gates, the book comically teaches you how to feel comfortable with who you are.

Another book he recommends is titled How Asia Works, written by Joe Studwell, who conducts an analysis of how some Asian countries changed their agricultural economies to become financial and technological powers.

Warren Buffett

In second place is the American investor Warren Buffett, CEO of Berkshire Hathaway and on the list of the most wealthy men. This lover of finance recommends: The Smart Investor.

An investment guide, in which Benjamin Graham explains how to avoid strategy errors when buying shares. A critique of speculators who work with economic trends and a bible to achieve financial goals.

Other famous recommendation, precisely because he sent it to Bill Gates in 1991, is the book: Business Adventures: Twelve Classic Stories from the World of Wall Street.

A compilation by John Brooks, in which he highlights the importance of the human factor when it comes to achieving business success, since beyond a well-founded plan, it requires the right people to carry it out effectively.

Carlos Slim

In third place is Mexican Carlos Slim, on the list of the richest, currently owner and investor of more than 180 companies.

Slim recommends a financial classic: Super Money, by Adam Smith, a book that provides a fairly detailed overview of the nature of markets, their components, institutions and professionals.

His other favorite recommendation is entitled Así hice mi fortuna, (That’s How I Made my Fortune) by Jean Paul Getty, perhaps one of his main references, since it tells the story of this Minnesota businessman who before his death managed to control more than 200 companies.

Jeff Bezos

Fourth on the list is Jeff Bezos, CEO of Amazon, currently on the list of the wealthiest men in the world.

Bezos has mentioned The Black Swan as one of his recommendations. This book by mathematician Nassim Nicholas Taleb deals with the impact of the unpredictable, improbable and unpredictable on finance, science and technology.

Professor Clayton M. Christensen’s The Innovators Dilemma is his another favorite, where he explains the savage technological changes and the way in which companies try to adapt to them, highlighting the phenomenon of abrupt innovation.

Mark Zuckerberg

Last but not least we have Mark Zuckerberg, CEO of Facebook and ranking in the richest billionaires.

Mark has recommended the book countless times: The End of Power, by Venezuelan Moisés Naím, who recounts the changes in power management today and how it has affected large and small businesses.

Another recommendation is: Sapiens: A Brief History of Humankind, in which Yuval Noah Harari exposes the evolution of humanity from disciplines such as biology, anthropology and economics to explain how history has shaped society and its environment.

You know them, great ideas and thoughts can come to you from these recommendations, especially because they are creative and successful minds who have marked their value.

Spend time with those who catch your eye, you are sure to find new material for your projects or perhaps impulses to undertake them in a different way.

18 Ways Millionaires Think and Become Rich

Everyone wants to be successful and want to know how millionaires think and become rich. So why is it that, in most cases, this never ends up happening?

A large percentage of people will argue that there are a lot of external factors that prevent them from learning how to be millionaires. However, reality is that the really determining factor is how millionaires think.

In other words, your mental capacity is responsible for whether or not you achieve your financial goals. In fact, learning how to manage your money has a lot to do with the ideas in your head.

As T.Harv Eker stated in his book “The Secrets of the Millionaire Mind”.

“Money is a result, wealth is a result… we live in a world of causes and effects”

Based on this, if your goal is to become rich and achieve financial freedom, you will need to review the ideas you have in your mind and evaluate how much it looks like the millionaires think.

How millionaires think unlike other people

In his book, How Rich People Think, millionaire Steve Siebold set about interviewing more than 1,200 successful people over the past three decades.

Here are the 18 ideas responsible for making these people so rich. The first thing you’ll discover is that becoming a millionaire is not as much about money as it is about your mentality.

1. For millionaires, goals are worth gold

When they have well-defined life goals, professionals are much more productive than those who improvise every day.

Now, one of the ways millionaires think is reflected in the way they approach their goals. For them, these are not just small goals, but priorities that are worth gold, for which they work every day.

2. The future is more important than the present

This actually is a debatable thought from a subjective perspective, since one could easily argue that “living in the moment” is more important than worrying about the future.

However, when you understand how millionaires think, you are more likely to know how to be successful because you have a forward-looking mentality.

Millionaires are not afraid to make short-term sacrifices if it means long-term gain, and are not tempted by momentary pleasures because the future is their priority.

3. Failure is not a bad thing, it’s one more step

The fear of failure is what has prevented majority of individuals from seeking purpose in life.

For example:

You work in a position that you don’t like but it’s your only source of income, you have the option to quit and start your own business, you’re even considering cheap franchises, but losing stability frightens you and more knowing you can fail so you never really try.

Failure always represents a possibility, and as a society we must stop discrediting it. To understand how millionaires think is to recognize that failure is a necessary step in the process. An opportunity to learn.

It is more important to know how you handle your plans when things go wrong than when they go well.

4. Opportunities are everywhere

Opportunities come when you least expect them. When you understand how millionaires think, and you get ready, you can find them everywhere, anytime or on the day you least expect them, you’ll be more attentive to them.

With this mentality you will discover more opportunities for yourself and end up giving value to every moment of your life.

If you’ve been considering the idea of starting a digital business for a while, here are more than 30 ideas for making money online.

5. Calculating the risks you’re going to take is important

The risks are frightening but without them it is extremely difficult to grow.

Studies suggest that the richest and most successful professionals are those who are not afraid to take a calculated risks.

They go against the current, take risks with an idea that they believe is the best investment and are not afraid to face possible sacrifices.

If you are not taking any risks then you are not on the path to a possible rewarding reward. And of course without these rewards you will never get anywhere.

6. Being consistent is good up to a point

Consistency is a state of mind that is difficult to achieve, but that is really important.

For example, if one of your goals is to accumulate great wealth through investments, you have to invest a certain amount of money each month, otherwise you will lose momentum.

However, there is a point at which being consistent does more harm than good. When it starts to lead you down the wrong path, such as developing a bad habit or unproductive routine.

It’s hard to find the time when these “bad” types of consistencies come up, but you’ll need to keep an eye on them.

7. A millionaire understands that nothing and no one is perfect

Accepting that nothing is perfect helps you in a number of areas, you won’t be as worried about taking risks as before and you won’t hesitate so much to start a new project.

You won’t be so discouraged when something goes wrong. Or when you overlook an imperfection, you won’t find yourself looking for the “perfect” time to launch a product and you won’t abandon your goals just because you didn’t accomplish them as you originally expected.

8. What millionaires think of happiness

Most people think that the rich are dishonest, and most of all, they have a lot of luck. And while the rich know that money cannot buy you happiness, it does make your life more pleasant and easier.

9. Selfishness

Rich people go out and try to be happy on their own. They do not pretend to show themselves as saviors of the world. They know that you cannot offer welfare if you do not have it.

If you want to be a millionaire and successful you must offer a unique value to the society where you are. It’s not about being selfish. But to offer something that is different, you must first work on yourself, on your skills and define how you plan to differentiate yourself.

To help others, you must first work on how to be a better person.

10. Millionaires have a vision

People who think their best days are over will never be rich and will usually have to “fight hard” and deal with depression.

Those who have built wealth got there because they were willing to believe in themselves and to project their dreams, goals and ideas into the future.

11. Millionaire ideas about work

Most people think rich people work all the time. However, one of the strategies for learning how to be smarter, which the rich have used, is to discover their passion and find a way to get paid for it.

12. What the rich think about investing the money

Rich people know that not having the financial solvency to afford something is not relevant. The important question is, whether it is worth buying, investing or following?

Many think that the reason why they do not reach their financial goals is due to their inability to raise money to invest.

The reality is that, if you have a good idea, persistence and convincing capacity, capital becomes secondary. Remember that the money you have is simply a reflection of the thoughts you have in your mind.

13. The kind of friendships of the rich

The rich have decided not to waste their time with people who do not add value to their lives. The middle class even use this pretext to judge their wealth, and decide to become part of mediocrity instead of improving.

So choose the type of friends that surround you very well, as they can raise or lower you to their level. Never forget that you are the average of the five people you spend most of your time with.

14. The opportunities

People are so busy collecting discount coupons that they have missed out on great opportunities. Even in times of crisis, the rich do not waste time on “promotions”, they are focused on where the “huge money” is.

15. An idea regarding expectations

Pay no attention to the one who tells you that life must be difficult, a constant struggle where you must be content with what you have, and be thankful for it.

Now, don’t let expectations get you excited about people, situations or opportunities. Usually, life’s great disappointments don’t come from others, they come from the ideas you get from them. So focus on the present.

16. Everyday is a new learning opportunity

Enter the home of a millionaire person, one of the first things you’ll encounter is an extensive library, full of books, that they’ve used to educate themselves and be more successful. The middle class prefers their magazines, novels and celebrity magazines.

17. The importance

Wealthy people know that the primary emotions that drive financial markets are fear and greed. This is the reason why they include these factors when making a decision. This is known as emotional intelligence.

The knowledge of human nature and its impact on their decisions gives them an advantage when developing investment strategies.

18. The engagement

Most of the people believe that everything in life is a choice and that you have to choose between one of the options you have. The rich think differently and instead believe that they can have anything they want, as long as they move towards their goal strategically with dedication, hard work and love.

In conclusion, while it’s not easy to apply the way millionaires think about your life, you can start with just one of these ideas.

It’s likely to be difficult for you to accept these ideas. But you can accept the one that you like and slowly integrate them into your life. You’ll begin to make better decisions and form habits that will someday lead you to the success you’ve always dreamed of.

Be patient and never stop moving forward.

Credit Card: Benefits, Pros & Cons

Credit card also known as plastic money, is a card that allows us to make payments almost everywhere without the need of having cash. It is issued by banks or financial institutions and can be characterized as a means of payment.

We use the credit card for shopping, hotel/airline tickets purchase, restaurant visits and many utilities. But most of all, it’s easy to shop on the internet.

Borrowing Money:

Its biggest difference against the simple bank card is that the card user gets to borrow money immediately instead of withdrawing it from our bank account. What does that mean?

We can use money we don’t have. As the name says, we take a loan from the bank. This credit is later repaid in two ways as follows:

  1. You can pay the full amount at the end of the month. Thus, no interest is applied. You only pay for the money you borrow.
  2. You repay the loan amount in small monthly installments. In this case the banks charge an interest rate.

How do we benefit?

Credit cards are a widely accepted and very useful means of payment, especially abroad. Ordinary credit cards are accepted in limited countries. On the other hand, credit cards are almost everywhere accepted and then very convenient during your travels in America, Europe, or Asia.

In addition, you benefit from several insurances against the damage of your purchases or unforeseen accidents during your travel.

What are the strengths and weaknesses of a credit card?

If you’re wondering what a credit card is for and there are hidden traps, the following list will answer your questions.

The positive sides:

– A credit card offers more convenient payment over cash. You only bring a card which can be used to pay everywhere. Without worrying about withdrawing a sufficient amount and without fear of having to circulate with a large sum. Credit cards are accepted worldwide and in most of the countries.

– Easier and safer online payments. Credit cards are insured against fraud, or non-delivery of your purchases. In case of accident you cancel the payment and everything is paid by your card issuer.

– In case of an urgent purchase, credit cards will give you the money to pay without having it in your bank account. You can then repay once the statement arrives.

– If you pay off your credit card bill at the end of each month in full and stay within the credit limit, there is no interest to pay.

– You benefit from the additional services that you do not find with conventional cards. Insurance and assistance are linked to most credit cards. You are also part of a loyalty programme from which you earn discounts, air miles and other exclusive offers depending on the card chosen.

Points to watch out for:

– Be careful with your expenses. Sometimes if you borrow a lot of money, it is expensive to pay it back. In this case it is better to try a personal loan, with a more favorable interest rate than credit cards.

– Credit cards often charge an annual fee for their use. If you don’t use your card frequently, maybe a regular credit card is enough for you.

– Cash withdrawals are not recommended with your credit card. Additional charges are applied. In this case, prefer to use your credit card.

– In any case, there is still the risk of theft. Be careful, keep your PIN code secret and call your provider’s stop number immediately in case of loss.

In short, credit cards are very profitable and useful in everyday life, if you follow a rule: you only use money that you can repay. There is also a reason, that we are restricted by the limit of the card.

9 SECRETS Credit Card Issuers Never Want You to Know

Credit card company’s main job is to play with weaknesses of the people. Whether it is a line of credit, rewards points that we think are convenient, or grace period.

That’s why we’ve put together the 9 secrets that credit card companies certainly don’t want you to know in order to earn more profit.

Frankly, if we all used them, there would no longer be a credit card industry. Because the profits made by banks will reduce to half than they make today.

So start using following strategies today to beat the banks and put the odds on your side!

1. Use Automatic Debit

Banks hate customers who pay their credit cards bill every month, in full, to the point where they call them “free riders” or “profiteers”. And you should be one of them.

One way to stay ahead of banks is to set up a auto debit, which allows you to automatically pay your credit card bill each month from your bank account. You have the choice of paying the minimum payment, the full balance or a fixed amount.

If you pay your credit card bill in full, each month, you’ll never pay interest and have any more debts! It is the safest way to own a credit card and the ultimate way to beat the banks.

2. Negotiate your interest rate

Believe it or not, credit card issuers are so afraid of default that they are willing to reduce your interest rate if you have a balance. Card issuers regularly cut interest rates by 50%, from 19.99% to 11% or less! Just call them, explain your situation and make your request – go ahead, you might be surprised by receiving a gift in the form of lower interest rate.

3. The bank is responsible for all charges of fraud

If there is ever an unauthorized charge on your credit card, your credit card issuer is 100% responsible for the charge – not you. Just call your card issuer, identify the unauthorized charge, and it becomes their responsibility to deal with the merchant and investigate the fraud.

That’s why credit cards are great to use online, or when you travel. Even if your card has been stolen, hacked or used by any person, that’s the card issuer’s problem, not yours.

Make sure you do not write your PIN on your credit card, otherwise your bank will have the right not to cover you for the fraud.

4. Apply for a maximum on your credit limit

It’s weird how banks give you a credit limit, but allow you to increase it, and then charge you a penalty fee of $25 or $30. That is a good example of misleading.

To avoid this situation, call your credit card issuer and ask for a “maximum” on your credit limit. This will stop you on your credit limit (a real limit), so you can avoid unnecessary penalties and will also be forced to stick to your budget!

5. Reduce your credit limit

We all love the flexibility of a large credit limit. But the truth is that people get into trouble/in a difficult position because they exceed their limit, which is usually more money than they can afford to pay back in one or more months.

Don’t be afraid to call your bank and reduce your limit, so it stays in your monthly budget. Of course, make sure you keep a limit sufficient to be able to pay for things like airline tickets for example. But other than that, reduce your limit until you’re comfortable.

6. Transfer your balances at 0%

Banks hate when customers “surf on rates”. If you need to keep a credit card balance, it is more advantageous to transfer your balance to a 0% balance transfer credit card.

All you have to do is request the balance transfer card, provide the bank name, credit card number and the amount of balance you want to transfer in your application and the bank does the rest!

When your promotional rate expires after 6, 10, or 12 months, find another card, and repeat! While banks can charge from 1 to 3% of transfer fees, this remains much better than the high interest rate (11.99% to 29.99%) that most people pay. You could literally save thousands of dollars.

7. Shuffle your credit cards

Banks are aggressively seeking new customers. So much so that, many offer free flights, free hotel nights, and cash back to attract new customers.

The truth is that it is more advantageous to take benefits of the promotion, whether it is for welcome bonus points or 5% cash back in the first 6 months. Then once the promotion is over, move on to the next promotion. You can usually request a new card every 90 days without any problem, this essential means 4 cards per year.

8. Get your annual fee waived

Some of the best credit cards available have annual fees. But did you know that many banks will waive annual fees for their best customers? If you’re not a big spender, you may find this difficult, but if you spend enough, credit card companies will do almost anything to keep doing business with you.

Call your credit card company and ask what they can do for you. At worst, they may will deny any such offers. But remember that you miss 100% of the chances you never take!

9. Don’t keep a balance to improve your credit rating

There is a misconception that to build a credit history, you must maintain a credit card balance and remain in debt. This is absolutely false.

You can easily get an 850 credit score by paying off your monthly credit card balance and you can maintain a small balance. The only difference is that the first choice is much cheaper. Banks have long let this myth grow because it is extremely profitable for them. But don’t be fooled – you are always better off paying your balance sooner than later.

In summary, credit card companies have made debt very easy for cardholders. That said, there are many tools to help you beat the temptations and pitfalls set by banks. Unlike casinos, there really are ways to beat banks, so use them when you can!