Finance Bulls Club

Insurance Policy

How to choose a Two Wheeler Insurance Policy?

There is room for some hesitation while making a decision when there is an option to pick from. Options have their share of benefits and drawbacks. A basic examination, whether conscious or subconscious, must be done before choosing a course of action. A decision that requires consideration is which motorcycle insurance to choose.

Learn how to select the best two-wheeler insurance in the following paragraphs. 

The main goal of insurance is to reduce monetary losses in the event of unlucky circumstances that are covered by the policy. As a result, the coverage component of your two-wheeler insurance is given top emphasis.

You must first determine the type of coverage you require. Because of its coverage, a Comprehensive type of policy is regarded as the best two-wheeler insurance policy. It includes Own Damage as well as the required Third-party Liability Insurance.

Additionally, you can choose the right Add-ons to reinforce your policy. 

Cost of Motorcycle Insurance

When you are certain of the type of coverage you require, you can look for insurance companies that charge less for that policy. Policies are offered by various insurance companies at various prices. The Insurance Regulatory and Development Authority of India (IRDAI) sets rates for two-wheeler third-party insurance; nevertheless, the premium for comprehensive insurance coverage varies.

You can find out which insurance company offers what kind of coverage by doing some research. There are also web aggregators that gather this information and show you the policy with the lowest cost. It is crucial to confirm the coverage provided by the insurance with the cheapest price while interacting with such websites. As it goes against the main purpose of insurance, coverage shouldn’t be rewarded based on cost.

Insurance Policy

Provider of Two-Wheel Insurance

It’s time to choose the insurance company now that you are certain of your coverage and have a budget in mind. Major insurance companies have a website. You can easily get a two-wheeler insurance policy by going to their website. It is as easy as going to an online store and making a purchase there. The pre-and post-purchase support provided should be the basis for determining an insurance provider’s viability. The user experience is seamless with top insurers. The user interface is simple to use and understand. As a result, users generally have a comfortable experience. The website has a tonne of material in the form of blog posts, infographics, etc. Prior to paying for the selected policy, you must be aware of what is and is not covered.

The top two-wheeler insurance companies put a lot of emphasis on after-sale support. Insurance doesn’t work like a thing you can buy at the store and start using right away. The insured are protected from suffering significant losses by this financial product. This is carried out as soon as the insured person’s claim is approved. The mechanism used by an insurer to settle claims is therefore crucial. Transparency, ease of use, and hassle-freeness are required for that procedure.

You can look at an insurer’s Two Wheeler Claim Settlement Ratio to see if the claim settlement procedure is stress-free. Usually, the website makes a notice of it. In addition, reading user reviews is another smart move. It can be beneficial to consult with friends and family members who have insured themselves via that company. The insurer’s social media accounts might also provide insight into its brand personality.

Insurance Policy

Purchase and Renewal of Two-Wheel Insurance

Within minutes after making the payment, your insurance policy paperwork is delivered to the inbox of the email address you provided. In order to guarantee that you never run out of insurance coverage, make sure to renew your policy on a regular basis.

Things to keep in mind Before Booking Two Wheeler Insurance Policy

It is simpler to maneuver through traffic when riding a two-wheeler, but these vehicles also carry a significant danger of deadly accidents and other serious injuries. Before purchasing a bike, you consider a number of factors. its style, mpg, CC, color, engine, and so forth. You must therefore consider a number of factors before purchasing a two-wheeler insurance policy. The list of a few is below:

  • Reliability: It is crucial to assess the two-wheeler insurance’s dependability. It would help if you investigated the insurance company’s standing in the marketplace from the standpoint of the customer. To locate the most recent testimonials regarding the business, speak to others who have insurance or visit the internet. Please find out how they handle claims and how simple or challenging it is to renew your coverage.
  • Look for grievances: Make careful to look up the insurance company’s complaint ratio. This will offer you a general sense of the insurer’s coverage. This will also offer you a general idea of the business’s services. You’ll be able to make a wise decision as a result.
  • Examine the rules: Examine the policies and coverage that the insurance is providing in detail. The features, advantages, and exclusions of various bike insurance plans should be compared. To choose wisely, compare it to different insurance providers.
  • Premium: When comparing the features and benefits of an insurance policy, don’t forget to take the insurer’s premium rates into consideration. Despite the fact that some businesses provide comparable benefits, inclusions, and exclusions, their rates may vary. Check that out. You can easily figure out your quotes with a two-wheeler insurance premium calculator.
  • Discounts: In general, the majority of motorbike insurance policies provide discounts and bonuses on their policies. Identify any discounts that you could be qualified for. Your search might result in the best insurance policy at the lowest cost.
  • Add-on insurance: Look for add-on insurance that you may purchase for extra security, such as 24 hour spot help, zero depreciation insurance, and personal accidental insurance for the pillion rider. By increasing your monthly fee, you can add them.

If you’re looking for a two-wheeler insurance plan, go by all of these recommendations and conduct independent research.

CIBIL Score vs. Credit Score.

CIBIL Score vs. Credit Score. What is the difference?

The first thing any bank or financial institution will ask if you go for a loan or credit card is your credit score or CIBIL Score. For many of us, these two words mean the same, however, this isn’t the case my friends. CIBIL Score is a credit score itself, I know it might be confusing but let us understand the difference between the two together step by step.

Credit Score

A credit score is a 3-digit number that defines your worthiness for getting credit. It ranges from 300 to 900 where any score above 750 is considered a good score.

The numbers start adding the second you take a loan or credit card. They are calculated by taking into consideration your borrowing history, your account, total debt that you owe, your repayment history and the enquires you make like applying for a loan or credit card.

Your credit score helps you get a loan easily and immediately but also helps in deciding your interest rates.

Doesn’t a Credit score sound just like CIBIL score? Have patience, we’re getting to that slowly.

Credit Bureaus

A credit bureau is an agency that provides you with your credit score and report. It complies with the information it needs to generate a score primarily from the government and lenders.

It is the credit bureau’s responsibility to collect and distribute information about your creditworthiness and generate a score.

Major Credit Bureaus

There are 4 major credit bureaus in India that provide you with a credit score and report. These are as follows:

  1. TransUnion CIBIL: It is the most used and popular credit bureau in India. It came into existence in 2000 and has been linked with many NBFCs and several banks, offering a comprehensive report to help people meet their financial needs and get loans.
  2. Equifax: It is one of the 4 major bureaus that started in 2006 and till 2010 it was fully functional with an operational license.
  3. Experian: This is a multinational credit reporting company established in 1996 however, started operating in 2010.
  4. CRIF High Mark: It is RBI approved credit provider in India, which was founded in 2005.

How is CIBIL Score different from the Credit Score?

Now that we have understood what credit score is and what the 4 major credit providing bureaus are, it will be very easy to understand the slight difference that exists between CIBIL Score and Credit Score which in fact makes a huge difference.

Do you know the full form of CIBIL?

Maybe you do or maybe you don’t. let me just tell it for a better understanding of everyone.

Credit Information Bureau (India) Limited is what CIBIL stands for.

Can you see Credit being a part of the full form of CIBIL, I can too! Seeing this you might be wondering that the CIBIL is also a Credit provider so, what’s the difference.

Yes, TransUnion CIBIL is no doubt a credit score and report provider however, it has created a brand of itself. Just like every product by Apple has a definite identity that connects it with the company (iPhone6, iPhone7 or Apple earphones, Apple chargers etc) Similarly, any service that CIBIL provides has a name that connects it to the company.

CIBIL Score is a credit score but just because CIBIL is so popular and amongst the top 4 Credit Bureaus, it is often considered a separate entity.

So, to put it straight CIBIL Score is also a Credit score but for a credit score to be considered a CIBIL score then it must be checked from TransUnion CIBIL.

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Why do people often get confused between CIBIL Score and Credit Score?

Almost every bank and financial institution prefer checking Credit score from CIBIL which is the major reason why people get confused between CIBIL score and credit score.

Why do banks and financial institutions prefer CIBIL over anything else?

They prefer CIBIL over any other credit providing bureau because of its popularity, reliability, and trustworthiness.

Can the CIBIL Score differ from the Credit Score? If yes, then why?

Yes, it is very much possible that your CIBIL score might be different from your Credit Score. It is because CIBIL uses slightly different criteria to check, judge our credit history and generate scores than other Credit providing bureaus.

Why did Elon Musk buy Twitter

Why did Elon Musk buy Twitter? Reasons Explained in 5 minutes!

Elon Musk in an interview expressed how he believed that Twitter has become more like a de facto town square and how he is not buying Twitter as a financial investment but as a social service for the public good.

Before we dive deeper into why Elon Musk Bought Twitter, let us know more about the trillionaire businessman and Twitter.

What is Twitter?

Founded in March 2006, Twitter is an American social networking and microblogging site where users can interact with the public via tweets.

On Twitter, registered users can post, like and retweet while unregistered users can only read tweets that are publicly available for all.

Twitter is currently a piece of trending news due to it being brought by Elon Musk.

Who is Elon Musk?

Elon Musk, born in 1971, is an investor, entrepreneur, and a business magnate with a net worth of around 26,500 Crore USD.Elon-Musk

Elon is now owning Twitter. With around 84 million followers and no strategy on how to handle his accounts, he says his tweets are just a reflection of a stream of consciousness.

But how did he end up buying Twitter, let us see how?

Let us see how this started: Buying Twitter

After buying 9% of Twitter’s shares for around 2.65 billion dollars he tweeted about it which subsequently helped twitter as they experienced the largest intraday surge of around 27% since 2013.

Being offered a seat on Twitter’s board of directors would have made any one of us happy but Elon wasn’t satisfied. He had some plans in mind for Twitter and with a prohibition on how much per cent of the company’s share he could buy, he knew it wasn’t the right thing to do.

Thus, before his appointment on a board of directors became effective i.e., on April 9, he declined the offer.

Then on the 14th of April, he made an unsolicited offer to buy Twitter for 43 billion dollars. He wanted to take the company private and a safe space for people to express and put into use their freedom of speech.

To block Elon’s takeover of the company, Twitter introduced a Poison Pill strategy the next day. However, on the 20th of April, he made a tender offer to buy Twitter at around 46 billion dollars.

This was accepted by Twitter just a few days after on the 25th of April.

Why did Elon buy Twitter if not for money?

Twitter has extraordinary potential said Elon in a letter to Brett Taylor the board of directors of Twitter. I will unlock it he added.

An interview with Elon shared how he wasn’t buying Twitter for money i.e., as a financial investment. If not this, then why did he buy Twitter? Let us see why?

He believes that Twitter wasn’t protecting the principle of free speech of its users thus, he even conducted a poll on Twitter asking his fans, follower, and the public if they believed that Twitter was protecting the freedom of speech and around 70% of 2 million people votes no.

He wants to increase the trust of the public on the platform by making it an inclusive place with true freedom of speech.

However, there could be some hidden reasons.

Elon Musk is best at marketing on Twitter. He has 84M followers and he uses it every now and then to market its products on the platform.

He did not want to lose the influence he has on the platform.

By acquiring Twitter, he has now booked free advertisement for SpaceX, Tesla, Dogecoin, Bitcoin and anything he invests in.

What was the reaction once the news of Elon buying Twitter came out?

The second the news hit Twitter, there was seen a mixed reaction to it.

Some people like Elon’s fans, followers and a portion of the public showed huge excitement and hypes the news, while many others were concerned by the idea of the richest man in the world owning twitter and is planning to add it to his company’s many assets.

What plans does Elon have for Twitter now?

Elon Musk shared a few of many plans and rough ideas that he has stored for Twitter which he plans to execute now that he has bought Twitter.

Some of them are as follows,

  1. Edit button: – Elon is planning to add a time-sensitive edit button for all the tweets. For now, you can only delete the tweet if you feel you have made an error even if it is like a small spelling or grammatical mistake in a 100 words tweet. It is said that this was already in process, but Elon has made it official.
  2. Making things transparent: – Elon is planning to make the content moderation practice more transparent i.e., users will have full knowledge of whether their tweets are being promoted or de-emphasized.
  3. Remove bans: – Elon himself being a very prominent user of Twitter and a critic, thus, holds a huge power at changing the market with just a single tweet. Fearing a ban himself, it is said that Elon is planning to remove the practice of ban and only suspend an account for a limited amount of time.
  4. Making coding structure transparent: – Elon expressed how he plans to post twitter’s open-source data on Github so that people can access the company’s data, analyze it and put forward their suggestions if they have any.

Elon Musk buying Twitter: FAQ

Q1. How many shares could Elon buy if he joined Twitter as a board of directors?

Ans: As part of the deal, he could only buy 14.9% if he has accepted the offer.

Q2. Why wasn’t the 14.9% share enough for Elon Musk?

Ans: Elon had some plans in his mind for Twitter, but he could not bring them to action if he had become the board of directors as for what he had in his need he needed at least 15% of Twitter’s shares to execute.

Q3. What is the poison pill strategy?

Ans: poison pill was a strategy Twitter came up with to block Elon’s takeover of the company. In this strategy, shareholders were allowed to buy additional stocks if a hostile takeover occurred.

Q4. How much was Twitter sold for?

Ans: Twitter was sold for around 46 billion dollars to Elon Musk.

Q5. Who was the owner of Twitter before Elon Musk?

Ans: The Vanguard Group previously owned Twitter before Elon Musk.

Q6. When did Elon Musk buy Twitter?

Ans: On April 25th Twitter accepted Elon Musk offer thus, it can be said that Elon bought Twitter on the 25th of April. However, the company is yet to be gone private. The exact date is still unknown but it should be soon.

How to increase your CIBIL Score?

How to increase your CIBIL Score?

CIBIL Score is a three-digit number that summarizes all your credit history. It ranges from 300 to 900 where any score above 750 is considered a good score. 

Having a good score helps you get a loan faster and easier with an interest rate that suits your pocket.

Increasing your CIBIL Score is much easier than it seems to be, but the plans may differ according to your credit history. 

According to the credit history, there are two types of people:

  1. People who do not have a credit history 
  2. People who do have a credit history 

You may want to check these as well: – What is the CIBIL score and How is it calculated? and How to check CIBIL Score for free?

Increasing CIBIL Score when you do not have a credit history

A person with no credit history will be shown an NH on his/her CIBIL Score if they decide to check. Now it is very easy to get a kick start to your credit life, here are a few tips that help you increase your CIBIL Score in no time.

1) Take a secured Credit Card: – There are two types of credit cards, secured and unsecured ones. Now secured credit cards do not allow any income proof moreover, they don’t even check for your CIBIL Score, all you need is a deposit. 

Many banks provide you with a secured credit card against an FD that you make with them. 

 2)Loan Applications: – Many different applications provide small loans without checking for your CIBIL Score or any income proof. Now if you pay these loans fully, you will see a healthy and instant increase in your CIBIL Score. 

Understand that even though these things do not check for your CIBIL Score, they do impact it. So, repayment of your secured credit cards or these small loans should be done full and on time. 

How to Increase Your CIBIL Score when have a Credit History?

Increasing your CIBIL Score when you do have a credit history is more about improving or maintaining your score. Now many things can be done for that but before we get into that, let us understand why our score drops?

Why does CIBIL Score drop?

There are a few factors upon which your CIBIL Score depends, these are as follows: 

  1. Past Performance; it has over 30% weightage over your CIBIL Score,
  2. Credit Mix and Duration has 25%,
  3. Leverage has 25%,
  4. And other Factors have around 20%.

Now there are a few things related to these factors that impact your CIBIL Score, these are

Default in loan repayment

If you are unable to repay your loan due to any reason, such as financial hardship or have missed a credit card payment or have been a victim of fraud etc, then your CIBIL Score drops rapidly within a few months.

For example, if your score was around 800 and you missed a credit card payment then within just a month or two your CIBIL Score can drop down to 650 or even more if the amount you missed is huge.

The high amount of unsecured debts

If you take a lot of unsecured debts like way too many credit cards or personal loans then you are getting yourself in big trouble. 

These debts are not backed by the back and thus have no security, if you miss any payment or just by having too many unsecured debts cause a dip in your score.

Leverage

It is the percentage of credit limit that you use. Using too much of your credit limit in a short amount of time can cause a drop in your score.

 For example, if your credit limit is 70 lakhs and you use around 60-65 of it in just 2 months then the score will drop immediately.

Duration

If you apply for way too many loans or do a lot of enquires in a short period then it is considered a hard inquiry and thus causes a drop in your CIBIL Score.

Joint accounts or add on credit or being a guarantor

If you have a joint account or have an add the credit card or are a guarantor to someone or your company then your score gets affected even when you are not the one defaulting it. 

Inaccurate information on Credit reports

There have been instances where people find inaccurate information on their CIBIL or Credit report. 

 This can happen because of a few reasons such as incorrect open account, partial or full repayment of loan which isn’t getting reflected on the bank or settled loan which isn’t updated. 

Now that we know why we see a drop in our CIBIL Score, let me give you some tips that have best worked for me and the people around me.

Tips to increase (improve or maintain) your CIBIL Score

Increasing CIBIL Score

A) Pay for your loans/credit cards on time: You must understand many times we are shown the option of paying a minimum amount, and we happily do that however, this affects our score very badly. 

So, make sure that you pay all for loan or credit card dues on time and if you tend to forget then opt for an automatic payment mode.

Moreover, if you are facing some financial situation or problem then once it gets resolved, pay off all your due.

 B) Credit Mix and Duration: Limit your expenses of unsecured credit to less than 20% of your total credit limit. 

To understand how we can calculate a rough credit limit then, let us imagine your monthly salary is around 50,000 rupees then your monthly credit limit will be 25,000 rupees and then if you multiply it by 100, you get your total credit limit to 25 lakhs. 

This would mean that your monthly credit spending for unsecured credit should be below 5000 or at least around 6000 to 7000. 

Moreover, make sure that you don’t take too many loans in a short time. 

 C) Don’t show credit hungry behaviour: Showing a credit hungry behavior would mean spending way too much of your credit limit. Limit your credit card spending to less than 30% of your credit limit or monthly salary.

Moreover, limit your EMIs to less than 40% of your monthly salary. 

 D) Manage your credit cards well: Don’t take too many credit cards, and make sure that you pay the dues in full and on time. 

In case of some financial issue, make sure that you at least pay for the minimum due amount because if you don’t, the missed payment will be counted as a default. 

Remember to never close your old credit cards even if you are not using them anymore or if it has no new or better benefits, as a good repayment history is always a plus point in your CIBIL Score. 

E) Alternative loans or credit cards: Many people don’t know but applying for alternate loans or credit cards helps you rebuild your credit history when it is down too low. 

Take a loan or credit card against security like LIC policy, FD, golf, mutual funds etc, as when you provide security, it eliminates the need to check the score. 

Remember that even if they do not check your CIBIL Score but it is based upon it. 

F) Monitor loan accounts: Keep a check of your accounts, especially if they are linked to a joint loan or if you are a guarantor of a loan someone or a company took.

G) Avoid using BUY NOW PAY LATER (BNPL) apps or facilities: These BUY NOW PAY LATER applications or facilities are a trend these days, but these show us as your loans for every purchase that you make, thus it affects your score very badly. 

Only use it if necessary and then also make sure that you pay all of it before the due date. 

H) Keep a check on your CIBIL Score: Checking your CIBIL Score at least once a month is important because there can be inaccuracies that you might find in your credit report which are affecting your score.

If you find any inaccuracies in your credit report, let the CIBIL know. File a report or complaint in the CIBIL consumer dispute resolution. 

Note: Even if you report or file a complaint, CIBIL will only take action to correct your score if your bank approves of that mistake.

How to check CIBIL for free

How to check your CIBIL Score for Free?

CIBIL Score is a 3-digit number that summarizes all your credit history to keep a record and check if you are capable of a loan or not.

Now the official site is used to provide a free CIBIL Score calculation with free things that were only made available if you upgrade your id. However, with time the CIBIL has now changed and has made 3 plans or subscription features to choose from to get your CIBIL Score checked. 

Yes, CIBIL does still provide you with a one-time free check of your CIBIL Score, but is one time enough? If you are planning to maintain a good CIBIL Score you need to keep a timely track of your CIBIL Score and if you want to do that with CIBIL, you will have to choose from their three plans which are as follows.

  1. BASIC: – 1-month plan for Rupees 550. 
  2. STANDARD: – 6-month plan for Rupees 800.
  3. PREMIUM: – 12-month plan for Rupees 1200.

CIBIL Score subscription packages

You may also want to check What is the CIBIL score and how is it calculated? and How to increase your CIBIL Score?

Sites/Apps that check your CIBIL Score for free?

why go for these plans when you can get a lifetime free facility to check CIBIL Score from many other different sites?

Here is a list of sites that let you check CIBIL Score for free. 

  1. Amazon Pay,
  2. Bajaj FinServ, 
  3. Paisabazaar,
  4. BankBazaar,
  5. Paytm, 
  6. HDFC Bank, etc. 

The steps of checking the CIBIL Score if quite similar, however, let us go through them once together. 

How to check your CIBIL Score via Amazon Pay?

CIBIL Score check with Amazon pay

It is an online payment method owned by Amazon. It was launched in 2007, giving amazon users an option to pay with amazon pay not just on amazon but to external merchants as well.

Here are the steps to check your score on Amazon pay:

Step 1. Download Amazon app

Step 2. Create an account (if you already have one, log in)

Step 3. Go to the Amazon pay section on Amazon.

Step 4. Scroll down and look for the option of account.

Step 5. Click on the account.

Step 6. You’ll see a free credit score option on the screen, click on that.

Step 7. Enter your PAN number. 

Step 8. Click on verify and continue.

After verification of your PAN, you will get your CIBIL Score which is just as accurate as if you get it from the official site of CIBIL. 

If you want to see an in-depth analysis of your CIBIL Score, click on the full report at the end of the page, which will take you to the official site of CIBIL where you can see your CIBIL report. 

How to check CIBIL Score through Bajaj FinServ in less than 2 minutes?

Checking CIBIL Score through Bajaj FinServ

It is an Indian non-banking financial services company that focuses on providing facilities like lending, managing asset, managing wealth and insurance. 

Bajaj FinServ lets you check your CIBIL Score in just 2 minutes in a few simple steps and shows you the loan offers that you are eligible for. 

Here are the steps to check CIBIL Score on Bajaj FinServ.

Step 1. Go to Goggle and type in Checking CIBIL Score for free.

Step 2. Click on the Bajaj FinServ site and click on GET YOUR CIBIL SCORE.

Step 3. Enter your details and make sure they match your ID proofs.

Step 4. Verify your identity and confirm the OTP that comes to your mobile number or email address. 

Once you have verified your Identity, you can check your CIBIL report. 

Bajaj FinServ also provides you with customized loan plans you which are compatible with your CIBIL Score. 

How to check CIBIL Score via Paisabazaar for free?

Checking CIBIL Score via Paisabazaar. 

India’s largest online marketplace provides you with financial products.

Paisabazaar provides you with a lifelong free facility to check your score. 

The steps to check your score are as follow,

Step 1. Go to Google

Step 2. Click on Check Free CIBIL Score, which comes as an option below the official site of paisabazaar on the google search page.

Step 3. Fill in your personal details

Step 4. Verify your phone number which is linked or registered with any of your credit cards or loan.

Step 5. Click on get free credit report.

Once you click on it, you get your full CIBIL score along with a credit report. 

They also provide updates on your CIBIL score and report on your WhatsApp. 

How to check CIBIL Score with BankBazaar?

Checking CIBIL Score via BankBazaar. 

It is a neutral marketplace for customers and banks, where it passes creditworthy customers to the banks and lets the customer compare and choose from offers of different banks. 

Moreover, it lets your check your eligibility, apply for your loan and get approval in no time that too at the comfort of your home. 

BankBazaar is a sister arm of Paisabazaar. 

Let us see how to check our CIBIL Score on BankBazaar. 

Step 1. Go to the official site of BankBazaar.

Step 2. Click on the free credit score option.

Step 3. Fill in your first and last name.

Step 4. Enter your mobile and email address, which then gets verified with an OTP on your phone number.

Step 5. Enter your DOB

Step 6. Enter your PIN code.

Step 7. Lastly, enter your PAN card number.

Once your PAN gets verified, you get your CIBIL Score/Credit Score.

How to check CIBIL Score via Paytm app?

Checking CIBIL Score via Paytm

Paytm is a multinational finance technology company that specializes in digital payments, financial services and e-commerce. 

Here is how you can get your CIBIL score in just few steps via, Paytm,

Step 1. Go to the play store and download the Paytm app.

Step 2. Create an account on Paytm and log in.

Step 3. Link your PAN card to your account.

Step 4. Score down to loans & credit cards.

Step5. Click on Free Credit Score.

Once you click on it, you get your credit report which is verified by the CIBIL as well. 

How to check your CIBIL Score with HDFC Bank?

Checking CIBIL Score with HDFC Bank

HDFC Bank is a banking and financial service provider company. It is amongst India’s largest private sector banks.

Let’s see how to check your CIBIL Score through a bank. 

Step 1. Go to Google 

Step 2. Search for HDFC Bank CIBIL Score 

Step 3. Click on the Free CIBIL Score, Credit Score.

Step 4. Scroll down to the end of the page, and click on the Free CIBIL score simulator

Step 5. Create an account with HDFC Bank.

Step 6. Enter your details as per your bank records

Step 7. Click on continue,

Step 8. Go to member login and login into your account.

Once you log in, you get your CIBIL Score, along with some personalized offers from the bank. 

Conclusion 

It is to be understood that apart from these sites/apps there are many other sites as well which can be used to check your CIBIL score for free; these are just a few popular ones. 

Remember that these sites, do stay in touch with you via emails and WhatsApp if you tick the check box where they ask for your permission.

It is to be noted that checking your CIBIL score, does not affect it as it is just a soft enquiry. Moreover, it is always safe if you are going through a trusted site. 

Make sure that you go through all the terms and conditions properly before filling in your details. 

How to calculate CIBIL Score and how to calculate it?

What is the CIBIL score and How is it calculated?

CIBIL Score is a 3-digit number that summarizes all your credit history to keep a record and check if you are capable of a loan or not.

It is the one thing that all the banks or financial institutions will require to approve your loan.

Let us see in detail what CIBIL is and why is it important in 2022.

CIBIL: Everything you need to Know

Who maintains CIBIL?

TransUnion CIBIL is what maintains the credit record of around 600 million people and for probably 35 million businesses in India.

Full form of CIBIL

CIBIL stands for – Credit Information Bureau India Limited.

What is CIBIL?

A CIBIL Score / Credit score is a 3-digit number that determines your worthiness for a loan. All the banks and financial institutions share the credit data and history of their customers with CIBIL, which can be accessible for any other bank to check on their website.

Why is CIBIL important?

CIBIL score is a must when it comes to applying for a loan or credit. Having a good credit or CIBIL score will imply that you have a good financial report and history-making the lenders have confidence in approving your loan or credit application.

CIBIL Score also determines your borrowing limit and the interest that you will have to pay on your loan.

What is a CIBIL Score?

Now for a better understanding of what a CIBIL Score is, let us take an example.

Imagine that Ravi went for a loan from a bank.

Before the start with the procedure of loan, they will assess to check whether Ravi will be able to pay back the loan or not and to do so they go to CIBIL and ask for your CIBIL score and credit history.

Remember that the type of loan you’re applying for also matters as there are secured loans like a car or home loans and unsecured loans like credit cards or cash loans.

The CIBIL score ranges from – 300 to 900; where anything above 750 is a good score for any bank or financial institution to give a loan.

Range of CIBIL Score

As mentioned above, the CIBIL score ranges from 300 to 900. Now let us see how where you stand affects Ravi’s loan.

There is a category amongst which Ravi must fall once his CIBIL is checked.

Now here is a dissection of the CIBIL score and how many per cents of people are there in each section.

825-900 ->where we see almost 19% of people

800-824 ->where we see almost 20% of people

775-799 ->where we see almost 21% of people

700-774 ->where we see almost 21% of people

300-699 ->where we see almost 19% of people

If Ravi falls under the second last category, then his chances of getting a loan might get low and he might not be able to get a good interest on his loan. Moreover, if he is in the last category then it can be said that his chances of getting a loan are very low and it is even possible that his application for a loan gets denied.

Now, if Ravi falls in the category of yellows, which are the first three categories or sections then he will get a cheaper and fast approved loan in his best interests on it.

Having a NA or NH on your CIBIL score

Apart from these 5 sections, 2 other possibilities can be seen once Ravi’s score will be checked. These 2 possibilities are: –

NA: – This means that there hasn’t been any credit activity done by him in past few years.

NH: – This means no credit history, i.e., either Ravi is new in the credit system, or he doesn’t have enough credit history.

Even if he falls under this category, he doesn’t have to worry about it as a simple credit card or a small loan will be enough to get him on track.

Tips: How to Maintain a good CIBIL Score?

Maintaining a good CIBIL score is not a huge task, there are just a few things that Ravi or anyone will have to keep in mind to maintain or even improve your CIBIL score. A few of these things are as follows,

  1. EMI repayments should be on time (Note: – Do not start the repayment before the set date because it might take away a few advantages of EMI repayments.)
  2. Credit card payments on time
  3. Keep a regular check on your credit report
  4. Mix and opt for different types of credits
  5. Never give a hint of risk
  6. Limit your credit utilization
  7. Avoid multiple loans at one time or short duration of time
  8. Don’t just randomly do credit enquires, keep in focus on the credit you need etc.

On What Basis is the CIBIL Score Calculated?

Now, let us imagine that Ravi got a satisfactory score which is around 750 and is asked to wait for the approval.

Ravi in this waiting period gets curious about what is the basis on which his score came up to be around 750 and starts looking online.

Now you don’t have to do it as well, here are the 4 main basis on which your or Ravi’s CIBIL score depends.

  • Repayment history: – By this we mean how your repayment track has been so far.
  • High Credit Utilization: – The more loans you get the higher your credit utilization so try to keep a check on how many loans you apply for.
  • Multiple Enquiries: – Doing multiple enquires can leave a red flag on your CIBIL profile so make sure that you are just searching for the loans you need.
  • Credit Mix: – Credit mix means having loans in different spheres like personal, housing, car etc. which makes your profile more versatile for the banks.

NOTE: If you check your CIBIL score it is considered a soft enquiry and does not affect your score no matter how many times you check it.

However, if banks or any other financial institutions check your credit score or report, then it is counted as a hard enquiry and thus affects your score.

Multiple hard enquires in a short period make you credit hungry and thus demonstrate a credit hungry behaviour which impacts your CIBIL score very badly.

How to calculate your CIBIL Score? 

Now, Ravi got his score checked by the bank but what for the rest of us?

Let us see how to calculate our CIBIL Score.

The official Site of CIBIL has various plans available for you to choose from based on how many times you wish to access your report. Moreover, there is a once time facility that lets you check your CIBIL score for free but just once.

Here are the steps to check the score for free, on the official site of CIBIL.

Step 1. Search for Free CIBIL score and click on Free CIBIL score and report on the official CIBIL website.

 

Step 2. Get your free CIBIL score now.

Step 3. Now you will have to create a profile which first includes some generic questions like email, password, name, surname, and your identity proof.

Step 4. After this, there will be some additional things that you will need to fill in like DOB, pin code, mobile number etc.

Step 5. The last step to complete the profile will be the verification of identity proof. In which you will be asked to give an alternate number and then answer a few questions. Once you answer all the questions your profile is complete.

Step 6. Go to member login, and once you log in click on get your CIBIL Score and voila you have your CIBIL score on one side and a tabular representation on the other side of where you stand.

CIBIL SCORE

There are a few things that can only be availed once you purchase at least a monthly package, for example, Credit summary or score history.

Moreover, you can also buy credit reports if you wish to.

Apart from the official site of CIBIL, you can check it for free from other sites too such as Bajaj Fiserv, Paisa Bazaar, Paytm etc however it may cause you disturbance afterwards as they might try to contact you via emails or calls or messages.

You may also like: How to check your CIBIL Score for Free? and How to increase your CIBIL Score?

Robert Kiyosaki's 10 Rules for Success

Robert Kiyosaki’s 10 Rules for Success

Robert Kiyosaki has always emphasized the significance of financial literacy and independence along with wealth building through investment in different ventures like real estate, assets and even starting your own business as well as learning and honing your financial intelligence.

Even in his book, Rich Dad Poor Dad which he and Sharon Lechter wrote, Robert talks about quite a few rules to success.

In this book, he says that the number of days one can survive without anyone in his/her household working including them and still retaining their standard of living is what defines wealth.

Let us discuss in-depth about 10 rules for Success that I learnt from Robert Kiyosaki

1. Change The Way You Think

The way one perceives the world and then forms thinking about it matters a lot in daily in-n-out activities and difficult situations. The basic difference between a rich and poor is the way they look at a situation, a poor would always be stuck in the zone of ‘I can’t afford this’ or ‘it’s out of our budget’ whereas a rich will look at the same situation with a positive perspective like ‘how do I make this happen?’ or ‘how can I make it?’.

If you look precisely, you will see that a rich man didn’t just look at the situation in a positive manner but also, raised a question and didn’t just end with a statement.

When you raise a question to yourself, you let your mind run wild.

Our mind is capable of things we can’t even imagine so when you put a question for it, you don’t just motivate but also surprise yourself with the ideas it presents you to get what you want.

2. The More You Give, The More You Receive

No act can ever be called selfless, and when we talk about giving, we don’t talk about giving away your money but putting more into this world and it shall pay you back with interest.

Giving more doesn’t just mean putting up langars but also means putting more effort into your work life. The more you invest yourself in work, the more you will get out of it, this not just makes you more involved in what you do but also improves your financial wellbeing.

However, putting more into work doesn’t mean that you burn yourself out in the process but just a healthy involvement of you in your work.

3. Learning by doing is the key

There are a lot of things we’re taught in school and most of the time, half of it is not even applied in real life. Learning with experience is more valuable than anything else.

Many a time we come face to face with situations that push us very close to calling quits on our dreams and aspirations but as life passes by, we see more and more situations coming our way and the times we think to quit reduces, this happens because we tend to learn more from our own experience than anything else.

Even a young child of just a few years will work more by his little experience and reflex than listen to what his/her parents say. For example, if we tell a child not to go close or touch a burning candle; he won’t listen until he does it once and experiences the consequences himself.

In simple words, your experience defines who you are and the more experience you have in life the more you come closer to the path to success.

4. Acquire Assets Not Liabilities

An asset is something that brings in money whereas a liability is something that takes out. It is very easy to get confused and think of something to be as an asset while all long it was a liability that kept on sucking in your money.

Having assets help you earn more and have a sense of security, and while we are on the topic of security let us just get one thing straight your own home isn’t an asset! It is a liability, that doesn’t cause you any income and requires more care and maintenance.

Liabilities like taking up loans bring in only temporary money, thus before giving into liabilities remember, the rich get the asset while the poor are left with a liability.

5. Multiple income sources

Being confident about having a job is good but being so sure that you stop investing in other sources of income is foolish. Life is very unpredictable and no amount of income from your first job is going to give you that financial security that you need.

To have multiple sources of income not only means having more cash flowing into your bank accounts or wallets but also means having a shortcut to your dreams.

6. FOCUS

Focus on one goal at a time and try not to make this goal way too bigger than your capability. The best is to make a bigger goal and then dissect it into a few smaller ones and accomplish them one by one because focusing on different things at once, is like punching a hole in your boat.

Robert Kiyosaki created his full form of focus which went something like this: –

F.O.C.U.S. = FOLLOW ONE COURSE UNTIL SUCCESSFUL.

He believed that one should not jump from one thing to another until you have perfected it and gained success.

7. Failure isn’t the scary part

Everyone has their share of failure, according to Robert.

Everyone knows that we fail once or even more in our lifetime but failing isn’t the scary part, what people are most scared of is facing it and then getting themselves up again. Many times, people are prepared for failure or even to face it but once it happens, they can’t gather the strength to get themselves up and start working again.

Our society teaches us that failure is a foolish man’s act, however in the real world we’ve all learnt the hard way that failure does hit us, no matter how perfect you try to keep your work, you are still going to face failure. So don’t be afraid of it and remember not all new beginnings have smooth sailing.

8. Know What You Are Working For

Robert explains how in recent times, there are a lot of new and different ways to earn money however people should do thorough research and know more about how they can earn before stepping into it.

It’s said that half knowledge is more dangerous than none at all and as a fact it is true. If you jump into the first opportunity you get to earn money, you will never get the chance to explore more and weigh your options.

Working hard is good but if you are working hard for things, you can work smart for then you are wasting your time, talent, and resources.

9. Have A Team Spirit

How many of us understand the meaning of solopreneur? It’s a person who runs the whole business all by himself without taking any help.

Yes, starting a business like this is possible but after a point, the business no matter what field you’re in will stop growing. It is because no matter how hard your try, ruining a business all by yourself is impossible. One needs some expertise in all the domains he is working for and then even if he has that, he won’t be able to give enough hours to its work even after working 24*7.

Having a team is a must. Working in a team doesn’t just help you grow your business but also helps you grow as a person and learn new things that you might have never learned if not exposed to this team.

10. Saving isn’t the key

According to Robert, saving is an old culture and it is very impractical in the modern world. The more money is printed the more your will lose its value and even the interest isn’t as much as the inflation.

Yes, savings are important but with time the more we save the more we turn ourselves into misers. Investing will not only give you an extra income but will also put your saved money to some use. Moreover, even if you fear putting in stocks or such, there are many other ways to utilize your money efficiently.

Conclusion

It isn’t easy to be successful, even Robert Kiyosaki has had his fair share of failures. Don’t get yourself stuck in a rat race and learn how money is created and how it travels.

The bottom line is that if you’re willing to study, learn, work, and face all the obstacles that come your way, you always have a chance of succeeding.

Tata neu review

Tata Neu App Review: How it can Save you Money?

Tata Neu is a super app launched by the Tata group, which promises to be one of its kind unified platforms to connect brands across the Tata universe. The app was in the testing phase for several months thus limiting its access to only Tata employees, however, on the 7th of April, it got launched and ever since it has been a huge hype.

This super app is said to be one of the biggest competitors for Jeff Bezos’ Amazon and Reliance industries of Mukesh Ambani.

Tata neu review

Let us see, what the hype is all about….

What is the Tata Neu app?

It’s a one-stop app that combines all the brands that the Tata group owns. It promises a great experience to its customers while giving them a chance to earn rewards on every transaction that they make. Moreover, it all has an inbuilt payment feature called Tata pay which allows you to make payments not just in the app but in other online purchases or bills.

N. Chandrasekaran, the chairman and head of Tata sons expressed his immense gratitude and happiness in having brands like Air Asia, BigBasket, Tata CLiQ, IHCL, Croma, Air India, Tanishq, Vistara, Tata Motors and many others on board so soon.

He also went on to describe this new super app as a perfect blend of the modern essence of technology and their traditional approach of consumers first which provides a wonderful experience for all their brands at once.

Features of Tata Neu

  • Bill Payments – Tata Neu allows you to pay any kind of bill that may be electricity, mobile, recharge, broadband etc at the convenience of your home.
  • Online shopping services – This app keeps up with the norm of digitalizing and has made it possible to shop for anything you want.
  • Transport sector – With companies like Air Asia and Air India, Tata Neu is slowly covering pace and providing facilities like booking flights as well.
  • Secure and safe means of payment – This app with its Tata Pay facility offers a safe and secure means for any kind of transaction. It has an inbuilt feature for figure print or password before opening the pass for you.
  • Food services – Although this service isn’t yet fully available in all the different locations of India, it is a great app that even included food services in its application.

What is Tata Pay?

Tata pay is a payment feature of Tata Neu, that is just like Google Pay, Apple Pay, PayPal, BHIM or Amazon Pay. It allows you to make payments using NeuCoins, cards, UPI and even EMI, may it be bills, in-store purchases, or website purchases. Moreover, it lets you scan and pay on any merchant you wish or even send money to your friends and family.

NeuCoins

Every brand on the Tata Neu app is connected to a reward system that gives you rewards as NeuCoins. They can be earned on every purchase and payment across all online and physical locations and can be used as the same as well.

The NeuCoins can be redeemed at 1 NeuCoin = 1 Rupee. It not only helps the app retain loyal customers but also guarantees unlimited opportunities to earn, spend and save anywhere and anytime.

NeuPass

NeuPass is currently in the upcoming stage, however, is a premium membership-like option somewhat similar to Amazon Prime, that will assure more rewards and benefits. According to the know more page of NeuPass, it is a powerful membership that offers a wide range of benefits and privileges. such as earning at least 5% NeuCoin each time you shop at Tata Neu.

Deals and Discounts

Tata Neu offers a lot of deals and discounts to its customers like saving up to 40-50% on hotel bookings or 10% off on buying things from the luxury section etc.

8 Assets that can make you rich in 2022

8 Assets That Can Make you Wealthy (and not just Rich) in 2022

What do you want to become in life: Rich or Wealthy? Oh wait, you thought they are synonyms and means the same thing? Well, that’s not true. There is a a lot of difference between being rich and being wealthy. In this article, we are going to understand why you should aim to become wealthy and not just rich.

What does it mean to be rich?

That’s a good question. To be rich, you need a lot of money. Rich people spend a lot on gadgets, lifestyle and all their wants, without actually caring about their bank balance. I will go deep into it later, but for now let us understand what does it mean to be wealthy.

What does it mean to be wealthy?

Being wealthy means, you are earning more than your spendings. Wealthy people focus on building more income streams and less on spending the money to show off. Growing their wealth overtime is their ultimate moto.

Rich vs Wealthy: Key Difference with an Example

Say for example, if I give you 10000USD and ask you what do you want to do with this money, what would your answer be?

If you are one of those who would like to take a holiday trip or buy some expensive gadget you fall into the category of the riches.

But if you are among those, who would think of how you can grow this 10000USD, where would you be investing this money that will keep growing over a period of time, then you are wealthy.

Our focus should be to be wealthy, (and not just rich).

Well now that we have understood the key difference between rich and wealthy, let’s understand how can we be wealthy?

By investing. Investing where? Read on.

Remember, there is no shortcut in the path to success; to earn money and get rich and wealthy, one needs to polish the skills they already have, learn some new ones along the way and then invest as well.

What are Assets?

An asset for a person is a resource that has a value which is expected to grow over a period of time. Assets can be sold for cash or cash equivalent. With zero debt, asset is your net worth. You can grow your net-worth by investing in assets that would grow overtime.

Why should you invest in Asset Building?

Inflation in India is above 6 percent. If your money does not grow more than 6 percent every year, you are losing your wealth. Wealthy people understands inflation, and hence, invests in assets that grows faster than inflation.

8 Assets That Can Make you Rich and Wealthy in 2022

Investing is fine, but where do we invest? You invest in assets, and not liabilities. Assets help you grow your money over a period of time, with little or no effort. The best way to grow wealthy is to invest in these commodities and let them take care of growing your money.

Here are 8 assets that can get you rich:

  1. Cryptocurrencies

Cryptocurrency is one of the fastest-growing digital currencies, although it is a dicey game where no matter how many steps you take you still might lose, it is however the best way amongst the lot to get rich in a short duration of time.

Do not risk your whole savings or salary on one crypto. Diversifying won’t just help in risk management, but will also help you learn and understand how trading in crypto works.

Also if you are just getting with investing crypto, I would suggest you to stick to Bitcoin.

Did you know? In crypto, there are USD equivalent stablecoins, that pays interest upto 12 percent yearly?

All you have to do is to lend your crypto and watch it grow everyday.

  1. Stocks

Stock market is a multi trillion dollar market and is preferred and recommended route to build your wealth over a long period of time. In the simplest terms, a stock is owning a portion of a company that you have invested in. People invest in stocks and get massive returns over the years. To build wealth, you will need to invest in reputed companies and let your money grow even when you sleep. If we see the performance of index funds in the last 3 years, we will see that the stock market has given more than 15 percent returns YOY.

For anyone who is not aggressive and would like to stay away from cryptocurrency because of the volatility, stocks are your go to things.

  1. Mutual funds

Mutual funds are a collection of stocks, and sometimes other assets, managed by professionals. Mutual funds makes a collection of stocks and invests accordingly. So if you do not have time to research which stocks you should be investing, you should probably let the professionals do this for you. All you need to do is to buy units of the mutual funds. There are different types of mutual funds, which you can learn by visiting Mutual Funds Sahi hai website.

If you are just getting started, I would advise you to go with index funds to begin with. Even though it is a risky investment, it is the best way for investors to diversify and earn consistently.

Mutual funds can make you more money because of compound interests, which is the interest on your investment, measured based on the initial principal and previously accumulated interest.

However, make sure that you look carefully at the terms and conditions before investing.

  1. Commodities – Digital Gold

Investing in commodities is a great way to safe-keep your money and also see it grow. And among all the commodities, Gold is my favorite. Not just mine, Indians love investing money in Gold. We have also seen Gold giving good returns over the last 5 or 10 years. Investing in Gold is a good way to diversify your assets. Compared to stock market’s 15 percent CAGR, Gold has given a CAGR of below 6 percent. However, I would still recommend everyone reading this article to not move away from golds. One of the major reason behind why I invest in Gold is how it is inversely related to stock market. Gold act as a hedge against the stock market. We have seen the price of Gold increasing whenever there is a fall in the stock market.

So when your assets would be depleting if the stock markets fall, Gold would act as a hedge and balance your portfolio.

  1. Commercial real estate

Focus on the work – commercial. Real estate could be investing in residential or commercial properties. While residential property may not give you good returns, commercial real estate can help you with cash flow. Investing in commercial real estate would mean having a monthly or yearly income with a one-time investment.

It can be difficult and could lead to loss if done without proper research of the property’s prospects in future years. However, if done correctly it’s one of the fruitful ways of earning and getting income.

In current times, self-storage facilities, RV or mobile home parks and billboards are the highest paying commercial real estate.

  1. Professional Expertise

Skills acquired through a lot of studying, practicing, and training in your professional field are called professional expertise. Expertise in your field is always a positive point no matter where you work and what you do.

Yes, having soft skills is important but we cannot mix who we are into what we must do to earn money and professional expertise puts you above people who might even have more experience than you.

Invest in sharpening your professional expertise which would in a way help you grow your income in form of salary. You could also take freelancing jobs and earn extra. With that money, you can put in any of the above asset class.

  1. Investing in Start-ups.

Start-ups are the companies that are at an initial stage of working. They require funding in the initial stages, and you get a major portion of their stake at a very less valuation. Well you may be wondering that you need to invest a lot of money to buy stake in startups, but that is not true. There are companies like Letsventure and TykeInvest where you could team up with other individuals and invest in the startups as a pool. You could also join pools created by Venture Capitals and let them decide where to invest your funds into.

Remember, investing in start-ups is advised only when you have already considered the above options, and still have extra funds to invest in. This I would recommend only to those who would not need the money in the near future and can wait fo the company to list in stock market. If you have an asset of more than 1 crore, you should not invest more than 2 lakh into start-up companies.

While most of the companies you invest in would fail to see the last light, the companies that would succeed would give you major returns that would make it up for your losses.

Yes, investing in start-ups is very risky as 90% of the companies do not make it to IPO

However, if done with proper evaluation of business plans and the growth model investment can be very beneficial.

It is rare but if persuaded correctly, start-ups may even offer a dividend to their investors which would mean you getting a share of their profit.

That’s how Venture Capitalists and Angel investors make money.

  1. Investing in yourself

Okay, enough of investing into projects that are led by others. Investing in yourself is the biggest investment you can make. No amount of money can make you a better person, invest time in yourself, relax, socialize, learn, expand your knowledge, say no at times etc.

Earning money becomes easier when you know what you are capable of when you learn along the process and when you respect the money you’re earning.

The day we stop learning, the day we stop growing. Learning should be continuous process, and that is why it is important to invest in yourself.

You might be earning lakhs today but if you stop investing in yourself, you will see people come and go whereas you will be stuck in your place forever.

Investing in yourself helps you grow and progress as time goes by.

For example, if you are into IT industry, start learning new languages. Start exploring what is happening in the tech industry. What I see is, there is a major short gap in the blockchain industry. The demand for someone who knows smart contract and blockchain development is unprecedented. Blockchain Companies are offering salary of 40 lakh to someone with 1 year experience in blockchain development industry.

This is why you must always keep exploring and keep learning.

Conclusion

Becoming wealthy is a long and tiring process for sure but it isn’t something impossible unless you keep on waiting for a miracle to happen.

Taking the risk, learning new things, and working hard, is the way to success.

It is not always about having a big house, or an iPhone; having what you need to get rich might not be the same for others so started working today on your path.

Investing in a great source of income, and even if you don’t plan to make it your main profession, it is never bad to have a side income. Most people earn their income for financial stability while it’s the side income that gets people rich.

In the end, remember if you are working hard and sincerely you will get rich just don’t compare yourself with others, there is a lot you don’t know about people you tend to compare yourself with.

Keep investing, keep growing your wealth!

Disclaimer: Investing in stock, crypto, mutual funds and most of what I have mentioned in the article is risky. This and all the articles in this blog is for educational purpose only. Please consult a Financial planner before taking a decision.

Did you like reading our article on 8 assets that could make you wealthy? Share your feedback and questions with us under the comment section.

7 habits that are keeping you poor

7 Habits That are Keeping You Poor

After a certain age, being poor is more than just something you’re born into; it’s a choice you have decided to live by! As Dryden once wrote, “All habits gather, by unseen degrees, as brooks make rivers, rivers run to seas.” Meaning We First Make Our Habits and Then Our Habits Make Us. Having poor/bad habits is one of the biggest reasons you might be in the financial situation you are in right now. Here’s a list of a few reasons that could be keeping you poor.

Credit Cards

It is a short-term loan that allows you to purchase and pay later. A credit card makes people spend more than cash, it not only makes you buy stuff more and at higher prices but also makes you show off and buy things on impulse. The credit card has a high rate of interest which means it is only adding up to your expenses, which as a matter of fact may change if your balance isn’t paid by the set time given by them. With its hidden terms & conditions, getting a credit card is practically getting yourself in a debt trap and ruining your credit score.

Credit cards might be something you desire but it isn’t a necessity.

Buying things, you do not need

Discretionary purchase is the formal term used to define or explain the process or act of buying things you do not need. People leave with one thing on their mind and come back with ten more, and this leads to the wastage of their own hard-earned money. People often forget to as a Why before purchasing stuff and later it gets pushed into a dark corner where it won’t come in sight for a long time.

Sticking to a list where things are ranked according to their priority and need in your life is the best way to stop yourself from going on a shopping spree when you don’t have to.

Investing with fear

Investing is definitely scary, not just for the inexperienced newcomers but also for investors who might call themselves pros. The fear is genuine no matter if you’re a pro-investor or not and this is because of the market’s nature of being volatile and unpredictable, people fear losing money.

However, if you study, pay attention and start small, with time you’re fear of investing will turn into healthy confidence. Remember investing is a form of passive income and should be done after a lot of consideration.

Buying things under peer pressure or show off

Peer pressure or the urge to show off makes people buy a lot of stuff they never really needed in the first place. Our immediate peer group has a huge influence on what and how we buy, if you have surrounded yourself with people who are rich and spoilt, you will feel an internal compelling desire to be just like them and spend more than your budget. Similarly, if you have friends that are always in competition with each other you will find yourself competing as well. Thus surrounding yourself with people that not just match your vibe but also your social status is important, moreover, these things will only affect you if you don’t have a strong mind that knows when and where to stop.

Choosing your peer group wisely is very important for not only your financial but social life as well.

Taking big loans early

Everyone once in their life takes a loan but when you take it matters a lot. Life is very unpredictable and being confident in yourself isn’t bad however being overconfident and thinking that you can pay off a huge debt/loan just because you’re earning well now isn’t always a good idea. With time responsibilities of a person increase, and the amount you can save now might not be the same in future, moreover, it takes a huge toll on your salary or income once you start with the repayment also there isn’t any flexibility which can cause you to pay more than what you owe. Thus, it’s important to think twice before taking bug loans early in life.

Loans aren’t a shortcut to getting rich, it just adds up to your stress and anxiety.

Not investing in yourself or learning new things

If you’re working hard but not on yourself, it’s all futile. Growth happens when you start working on yourself when you start learning your things when you throw away the notion of being too old to learn now when start from within.

People talk about changing the world, but won’t change themselves and when asked why? ‘I know everything’ or ‘I am already perfect’ is what people tend to reply with, yet it is important to understand that the world keeps on growing every second of the day and with every passing second you have a chance to learn something new.

Learning new things is a good way to put yourself higher on the ladder of opportunities to earn and to even earn more.

Not investing in new ventures

People fear investing in new ventures however, it is really a good way to not just explore but also learn. Investing in new things not only helps us overcome our fear but also breaks the momentum. Moreover, it can also be the big break you might be looking for or could even unleash a new interest or talent that you had but never gave much importance.

It might be a gamble but only if you don’t study and take your time to make your decision. A little delayed but well-studied investment is far better than the one made on impulse.

Conclusion

Habits are a choice of life you make for yourself. It is easy to get swayed into making poor decisions once but if you keep on repeating them and find comfort in habits as such, you are pushing not just yourself but also your upcoming generations to be poor. On average it takes 21 days to build a habit and moving out of our comfort zone is difficult but once we make the move, our mind will find the momentum it needs itself.