6 WAYS TO MANAGE YOUR NEEDS AND WANTS

Differentiating-between-needs-and-wants

Years ago, our needs were met and we had limited wants but now the level of wants has grown more than needs because of the introduction of exceptional products and services that have eroded the market with great marketing advert positioned in places that can easily capture our mind and attention and the more money you make the more your wants increase too. With this increasingly purchasing more wants, your ability to save, invest or start your side hustle depletes and you lose focus financially.

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DIFFERENCE BETWEEN NEEDS AND WANTS.

(1) Needs are an individual requirement that must be meet for your survival and important for your day to day existence and fulfilment of a good life. You need air, shelter and many more to survive because without them your existence is inevitable while Wants is just hunger or desire for a product or service which is but for a passing moment.

(2) Needs are limited meaning they are restricted in size, they are few, but your Wants are unlimited because there’s always need product and services invade the market every day to draw and capture your mind and attention and makes you desire to have the product or service.

(3) Needs is something you must possess or must have for your existence, comfortability and conduciveness while Wants is what you wish and desire to have to live comfortably and for flamboyant lifestyle.

(4) Needs remain the same; its variable or qualities under a set of given conditions always remain the same in all circumstances but Wants will always change with time if new products and services are introduced into the market to meet your needs and make the desire to have the latest one in the market.

(5) if needs are not met or fulfilled, it leads to ailment and death most times but wants leaves you destabilized, unhappy and disappointed.

6 WAYS TO MANAGE YOUR NEEDS AND WANTS
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How do we achieve balance between needs and wants and manage them well? We need to master the art of balancing and managing your wants and needs to achieve your financial freedom. Here are ways to balance your needs and wants:

-Live simply
-Separate your needs and wants
-self-discipline
-use your time well
-create a budget
-Focus on your financial freedom.

LIVE SIMPLY

A life of simplicity can help manage your needs and wants and separate them well. To help achieve your financial freedom, a life of simplicity is very important by adjusting your expectation and living appropriately right. You need to develop the habit of living below your means to achieve financial freedom.

SEPARATE YOUR NEEDS AND WANTS

At this point in time, you should become financially aware of your financial status and know the impact of your wants on your finance and how to manage your wants and needs by separating them from one another.

SELF-DISCIPLINE

Controlling your wants and sticking to the list of your needs according to your scale of preference takes a level of discipline to achieve. It’s easier to say but it requires more effort and dedication to act on this to get the required result. You also need to maintain self-control for your frivolous buying or else you get financially drained. You must deal with the pattern of not understanding between your wants and needs and know how to deal with the addiction of more wants than needs. To buy something, you need to ask yourself critical questions with answers to give you reasons to buy your wants or needs.

USE YOUR TIME WELL

Good usage of time will help manage your need and wants and that is one of the way to balance your needs and wants. Also, how you spend your time matters a lot and what you get exposed to matters too. You need to start spending time on what will help you in achieving your goals and becoming financially free than more time on things that depreciates your net-worth. Now is the time to invest more time on yourself and future to break the paycheck to paycheck lifestyle.

CREATE A BUDGET

You need to create a budget and act on it. With a budget, you can control your needs and wants. You will know what goes out and comes in and where it went. If it takes time and effort to start working on budget, do it to help you have a financial focus. Budgeting makes you financial disciplined, focused and help achieve your financial goals.
FOCUS ON YOUR FINANCIAL FREEDOM

You need to focus on achieving your financial freedom than letting wants to lead you down the drain. You need to start saving and investing as soon as possible to plan for your financial future. Plan for your retirement, start today by plan and thinking of making tomorrow better than wasting it away frivolously today. If you need help to achieve your financial dream, work on it and get the needed help.

 CONCLUSION

You now know the wider difference between needs and wants and how it helps influence your financial freedom and existence. If needs are not met your existence is at stake but wants is just for a passing moment that lets you down. the key difference between the two of them is their level of significance.

Credit: https://rawlingsunday.com/2018/06/13/6-ways-to-manage-your-needs-and-wants/

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ONLINE MUTUAL FUND INVESTMENT

Process To Initiate The Online Mutual Fund InvestmentOnline Mutual Fund Investment is convenient, fast, and simple. Most of the mutual funds available in India, allows you to capitalize through the online platform. Thus the material involvement comes alive on numerous investment portals.

The online Mutual Funds (MF) allows the consumer to buy, monitor and sell their investments online. The Permanent Account Number (PAN) no. is one of the most important documents required for online Mutual Fund Investment. Here is how you can to invest in the Mutual Funds (MF) online.

PROCESS TO INITIATE THE ONLINE MUTUAL FUND INVESTMENT

Here we are providing you information regarding selecting online mutual fund investment and every other detail regarding this:

SELECT YOUR FUND

To select your fund you may buy the funds directly based on the portal’s information. These are stereotypically called robot advisors; thus they prepare a simple risk profile, request for your goal line and finally will suggest you a lot of funds for you.

Or, there may be platforms where one can purchase whatever they want; some offer a regular plan, others offer some direct plans. Now check out the costs of the online mutual fund investment.

NOTE:

Online mutual fund investment platforms, although convenient, it serves those investors who understand  Mutual Funds (MFs). So, if one wants handholding, then they need to stick to the financial advisors.

COSTS OF THE ONLINE MUTUAL FUND INVESTMENT:

All patterns of the online mutual fund investment offer regular and direct plans. Where the direct plans don’t come implanted with the distributor commission.

In case, you’re investing through the portal, then do not forget to check the structure of the online mutual fund investment cost. Portals such as National Stock Exchange Mutual Fund portal (NSENMF) allow the investors to invest directly in addition, it allows the distributors to route their transactions easily and quickly.

There are also portals, which offer consumer direct plans. However, it charges for a nominal payment per transaction through the direct plans; some of these plans similarly offer some advisory facilities at additional expenses. Others offer just the distributor plans, on the other hand, they typically offer a bunch of services to the consumer.

KNOW YOUR CUSTOMER (KYC) COMPLIANCE FOR ONLINE MUTUAL FUND INVESTMENT:

It is obligatory to be acquiescent with the Know Your Customer (KYC) forms. Many fund houses and portals allow you to complete the KYC form online, only if you are not already a KYC-compliant.

In this process, you will have to go through the e-KYC Aadhaar-based OTP (One Time Password) method, which is a fully paperless process. For this,

  • Punch the Virtual Aadhaar no., which can be generated on the Unique Identification Authority of India (UIDAI) official website
  • Now enter the PAN (Permanent Account Number)
  • Then enter your mobile no. and you will get an OTP (one time password) sent to the registered mobile number
  • That’s it; you are good to go with your online mutual fund investment.

Through this online mutual fund investment, you are allowed to invest up to INR 50,000/- per year but you can also invest more. To capitalize more, you have to complete the physical KYC or the biometric KYC i.e. know your customer form. Many portals, although offered for pick-ups of the forms via courier. So, if you do not have sufficient time to appear physically at the office to complete the process then choose the portal wisely. Check out all the details before trying your hand on the portal.

You have to verify the bank a/c and register the bank obligation. Different bank portals and accounts have some different arrangements. One can register the bank mandate by using the Aadhaar-based online confirmation process such as used for the KYC.

What are Liquid Funds?

liquid fundsLiquid funds are primarily a scheme of debt mutual fund which can be utilised by investors at a time when they have excess funds at hand which they wish to use in the near future. Investors who are willing to put a big amount of money in equity funds but at the same time they want to stretch the investment horizon over a period of time and break it at short intervals, they can invest in liquid mutual funds through systematic transfer plan.

Returns & Risks involved in liquid funds

Liquid mutual funds just like other mutual funds put money in the market priced securities. The movement of the market price of the securities affects the NAV of liquid fund investments. The interest accrued on debt funds over the securities is equally divided into the number of days the security was held for. The prices of the security tend to remain steady and so the movement of the NAV of liquid funds is somewhat linear like a steady line. Liquid fund Investors can expect to earn returns around 6-7% on their liquid fund investment in a year.

Liquid funds are not really devoid of risks when an investor invests in liquid funds that have put money in securities whose credit ratings and market price have dropped considerably, the NAV of their liquid funds will drop too. To curtail the risk involved, most debt funds put money in scrips that have a maturing period range of over 15 to 20 days.

Features of liquid funds

Interest Rate

Liquid mutual funds offer investors a higher return. Investors who put their money in liquid funds and not just any savings account tend to earn higher returns courtesy the rate of interest on them which is comparatively higher when compared to the interest offered by most of the savings accounts.

Dividends Earned

The dividends that investors can earn through liquid investments are subjected to a tax called the dividend distribution. Even after tax, the dividend that investors earn on liquid funds is still better than returns offered by savings accounts.

Tax Structure

Liquid investments offer an advantage of tax benefit to its investors. The tax applied to long-term gains is 20% and is inclusive of indexation. While in the case of short-term capital gains, the gain is added to investors’ income and the regular rate of prevailing tax is applied to it as per the investors’ tax bracket.

Flexibility

Liquid mutual funds are flexible; investors can withdraw from it whenever they are in the need for cash. At the same time, investors can invest a big amount in liquid funds when they have extra money at hand. The fact that there is no fixed minimum investment horizon in liquid funds makes liquid fund investments even more flexible in nature. Investors can avail immediate transfer of funds into their bank accounts within a day the request for redemption before cut-off has been made by them.

When should you invest in liquid funds?

At a time when a person has extra cash at their hands due to maturity of any scheme or financial settlement, instead of putting them in savings accounts, investors can put the extra cash in liquid funds for better returns. When investors want to invest a big amount at one time, they should utilise the advantages of liquid funds to enhance their earnings on liquid investments. In other words, if investors want to earn better returns on their extra cash and want to hold the cash at hand for a short duration they should consider putting their money in liquid investments.