Know Your Important Dates

Know Your Important Dates:

It is necessary and mandatory to know few important days for financial planning. Key days need to be noted and kept in front of you always.

Mentotax recommends you to keep the following days handy.

Equated Monthly Installment:
You need to know your loan installment due date. Nowadays people have multiple loans so it is essential to know the EMI due date. Missing instalment will end you in penalty and return charges. Missing installment can affect your credit score. Mentotax recommends you to keep the installment date handy.

Premium Payments:
Remember to pay your Life, Health and General Insurance premium before due date. Life cover , Health cover and other protection gets ceased on the due date. Missing insurance premium payment may end up in financial loss and Mentotax recommends you to note down  various Insurance payment dates.

Systematic Investment Plan:
Investment via SIP is preferred mostly by all categories of investor. Investing via SIP is more beneficial and Investor need to know the SIP dates to avoid ECS/other return charges. Mentotax recommends to fund your debit account in advance and remember the SIP debit date.

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Teach Money Management To Kids

It's always important to impart money management concepts in kids for better understanding and utilisation of money. Children learn how to handle money only by seeing the parents. your attitude about money matters, be careful to set good example.

Teach to save: Encourage your child to save. Set up a process for saving money in piggy bank or in account. Monitor at intervals. Use the money for acheiving child goals.

Teach to share: Boost your child savings and help them to identify the ways to spend money for helping others.

Teach to shop: Before your child purchases , tell them the alternate ways to spend the money.  Teach them to shop by comparing prices and quality.

Teach to Invest: Start preaching small concepts of money as they grow. Simple Interest, Compounded interest , etc.. make them understand the power of money. To make money, one needs money.

Involve them in financial planning: your children play a vital role in your life goals. Tell them how they contribute to achieve the goals. Let child know your budget.

Mentotax recommends you to teach your kids with the best ways to utilise the money. Involve them in all the financial decisions of your family.

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Atal Pension Yojana

Atal Pension Yojana is a pension scheme stated in May 2015 by Government of India initially for  unorganized sector workers and opened for all subscribes later. APY is administered by Pension Fund Regulory and Development Authority.

Atal Pension Yojana can be availed by all citizens in age between 18 to 40 Year's. Subscribe must have savings bank account to apply for APY. Subscribes can select their monthly pension between Rs 1000/- and Rs 5000/-

APY subscriber who had started investing at 18 years need to pay monthly contribution of Rs 42 for Rs 1000 and Rs 210 for Rs 5000/-

If subscriber has selected higher pension, APY will start paying Rs 5000 from 60 years until the diemeise. Then pension will be paid to the spouse of the subscriber and nominee will receive the corpus after the dismissal of subscribers spouse.

Mentotax recommends you to Invest in Atal Pension Yojana for Maximum Pension amount of Rs 5000/- Also advises to start as a couple so that monthly pension of Rs 10000/- can be availed.

Contribution towards Atal Pension Yojana is exempted from income tax under sec 80CCD(1B).

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Ways to Utilise Your Tax Refund

Ways to utilise the Tax Refund:

Tax filing season has started, it is always advised to file tax at the earliest and get back the tax refund. Rupee today is more valuable than rupee tomorrow. Mentotax has recommended the following ways to utilise the tax refund.

Boost the Emergency Corpus:

It is always recommended to have emergency corpus equivalent to 6 month salary/expenses. Emergency corpus plays a vital role in financial planning. Every year our salary grows, so you can utilise the tax refund to boost the emergency corpus.

Pay Credit Card Bills:

Employ your tax refund to pay off the credit card dues. Using credit cards will never help you to attain financial freedom. It eats your future income and savings. Mentotax advises to use the tax refund to pay off the credit cards.

Park Your Funds in PPF/NPS/ELSS:

You can park the tax refund in any of the tax saving instruments like PPF/NPS/ELSS. Tax Refund is like extra income to you. Mentotax recommends utilising the funds to reduce the tax burden and thereby increase the return from investments. Your direct return from investments will be up to your tax slab plus return from (PPF/NPS/ELSS) investments.

If you are in 20% Tax bracket and parking funds in PPF, your return from investment will be (20% + 8% =28%).

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Know About The 3'S of Mutual Funds

Mutual Fund is a professionally managed investment fund that pools money from many investors to purchase the securities. There are three important aspects we need to know in mutual funds.

• Systematic Investment Plan
• Systematic Withdrawal Plan
• Systematic Transfer Plan

If these three are used in right manner, Investor can avail lot of benefits and create wealth over the time.

Systematic Investment Plan: Systematic Investment Plan allows you to invest specific sum of amount on regular intervals it can be Weekly, Monthly, Quarterly, and Yearly. In the long time horizon, Disciplined SIP Investments can average the Highs and lows of the market giving investors the better rupee cost averaging and compounding.

• Advantages: SIP can be used as a tool to start funding your financial goals and to accumulate wealth. SIP admits to invest small amount, Reduces market volatility, SIP encourages saving money. Investors need not time the market, flexible for investors to select any regular interval.
• Disadvantages: If any SIP is missed because of Insufficient funds in the investor account, Bank may charge the ECS return fee. It is always advised to keep sufficient funds in your savings account.

Systematic Withdrawal Plan: Systematic Withdrawal Plan is opposite to the Systematic Investment Plan. SWP is a facility offered by mutual funds to redeem Specific units/Specific amount          at regular intervals.  SWP allows the investor to exit the investments for meeting the short term goals and to meet monthly expenses. SWP can be availed Monthly, Quarterly and Yearly.

Systematic Withdrawal Plan can be used in distribution phase of life. SWP to create income from the investments for things like, Monthly income after retirement, Surplus Funds parking, Children Education, Pay Emi, Pay Bills etc .

• Advantages: SWP helps to redeem the investment without any exit load up to certain limit. SWP helps to rebalance the portfolio; Investor can avoid Long Term Capital Gain tax up to Rs 1.00 Lakh on gains redeemed amount per financial year. Better rupee cost averaging on the withdrawn amount.
• Disadvantages: Customer may incur exit load charges if the redeemed amount is higher than the free limit. Investor need to maintain minimum funds with the AMC. Investor will get only returns on the invested portion.

Systematic Transfer Plan: Systematic Transfer Plan is an automated process of moving funds from one fund to another fund. STP helps to mitigate the risk associated and help to deploy money in different funds. When Investor wants to Split the Lump sum credit in one fund to several funds, STP helps to transfer money in various asset classes like equity and Debt.

• Advantages: STP will help you to mitigate the risk wisely and Investor can regularly transfer from high risk exposure to low risk exposure based on risk appetite and age of Investor. Steady Returns and Fixed Income can be generated via STP. Reallocation and Rebalancing of funds can be done using STP
• Disadvantages: Investor may incur Exit load on transfer of funds. Investor needs to maintain minimum investment prescribed by AMC. Debt funds transferred before 3 years attract STCG Tax.

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Attributes of Systematic Investment Plan

Systematic Investment Plan is an investment vehicle offered by Mutual Funds to investors allowing them to invest small amounts regularly. SIP are planned approach towards Investment.

There are various features of systematic Investment Plan.

* Investor can choose Any Date for SIP
* Investor can invest any amount without restriction via SIP
* Investor can increase or decrease SIP amount anytime.
* Investor can redeem partially or fully any time
* Investor can Stop SIP anytime.
* Investor can cancel Sip and Let the funds to grow.
* Investor need not time the market to start SIP.

Mentotax recommends you to invest  via SIP to create wealth in different asset classes.

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Utilise the Best Out of Your Bonus

Bonus season has started!! Appraisals , Yearly Increments and Performance Bonus. Bonus is reward for the excellent contribution you made for the growth of the organisation. This is the month where you get extra credit into your salary account. There are many ways to put your bonus work for you.

Mentotax is here to guide you to utilise the funds wisely.

Plan your family vacation:
You have worked so hard for the year and earned good appraisals. It's time to celebrate the occasion and relax to make yourself powerful. Plan a trip along with family using your bonus.

Pay off Debts:
Paying off the credit card bills, personal loans are recommended as they charge high interest. Utilise the bonus to prepay the debts.

Build Emergency Corpus
Employ your bonus to build the Emergency corpus equivalent to six months expenses of your family. Emergency corpus plays vital role in financial stability.

Invest in yourself:
Use the bonus to enhance your skills, start participating in workshops, seminars, conference. Pay subscribtions to periodicals, Association using the bonus. 

Reduce your taxes:
Work with your bonus to earn maximum salary to your pocket instead of paying taxes. Invest your bonus in NPS, ELSS Funds, PPF account based on your risk appetite, Time horizon and Tax Slab.

Boost your Insurance Portfolio:
Enhance your term insurance plans and top up your health insurance utilising the bonus. Have a maximum cover so that your family will not face any trouble in your absence.

Start new SIP/STP:
Invest wisely to get maximum out of bonus, park Ur bonus in liquid fund and start STP in equity funds. And enhance your existing SIP by 10% for better returns.

Invest for your childrens future:
Direct the bonus in savings scheme like Suganya Samruthi Yojana, Childrens Fund to save for the child future. Longer the Investment, better is the compounding and return.

Start Investing on New Initiatives:
Utilise the bonus to set up your own band , start a small green house farming for vegetables, Buy a musical instrument , make your home energy efficient to reduce electricity bills, buy a bicycle for cycling , Buydgets to enhance your effeciency.

Mentotax recommends to utilise your bonus wisely and make most out of it. Plan your finances well and attain financial freedom.

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Investing in Bonds

Bonds are the debt instruments which gives fixed income for the investor. Bonds are issued by Government or Corporate Companies to raise money for the new project. Bond issuer is obligated to pay interest and repay the principal upon maturity to the investor. Bonds are used to raise debts, When investor purchase the bonds, they are lending money to the issuer. Issuer will pay  specified rate of interest during the bond term and face value on maturity.

Various Types of Bonds:

1) G-Sec Bonds

2) Corporate Bonds

3) Tax Free Bonds

4) Gold Sovereign Bonds

Benefits of Investing in Bonds:

Bonds provide regular income by interest from issuer. Bonds also provides capital preservation, Issuer repays the principal on maturity of bonds. Investing in Capital Gains in Bonds give you tax exemption on Investment. Investing in bonds gives diversification to your portfolio.

Tax Benefits On Bonds:

Tax on Long Term Capital Gains up to Rs 50 Lakhs can be exempted by investing in 54 EC bonds. Interest on 54EC bonds are taxed as per slab.

Listed Bonds:

Tax on Interest - Taxed at slab rate

Short Term Capital Gains - Taxed at slab rate

Long Term Capital Gains - Taxed at 10% ( More than 1 Year)

Tax Free Bonds:

Tax on Interest - Tax Free

Short Term Capital Gains - Taxed at slab rate

Long Term Capital Gains - Taxed at 10%

(if transferred after 1 year - Listed Bonds)

Long Term Capital Gains - Taxed at 20%

(If transferred after 3 year - Unlisted Bonds)

Mentotax recommends to diversify your portfolio by investing in regular income instruments (Bonds) as per your risk appetite considerating the age factor of investor.

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Power of Compounding

Power of Compounding:

Compounding is simply interest earned on interest. It is also referred as reinvestment of earnings at the same rate of return. Compounding is more powerful tool, it makes your money work harder for you and earn extra penny.

Earlier you start investing, Greater will be the power of Compounding. It provides multiplier effect on Investment.

Stay Invested for longer to enjoy the power of compounding. Even small investment can fetch you better return if invested for longer horizon.

Compounding effect is the eighth wonder of the world. He who understands it, earns it.

Simple Interest:

Formula: (P x N x R)/100

Compound Interest:

Formula: P x (1+R)^N

P - Principle amount

N - Number of years

R - Rate of interest

Let's compare Simple Return Vs Compounded Return

Assume We have invested Rs 1000 in two different accounts. One gives Simple Interest and another gives compounded Interest. Interest rate of both the accounts is 8% and deposited for 20 years.

In Simple Interest, You will earn interest of Rs 80/- at first year and by the end of 20th year your Investment would have grown up to Rs 2600/-

In Compounded Interest, You will earn the same interest of Rs 80/- but next year interest will be added to the principal. You will start earning interest for Rs 1080/-  By end of the 20th year  your Investment would have grown up to Rs 4660/-

That's the power of compounding. For the same period and same amount , Compounded return has delivered better and powerful returns.

Compounding does not provide immediate results. Start investing early and keep invested  to enjoy the benefits.

Mentotax recommends you to invest wisely and as early as possible. Compounding is a magic, your investment should enjoy the magic touch.

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It's Not My Money or Your Money, It's Our Money

Most of us know the importance of discussing  money matters. Nowadays both the members in family are earning, it is always recommend to have good financial planning and healthy money habits. We need to develop attitude to see both income and expenses are shared equally.

Mentotax recommends the following for the healthy family finance:

Include entire family in financial discussion:

Sit down together with family include your children too for jotting down family spending plan and to know your family income. Focus on things that are important for family, you will surely find ways to cut the expenses and improve your savings. Teach money management to children from young age.

Have separate expenses account to monitor the progress. Share equally among the earning members.

Keep Your Life Goals in Front:

It's always important to know, what we need as a family together and ways to acheive it. Financial goals should be clearly defined so that earning members can fund to accomplish the goal. Always remember to keep the life goals in front.

Financial goals may be family vacation, children higher education, children marriage, retirement corpus, buying home,car etc

Save Together, Spend Together and Invest Together

When you have decided on what family is needed, it is always important to save together first and spend later. Funding should be from both the earning members so that importance of goals are felt. It will help family to know the best value of money. Investment decision should be taken wisely based on the income, savings, risk appetite of the family. Start Cultivating Investment habits in children.

Mentotax advises to always have check on the spendings, Improve your savings and Invest the saved amount in best financial products.

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Various Options Available For Investment in Gold

Gold is always gold. Investment in gold has given better returns against inflation and on long tenure. Gold can be used as hedge against inflation. There are various options available for Investment in gold. Choose your options wisely to invest.

Gold Jewellery:

Indians are very fond of gold ornaments. Purchasing the gold is one form savings for Indian household. It is always preferred to hold gold instead of idle cash. But on purchase of gold ornaments individual has to forego making charges and wastage which adds to irrevocable cost.

Gold Coins and Bars:

Gold coins and bars can be purchased from jewellers , Banks, Non Banking Institutions. Gold coins will be of 24 carat and 99.9% purity and hallmarked as per BIS standards. Banks and financial institutions may charge premium for gold coins over the prevailing rates.MMTC is recognised by Government of India for minting and supply of gold coins.

Gold Savings Scheme:

Gold or jewellery Savings Scheme comes with two options. One scheme allows you to deposit fixed sum of money for a chosen period. At the end of the tenure, jeweller will add bonus. You can purchase gold equivalent to the value accumulated from the jeweller. Another scheme allows you to accumulate gold in terms of weight say 3 grams per month for fixed tenure. You can purchase jewellery equivalent to accumulated weight by end of the tenure without wastage or making charges.

Digital Gold:

Digital gold is purchasing of gold coins and bars online. Instead of physical possession gold is held online in individual account. Digi Gold is offered by paytm, phonepe and other websites. It is easy to buy and sell online. Digi Gold has various advantages like safety, liquidity.

Gold ETF:

Gold Exchange traded fund is a open ended funds that are traded in the major stock exchange. Gold ETF funds are units representing physical gold which may be in dematerialised form or paper form. Each unit of gold ETF represent one gram of gold. Individual can buy gold ETF and store in demat form.Gold is available at the international rate and there is no premium added to the rate. Gold ETF does not attract making charges or wastage.

Gold Schemes by Government:

Government of India has recently launched Gold related schemes like gold monetisation scheme, Gold sovereign bond scheme.

Gold monetisation scheme works like a gold savings account. Individual has to deposit gold in banks which will earn interest on the deposit. Individual can invest any form of gold like jewels, coins, Bars.

Gold sovereign bond scheme is alternative investment for purchasing Physical gold. Individuals earn fixed interest rate of 2.5% on the initial investment. Upon maturity investors can redeem for cash or sell it on any stock exchange. Gold sovereign bond is held in demat form.

Gold Mutual Funds:

Gold Mutual Funds are scheme that mainly invest in gold ETF and gold related companies. Gold Mutual Funds do not invest in physical gold.Gold Mutual Funds can be purchased via systematic Investment Plans.

Mentotax recommends to hold 2 - 5% of gold in your portfolio. Diversification in various asset classes are always preferred.

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Is it Good to Invest Hard Earned Money in Gold?

Before we make investment in gold, we need to know Why to invest in gold? What are the different ways to invest in gold?

Gold is a part of every house in India. People invest in gold for various reasons like high liquidity, Tangibility, Hedging, Diversification, Small Investment and wealth creation.

Investing in gold is good because it is hedge against inflation. Over the years investment in gold has given better returns beating the rate of inflation. Gold rate was Rs 14792 per 10 grams on April 2009 and it is Rs 30200/- per 10 grams today. Gold has delivered a return of 7.4% CAGR (Compounded Annual Growth Rate) over the last 10 years. Gold has given good return on investments over long term.

Gold is negatively correlated with equity investments, when equity is delivered poor, gold has performed better. Gold is used as hedging instruments at the time of recession. Gold prices are less volatile compared to the equity investments.

It is more liquid as there is always demand for the gold in global markets. Gold can be pledged in financial institutions for immediate cash. It can be accumulated even in small amount of less than Rs 500/- so Gold is accessible asset for all class of people. Gold has appreciated over the years by creating wealth to the person who possesses it for long period.

Gold is also one of the asset classes which should be in your portfolio for better diversification.

There are some disadvantages in gold investment too. Physical Gold may not generate income on investment, only capital appreciation. People may lose money in commissions and charges while buying gold jewelry, Storing of large volume of gold safely may be difficult and Individuals has to pay 3% GST on value of gold purchased.

Mentotax recommends to have at least 2 -5% of your portfolio in gold and gold related investments. Capital gains on the gold investment are subject to Income Tax.

If Gold is held for less than 36 Months, Capital gains are added to the income of the individual and taxed as per the applicable tax slabs

If Gold is held for more than 36 months, Capital Gains are taxed at 20% along with the applicable cess and surcharge for the gains.

Wait for our next blog to know more on different ways to investing in gold.

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Is Your Financial Goal SMART?

Having SMART Financial Goal will help you in understanding what you need to achieve, when and Where to invest and how much you need to achieve the life goal.

SMART (Specific, Measureable, Attainable, Realistic and Time Bound) Financial goals are Specific future need that requires Specific sum of money at the Specific Period. Financial goal must have all the three aspects.

Example: Down payment for car requires sum of Rs 2 Lakhs after a year.

Specific Goals: – Your goal should be specific and it is the first and important element of the goal. Make sure your goals are not generic but more specific.

Example:

I should become rich – General Goal.

I need to invest Rs 12,000 per month to have retirement corpus of Rs 1.00 Cr after 30 years. That makes me rich – Specific Goal

Measurable Goals: Your goal should have a target so that it can be measured. Measureable goals are more successful in nature. When you set a goal and start working to achieve it, It should have specific target to monitor your progress.

Example:

I need Rs 2, 50,000 for family vacation in 12 months – Specific Goal

You require Rs 2, 50,000 for family vacation in a year time. So you need to save Rs 20000 per month for 12 months to achieve the goal. Your goal is measureable in terms of money and time.

Attainable Goals: Your goals should be achievable and goals should be aligned with your income and expenses. Attainable goals will push you to work and save further to achieve it. Identify the steps that are required to reach your goal.

Example:

You need to save Rs 20000 per month to achieve the goal. Cut your expenses to boost the surplus. You can park your surplus in instruments to fund the goal.

Realistic Goals: Your financial goals should be realistic. Know your capabilities, Priorities and stretch yourself to achieve it.  Don’t take too much risk in achieving your goal. Goals get changes as time passes. So set a realistic goal to achieve.

Example:

You have never gone a foreign vacation, going for a foreign vacation is a realistic goal. It motivates you to achieve the goal.

Time Bound: Your financial goal should be time bound. Setting goals with the timeline will help you to monitor the progress and attaining it.

Example:

Going for family vacation after 12 months is time bound. You will be able to accomplish goal after by saving Rs 20,000 for 12 months.

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Say Yes to National Pension Scheme (NPS)

National Pension Scheme is a government sponsored Pension Scheme, which was launched on January 2004 for Government employees and later made open for all the section of individuals in May 2009. National Pension scheme is under the purview of PFRDA (Pension Fund Regulatory and Development of India). NDSL is the central record keeping agency (CRA) for NPS. It is a perfect solution for retirement planning.

National Pension Scheme has got two types of accounts

Tier 1  and Tier 2

Individuals can opt for only Tier 1 or Both Tier 1 and 2. PRAN (Permanent Retirement Account Number) is allotted for all subscribers of NPS .Tier 1 account is the mandatory account, contributions cannot be withdrawn until individual attains age of 60. Partial withdrawal is permitted only on extreme personal needs. Minimum contribution of Rs 500 and at least Rs 1000/Financial Year is compulsory. Tier 2 account is Voluntary Savings contribution account. Invested portion can be withdrawn at any time. Tier 2 Minimum contribution is Rs 250.

NPS Contribution are invested in Equity, Government Securities and Corporate debts. So Individuals investing in NPS get wide range of diversification, Risk mitigated returns when compared with other retirement solutions. Contributions to NPS are managed by the Pension Funds. Subscribers can select their own fund managers.

NPS offers two choices of Investment:

1. Active Choice: This option allows the investor to decide how the money should be invested in different assets. (Equity (E), Government Securities (G), and Corporate debts (C))

2. Auto choice: This is the default option which invests money automatically in line with the age of the subscriber across varies sectors.

Tax Benefit available to Individuals:

Individual Subscribers of NPS can claim tax deduction up to 10% of gross income under Sec 80 CCD (1) with in the overall ceiling of Rs. 1.5 lac under Sec 80 CCE.

Corporate Subscriber:

Additional Tax Benefit is available to Subscribers under Corporate Sector in 80CCD (2) of Income Tax Act. Employer's NPS contribution (for the benefit of employee) up to 10% of salary (Basic + DA), is deductible from taxable income, without any monetary limit.

Exclusive Tax Benefit to all NPS Subscribers u/s 80CCD (1B)

Additional deduction for investment up to Rs 50,000 in NPS (Tier1 account) can be claimed under subsection of 80CCD (1B). This is over and above the deduction of Rs 1.5 lakh under section 80C of Income Tax Act.

Mentotax recommends all the individuals to open NPS Account for accumulating the retirement corpus. Because of advantages like well regulated, Flexible for investments, Diversified portfolio, Tax benefits and better returns.

Mentotax advises EPF (Employee Provident Fund) Subscribers to open NPS Account and contribute minimum Rs 50,000 in Tier 1 and Contribute Voluntary of Rs 50,000 in Tier 1 to claim tax benefit under sec 80 CCD(1B) of Income tax act. Individuals in 30% Tax Bracket can save tax up to Rs 15600 , Assesse in 20% Tax Slab can save Rs 10400 and person in 5% Tax bracket can save Rs 2600 by contributing to Tier 1 of NPS. 

Person with Taxable Income up to Rs 5.00 Lakhs is exempted from paying tax from Financial Year 2020. Better utilize the NPS to reduce your taxable income and save tax up to Rs 13000/-

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Payoff Your Credit Cards

Pay off your credit cards:

If you wanna acheive financial freedom, Pay off your credit cards!!

If your using credit cards, you are utilising the future income today. It is a debt. Any form of debt is a burden for individuals.

Credit card gives interest free credit for 50 days by charging the annual fee.You should be very careful when your utilising the credit card, Few steps to follow for paying off your credit cards.

1) Pay your bills on time to avoid paying late fee and interest. Paying only the minimum due will help avoid penalty but not interest (32% to 40%) on the outstanding dues.

2) If you start paying minimum due amount, you lose interest free credit on the following month. You will end up paying more than what you utilise using cards.Control your expenses and spend as much as you can so that you can pay full by end of the month. Your credit card utilisation should be less than 30% of your income.

3) Never withdraw cash from credit card, you will be charged a fee for cash withdrawal and also interest for the amount withdrawn from day one.

4) Full utilisation of limit , Delayed payment of bills will affect your credit score. It is advised to keep your spending under limit and payment in full.

Proper understanding of your income and expense will help you to avoid using credit cards. start planning your weekly budget and monthly budget

Mentotax recommends to utilise the Investment not linked to financial goals to pay off the credit card bills. Mentotax also advises to you credit cards only for emergencies not for recurring expenses.

Financial independence can be achieved only when your free from debts.

Never fall prey to cashback, reward points and other offers by credit cards. It will keep you under debt always.

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Start Spending Money For Yourself

You can save for future but never forget to  spend some money on things that you love today. We earn for the betterment of our livelihood.

Key to financial freedom is to save and spend with intention

Plan your monthly budget according to your income and expenses. Allot some funds on your monthly budget for personal fun and entertainment. Personal fun includes all things that's brings you and family members together, Good food, Movies, Trips. Things that makes you feel relaxed and composed. Things that boost your productivity and efficiency.

Fun account is the intentional spending account. Mentotax recommends to have dedicated Fun Account ( savings bank account) to finance and track your expenses. It will help you on how much to spend with what you have on hand.

Few people will spend more money and save less. Even there are people who save more and have lot of money but never spend for themselves. It is always advised to save and spend with intension.

"Financial Planning is all about financing your needs and wants today with your needs and wants tomorrow"

If you rewind 5 years down the line gadjets, cars, shares and jewellery will bring less memories compared to the trips and parties you went with family and friends! so spend on things that bring memories and connect with people.

Mentotax recommends you to dedicate 5% of your income for fun account.

Having one's own happiness will nurture you to take next step in life and compete against yourself.

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