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10 essential rules of personal finance that you should follow

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10 essential rules of personal finance that you should follow

Insurance and retirement planning are key components, ensuring financial security in the long run. Understanding tax implications and continuous learning about financial matters contribute to a solid foundation. Personal finance empowers individuals to make informed choices, build wealth, and achieve a secure financial future.

In the dynamic landscape of personal finance, navigating the complex terrain of income, expenses, and investments can be challenging. However, adopting a set of tried-and-tested rules can pave the way for financial success and stability. In this blog, we’ll explore ten personal finance rules, aiming to empower individuals to make informed decisions and build a secure financial future.

Budgeting is key: One of the fundamental pillars of personal finance is budgeting. Creating a monthly budget helps individuals track their income, categorise expenses, and identify areas for potential savings. In the Indian context, where diverse spending patterns and cultural nuances exist, a well-crafted budget serves as a roadmap for financial discipline. Allocating a portion of income towards essential expenses, savings, and discretionary spending ensures a balanced financial life.

Emergency fund: In a country where economic uncertainties are prevalent, having an emergency fund is crucial. Unforeseen events like medical emergencies, job loss, or unexpected expenses can disrupt financial stability. Aim to save at least three to six months worth of living expenses in a dedicated emergency fund. This financial cushion acts as a safety net, providing peace of mind during challenging times.

Insurance is a necessity: Insurance is often overlooked but plays a pivotal role in safeguarding one’s financial well-being. Health insurance, life insurance, and property insurance are essential components of a comprehensive financial plan. Adequate coverage ensures that unforeseen events don’t lead to financial ruin, providing financial protection for you and your family.

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Clear debts strategically: Managing debt is a critical aspect of personal finance. While not all debts are harmful, it’s essential to prioritise and clear high-interest debts like credit card balances. With the burden of interest rates, clearing such debts should be a priority. In contrast, low-interest debts like home loans may be managed strategically, considering their potential tax benefits.

Invest early and wisely: The power of compounding works best when time is on your side. Start investing early, even if it’s a small amount. Understand the risk-return tradeoff and diversify your investments across various asset classes. Options like mutual funds, Public Provident Fund, and Equity-Linked Saving Schemes (ELSS) can be explored based on individual risk profiles and financial goals.

Retirement planning: In a culture that traditionally emphasises familial support, planning for retirement can sometimes take a back seat. However, it’s essential to build a retirement corpus to maintain financial independence in the later years. Invest in retirement-focused instruments like the Employees’ Provident Fund (EPF), Public Provident Fund (PPF), or National Pension System (NPS) to secure a comfortable post-retirement life.

Stay informed about tax planning: In India, the tax landscape is intricate and ever-changing. Staying informed about tax-saving instruments and exemptions is crucial for optimising your financial plan. Leverage tax-saving options like the Equity-Linked Saving Scheme, National Pension System, and tax-saving fixed deposits to minimise your tax liability while maximising your savings.

Continuous learning: Financial literacy is an ongoing process. Stay informed about the latest market trends, investment opportunities, and changes in financial regulations. Attend workshops, read financial literature, and seek advice from financial experts to enhance your knowledge and make informed decisions.

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Plan for big life events: Whether it’s buying a home, funding your child’s education, or planning a dream vacation, financial goals vary widely. Create a roadmap for achieving these goals by setting realistic timelines and saving systematically. Explore investment options that align with your goals, ensuring you’re financially prepared for significant life events.

In conclusion, mastering personal finance requires a combination of discipline, knowledge, and strategic decision-making. In India, where cultural and economic factors play a significant role, adopting these ten personal finance rules can pave the way for financial success. From budgeting to strategic investments, each rule contributes to building a secure financial future. By embracing these principles, individuals can navigate the complexities of personal finance with confidence, ultimately achieving their financial goals and aspirations.

Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited

 

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Published: 27 Jan 2024, 12:39 PM IST

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Finance

Rana Abbasova, Adams aide whose home was raided, is cooperating with feds’ campaign finance probe

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Rana Abbasova, Adams aide whose home was raided, is cooperating with feds’ campaign finance probe

An aide to Mayor Adams whose home was raided amid an FBI probe into his 2021 campaign is cooperating with federal authorities, a source with knowledge of the matter said Monday.

The aide, Rana Abbasova, is one of several people whose residence was raided as the feds probe allegations that the Turkish government funneled illegal cash into Adams’ campaign through straw donors.

The mayor has not been accused of any wrongdoing and strongly denies any suggestion of impropriety in connection with the investigation.

It’s unclear what Abbasova may have discussed with the feds, though her cooperation pertains to the general allegation of illegal Turkish government-financed contributions to the mayor’s campaign, according to The New York Times, which first reported her cooperation. Her lawyer Rachel Maimin declined to comment.

Brendan McGuire, the mayor’s former chief counsel at City Hall who now represents him and his 2021 campaign in the FBI investigation, confirmed Abbasova’s cooperation, but said it’s “not a new or meaningful development.”

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Abbasova, the director of protocol in Adams’ International Affairs Office and the mayor’s unofficial liaison to the local Turkish community, was put on unpaid leave days after her home was raided in November, according to two sources with knowledge of the matter. She remains on unpaid leave, and her position at City Hall has not been filled, they added.

The sources spoke on condition of anonymity due to the sensitive nature of the Adams campaign probe, which burst into the headlines when the home of the mayor’s chief campaign fundraiser, Brianna Suggs, was raided in November. Days later, Adams had his own electronic devices seized by the feds.

Abbasova received three tickets in New Jersey in January for offenses linked to driving a for-hire vehicle, the Daily News previously reported.

While she’s been on unpaid leave, another Adams aide targeted by the feds in a separate matter went on paid sick leave after her Bronx homes were raided in February. That aide, Winnie Greco, has since returned to work at City Hall, receiving a raise earlier this month.

McGuire noted the mayor’s administration reported to investigators late last year that Abbasova had engaged in “improper conduct.” Sources confirmed at the time that the conduct in question was Abbasova instructing other Adams staffers to delete text messages they’d exchanged with her.

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“It is our understanding that Ms. Abbasova has been talking to investigators since her improper conduct was reported by the administration in November,” McGuire said in a Monday night statement. 

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Finance

Trends in residential solar finance, equipment and maintenance

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Trends in residential solar finance, equipment and maintenance

Solar informational site SolarReviews released its annual survey, sharing results gathered from a group mostly represented by residential solar installers, as well as commercial installers, equipment providers, and utility-scale installers. SolarReviews operates a Solar Calculator that enables prospective customers to have a snapshot of the benefits of adding solar to their roof based on customized data for their area.

Finance 

With higher financing costs industry-wide, 54% of U.S. installers said customers were less likely to take a solar loan over the past year, while cash deals are up. About 49% of sales reported were cash deals, while 41% were loans. HELOC, PACE loans, power purchase agreements, and leases combined for 10% of reported solar sales. 

The top financing providers used were Credithuman (15%), Mosaic (14%), Sunlight Financial (9%),Dividend (8%), and Clean Energy Credit Union (8%). 

Typical loans for loaned systems varied widely depending on whether dealer fees were assigned. Average terms are seen below. 

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Image: SolarReviews

Heightened cost of finance has pressed the residential solar industry. About half (49%) of installers said demand went down in 2023 versus 2022.

In California, where rates paid for exporting solar production to the grid were slashed by about 80%, about 69% of installers reported lower sales in California in 2023 versus 2022. However, 68% of installers reported including battery energy storage with their solar installation, about double the national average. Installers report a median payback period of eight years for solar systems with a battery, while standalone solar systems have a longer median payback period of about 10 years.

California was not the only state to cut rates for solar exports, a process known as net metering. Georgia, Arizona, Kansas, Arkansas, and Wisconsin all noted an increase in installed systems not tied to a net metering agreement.

Top products

As for the top equipment brands in residential solar, SolarReviews surveyed installers based on five criteria of performance and quality, brand name reputation, product warranty, pricing, and product availability from distributors. Based on the five criteria, SolarReviews listed Qcells as the top performing panel brand.

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Installers said the top five most-used panels were Qcells (53%), REC (41%), Canadian Solar (35%), Mission Solar (29%), and JinkoSolar (20%). About 19% of solar installers offer one panel brand, while the majority provide alternative options to meet the needs of their customers.

For inverters, the top five most-used were Enphase (62%), SolarEdge (43%), SMA (23%), Sol-Ark (21%), and Tesla (21%). Tesla made a notable leap up into the top five, gaining a larger market share than Fronius and Generac.

Enphase was also listed as the most commonly used battery energy storage provider, offered by 46% of installers. This was followed by Tesla (42%), SolarEdge (35%), FranklinWH (29%), and Fortress Power (18%). A sizeable market share was also held by SunPower, Generac, LG Energy Solution, and HomeGrid.

Image: SolarReviews

Maintenance

Given that solar is often a 25-year investment, post-installation services are a critical feature in a solar agreement. About 96% of installers have access to system monitoring, while 63% said they proactively check their customers’ installations at least once per quarter to ensure they are working.

The most common reasons for service, in order, were inverter hardware failures and replacement, inverter software and setup issues, battery software updates, communications and monitoring fixes, roof leaks, battery hardware failure or replacement, wiring issues, and broken or underperforming panels.

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“Fortunately, when issues do occur, they are often covered by some type of warranty, leaving only 15% of cases where the customer is responsible for repair costs,” said SolarReviews.

Image: SolarReviews

Outlook

The residential solar industry looks to recover from a rocky 2023, where growth was slowed by high finance costs and unfavorable policy changes like the reduction of net metering rates.

“Some solar businesses are still reeling from the events of 2023. 22% of solar businesses say they have concerns that make them unsure whether they can stay in business in the coming six months,” said SolarReviews.

Despite this uncertainty, residential solar installers appear to have a good outlook for 2024. About 54% of surveyed installers said they expect to sell more solar in 2024, and an additional 23% said they think they will be able to maintain the same level of business next year.

Notably, surveyed installers listed pv magazine as the top trusted media platform for solar news and analysis, with 52% responding we are the preferred source. The marks the second year in a row as the most-trusted media source. We thank you for your continued readership.

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Finance

Crow Wing County is nationally recognized for financial reporting

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Crow Wing County is nationally recognized for financial reporting

BRAINERD — For the 10th consecutive year, Crow Wing County was awarded the Certificate of Achievement for Excellence in Financial Reporting and the Award for Outstanding Achievement in Popular Financial Reporting.

The Certificate of Achievement is the highest form of recognition in the area of governmental and financial reporting. The honor is given out by the Government Finance Officers Association of the United States and Canada.

The Certificate for Excellence in Financial Reporting was awarded to Crow Wing County for its 2022 Comprehensive Annual Financial Report compiled in 2023.

The award represents a significant accomplishment by a government and its management, the county noted in a news release.

“This is a testament to the type of work that is being done in our Finance Department,” said Finance Director Nancy Malecha. “This award recognizes our commitment in ensuring that our financial data and information is reported accurately, timely and provides transparency that the taxpayers of Crow Wing County deserve.”

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Crow Wing County is one of only 16 counties in Minnesota to have earned this award.

The Award for Outstanding Achievement in Popular Financial Reporting was awarded to Crow Wing County for its 2022 Popular Annual Financial Report.

The annual report extracts information from the Comprehensive Annual Financial Report and summarizes the financial position of the county in a simple, easy to read format. Crow Wing County is one of five counties in Minnesota that have received the national award.

Financial reports are available on the Crow Wing County website at

www.crowwing.gov/771/Financial-Statements

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