How Does a Money Market Account Work?

If you’ve made your cash reserves and simply have saved in a traditional savings account, maybe you need to reconsider how you’re storing your cash. Opening a money market account is an advanced step from a savings account once you’ve stored a certain amount of cash.

However, this type of account comes with certain pros and cons, therefore, it’s necessary to understand what it is and how it works. Let’s explore more with Mehul Mathrani.

What does a money market account do?

The most interesting aspect of opening a money market account, mainly compared to a savings account, is that it normally offers a higher rate of interest. Also, it offers you the flexibility to access your cash as you need it.

Money market accounts considered a low-risk way to accumulate your money, similarly like a regular savings account, as it offers FDIC-insured up to $250,000. In case you choose a credit union to open an account, your funds are correspondingly insured by the National Credit Union Administration.

Your interest can accrue day-to-day, monthly, quarterly, or annually, it all depends on your financial institution. The more regular the accrual, the more money you’ll make over time, and all thanks to the compounded interest.

To credit cash into your money market account, you can choose any method you use with other savings accounts, which includes electronic transfer. In case your account is with a financial institution that has physical branches nearby, you can also choose check and cash deposits.

Another benefit in comparison to a savings account is that you will get both a debit card and a chequebook that is associated with your account, letting you make withdrawals at your convenience.

This preserves your funds enormously liquid so you can easily use them during a financial emergency. However, it comes with some limitations on how frequently you can make withdrawals, so make sure to keep yourself updated with the restrictions that occur when you choose a money market account.

Check Out the best money market accounts for 2019

Let’s explore 2019’s best money market accounts. You will find a huge variety of banks offering diverse minimum deposits and a few of the most competitive APYs on the market. Here is a brief overview of Mehul Mathrani top picks to help get you started.

BBVA Compass

BBVA Compass at present offers an APY of 1.80%. You can get your account open online with a $25 minimum opening deposit. They permit you up to 6 withdrawals per month charges free. You can also take the benefit of their award-winning mobile banking app and can do 24/7 access. It’s a great option for those who are just beginning to start their longer-term savings.

CIT Bank

CIT Bank is considered one of the lowest minimum balances as compared to other online money market leaders. It allows you to open your account with at least $100 and enjoy the benefit of a 1.85% APY. And above, there are no charges at opening or for monthly servicing.

AbleBanking

This is a money market account with allowing a low minimum deposit of $250 only. Combined with a 1.0% APY, it’s ideal for new savers. An added advantage is that you get same day transfers if you have one more AbleBanking account.

Ally Bank

Ally allow a money market account with 0.90% APY and everyday compounding interest. And not like most MMA, there’s no monthly fee, no minimum deposit, and the APY applies to all balance tiers.

TIAA Bank

The money market account holders at TIAA Bank (formerly EverBank) earn the benefit of 1.5% for the first year as one of the higher APYs. To be eligible, you required a $1,500 initial deposit from a non-TIAA Bank account. After the completion of the first year, your interest rate decline to 1.05% only.

Capital One 360

Your APY differs here as per your deposit amount. You’ll get a rate of 0.85% APY up to $10,000. Once you hit that edge, it increases to 1.60%.

Final Words

So, are you interested in opening a money market account? If yes then do not forget to consider these to top picks from Mehul Mathrani to get started as a beginner.

Originally Posted: https://www.allperfectstories.com/money-market-account-work/

How to Get a Business Loan

A business loan can be really convenient for the self-employed as these can be used for several purposes which include business expansion, meeting operational expenses, providing fresh working capital, purchasing inventory, etc. However, getting a loan is quite harder for the self-employed as compare to a salaried professional, as it involves higher risks.

Let’s explore a list of factors to keep in mind while applying for a business loan with Mehul Mathrani.

Prepare a good business plan

A well-framed business plan is advisable as it will help you in convincing the lender to grant you the funds. Your business plan should clearly define your project’s objective, marketing and development strategies, revenue generation plans, etc. Since lenders consider your revenue generation plans to analyze your business’ viability and repayment capacity, so make sure you have a strong revenue model that explains how you would be repaying the loan on time and your anticipated use of the funds.

Be ready with documentation

Even if you have a perfect business plan with well-explained goals, lack of proper documentation can lead to a complete rejection of your business loan application. Before applying for the loan, make sure that you carry all the required documents which the bank may ask for. Documents needed to complete the process include last few years’ KYC documents, entity’s proof, income tax returns, audit reports, bank statements, etc.

Check your cash flows

Your businesses’ cash flow forecasts play a great role in your business loan approval. A solid history of high revenue generation increases the company’s chances of getting the loan approved. In case your business has a weak history including irregular or low cash flows, you may either have to pay a higher interest or your loan application might get rejected. Therefore, before you apply for the loan, double-check the cash flow statements and forecasts to make sure that your cash flow statement would be enough to repay your loan along with the interest levied.

Look at other borrowing options

As different lenders have variable parameters to assess your business’ creditworthiness. Therefore, do not limit your loan applications to specific lenders. NBFCs, and Digital lenders along with banks, also offer a platform to compare and choose the right business loan and also the suitable lender.

Assess your creditworthiness

Banks and financial institutions consider personal as well as your business credit history while assessing a loan application. A lower credit score shows you as more likely to default and can prove to be unfavorable to your loan approval chances. Hence, it is advisable to evaluate both your and your business credit report to ensure that your loan application isn’t rejected due to lack of credibility.

Identify risks that lenders assess

When you apply for a business loan, make yourself aware of various traits which may be risky for you. Possibly, it includes weak accounting system, low vintage, repetitive defaults in credit history or irregular revenue. Ensure that your business is not considered risky due to the presence of any such traits.

Final Words

So, these are the few useful tips from Mehul Mathrani, to make your business loan application win-win.

How to Finance a Small Business

According to Mehul Mathrani - financial specialist, most of the time small businesses come up short at a higher rate than enormous organizations, consequently default chance is likewise high. This is the reason that private ventures have less access to credit than bigger organizations since loaning to an independent company is more hazardous and more costly than loaning to bigger organizations.

Disregarding every one of the obstacles, there are many financing alternatives accessible to little organizations. We should take a glimpse at some of the financing choices and manage the issue of 'How to Finance a Small Business?'

OWN CAPITAL / SAVINGS

Number one and the least demanding wellspring of a fund for a private venture is one's own investment funds. At any phase of a business, when a business needs capital, a business person can take advantage of his own benefits, for example, – stocks, common assets, land or adornments – to fund-raise. He can either pitch the advantages for fund-raise or take a credit on any of the benefits. Business people can put such close to home capital in their business as value capital, or they can offer credits to their very own organization.

FAMILY & FRIENDS

Parents, sibling, friends & extended relatives who have who have abundance money to loan might will back your business. They may loan the cash to the business as an advance or might will take a value stake in the organization.

BANKS

Banks have an exceptional office committed to giving advances to little organizations. To get a credit from a bank, organizations need to meet all requirements for bank's base criteria. Each bank has its very own criteria concerning procuring potential, yearly turnover, financial assessments, and so forth. There are numerous sorts of credits that banks offer, for example, working capital advances, term advances, advance against property, and so forth. Organizations can pick the sort of credits according to their necessity.

SMALL BUSINESS LOANS

Every nation has certain banks or establishments devoted to giving credits just to independent ventures, a case of such organization in India is SIDBI, in the USA there is SBA. The primary focus of these organizations is to loan cash to private ventures who have not possessed the capacity to acquire financing on sensible terms through typical loaning channels. These substances, for the most part, give cash as credits as it were.

PERSONAL LOANS

In the event that an organization can't get a business credit, the business person should seriously think about getting an individual advance and utilizing it in their business. The business visionary must have a decent record of loan repayment for raising an individual credit. We can get an individual advance by selling a home, gems, and so forth.

TRADE CREDIT

Some independent companies may have providers willing to offer using a loan. Such credit may extend somewhere in the range of multi-month to three months. This is a decent strategy for little organizations to satisfy here and now subsidizing necessities. This is a cheap strategy for a fund for an independent company.

VENTURE CAPITAL FIRMS

Investment firms are a sort of private value firms, the however investor gives assets to just those organizations who are in the beginning times of their business cycles. These are rising little organizations with high development potential. Funding firms put resources into developing organizations in return for value, or a proprietorship stake. Little start-up firms may get an arrangement of rounds of financing from investment firms.

Final Words

These are the few sources to avail finance for business. You can choose one of the sources according to your need and requirement. Mehul Mathrani says, before making any final decision, it is essential to consider all the points and circumstances. In the end, with intelligence and knowledge, you will win the game.

Originally Posted: https://www.allperfectstories.com/sources-finance-small-business/

Importance of Financial Planning in Your Life

Financial Planning plays key role in making a financially stable life. With financial planning you can easily evaluate your long term and short term goals and able to create a balanced plan to meet those goals.

Let’s explore a few major reasons for adapting financial planning in life with MehulMathrani.

Income

With planning, it becomes easier to manage income more effectively. By managing income, you will understand how much money is required for tax payments, other monthly expenses, and savings.

Cash Flow

Experts advise you to Increase cash flows and you can do it by carefully monitoring your expenses and spending patterns. Tax planning, careful budgeting, and prudent spending will help you keep more of your hard earned cash.

Capital

Capital is essential to run a business successfully. And this is possible with the increase of cash flow. Everyone knows that an increase in cash flow can lead to an increase in capital. It allows you to consider investments in order to improve your overall financial well-being.

Family Security

Providing financial security to a family is an essential part of the financial planning process. According to experts, the proper insurance coverage and policies in place can provide various benefits to you and your loved ones. 

Investment

To make a good financial plan you need to consider your objectives, personal circumstances, and risk tolerance. It will help you to choose the right types of investments to fit your needs, personality, and goals.

Standard of Living

The savings created from good planning can prove valuable in hard times. Suppose you have taken an insurance policy. And there is enough insurance coverage to replace any lost income. Especially when a family bread earner is unable to work.

Financial Understanding

Better financial understanding is possible when you set measurable financial goals. It will give your budget a whole new approach and improve control over your financial lifestyle.

Assets

Having more assets than liabilities is a desire of every individual. Unfortunately, many assets are attached to liabilities. So, it becomes essential to evaluate the real value of an asset. The knowledge of canceling or settling the liabilities comes with the understanding of your finances. However, the overall process helps in building assets that don't become a problem in the future.

Savings

Saving is the key! But unexpected financial changes can still throw you off track. Therefore, it is better to have some investments with high liquidity. You can make a use of these investments for educational purposes or in times of emergency.

Ongoing Advice

Building a relationship with a financial advisor you can trust is vital to achieving your goals. Your financial advisor will guide you to assess your present financial circumstances and frame a comprehensive plan customized for you.

Final Words

The first step in developing your financial plan is to meet with an advisor or expert like Mehul Mathrani. This financial process begins with an analysis of your present financial circumstances, future goals, anticipated changes, and results in your customized plan.

Originally Posted: https://www.allperfectstories.com/financial-planning-your-life/

5 Factors to Consider Before Investing in Mutual Funds

Nowadays, almost everyone desire to earn extra income and therefore most people choose different stocks, bonds or other investment plans. According to Mehul Mathrani, in today’s world investing in the mutual fund is one of the best and safest decision. Especially, for those who do not want to take high risk in the investment. However, it is only possible if you invest in mutual funds at the right time.

Let’s find out what are the factors that decide the best time to invest in Mutual Funds.

Time is Key

Time is vital while making an investment plan. If you are planning to invest for the short term, try out liquid funds or short-term debt funds, where your money would be secure and grow conservatively. Over three years for any investment horizon, choose an equity mutual fund for best returns.

Make Investments Goal-Oriented

According to experts, you must plan your investment on the basis of your goal when you invest in mutual funds. In this way, it will be easy for you to pick the right kind of fund. Some people consider long-term goals such as retirement, while some people consider short-term goals. Therefore, buying or selling a mutual fund should be based on your need and requirement instead of a fund’s popularity or a friend’s recommendation.

Read Fine Prints

Once you have decided to invest in mutual funds, it is advisable to read the fine prints carefully and understand all the expenses, exit load, and any other fees. And do not forget to make a well-research before selecting your fund. If in doubt, go to a mutual fund advisor Mehul Mathrani that will help you in deciding a fund based on your need.

Don’t Go Only By Fund Ratings

Many professionals and investment analyst advise not to follow fund ratings blindly as they fluctuate. Therefore, it is better that you research about a fund’s long-term performance and only after that choose the fund which is suitable for you.

Choose Direct Plan

If you are a knowledgeable investor and know how to manage and pick your funds, then only go for a direct plan. This means purchasing a fund directly from the company without taking help of any intermediary or broker. However, for some people, this may prove tricky as they may end up choosing the wrong fund, but it will help you enjoy the higher returns and a lower expense ratio. In case you’re in doubt, let an expert help you shortlist a regular plan where you will also get such services as a fund dashboard to track your fund performance.

Final Words

So, these are the five factors you must consider before investing in mutual funds. Finance expert and a leader Mehul Mathrani say don’t focus on investing rather focus on becoming an intelligent investor. In the end, only an intelligent investor can create a winning game with the investment.

Have a Successful Investing!

4 Things you must Consider Before applying for a Credit Card

Today, almost everyone carries a Credit Card as it has become one of the essential financial tools in recent years. From purchasing groceries to booking flight tickets, credit cards use as a mode of payment on account of the convenience and security they provide. If you’re one of those who is seeking for the best credit card, but confused like all the other applicants for a credit card, no worries, there is always a key to a lock. Your job is to find it.

According to Mehul Mathrani, before you choose a credit card, you must make a great research. Furthermore, he says, it is essential for every credit card holder to know how to make the best use of credit card otherwise you may find yourself landing in a financial doom.

Let’s discuss a few important things about the credit cards

Multiple cards to choose from

                                 

 There’s a wide range of credit cards offered by different financial institutions. You need to look for the most suitable card as per your requirements. Due to a wide range of options make difficult to find the most suitable card. If an individual wants a most suitable card, he must analyze his spends to see where it is possible to earn sizeable cash back, rebates, miles, rewards points, discounts, etc. Furthermore, if you’re a frequent traveler, then a travel credit card will make your trip more enjoyable without burning a hole in your pocket. And in case you are a Shopaholic, you will get a chance to enjoy a rewards credit card for shopping trips that give you cash back on everyday purchases.

It’s a kind of readily available loan

Nowadays people prefer Credit card over cash payment and its demand is increasing with every day. Credit cards can be used to buy everything right from the groceries to fuel, flight tickets, movie tickets, even for booking a table in your favorite restaurant, and much more. Whether it is a human or a credit card, everything comes with quality and flaws. In case you treat credit cards as extra money and forget that this is basically a form of borrowing, you can go into a debt. Banks give you a credit limit, an interest rate and a grace period. Every individual should manage his credit card debt efficiently. And you can do it by paying more than the minimum amount along with the interest imposed on it at the end of every month.

You should know about interest rates

 A credit card’s interest rate is the value you pay for borrowing money. The interest rate is levied on all the purchases made through credit card and it is called Annual Percentage Rate i.e. APR. If you want to calculate how much interest you’ll pay each day, you can convert your annual percentage rate to a daily percentage rate by dividing it by 365. Furthermore, if you’ll carry forward your APR month to month, all your perks and rewards will be waived off and you will be left with a good credibility.

How a grace period works

A grace period is the time period during which a credit card company doesn’t levy any interest on the purchases if you pay off the new balance in full before the due date. It starts at the end of a billing cycle to the next payment due date. In case you lose your grace period by not paying your full balance by the due date, you will be levied interest on the unpaid portion of the balance.

Final Words

Mehul Mathrani says, if you want to enjoy life without getting into debt, it is advisable for you to consider these points before buying a credit card.

Things to Consider Before You Make Investing Decisions

Who doesn’t like to earn extra money? With a good investment plan, you can double your savings and income, but sometimes due to fluctuation in the investment market or due to wrong investment decisions, we lose the money. Therefore, Mehul Mathrani, advise everyone to consider few essential points before putting your savings on the investment market.

Your Age

Needless to say, this is the most important factor that you need to consider before making investing decisions. Investing at a younger age has got its own benefits. For instance, you have the opportunity to wait longer while your investment bears fruit coupled with having a lot of savings to invest. Most people are not aware that if you invest in the younger age you get more time for compound interest to work well for you? In case you don’t know how this works, you must hire a financial advisor to understand everything in detail.

Risk tolerance

Risk factor plays a significant role in investing decision, the higher the risk of your investment, the more chances of getting a higher return. However, not every investor like taking higher risks with their savings.

If you are one of those who can’t take a risk of losing money for the opportunity of getting profits on the investment, aggressive investments in the market such as growth stocks are the best option for you. So, before you make an investment decision, it is advisable to consider the risk associated with what or where you want to invest.

The time before you’ll need the money

Needless to say, most people invest for retirement purposes, but some investments that people make have short-term goals. Another important factor that an investor needs to consider before making investment decisions is the time period that you have before converting your investment into cash.

If you think you do not have much time and you cannot afford a loss, then you must choose some less risky investments such as bonds. Unfortunately, if you lack such expert advice, you should get in touch with an expert investor financial adviser for assistance.

Your investment objective

Why are you looking for investment? Is there any particular reason you have for doing that? Before you decide to put your savings in any instrument of your choice, it is advisable to carefully determine the investment objective that you have.

If your goal is to simply keep your money secure, the investment options such as bonds or fixed deposits that are known for providing moderate returns would be a good option for you. However, if you are seeking higher returns and actually ready to take a risk, you can go ahead to invest in shares or mutual funds.

Comprehension of financial products

Nowadays, you will find a wide range of financial products that provide a lot of benefits, but on a closer examination, they are complex in nature. For this reason, before you make an investment decision, it would be an advantage for you if you do a good research and study about these products before adding them in your portfolio.

A clear understanding of the particulars of these products will not only fulfill all your needs but also provide you with higher profitability. Suppose, if you are only interested in a scheme like life cover, a term life insurance that anyone can avail at a lower cost will be great for you. In case you are only looking for some returns with coverage, then you need policies that cost somewhat more.

Bottom Line

So these are the tips from Mehul Mathrani, you must consider before making your investing decisions.

Originally Posted: https://www.allperfectstories.com/make-investing-decisions/