<h1>Personal Loan: Guide To Know Everything About Personal Loan</h1>
Let us tell you a little something about Aryan, a 24-year-old writer from Delhi
Aryan has got a new job in Mumbai and has to relocate soon. He is overjoyed and can’t wait to move to Mumbai and start a new life. Just when he is looking for accommodation, he realizes that he doesn’t have enough funds to cover his rental security, move to the new place, get furniture and necessary equipment, and his moving cost.
He doesn’t want to burden his parents by asking them for help; but he knows if he could get an instant loan online, he can comfortably pay it back with his new salary. But Aryan is not well-versed with instant loans and thinks who would even give him a loan for relocation; after all, loans are for bigger things like a new car or house.
Aryan meets his friend Diksha over coffee one evening and he tells her his struggle. Diksha suggests to him something called a Personal Loan, which is a type of instant loan.
Follow their conversation to know more 
Aryan: But What is Personal Loan?
Diksha: Personal Loans are one of the most versatile personal loans on the market today. As the name suggests, you can use Personal Loans for any personal need you may have. It can be your way out of unprecedented expenses. 
It is a type of unsecured loan, which means you don’t necessarily need to pledge collateral to secure it. It is authorized based on your income, credit history, credit score, among other criteria. 
I know people that have taken personal loans for medical emergencies, vacations, education, wedding expenses, purchasing consumer durables, etc.
Aryan: Okay, that is interesting, but where do I get a Personal Loan from?
Diksha: You can get a Personal Loan from any bank or NBFC (Non-banking Financial Company). In fact, many pre-approved loans can be disbursed instantly upon approval.
Nowadays, you can literally get a Personal Loan online with a few clicks without leaving home. A smartphone and a stable internet connection are all you need. You can also get an instant personal loan online from Freecharge. They require minimal documentation and the disbursal process is easy and instant.
Aryan: That sounds simple, but what next? How do I go about it?
Diksha: Okay, now first you have to select a lender. To have a hassle-free experience of getting a loan, it is best you check the terms of the loan on their website or app. Make sure you verify if a loan from a particular lender fits your needs or not.
Next, understand the loan amount you need. It is important you get only enough for your pressing needs and not more. After all, you only have to pay it back.
While you are at it, check your eligibility by entering some details in the eligibility calculator. You’ll just have to enter a few details like income, nature of work, credit history, and will tell you if you’re eligible for a Personal Loan or not. It can also give a rough estimate of how much you can borrow.
Aryan: I heard something about loan variables. What are Personal Loan Variables?
Diksha: Two important factors to consider when choosing a loan are your loan amount and tenor aka Personal Loan Variables. You can customize the loan amount and timeline to fix EMIs you can comfortably pay
The sooner you pay back your loan, the lower interest you will have to pay. But missing an EMI can affect your credit score, so be careful of that.
Aryan: Do you know what all documents I need for a Personal Loan?
Diksha: Normally, you will need to submit a basic KYC document such as a passport or a PAN card, proof of employment and income such as an employee ID card, bank statements, salary slips, etc. You can do this online on the lender’s website or mobile app too
Ensure all details entered in the application form are accurate to the best of your knowledge to avoid conflicts and rejection of your Personal Loan Application. You may also have to do a quick video verification as the last step before your loan application is approved.
Apart from this, every lender has different documentation requirements so it is best you read up on what is needed by them.
 Aryan: But how do I actually get the Loan Money?
Diksha: After your loan is approved, you get your loan money directly in your bank account. You can now use this money for whatever needs you may have. The disbursal from your lender into your bank account is quick and doesn’t require a lot of waiting.
Aryan: So what will you say are the Benefits of a Personal Loan?
Diksha: According to me the top 3 benefits of personal loans are:
<ul>
<li>Their flexible nature. You can use them for whatever needs you may have. You can also choose your loan term based on your repayment capacity making them extremely convenient.</li>
<li>Unlike other loans, Personal Loan requires minimal documentation making the entire borrowing process super quick.</li>
<li>The disbursal of a Personal Loan does not take a lot of time. In cases of pre-approved loans, it is quick and can reflect in your bank account almost instantly.</li>
</ul>
 
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<figure class="aligncenter size-full is-resized"><img class="wp-image-5908" src="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2021/09/Apply_for_loan-2.png?resize=242%2C87&amp;ssl=1" sizes="(max-width: 242px) 100vw, 242px" srcset="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2021/09/Apply_for_loan-2.png?w=307&amp;ssl=1 307w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2021/09/Apply_for_loan-2.png?resize=300%2C108&amp;ssl=1 300w" alt="" width="242" height="87" loading="lazy" data-recalc-dims="1" /></figure>
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Do You Want To Know Everything About Personal Loans? Check Out This Blog From Freecharge To Know Everything About A Personal Loan and its Benefits.

Let us tell you a little something about Aryan, a 24-year-old writer&hellip;

Personal Loan: Guide To Know Everything About Personal Loan

<h1>Break Your Savings Or Take A Loan</h1>
Forget “Why do we exist?” or “Melody itni chocolatey kyun hai?”, this 👆 right here is the most important question. All of us save in one way or the other, either FD, RD, mutual fund investment or even gold. Some of us even have an account where we keep the money we have saved each month. And in the words of MC Hammer – U Can’t Touch This!
But sometimes we bump into unplanned expenses. It could be a broken phone or a damaged car or a medical emergency or god forbid, all three together. Such situations could lead us to take money from our savings. Is it better to just take a loan? Unfortunately, the answer is not a simple one.
<h2 class="has-black-color has-text-color">Here are things to keep in mind when making a decision</h2>
Using your savings
<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img class="wp-image-5550" src="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/ICONS-08.png?resize=269%2C172&amp;ssl=1" sizes="(max-width: 269px) 100vw, 269px" srcset="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/ICONS-08.png?w=1005&amp;ssl=1 1005w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/ICONS-08.png?resize=300%2C192&amp;ssl=1 300w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/ICONS-08.png?resize=768%2C491&amp;ssl=1 768w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/ICONS-08.png?resize=360%2C230&amp;ssl=1 360w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/ICONS-08.png?resize=600%2C384&amp;ssl=1 600w" alt="" width="269" height="172" loading="lazy" data-recalc-dims="1" /></figure>
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Advantages
<ul>
<li>No stress of EMIs One of the biggest advantages of paying from your pocket, you can shop or pay for what you want without paying interest. Also, you don’t have to worry whether you will have the money to pay for the EMI in the future.</li>
</ul>
<ul>
<li>No credit score required You also don’t have to check or make sure you are credit-worthy. Taking from your savings means you don’t have to answer to anyone.</li>
</ul>
Disadvantages
<ul>
<li>Limited liquidity You only have access to the limited amount you have saved. What if the expense you will incur is more? Also, many savings are tied to investments that if withdrawn before time will lead to penalty fees. Some of these assets are also hard to liquidate.</li>
</ul>
<ul>
<li>Takes longer to reach goals Unless you have an emergency fund for unexpected expenses, most often savings are made towards a goal like a vacation or a home remodel. When you dip into those savings, your goal takes longer to achieve.</li>
</ul>
Taking a loan
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<figure class="aligncenter size-large is-resized"><img class="wp-image-5546" src="https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/Icons-07.png?resize=282%2C180&amp;ssl=1" sizes="(max-width: 282px) 100vw, 282px" srcset="https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/Icons-07.png?w=1005&amp;ssl=1 1005w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/Icons-07.png?resize=300%2C192&amp;ssl=1 300w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/Icons-07.png?resize=768%2C491&amp;ssl=1 768w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/Icons-07.png?resize=360%2C230&amp;ssl=1 360w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/03/Icons-07.png?resize=600%2C384&amp;ssl=1 600w" alt="" width="282" height="180" loading="lazy" data-recalc-dims="1" /></figure>
</div>
Advantages
<ul>
<li>Better option for the long term Saving money for your goals takes time, you might even miss out on what you need since you won’t have enough saved. With a loan you get the money you need right away and get the time to pay for it.</li>
</ul>
<ul>
<li>Can be used for tax deduction Many don’t know this, but a personal loan for specific uses like home renovation, purchase of gold, jewellery and shares are exempted from tax. Interest paid for these are seen as the cost of asset acquisition.</li>
</ul>
Disadvantages
<ul>
<li>Payment of EMI You will be tied to EMIs and have to ensure timely payments so that you don’t have to pay additional charges or even prepayment charges.</li>
</ul>
<ul>
<li>Credit score required The process to get a personal loan can be difficult since you will have to go through bureau checks, credit reports and other necessary checks. It could be time-consuming and frustrating.</li>
</ul>
As you can see both options are great and not so great. The best bet would be to use one according to your situation. If you have an emergency fund, go ahead and use it after that is the use of such fund. If you don’t and need to make a substantial expense, you can take part of it from your savings and part of it can be a loan. This way your EMI is also reduced and yet all your savings do not get used up in one go.
But if you are thinking, who will give you a Personal Loan like that. Well, we are here to help you. Our different Personal Loan categories help you take the loan that you need. The process is simple, completely digital and gets over in like 5 minutes. You get anywhere from Rs.20,000 to 10 lacs credited directly to your bank account. The best part, you don’t need any security!

How do you manage your unplanned expenses? Learn how you can use your savings money. Taking loan or Savings Investment-Make a decision with the help of our Blog

Forget “Why do we exist?” or “Melody itni chocolatey kyun hai?”, this&hellip;

Use Savings Or Take A Loan What is Better | Freecharge Blog

<h1>All You Need To Know About Credit Score</h1>
We see it everywhere. “Check your credit score for free”, “Credit Score check in just a min.” What’s all the fuss about? Let’s find out.
What’s a credit score?
To put it simply, the credit score is the adult version of the 10th standard marksheet. It’s the measure of your creditworthiness, much like how your 10th marks were used to figure out how much of a “good boy/girl” you were.😒
The credit score or the more apt CIBIL score is given to you by the TransUnion CIBIL company after analyzing your credit information. The score takes into account the number of open accounts, your total level of debt, your repayment history( do you pay on time), your duration of availing credit and other factors. 
Importance of the Credit Score
Did you have a curfew as a kid? Or were you one of those kids whose parents trusted you completely? 🤯 That’s the crux of the credit score too- dependability. It shows how dependable or risky you are as a borrower. It helps financial institutions understand whether you will pay on time/regularly when you take a loan from them. Especially personal loans and other loans that don’t need security.
Credit score affects 3 things
<ul>
<li>Your eligibility for a loan</li>
<li>The maximum loan amount you can borrow</li>
<li>The interest rate on your loan</li>
</ul>
How to read your credit report
The simplest way is to check the CIBIL score which falls in the range of 300-900, with 900 being the most creditworthy. Having a score of 750 and above is considered good, any score below 750 will make it harder for you to get a loan. Other components of a credit report include –
<ul>
<li>Credit Summary It shows all the credit accounts you hold currently and you had in the past. This will include credit card accounts, home loan accounts, etc…</li>
</ul>
<ul>
<li>Account History This part of the report gives details of all the accounts given in the previous section.</li>
</ul>
<ul>
<li>Public Records This part of the report deals with major financial mishaps like bankruptcy and criminal arrests.</li>
</ul>
<ul>
<li>Credit Enquiries Here they show every time a financial institution has looked up your credit report in the past 2 years.</li>
</ul>
So, as you can see the Credit Score is a comprehensive document that helps lenders trust you with their money. And unlike your 10th marksheet (which is of no use to you until you change your job🤦‍♂️), the credit report will be useful to you throughout your adult life.

A credit score is a representation of the creditworthiness of an individual. Explore the blog on Freecharge to understand everything about Credit scores.

We see it everywhere. “Check your credit score for free”, “Credit Score&hellip;

Credit Score- All you need to Know About | Freecharge Blog

<h1>5 Simple Ways To Improve Your CIBIL Score</h1>
Well if you thought that scoring well in exams was the most important thing, you may be in for a rude shock. Also when your parents told you to keep your scores high and life will be good, they were right-at least for the <a href="https://blog.freecharge.in/all-that-you-need-to-know-about-credit-score/">CIBIL score.</a>
Having a good Credit Score can take you places in life. To be able to get big-ticket loans, you must start building on your CIBIL score as soon as possible. The moment you take a loan and start paying it back it starts impacting your CIBIL score
<h2>Wondering what is a good credit score?</h2>
Sadly, there is no magic number or range that qualifies as a good CIBIL score in every case. However, anything over 700 is considered good.  Based on your credit history your CIBIL score can range anywhere from 300 to 900. 
To help you understand easy and doable ways to improve your credit score we have listed the top 5 ways to do so. Read on!
<h2>It is the size that matters</h2>
Take. Small. Loan.
You heard us! Take a loan only when you are in absolute need and try to take as small a loan as possible. The smaller your loan the better you will be at repaying it without any hassle or discomfort. Small loans are also a good idea to get you in the habit of paying your EMIs in time for when you have to take a bigger loan.
<h2>Credit cards are like relationships- stick to one</h2>
They say you need to find one, and stay with them and they are right!
Get yourself a Credit Card that offers you great perks, cashback and a lower rate of interest. The longer you continue using a particular credit card, the more extensive your credit history becomes, and the better your credit or CIBIL score gets.
A lot of credit cards today offer a free 1-to-3 month repayment cycle. If you have a credit card like this or can get one, you may want to consider using it for all your expenses. You can pay back for these expenses from your income at the end of the month. As long as you spend only what you can afford to pay back, you’ll be good.
<h2>Two-timing or multi-timing will bite you back</h2>
Take one loan-pay it back-repeat.
Okay, so here is the deal, to prevent your CIBIL score from crashing, pay back one loan before you take another one. Think of this as food. We know you want it all but you can only eat some. So get only as much as you can eat. The same goes for loans- take only as much as you can pay back and do not take more than one Loan at any given point in time. If you take multiple loans at one time you will come across as somebody who is stuck in an unforgiving chain of borrowing. This is definitely not a good look for your CIBIL score.
<h2>Anniversary and  Month-esary you just can’t forget</h2>
Any anniversary or month-esary that you forget is going to take you down.
Ain’t nothing taking you down like forgetting to pay back your credit card bill. So get your reminders in place and you may want multiple of those to ensure you pay your credit card bills in time. Paying your credit card bills in time is going to help you increase your credit or CIBIL score significantly. Delayed payments will not only result in a bad CIBIL score but also attract a penalty and a higher rate of interest.
<h2>Review will take you far in life</h2>
This will also help you build yourself the life you want.
We cannot tell you about ways to improve your credit or if you don’t regularly monitor your CIBIL score to see what is wrong and what is right. It is only then that you can figure out how can you improve on the score that you have now. It is almost unavoidable to monitor your CIBIL score and to understand the impact that your borrowing and repayment made and will make.
Remember when you were in school and used to get your exam sheets only for you to realise that your teacher has made a  marking mistake. That can happen with your CIBIL score too. If you monitor your CIBIL score regularly, you can report inconsistencies, if any and get them rectified to improve your CIBIL score
The sooner you start focusing on improving it, the better it is going to be for you. So, what are you waiting for? Check your <a title="Check your CIBIL Score now" href="https://www.freecharge.in/?utm_params=true&amp;utm_source=newsletter&amp;utm_medium=blog&amp;utm_campaign=CIBIL" target="_blank" rel="noopener">CIBIL</a> score now.
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Want to Improve Your Cibil Score? Here Are 5 Ways To Increase Your Cibil Score and Improve Your Credit Score Report.

5 Simple Ways To Improve Your Credit Score | Freecharge

Most Indians have the ultimate dream of buying a house, and affordable housing is one of the biggest challenges facing young professionals today. Most people compromise on this thought by staying in a rented home.
 
Buying vs. Renting, you must make an informed decision by researching. But is buying a property in 2022 profitable? Or is it better to stay on rented a house?
<div id="tableOfContent">
<h2>Table of Content</h2>
<ul>
<li><a href="#h1">Renting a house</a></li>
<li><a href="#h2">Buying a house</a></li>
</ul>
</div>
Here is everything you need to know about owning a house vs rental housing in 2022
 
Suppose a property's starting value is assumed to be ₹ 40 lakh. So let us look at how the financial situation will unfold if one decides to buy or rent a property. 
 
Renting a house
 
If you decide to live on rent, the rent will be approximately Rs.10,000 per month. This cost will increase after a lapse of every 11 months. Total rent paid for 25 years, including a 10% increase in rent, is ₹ 1.18cr. 
 
Buying a house
 
When you decide to buy a house on loan, Rs.10 Lakhs would be needed as a downpayment and a loan of ₹ 30 lakhs for 25 years at a 9% interest rate. The total of EMIs will be paid in 25 years is Rs.76 lakh which is simply ₹ 25,176 every month. Paying EMI is almost 2.5 times that of renting per month. 
 
"Does that mean paying EMI and buying a house is a wiser decision than paying rent?"
 
No, paying home loans can be a significant burden for a middle-class person, and the cost difference of 2.5 times is too high. They would instead save those differential Rs15,000 and downpayment by staying in a rented house to lead a more lavish lifestyle. For instance, Rahul is a young professional who often needs to change his jobs and cities. Buying a house can be cumbersome for Rahul because he needs to keep moving. Thus, buying a house is not an easy decision to make.
 
To get more clarity, let's look at the alternative approach.
 
The house's value after 25 years, considering 10% per annum appreciation, will be ₹ 4.33 cr. And Total rent paid for 25 years, including a 10% increase in rent, is ₹ 1.18cr.  
 
The point is that the cost difference between rent and EMI will always be there, and this difference makes a significant difference in wealth. It is more likely that the Rent vs EMI ratio will increase with time. 
 
Also, home loans provide Tax advantages such as the Pradhan Mantri Awas Yojana (PMAY), the reduced home loan interest rates under the Credit-Linked Subsidy Scheme (CLSS), and the Real Estate Regulation and Development Act 2016 (RERA). Income tax rebates up to Rs.5 lakh and the revised GST have enhanced home buying sentiment in the country.
 
However, the real difference in wealth is likely to be higher, and it is preferable to buy a property for oneself rather than rent a house if there are no crucial difficulties. 
 
So, it becomes essential for people to know how to maintain a balance between their lifestyle and buying a house. 
 
The bottom line
 
Regardless of your perspective on the "rent or buy" dilemma, the choice is ultimately personal. Renting isn't always "throwing money away," and buying a home isn't always a wise investment. The most important thing is to decide what is best for you and it totally depends on your financial situation, lifestyle, and personal goals.

Buying vs. Renting, you must make an informed decision. But is buying a property in 2022 profitable? Or is it better to stay on rented a house?

Buying vs. Renting, you must make an informed decision. Buying a property in 2022 is profitable? Or is it better to stay on rented a house?

<div id="tableOfContent">
<h2>Table of Content</h2>
<ul>
<li><a href="#h1">Renting a house</a></li>
<li><a href="#h2">Buying a house</a></li>
</ul>
</div>

Buying or Renting- What is better

Everyone has both short-term and long-term goals in their life. To fulfil them, one needs to be financially strong, i.e., have enough savings to meet your goals. Just like having good physical health is important to you, having good financial health is equally important. This can only happen when you get your finances straight by making a regular habit of saving and investing as much as possible every month. Because your future depends on today’s savings. In simple words, the stronger your financial strength, the better would be your future. 
 
Now, the big question here is how aware you are of your current financial condition and if you are managing your finances well every month. Also, it is important to know the areas in which you are lagging. Do you know how financially strong you are? When was the last time you checked your financial strength? Well, there are a series of similar questions that you need to ask yourself before you go ahead with planning your finances. Running a financial check every quarter or semi-annually can put you on the top of your financial game. These checks also aid you to be aware of the available finances in hand and the debts that need to be addressed first. 
 
Since you have understood the basics of financial strength, let’s understand its meaning, factors, and ways to improve it. In this blog, you’ll also come across the most important financial tool that’ll aid you to determine and compute your financial strength so stay tuned till the end.
 
Meaning of Financial Strength
 
A person who saves a particular amount every month from their income, doesn’t have an excessive debt to take care of, invests in suitable financial avenues, and has insurance cover, can be said to be financially strong. There are some signs that can lead to the downfall of your financial strength:
 
<ul>
<li> More debt in hand to clear than savings.</li>
<li> Don’t have funds in the emergency fund to meet the urgent needs.</li>
<li> Unnecessary credit card purchases and interest payments.</li>
<li> Lack of cash flow every month to meet your needs.</li>
<li> Investing without any forethought or knowledge.</li>
</ul>
 
One best way to plan your next move is through budgeting. That’s because people can understand their spending made and the amount left or can be saved after meeting all the expenses. Moreover, budgeting also gives you a clear idea of your debts and unnecessary expenses made during the month. It tells whether your financial strength is good or bad. There are several financial rules that can aid you in building your financial health. For instance, the 70-30 budgeting rule. According to this rule, a person should only spend 70% of the income to meet their monthly expenses, and the rest goes into savings. In this way, you can save proportionately every month.
 
There’s another budgeting rule called the 50-30-20 method. The allocation here’s straightforward as well. As per this rule, 50% of the income goes into monthly needs, 30% gets allocated for basic wants, and finally, the rest 20% goes into savings. Through this rule, you can save proportionately as well.  In case, if you have any debts, you can use the 20% amount to clear them on a timely basis to enhance your financial strength.
 
While knowing what financial strength means is good, it is also important to know what constitutes your financial strength.
 
Factors That Tell You About Your Financial Strength
 
It’s always important to keep a tab of your finances and take a tour of your portfolio before you go for any sort of huge spending. Assess your assets and liabilities, monthly income, and investments to know your financial strength and where you stand with your finances. From this assessment, you’ll get to know whether your financial strength is favourable or not. If you are on the positive side with respect to your finances, then there isn’t any problem. If you are on the other side of the shore, then you have a problem. But fret not.
 
The following are the multiple factors that define your financial strength. Like, if your expenses and savings are in check, whether you are investing properly, and whether you have insurance coverage. All these factors cumulatively showcase your financial strength in the real world. Let’s talk about each of them in detail.
 
<ul>
<li>Expenses: Expenses need to be kept in check. You need to know how much of your monthly income you are spending each month. And if you are spending more than you should be, you should change your habits right away. </li>
</ul>
 
<ul>
<li>Savings: Next is saving or investing. From your monthly income, you should invest a particular amount every month in the investment avenue of your choice and suitability. With an increase in your income, the amount you invest should also go up proportionately if not more. </li>
</ul>
 
<ul>
<li>Insurance: While a lot of people still think that insurance is a waste of money, most of them are unaware that it’s one of the factors that’s protecting you from futuristic losses. It not only secures you from all sorts of perils that may cost you a fortune upon the occurrence of any unforeseen event but also provides timely financial support.</li>
</ul>
 
<ul>
<li>Emergency Fund: If life throws you curveballs, you should be in a situation to tackle them. This is only possible when you set aside a portion of your monthly income into an emergency fund. </li>
</ul>
 
Just like you use insurance post-emergency, you use an emergency fund for the same purpose. It acts as a rescuer at the time of an unprecedented situation.
 
How Can You Improve it?
 
Before we dive into the ways of enhancing your financial strength, let’s understand a tool called FIST that is available on the Freecharge app. FIST or the Financial Strength tool tells you how financially strong you are by assessing your income, expenses, investments, etc. The tool considers five key aspects while computing your financial strength score: monthly income, expenses, savings, loans, and insurance cover (both health and term life). 
 
Based on the provided financial information, the FIST tool lets you know your strong and weak areas in your profile accordingly. Using this key information, you can compare your financial performance for the last few months with the current month and see where you stand. You’ll get to see a bigger picture of your finances with the aid of the FIST tool. The computation of your Financial Strength using FIST is straightforward and effortless. 
 
The tool also suggests the financial limit for each category. For instance, Krishna’s monthly expenses are touching 50% but the tool suggested trimming the expenses by 10%, i.e., not extending the expenses limit beyond 40%. Likewise, this goes the same for all other categories in the list. Using the FIST tool on the Freecharge app can be helpful in understanding your financial strength and knowing which areas need your attention. Once you know your score and insights into your financial standing, you can use the information to plan and better your finances. Let’s understand how. 
 
Using the FIST tool to improve your financial strength: 
 
If your expenses cross beyond a certain limit, the tool alerts how much percentage you need to cut. Also, FIST keeps you one step ahead in planning your expenses. Once you know your expenses, you’ll get a clear idea of how much you can save every month. The lower the expenses, the higher will be the savings, and vice-versa.
 
<ul>
<li>Disciplined Saving and Investing: Every individual has both short-term and long-term goals in their life, and to fulfill them, you need enough corpus in hand. This can only happen when you follow “Disciplined Saving and Investing”. Now, how to know whether you are saving the right amount as per your income levels? Well, that’s when the FIST tool comes into play. </li>
</ul>
 
If your savings are less, the tool suggests the necessary savings percentage you need to maintain hereafter to meet your goal. SIP or Systematic Investment Plan is the next best way to create discipline concerning your savings and investing. You can go for a SIP investment directly from the Freecharge app. 
 
<ul>
<li>Save for the unforeseen: FIST tool analyzes your financial information and generates the desired amount you need to maintain with you as a part of the emergency fund to meet unforeseen situations in the future. Doing so aids you to prepare for the uncertainties in your life.</li>
</ul>
 
<ul>
<li>Get Yourself Insured: Insurance is an important aspect of your financial stability as it protects you from using your savings or investments during medical emergencies and provides your family a cushion in case you are not around. The cover values differ from one person to another as per their income levels. You can know the total cover value you need to invest by putting your financial information in the FIST tool.</li>
</ul>
 
So do check out this amazing tool on the Freecharge app and start by knowing your financial strength and making small but important changes to be in total control of your finances.

Make a regular habit of saving and investing every month. Because the more robust your financial strength, the better would be your future.

How to Analyze & Check Your Financial Strength

<h1>Got an Appraisal? Here are 5 money management tips</h1>
Once again, it’s that time of year!
Your manager was scheduling meetings to discuss the finer elements of your goals and achievements while you prepared documentation to show what you’ve accomplished in the past year. While this may have seemed quite a task, we are sure it was a source of renewed hope that perhaps, just maybe, this year you will be able to put down enough as a down payment for your house.
Now that your April salary has been credited with that extra appraisal amount, we have got some ideas about where you can use it. 
<h2 class="has-luminous-vivid-orange-color has-text-color">Create wealth </h2>
Simply open an SIP with an <a href="https://blog.freecharge.in/everything-you-need-to-know-about-mutual-funds-is-here/">Equity Mutual Fund</a> . Not only will your money gradually increase over the years, this investment will require minimal involvement. It is a great way to put aside the extra money that you make and create wealth from it.
<h2 class="has-luminous-vivid-orange-color has-text-color">Pre-pay your existing loans</h2>
Burning your pocket paying high-interest EMIs, well now is the time to stop that and move on. You can increase your EMI amount every month or pay back a higher amount towards your principal amount. Either way- it can help you reduce your liability and financial stress.
<h2 class="has-luminous-vivid-orange-color has-text-color">Set aside an emergency fund</h2>
Emergency doesn’t come with notice and thus calls for you to be extra prepared. You can put aside the additional money you now make towards creating an emergency fund as a safety net. Just remember, the whole idea of an emergency fund revolves around its liquidity and instant availability.
Fixed Deposits, <a href="https://blog.freecharge.in/investing-in-mutual-funds-is-like-finding-the-right-partner-for-life-and-wealth/">Liquid Mutual Funds</a>, and cash are good ways to save for an emergency fund.
<h2 class="has-luminous-vivid-orange-color has-text-color">Save Tax</h2>
With increased income comes increased tax liability. You can explore using the full potential of 80C and save up to ₹1,50,000 if you don’t already. If your risk-appetite is low, you can increase your PF contribution or invest in NSCs (National Saving Certificates). Other avenues to invest can be NPS (National Pension System) or <a href="https://blog.freecharge.in/dont-make-these-mistakes-while-investing-in-elss-funds-2/">ELSS (Equity Linked Savings Scheme)</a>
ELSS is a great scheme to invest in as it not only help you save taxes but also creates wealth in the long term
<h2 class="has-luminous-vivid-orange-color has-text-color">Live it up</h2>
Have some aspirations like a short weekend getaway with your partner or upgrading your phone, we say you do it! After all, you are working hard and you do deserve these moments of achievement and happiness. 
Set aside a list of things and experiences you have been eyeing, prioritize them, and just use the extra money you now make towards achieving them.
Bottom Line
There is so much you can do with the extra bonus that you will now bank, thanks to your appraisals. 
Now that you have some idea of what you can do with your new and increased salary, what path are you going to take?
Like what you read? Share it with your friends and family via WhatsApp and other social media platforms

Learn how to build wealth with your additional income. Use your appraisal money to create wealth with our top money management tips for better financial health.

Once again, it&#8217;s that time of year! Your manager was scheduling meetings&hellip;

5 ways to build wealth using your appraisal | Freecharge

Salary hike is like a sibling you want. Everybody wants one. But no one’s happy with it. Whatever hike you got, if you do these simple things with it, we promise it will make you happy.



Did you really get a salary hike?



Never measure your salary hike in percentage. Always ask for a salary structure. Check what component of salary has increased and what are the tax implications. If your take home is coming to the same amount, ask the HR to restructure your salary to cut down on the taxes.



Invest more



We are not suggesting you shouldn’t have fun with the hike. You should for the initial 2 months. Once you’re done shopping, eating out and holidaying, we suggest you invest 50% of your hike amount in Mutual Funds. For instance, if your salary has increased by Rs.20,000, keep Rs.10,000 for fun, and start an SIP for other Rs.10,000. If you invest Rs.20,000 every month for 15 years and keep bumping up your investments every year, you will probably have more than a crore savings.



EMI’s are your enemies.



You end up paying 20% interest pa if you took a personal loan and 40-45% if you took it against credit card. Try repaying your loans. Ask them to increase your EMI’s, so you can pay it all quicker and save interest.



Build Emergency Funds



Don’t treat your investments as emergency funds. If you withdraw money when the markets are bad, you will end up making losses. It’s important to save some money for any emergencies in life.



Good Karma



Donate more for a cause and earn good karma. But this time, Karma will give you money. Because you are eligible for deductions up to 10% of the donors adjusted income.



Have fun



Probably, the most important of it all. Go have dinner with your friends. Buy your dream bike or go on a holiday.



We believe if you think a little more about how to handle your salary hike and your siblings, you will always be happy with what you have.



 Check out Mutual Funds on Freecharge <a href="https://frch.in/mfh">here.</a> 



*Mutual fund investments are subject to market risks, read all scheme related documents carefully.



<figure class="wp-block-image size-large"><a href="https://frch.in/mfblg"><img loading="lazy" width="1255" height="136" src="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?fit=1024%2C111&amp;ssl=1" alt="" class="wp-image-5799" srcset="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?w=1255&amp;ssl=1 1255w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?resize=300%2C33&amp;ssl=1 300w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?resize=1024%2C111&amp;ssl=1 1024w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?resize=768%2C83&amp;ssl=1 768w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?resize=370%2C40&amp;ssl=1 370w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?resize=760%2C82&amp;ssl=1 760w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/12/button-25.png?resize=600%2C65&amp;ssl=1 600w" sizes="(max-width: 1255px) 100vw, 1255px" /></a></figure>

Do Online Recharge, utility bill payments, dth &amp; fastag recharge with Freecharge pay later option.

Salary hike is like a sibling you want. Everybody wants one. But&hellip;

Got a salary hike? Here is what you should do

Do you remember learning algebra, trigonometry, calculus in school?😵‍💫All that maths and yet most millennials and Gen Z can hardly do simple budgeting or financial planning to save their salary every month.
So how do we become better at saving money and planning our finances? Here is a quick class – 
<h3 class="has-luminous-vivid-orange-color has-text-color">Overspending is a silent budget killer</h3>
<div class="wp-block-image">
<figure class="aligncenter size-large is-resized"><img class="wp-image-5600" src="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_5.png?resize=802%2C142&amp;ssl=1" sizes="(max-width: 802px) 100vw, 802px" srcset="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_5.png?resize=300%2C54&amp;ssl=1 300w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_5.png?resize=360%2C65&amp;ssl=1 360w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_5.png?zoom=2&amp;resize=802%2C142&amp;ssl=1 1604w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_5.png?zoom=3&amp;resize=802%2C142&amp;ssl=1 2406w" alt="" width="802" height="142" loading="lazy" data-recalc-dims="1" /></figure>
</div>
The first and foremost thing to start with is to curb overspending. A simple, proven way for this is to create a monthly budget plan by allotting how much you wish to spend on different categories. For example, if you earn ₹xxx a month, you may split this as follows:
<ul>
<li>Up to 20% for electricity, water, and grocery</li>
<li>10% for shopping</li>
<li>10% for other essentials</li>
<li>Up to 30% for insurance payments/EMIs (if any)</li>
<li>30% SAVINGS</li>
</ul>
By strictly dedicating a particular portion to a specific category, you will be able to keep a check on overspending and save monthly.
<h3 class="has-luminous-vivid-orange-color has-text-color">Saving every day goes a long way</h3>
<div class="wp-block-image">
<figure class="alignleft size-large is-resized"><img class="wp-image-5601" src="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=822%2C148&amp;ssl=1" sizes="(max-width: 822px) 100vw, 822px" srcset="https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=1024%2C184&amp;ssl=1 1024w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=300%2C54&amp;ssl=1 300w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=768%2C138&amp;ssl=1 768w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=1536%2C275&amp;ssl=1 1536w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=360%2C65&amp;ssl=1 360w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?resize=600%2C108&amp;ssl=1 600w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?w=2732&amp;ssl=1 2732w, https://i0.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_6.png?w=4098&amp;ssl=1 4098w" alt="" width="822" height="148" loading="lazy" data-recalc-dims="1" /></figure>
</div>
Rising prices of electricity, petrol, and daily essentials eats up most of your income. Minimizing its impact through smart management is what you need to keep your saving goals on track. Here are some tips for you to save daily.
<ul>
<li>Become energy-efficient to kickstart savings</li>
<li>Use public transport to curb petrol expenses</li>
<li>Adopt an active lifestyle and avoid using vehicles for short distances</li>
<li>Look for online stores offers on <a href="https://www.freecharge.com/">Freecharge</a> to earn cashback</li>
<li>Compare offline and online rates while shopping</li>
</ul>
<h3 class="has-luminous-vivid-orange-color has-text-color">Get more from your savings</h3>
<figure class="wp-block-image size-large"><img class="wp-image-5596" src="https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=1024%2C183&amp;ssl=1" sizes="(max-width: 1024px) 100vw, 1024px" srcset="https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=1024%2C183&amp;ssl=1 1024w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=300%2C54&amp;ssl=1 300w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=768%2C138&amp;ssl=1 768w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=1536%2C275&amp;ssl=1 1536w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=360%2C65&amp;ssl=1 360w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?resize=600%2C108&amp;ssl=1 600w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?w=2732&amp;ssl=1 2732w, https://i2.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_1.png?w=4098&amp;ssl=1 4098w" alt="" width="1024" height="183" loading="lazy" data-recalc-dims="1" /></figure>
As important as it is to save, investing your savings is equally essential. The ideal way to start is to invest parts of your savings across multiple platforms in different forms. Here are some of the options you should try to create a diverse portfolio.
<ul>
<li>Earn interest by putting your money in a savings account (compare different types of accounts and choose the one that best suits you)</li>
<li>Open a recurring/fixed deposit account and start parking your savings for a good return upon maturity</li>
<li>Research and look for low-risk, high-return mutual funds to invest safely and efficiently</li>
<li>Plan on allocating a part of your savings to health/life insurance cover for a protected future</li>
<li>Gold investment is considered to be the safest and fruitful option. So, putting your savings in gold is indeed a win-win deal</li>
<li>Investing in stocks is another popular option to earn greater returns but requires thorough research and analysis as it brings along a significant risk</li>
</ul>
<h3 class="has-luminous-vivid-orange-color has-text-color">Keep your finance game on-point</h3>
<figure class="wp-block-image size-large"><img class="wp-image-5597" src="https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=1024%2C184&amp;ssl=1" sizes="(max-width: 1024px) 100vw, 1024px" srcset="https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=1024%2C184&amp;ssl=1 1024w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=300%2C54&amp;ssl=1 300w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=768%2C138&amp;ssl=1 768w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=1536%2C275&amp;ssl=1 1536w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=360%2C65&amp;ssl=1 360w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?resize=600%2C108&amp;ssl=1 600w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?w=2732&amp;ssl=1 2732w, https://i1.wp.com/blog.freecharge.in/wp-content/uploads/2020/08/Icon_2.png?w=4098&amp;ssl=1 4098w" alt="" width="1024" height="184" loading="lazy" data-recalc-dims="1" /></figure>
As the title says, saving money is not rocket science but smart art. We know financial planning is tricky but strictly cutting down on overspending, efficiently saving on a daily basis, and capitalizing smartly on investment options is all you need to keep your money game strong and future secure.

Do you remember learning algebra, trigonometry, calculus in school?😵‍💫All that maths and&hellip;

Saving Money Is Not Rocket Science, But Smart Art

<h1>Credit Card – Evil Stepmother Or Fairy Godmother</h1>
The analogy is quite apt don’t you think? But before we get too carried away with the fantasy, let’s look at the facts.
<ul>
<li>India has the lowest credit card adoption rate compared to other countries with high GDP like Canada, the USA, UK, China, Brazil, Germany, Japan, etc</li>
<li>According to GlobeNewswire, there are only 3 credit cards per 100 people in India compared to 32 for every 100 US citizens.</li>
</ul>
Most of us have been taught to spend only what we earn and credit cards have the bad rep of being used for things one can’t afford. But this is far from the truth, credit cards if used properly can help us manage our expenses efficiently.
<div class="wp-block-image">
<figure class="alignleft is-resized"><img src="https://i0.wp.com/cdn3.iconfinder.com/data/icons/softwaredemo/PNG/256x256/Circle_Green.png?resize=20%2C20&amp;ssl=1" alt="Green icon - Free download on Iconfinder" width="20" height="20" loading="lazy" data-recalc-dims="1" /></figure>
</div>
Advantages of a credit card
<ul>
<li>Increases purchasing power </li>
</ul>
With a credit card, you have additional money whenever you need it. In case of unexpected expenses like a broken phone or a medical bill, you won’t be left scrambling for funds.
<ul>
<li>Helps accrue interest on salary</li>
</ul>
When you pay all your bills with a credit card, your salary stays in your bank account for longer thus providing you with higher interest. You can also pay your rent with a credit card on Freecharge thus keeping more of your money in your account.
<a title="https://play.google.com/store?utm_source=apac_med&amp;utm_medium=hasem&amp;utm_content=Apr0121&amp;utm_campaign=Evergreen&amp;pcampaignid=MKT-EDR-apac-in-1003227-med-hasem-py-Evergreen-Apr0121-Text_Search_BKWS-BKWS%7cONSEM_kwid_43700058906740795_creativeid_480977735243_device_c&amp;gclid=CjwKCAjwiLGGBhAqEiwAgq3q_vC1JkieYQ8ynFDP3oPzonrdk60MHDhp2QiXS1yuX71TPsUsNFXhQhoCam4QAvD_BwE&amp;gclsrc=aw.ds" href="https://play.google.com/store?utm_source=apac_med&amp;utm_medium=hasem&amp;utm_content=Apr0121&amp;utm_campaign=Evergreen&amp;pcampaignid=MKT-EDR-apac-in-1003227-med-hasem-py-Evergreen-Apr0121-Text_Search_BKWS-BKWS%7cONSEM_kwid_43700058906740795_creativeid_480977735243_device_c&amp;gclid=CjwKCAjwiLGGBhAqEiwAgq3q_vC1JkieYQ8ynFDP3oPzonrdk60MHDhp2QiXS1yuX71TPsUsNFXhQhoCam4QAvD_BwE&amp;gclsrc=aw.ds">Pay Rent Through Credit Card</a>
<ul>
<li>Helps build a credit history</li>
</ul>
When you pay your credit card bills on time your credit score will increase. This in turn will make it easier for you to get loans.
<ul>
<li>EMI advantage </li>
</ul>
You can opt for EMIs for big purchases making it easier to handle your finances. 
<ul>
<li>Offers and rewards </li>
</ul>
With reward points that can be redeemed for cashbacks, gift cards and more, it makes sense to make payments with your credit card.
<ul>
<li>Interest-free credit</li>
</ul>
Unlike a loan, you don’t have to pay interest on the money you spend as long as you pay back the whole credit card bill before the due date. 
<div class="wp-block-image">
<figure class="alignleft is-resized"><img src="https://i0.wp.com/cdn3.iconfinder.com/data/icons/softwaredemo/PNG/256x256/Circle_Red.png?resize=20%2C20&amp;ssl=1" alt="Circle, green icon - Free download on Iconfinder" width="20" height="20" loading="lazy" data-recalc-dims="1" /></figure>
</div>
Disadvantages of credit card
<ul>
<li>Build-up of interest </li>
</ul>
Many people misjudge the actual amount that they need to pay and end up paying only the Minimum Due. This builds up interest, but paying the whole due should be enough. 
<ul>
<li>Hidden costs</li>
</ul>
Don’t fall for the ‘FREE Credit Card’ gimmick. Always research different cards for hidden fees like joining fees, late payment fees, renewal fees etc, and choose one that suits your needs.
<ul>
<li>Overspending</li>
</ul>
Many people end up using credit cards without a thought about paying back the money. Keeping an eye on your spending is enough. 
<ul>
<li>High rate of interest</li>
</ul>
Compared to other loan products like personal loan, credit card interest rates tend to be higher. It is better to check whether you should take a personal loan or use your credit card before you make a purchase. Here is how you can compare –
<a href="https://blog.freecharge.in/all-that-you-need-to-know-about-credit-score/">Credit Score</a>
In conclusion, whether a credit card ends up being your Evil Stepmother or Fairy Godmother is in your hands.

Know the advantages of credit cards and disadvantages of credit cards. Read about the top good and bad comparison pointers for using credit cards.

The analogy is quite apt don’t you think? But before we get&hellip;

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