Sunday, 12 July 2015


   What we know about finance in our basic language is money, not that money used by us while shopping, but   the management of large amounts of money, especially by governments or large companies. "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process of acquiring needed funds. Because individuals, businesses and government entities all need funding to operate and they also need to arrange these funds in the effective manner so that the cost of fund is also less.

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If we all notice in our daily life , the whole idea runs around money. If you need something then you need money and we study to earn money. Like oxygen , food, water ,money is the also the basic need for survival . Today, you can only fulfill your desires if you have money in your pocket. Similarly, a business too needs  money  for its establishment (finance).as discussed above the amount of money required by big business and government is not small. they need funds for,  expanding their business, for new projects, for running of the business,  at start up stage and also at their bad 
short we can say that we need money which to turn dreams into .

but now the  question arises,that     from where would you get finance for your business ?

    By taking loans, borrowing, issuing debentures and shares (if you plan to set up a company),bank loans etc. we also know that these funds are not raised for free , they to involve an additional cost , called interest. You need to see that funds raised doesn’t remain unused because they will create a unnecessary cost, which is a not good. therefore, there is a need for
financial management.
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 Financial Management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management.
Financial Management is one of the functional areas of business. Therefore, its objectives must be consistent with the overall objectives of business.
Money needs to managed wisely, you need to plan out how that which  source of raising money has less cost. Moreover, you should have money for bad times too , because at that time no one  lends money and you need to help yourself"

      Hence at the end I would like to conclude by saying that finance is the basic  need for the business ,when you have your good times you earn money  and when you have  bad times then you need money! So balance the situation and don’t let the bad times occur!

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                              It's all about Money......  Honey......

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Saturday, 11 July 2015


    Our idiot boxes are filled with advertisements of a new scheme launched by our PM Mr. Narendra Modi starring Amitabh Bachhan ,i.e, Atal Pension Yojana.
What is actually in this scheme and what are its tits bits. This article will actually let you know about it in the nutshell.

  Aim of the scheme -
    To provide a regular pension of Rs.1000-5000 per month after retirement at the age of 60.

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  Who can subscribe - 
     Any individual who is in the age group of 18 to 40 years.

Range of premium
    Rs. 42 to 1454 depending on age and pension amount opted by the individual.

How to Apply - 
   You must have your Savings bank account and Aadhar card too and then you can 
contact the nearest branch of your bank.

Renewal of the scheme - 
    Every year before 1st june

What is Govt's contribution in it ?

 The Govt. Of India would be contributing 50% of premium or Rs. 1000 whichever is lower for a period of 5 years.

But there are certain restrictions too:-

1. Govt. Of India would contribute their amount for any subscriber who has joined this scheme from 1st june2015 to 31st Dec 2015.

2. Moreover the individuals should not be covered under any statutory social security scheme including EPF and he/she shouldn't be a tax payee.

Withdrawal from the scheme:

    When individual will attain 60 years of age, they need to sign annuitizatiom of pension wealth and premium would be paid at that time. If the subscriber dies, the spouse will get the pension. If the subscriber dies, nominee will get the pension wealth.
     But as most of the government schemes comes with certain flaws too, same is with this scheme. It offers 7.8%-8% returns approx. There are better schmes like Public Provident Fund etc. which offers morw than 8% .
     This investment is not a liquid investment as premature withdrawls are not allowed. Majority of subscribers are ineligible to get govt contribution due to the fact that even small employees are covered through EPF.

Result -
So this scheme is good for low income groups and non tax payers.

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