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Experiencing Pay-Cut? Here’s How You Can Manage A Reduced Income

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Economic prosperity allows you to build a habit of buying costly items. When you can manage luxury, surviving in its absence seems almost impossible. As a consequence, witnessing pay-cuts makes you doubt your ability to live on a diminished wage.

In spite of this, it is crucial to plan for a drop in monthly revenue. There are several things that impact your monthly earnings. It could be that your girlfriend has moved out, or that you have endured a pay-cut due to a rise in business prices, or that your two-income home has been turned into a single-income zone due to the COVID-19 pandemic.

How to manage reduced income?

No matter what the cause might be, deprogramming your lavish practices is a daunting task. If you have recently experienced a decline in wages, please refer to the guide below. Although the direction of the transition may be challenging, it is not completely unlikely.

Analyze the situation

The worst thing that can happen, after you notice a decline in your salary is to despair. While it’s difficult to live with the anxiety that you can’t make ends meet, getting tangled up in a stressful way of thinking can adversely affect the way you approach the problem.

Taking this into account, the first thing you need to do is cool yourself, so that you can efficiently evaluate the situation. Using any grounding methods, breathing exercises, mindfulness or positive therapy to achieve this, so that you can take a healthier path to cope with emotional tension.

When the body is released from its nervous state, take the next step to evaluate the situation. Analysis of the financial situation is important, as it allows you to think about the difference between revenue and expenditure.

Develop a new budget to manage low income

The development of a new budget can balance even the smallest change in revenue. As you encounter a drop in your monthly revenue, it is important that you prepare to budget low income money and make small changes to ensure that you do not run out of money before completing the mandatory payments.

However, the development of a conventional budget does not necessarily apply following a salary cut. When you apply the conventional budgeting approach, the money is committed only to various fields of investment. The budget itself does not enforce any constraints or limits that urge you to avoid your usual spending habits. As a consequence, you follow the methodological strategy for spending.

Discover routes to additional income

With a smaller budget, you will either slash taxes or find opportunities to raise your income. However, whether you’re working on a full-time career, having the energy to freelance, or taking on another job, it will be tough. In addition, if you force yourself above your capacities, the quality of your day-to-day job will suffer as well as your general health.

In view of this, you need to find ways to carry in additional money, which is simple, practical and does not entail much effort. The following lists the simple methods for raising additional income:

Rent out the room

The most efficient way to get additional money is to rent extra rooms in your house. If you’ve got a spare bedroom in your house or condo, renting it out will produce a hefty income. However, before renting a room, read about the various schemes provided to tenants. For example, in the Rent a Room scheme, you are not expected to pay a tax on the first £7,500 annual income. But, if your salary is less than that amount, you are freed of the duty to pay taxes. Similarly, if the revenue is more than £7,500, it is necessary to complete a tax return.

Rent storage space

Through apps like Stashbee, you can rent your shed, shed, warehouse or loft. This website enables you to post images of the room, along with its size and address, so that people close you can benefit from it. By renting a storage room, you can earn from £150-£2000 depending on space’s size and location.

Sell old clothes

Some ‘Cash for Clothing’ businesses in the UK offers you cash in return for old clothes. Fundamentally, if you’re looking to make ends meet, selling your old and unloved clothes pieces will give you the extra money you need to live. That said, this approach can only be used once or twice, so it does not give a smooth solution.

Sell old books

Every old dust collection book in your collection can be offered on the Amazon Store, which can earn you a decent deal of money back. With that said, Amazon only allows you to list 35 books a month. If you would like to add one, a premium of 75p per book would be paid, in addition to 15 per cent of the gross price (and shipping cost). On Amazon, hardbacks are available at a higher price, although old paperbacks are not sold at a higher price.

Rent your parking area

Another way to raise money is by renting your parking area without making a lot of effort. Parking is a serious issue in most cities, but if you live near a popular tourist attraction, leasing a parking space will earn you a reasonable income on a regular basis. With that being said, you can always rent your parking spot in places that are not as common—using apps like Stashbee, Just Park, Parklet and Your Parking Space to make this possible. Depending on the importance of the venue and the size of the area, and income of £90+ can be gained by leasing out the parking space. In this strategy, you can even earn a stable monthly salary, based on the person you’re renting.

Attend focus groups

Another way to raise money is by renting your parking area without making a lot of effort. Parking is a serious issue in most cities, but if you live near a popular tourist attraction, leasing a parking area will earn you a reasonable income on a regular basis. With that being said, you can always rent your parking spot in places that are not as common.

Do surveys

Finishing online polls is another way to make money. In this method, you need to answer a few questions to help analysts devise a theory for initial or market analysis. Use several sites, such as One Vote, Survey Junkie, and Life Points, to fill out the form. However, in contrast to the other approaches, this approach does not have a significant amount of capital.

Participate in a psychological experiment

Participation in psychological studies is an interesting way to make money online. Contrarily to common opinion, engaging in such research does not cause any physical or psychological damage. Researchers in the field are, in effect, bound by ethical requirements that make these studies absolutely secure. For example, researchers can carry out an analysis to determine how you respond to olfaction indices. This tests will cost about £10 for a session. However, you will only apply if you follow the requirements for inclusion in the experiment. To identify a recent and important trial, look for ads presented by the Psychological Departments of well-known institutions.

Search for ways to reduce expenses

With a reduced salary, it is important to reduce any of the expenditures. Since treating yourself to the finest labels, it can be tough to go back to old habits. However, in order to live and adhere to the schedule, finding ways to eliminate needless costs is important. 

Avoid taking loans

When you’re low of funds, the most reasonable thinking is typically to take out a loan to make ends meet. However, this technique can do more damage than good. When you take out a loan, it comes with the responsibility to refund the money with interest. With already reduced revenue, it becomes impossible to make repayments.

Due to the failure to make frequent refund payments, you will end up with large sums of debt that will destroy your credit score. Taking this into account, it is important to avoid borrowing, particularly after a pay cut.

Alternatively, you should qualify for low-income government schemes if you’re living paycheck to paycheck. In the event that you are registered for the following programmes, apply immediately. In the United Kingdom, the following services are available to low-income people.

  • Housing Benefit 
  • Working and Child Tax Credits 
  • Board of Pension Credit 
  • Revenue help 
  • Jobs and service allowance attributable to wages (Only valid for pregnant women) 
  • Universal credit (only applicable for households receiving less than 408 euro a month) 
  • Charge for Discretionary Accommodation (DHP) 
  • Living Disability Allowance (DLA) 
  • Tax for Personal Freedom (PIP)

It’s not easy to run a household after suffering a salary cut. Having said that, living on a low wage is still very much feasible. First, you need to measure the overall income deficit, create a new budget, and then decide to maximize your income and reduce additional costs.

The next time you are about to purchase a new dress or shoes, ask yourself if you really need it.

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Features and Benefits of Using the Home Loan EMI Calculator

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The Indian home loan market is estimated to grow at a CAGR rate of 22% between 2021 and 2026. Thus, this is a perfect time to invest in real estate. Nevertheless, it is essential to have proper knowledge regarding EMI payments. Therefore, it is wise to rely on a home loan EMI calculator to evaluate the EMI amount and other key factors beforehand to avoid further issues. 

What is a home loan EMI calculator?

Availing a loan is a crucial financial decision. Hence, before availing of a loan, it is essential to do a loan planning exercise to estimate monthly EMIs. A home loan calculator helps borrowers calculate the monthly EMI based on the principal amount, loan tenor, and interest rate of a home loan. This calculator makes loan planning easier for borrowers. Hence, individuals can take a look at the features and benefits of home loan EMI calculator that will make their repayment more convenient:

Aspects and advantages of home loan EMI calculator

This simple, user-friendly tool will evaluate the home loan EMI amount at once and provide borrowers with a fair idea of monthly outflow that will contribute towards your repayment procedure.

  • Choosing the right tenor- The repayment of any loan is made through monthly EMI that makes their repayment convenient since they can choose a feasible tenor that will not be stressful. After getting a fair idea of the monthly EMIs, individuals can decide whether they can manage to pay a high EMI and choose a short tenure period or pay a pleasant EMI amount and extend their loan period. One can also focus on ways to reduce home loan tenure and EMI to further ease repayment. 
  • Easy calculation- Borrowers, who want to know the exact figure of EMI repayment, they need to enter the loan amount, interest rate, processing fees and loan tenor and the amount will be provided by the calculator.
  • Comparing Interest rate- The interest rate charged by financial institutions regulate the cost of home loan. When individuals pay their home loan EMI, the home loan interest rate charged decides how much of an amount is to be paid to the lender. Choosing a short tenor reduces the interest rate and allows individuals to compare several financial lenders’ different rates.
  • Choosing the principal amount- Though the financial lenders calculate the higher eligible amount, it is not necessary to borrow that particular amount. Borrowers should try to arrange the maximum down payment to keep the EMI amount minimal.

Hence, a home loan calculator is a handy financial tool that gives instant and accurate results, thereby helping individuals customise home loan based on their comfort and convenience.

To meet your needs, some reputed housing finance companies offer a home loan amount of up to Rs.3.5 crore over a flexible tenor period of 20 years. 

Top HFCs also provide pre-approved offers to simplify and quicken the lending process. These offers are available on several financial products, such as home loans, loan against property and more. You can check your pre-approved offer by providing your name and contact details.

Hence, using a home loan EMI calculator, users gain a fair idea about their financial obligation associated with the credit option and gauge their financial standing.

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Finance

Women Outfit Ideas For Valentine Day 2021

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Valentine’s day comes with the promise of romance in the air. And on that special day, we all love to look good and attractive. When it comes to women’s fashion wear for valentine’s day, the choice is endless. You can either go simple and elegant or you can pick something bold and classy.

To help you get started with your dress shopping this Valentine ’s Day, here is the list of the best outfit ideas.

Flaunt A Sheath Dress

A sheath or a shift dress is very popular for special days like valentine’s and dates. This dress is pretty simple, yet looks perfect for the evening. A shift dress in soft colours or a dark one will definitely set the right mood for your romantic date. Some of the best colours to choose are pink, coral red, dark maroon, navy and bottle green. Pick the right size for comfortability and fittings while buying a shift dress online.

Stylish Tops With Palazzos

The most simple and smart looking dress idea for this valentine’s day would be a pair of the flared palazzo and a stylish ladies top. Embroidered tops are great or you can choose a crop top and wear a shrug on top to make the appearance more regal. Earrings, bangles or just a nose pin will look dazzling with tops and palazzos. 

Ravishing High-low Dress 

Go for the high-low hemline if you want to impress your special one. A dark or bold coloured high-low dress is simply perfect for your first valentine’s. You just need to wear a pair of heels or bellies, carry a clutch and wear your hair down. To highlight your dress, wear very little makeup and stay natural. If you are wearing a sleeveless and low neckline high-low dress, you can also drape a scarf.

Appealing Red Saree

Nothing creates magic like a stunning red saree. You can wear a classic chiffon or silk red saree and pair it with designer tops for girls. Instead of the regular blouse style, do a little experiment and wear a shirt style tp or a tunic kurta with your saree to make a bold and fresh statement. Oxidised jewelry or simple stone studded jewellery will look awesome with your red saree look. To accentuate your coverall attire, do a stylish hair bun and get bold eye makeup.

Elegant White And Red

Just like every time, red and white is the most demanding and evergreen combination for valentines day dress code. Wear a white tunic with a deep red palazzo and you need nothing else to look fashionable. You can also go ethnic and wear a red and white combination anarkali suit with silver jewellery. A white top with a long ethnic red skirt is another fabulous choice for your evening valentine day outing.

Some other great options in red and white are: midi or mini skirts in red with white tops, red cape tops with white jeans or you can wear a red and white gown. 

Asymmetrical Dress

The dress is the most preferred outfit for valentines day. And asymmetrical dresses always make the top of the dress list. The symmetric hemline looks offbeat, attractive and very classy. You can also pair a legging with an asymmetric dress and drape a dupatta to make a fusion style statement. 

Flared Long Kurta

Gown style flared kurtas are very much loved by modern women for their elegant look. Flared kurtas can be worn with churidars or leggings. If you are wearing ankle-length flared kurta, you can ditch bottoms and wear it like a dress.

Hope this valentine’s day, you look bold and beautiful and feel confident. 

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Finance

Some Facts You Must Know When You Apply Personal Loan For Women

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The number of women borrowers in India has increased significantly in the last few years. As per a report, female borrowers numbered around 2.4 crore in 2014 compared to 7.8 crore in March 2020. It just goes to indicate how the mindset has changed regarding borrowing among women in the country.

  • According to a December 2019 survey, women contributed approximately 15% of the total personal loan borrowers.

Fortunately, a personal loan for women is available against a standard set of qualifications, making them easily accessible. While the requirements remain gender-neutral, they indicate an increasing inclination of women in arranging personal financing conveniently. So, here are a few essential facts you must know about these advances, included under the eligibility requirements and application process, for easy financing.

Eligibility criteria for personal loans

The following simple personal loan eligibility criteria enable borrowers, including women, to avail hassle-free funding.

  1. Maintain an impressive credit score and history

The minimum CIBIL score requirement from some of the reputed lenders in the market is 750. Thus, borrowers must aim for a CIBIL rating higher than this particular score if they plan to secure a personal loan conveniently. 

Applicants with scores over 800 also stand a chance to acquire additional benefits, such as favourable rates, higher principal amounts, and much more. If one’s current score does not meet the minimum requirements set by a lender, a borrower must check out things to improve his/her personal credit score.

Nevertheless, taking care of factors such as maintaining a balanced credit mix, keeping the credit utilisation ratio in check and the likes always help maintain an individual’s credit profile for easy borrowing.

  1. Meet age specifications

Generally, salaried employees aged between 23 and 55 years are offered personal loans.

Match minimum income requirements

To acquire a personal loan for women, you must also possess a stable source of income. Monthly earnings should thus be around Rs.25,000 or more to qualify for these forms of credit. 

However, the exact specifications regarding earnings can vary based on your city of residence. If one’s income is limited, she can opt for a Flexi personal loan for women to ensure repayment affordability. Under such an arrangement, lenders provide a pre-sanctioned amount to borrowers for multiple withdrawals, with interest charged on such withdrawals only.

For instance, if this limit is Rs.1 lakh and a borrower utilises Rs.25,000 from this amount, he/she would only need to bear interest on the latter sum and not on an entire principal sanctioned.

How to apply for a personal loan?

Borrowers can complete the following steps for an easy and convenient loan application – 

  1. Depending on the financial institution selected, visit its official website and navigate to the personal loan application section. 
  2. Next, fill up an online application form with the required personal, financial, and other details.
  3. Proceed to choose a suitable loan amount and ideal repayment tenure from the available options. Generally, the personal loans for women come with tenures ranging between 12 to 60 months.

Note that while an option to apply offline is available, one should avail a personal loan online to acquire the best deals. Borrowers can also compare the various rates and terms before choosing a low interest personal loan. For interest rate affordability, one can look for NBFCs like Bajaj Finserv.

The financial institution also provides pre-approved offers to hasten and ease the process of lending. One can avail these offers on personal loans, business loans, credit cards, and more. You can check your pre-approved offer by submitting your name and phone number.

  • Around 30 million women borrowers acquired credit in India, as per a CIBIL report from 2019.

Evidently, women are borrowing more frequently today than ever before. It is due to increased financial independence among Indian women, which has enabled them to avail and repay such credit efficiently.

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