As we've discussed in our 6 things to keep in mind for achieving financial freedom blog, one of the best ways to achieve financial freedom is by limiting your spending. Today, we'll be probing deeper into ways in which you can do that.

When you call your plumber to plug a leak, he first has to isolate the primary cause of the leak. Once that's done, he then has to analyze the situation and come up with the best plan to fix it. Finally, he has to execute that plan properly, or else the customer won't be satisfied and he won't get his money.

Similarly, you first need to find out what causes you to guzzle money away, then make a plan to address it, and finally, stick to that plan and avoid any pitfalls along the way which could put you back to square one. That's what we'll be talking about in this feature.

Fix a Budget for Yourself

Unless you have your monthly cash outflow planned on the basis of your inflow, you won't know when you're spending too much. That's why it's important that you budget your money.

Begin by adding up all your sources of income. That includes, apart from your salary, interest from savings and other miscellaneous sources. Then factor in your fixed payments such as loans, bills and groceries and assign money values to each item of spending by taking an average of how much you spend on each item over the course of a few months.

The difference between your income and your calculated expenditures should provide a pretty good idea of where you stand - whether you're biting off more than you can chew or are within safe limits.

Short-Term Financial Goal Setting

One of the best ways to go about enforcing your budget is by setting short-term goals around the restrictions you've decided to place on your spending.

Make sure these short-term goals are quantifiable. For example, if you find you're spending too much on eating out every month, say around Rs. 5000. Make a goal of not spending over, say, Rs. 2000 for the same, and live by it. Similarly, if you're riding your motorbike to work and spending Rs. 1000 per month on fuel costs, cut that down to say, Rs. 250 by setting a fixed number of days in the month where you use public transport to commute instead.

Without these short-term goals, you'll struggle to track spending and your well-planned budget could go for a toss.

Cash, Not Credit!

Credit cards are convenient, there's no doubt about that. However, that very convenience is the reason behind people's tendency to overspend. After all, when you're using a credit card, you're spending money you don't actually have on you at that moment. Without thinking too much of how it'll impact us by the month's end, we tend to hand over our credit card for a swipe too frequently sometimes.

However, when we make cash payments, we physically take a bite out of an allocation that we can see for ourselves when we put away our purse or wallet.

If you're trying to stick to a budget and have set spending limits for yourself, then cut down on credit or even debit card usage and instead assign fixed amounts of cash only towards those purposes and carry that around with you.

Is Your Environment Tempting You to Overspend?

There are certain settings where we're more inclined to spend more than others. Say, you pass through a road on your way to work that's dotted with attractive shops, where you can't help but walk in every other day to check out the many temptations on offer and eventually end up buying one of them. Or say, you work at a mall, and everywhere you turn, there are ways to blow money away.

It applies to the virtual world too. Many of us while away hours on online shopping platforms like Amazon and Flipkart, salivating at the countless enticing deals on offer. And with fast, convenient online payment modes available at the tap of a finger today, we often end up impulse-buying things we don't really need to, with a quick payment.

So, take a different road if you need to, delete some of the most addictive shopping apps from your phone, at least temporarily, and try your best to discipline yourself when it comes to your spending habits.

Convince Your Friend Circle to Save Too

We all love our circle of closest friends and enjoy a lot of activities together. However, when you find that those group activities tend to take an expensive turn more often than not, it's time to make some changes.

You don't really want to say no and be left out, but at the same time, suggest cheaper ways to hang out once in a while. Perhaps have a fun, group cook-out at home instead of everyone going to a ritzy restaurant. Or suggest travelling by bus or train instead of hailing a cab.

Take a Hard Look at your Lifestyle

Just as people are told to “tighten their belts” during wartime rationing, we have to be flexible with our lifestyle based on our circumstances.

Assess your current financial situation and take a call on whether the lifestyle you're accustomed to right now fits that situation. Perhaps you were raised in a life of considerable luxury but now, on your own, you're stretching your finances to keep living that way.

On the flip side, if you find you're living well within your means, then don't use that as an excuse to increase your spending. If you're happy and satisfied with your current lifestyle and it's letting you save more money for your future, then why change?

At mPokket, our purpose is to provide financial independence to youth. With world-class technology, transparent communication and quick decision-making, we enable today's youth to attain financial independence.

If you are seeking an instant student loan or salaried loan and wondering where to turn for some quick credit, simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 50,000! mPokket instant loans for students online and loans for salaried are both credited straight to your bank account within 10 minutes.

The world is getting more and more digitized by the day. Everything from banking to shopping is increasingly relying on the flawless functioning of virtual cogs and gears.

Consequently, this move to digitization has invited its own set of pitfalls, such as identity theft, which is when someone uses another person's personal identifying information (name, ID number, or credit card number) without their permission and with an intent to commit fraud or other crimes.

Understandably then, it's certainly a valid area of concern if you happen to own a credit card, as in the event of a breach, a fraudster could easily open your credit file and make purchases in your name, leaving you in heavy debt in your credit reports. Some could even go as far as opening loans in your name, which will then show up in the credit reports.

Thankfully, there are provisions in place to tackle this issue, and they include the ability to 'freeze' or 'lock' your credit reports at India's credit bureaus.

It's true that both credit lock and credit freeze do more or less the same thing, which is to safeguard your credit reports in the event of identity theft by way of a data breach. But there is a difference between the two, which we'll delve into. 

Credit Lock

Think of credit lock as a way to restrict lenders from accessing your credit reports. When a credit lock is applied, it lets you lock and unlock your credit report using your mobile. You can even do it without needing to remember your card's personal identification number (PIN). 

Therefore, If a fraudster tries to open a credit report account using your name, the credit lock will protect you. Note that any of the reputed credit bureaus will assist you in the process of placing a credit lock. You can manage the credit lock through an app, using a user ID and password.

Credit Freeze

Also referred to as a security freeze, a credit freeze is similar to a credit lock, given that they restrict lenders from accessing your credit report without your consent. A credit freeze is more useful in the case that any theft that might have occurred. When you apply for a credit freeze, creditors cannot access your credit reports until you grant permission to all the different credit bureaus in India to unfreeze your reports. Also, unlike credit lock, you have to use a PIN (or a password), for freezing or unfreezing your credit reports at any time.

When to use a credit freeze?

If you feel any of the below scenarios have already transpired, then consider going for a credit freeze:

• You find that your credit reports are exposed.
• You've been subjected to identity theft.
• You experience a data breach.

How to do a credit freeze?

1. Contact the credit bureaus

2. Provide them with your personal information

3. Receive the PIN they send you

4. Use it to freeze or unfreeze your credit card

When to use a credit lock?

A credit lock is a preventive measure, for the most part, so use it as a deterrent in situations such as when you're unable to locate your card or you won't be using it for an extended period.

How to use a credit lock?

Reach out to the credit bureau. You can then manage the credit lock/unlock online or through an app on your smartphone with just a username and password.

What's the difference between credit lock and credit freeze?

To sum up then, here are the key differences between a credit lock and credit freeze:

Credit LockCredit FreezeProtected by username and password.Protected by Personal Identification Number(PIN).Chargeable.Free.Used as a preventive measure to protect a credit file.Used when your personal information is already under threat.Easy to activate or deactivate online or with a smartphone app, using username and password.After mailing your request to credit bureaus, you have to call the bureaus or follow the online procedure and then generate a PIN to freeze or unfreeze your credit report.It's a simple process.It's complex and takes more time and involvement.

It's worth stressing that while a credit card comes with its share of conveniences, it's a responsibility all the same. So it's important that you take precautions and avoid making common credit card mistakes.

Our mPokket instant loans involve a fully online paperless process with the amount transferred straight to your bank account. Also, when you share your personal details with us, we ensure that it never falls into the wrong hands. We employ state-of-the-art technology and online safety standards to ensure that your confidential and sensitive information is always safe.

If you're on the lookout for some quick credit, it's easy to obtain an instant student loan or salaried loan from mPokket. Simply download the mPokket online loan app, register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 50,000! mPokket instant loans for students online and loans for salaried are both credited straight to your bank account within 10 minutes.

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Given the income tax rules prevalent in India, if your annual income is over Rs. 2.5 lakh, you're required to file income tax returns. Regardless of your source of income — whether it be the revenue from your business or your salaried job — it is mandatory.

That said, income from salary and business are taxed according to their respective tax slabs. But it's important for you to know that there are a few income sources that are completely income tax-exempt, no matter the amount.

With that in mind, we take a low at some tax-exempt income sources that students and young professionals are particularly likely to find useful:

Marriage gifts

Wedding gifts that a newlywed couple receives from any immediate family members are exempt from tax. That includes everyone from their parents, siblings, as well as the siblings' spouses and parents' siblings. Also, the exemption applies irrespective of the gift's value.

Marriage gifts exempt from tax include jewellery, cash, vehicles, stocks, electronic items, and artefacts, among others. Even immovable gifts, such as property or land, are tax-exempt under Section 56 of the Income Tax Act, 1961.

Profit share in a partnership firm

From the total income of a firm, the share of profit a partner of the firm receives is exempt from tax in the hands of the partner. This is because the partner's share is derived after accounting for all applicable expenses and income tax. That said, when the partner receives any interest on capital as well as any remuneration received is taxable.

Ancestral property

In most countries, when one passes on and their property and assets get passed down to their legal heirs, the heir has to pay Inheritance Tax on such assets.

However, in India, there exists no concept of levying tax on inheritance. As a matter of fact, Inheritance Tax (also called Estate Tax) was done away with, in 1985.

However, note that the inherited property could be a source of income, such as by way of sale or rent. So you have to declare this income and pay taxes on it.

Provident Fund

In India, provident funds are mandatory for every employee working in any company registered under The Companies Act, 1956. Post-retirement, the respective Provident Fund (PF) money which a person earns is tax-exempt.

Note that the Employee Provident Fund offers you tax-free returns if the EPFO has received an active contribution on your behalf for five-plus years. And even if you change your job during this period, it remains unaffected.

Gratuity

Gratuity is a fund that some employers provide to their employees. It is a kind of gift that is paid as extra, under the following conditions of superannuation (retirement age), resignation, or sudden death, physical loss or health hazard. An employee can claim a rebate on a gratuity of no more than Rs. 30 lakhs.

Educational Scholarship

This one is particularly useful to know if you're a student. As per Section 10 (16) of the Income Tax Act 1961, when you are granted a scholarship to meet your education costs, it is exempt from income tax.

Do note, however, that the income from the scholarship has to go towards meeting your education expenses only.

Income from a foreign government

When an Indian citizen receives remuneration from a foreign government with regards to any sponsored cooperative technical assistance programme, the amount is entirely tax-free.

It's certainly worth knowing about these tax exemptions, especially with the constantly rising costs of living making every little bit you can save here and there, that much more important.

After all, a young professional in the nascent stages of his or her professional career can feel the pinch of a cash crunch every now and then. 

Thanks to the mPokket instant loan app, a dose of quick credit is just a tap away! You can easily obtain an instant student loan or salaried loan from mPokket. Simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 30,000! mPokket instant loans for students onlilne and loans for salaried are both credited straight to your bank account within 10 minutes.

Whether it be the time when we reached up to hand the shopkeeper a rupee coin for some toffees or getting our parents to buy us an expensive toy, we're aware of the importance of money from an early age.

As we grow older, the reality of this situation is even more firmly imprinted on our mindset as we start paying bills and begin laying the foundation for a secure and comfortable future. The point at which we can be relatively assured that those goals will be achieved is where we start reaching a semblance of financial freedom.

Of course, based on those goals, financial freedom might mean different things to different people. For some, it could simply mean living securely with the knowledge that their essential spending will be taken care of, while others might not see financial freedom as anything less than being able to spend their post-retirement years without a care in the world.

Regardless of how you see your ideal vision of financial freedom, here are six essential things to keep in mind:

Know where you stand financially

No matter which point of your life you're at, it's important to be fully aware of your financial standing. After all, before you know how far you still have to go, you've got to know where you're at.

So total up all your debt, calculate your expected income and circle any warning signs on your overall financial picture, such as insufficient emergency funds or lacking insurance schemes.

Living within your means

Biting off more than you can chew is not just an uncomfortable dining situation but an even bigger issue if you wish to achieve financial freedom!

Prioritize laying down a strong foundation of savings before guzzling money away on wanton spending and risky investments. Unless you're on the receiving end of heavy inheritance or are assured of winning a lottery anytime soon, make a habit of living within your means with a focus on saving your money whenever possible.

Covering your risks

Life comes with its fair share of risks, and as such, you'd be wise to make provisions for at least some of them. That means purchasing sufficient health insurance. While that, of course, involves paying a premium, you're relatively free from having to set aside any additional money in the event you incur heavy medical expenditures down the road.

Check spends, trim budget

If you're a young professional light on savings or investments and are living paycheque to paycheque, for the most part, it may feel like your nest egg is a distant dream. But hold on, it's never that bleak.

Spare time aside to sit down and analyse where you're spending your money. Otherwise, it will be difficult to figure out where you have room to make adjustments to your spending. Track your spending for an entire month. List down what's essential and what's not. You might be surprised to find just how much you're blowing on that Starbucks coffee that you've developed a habit of consuming, or how many streaming apps you've subscribed to but hardly ever watch.

Once you're done figuring that out, put together a new budget, where you implement your findings. Perhaps going through some of your typical expenditures might also move you towards bringing about significant lifestyle changes. For example, if you find you're spending too much on your vices, such as cigarettes or alcohol, this could be the perfect reason to give up those unhealthy habits.

Creating a debt payoff plan

Freedom from debt goes a long way towards attaining financial freedom. Once you start working and begin earning, focus on putting any extra money towards paying off your biggest debt, such as a student loan. Or you could focus on the loan that's draining you at the highest interest rate.

Make this is a habit for the rest of your life. When you eventually take a home loan, keep wasteful spending such as luxury purchases and risky investments to a minimum till the loan is paid off.

Invest wisely

Building your nest egg to live comfortably by the time you approach the sunset of your career might be difficult without trying your hand at investing some of your hard-earned money.

With the rising cost of living, many are leery about investing. But it's important to remember that many people become considerably wealthy simply by ensuring they save and invest their money on a consistent basis for most of their lives. When you buy stocks, or go for mutual fund investments, ensure you go about it fully informed and make your choices wisely. Consult an expert if needed.

At mPokket, we are very cognizant of the need to ingrain the importance of financial freedom from a young age. After all, our purpose is to provide financial independence to youth. With world-class technology, transparent communication and quick decision-making, we enable today's youth to attain financial independence.

It's possible that from time to time, you're in urgent need of some quick credit. If you're seeking an instant student loan or salaried loan and wondering where to turn, simply download the mPokket online instant loan app. Register by uploading a handful of documents, and post-approval, borrow instant online loans of up to Rs. 50,000! mPokket instant loans for students online and instant loans for salaried are both credited straight to your bank account within 10 minutes.

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When it comes to achieving your life's goals, it's important to put key parts of the puzzle together at the right time. Whether it be to ensure your education is fully paid for or to make crucial home repair payments, or even to set up your business, having money when you need it most is crucial.

However, that's easier said than done sometimes if your finances are tight. In such cases, a personal loan can be immensely useful. However, given that they don't require any collateral, they're not always easy to come by.

When you apply for a personal loan, it gets evaluated under a number of key parameters. In order to ensure you have the best chance of clearing most of those criteria and are successful in obtaining a personal loan, here are some suggestions which can improve your loan approval chances:

Steady your employment profile

One of the first things lenders want to be assured of is that you have enough cash inflow on a regular basis to be able to pay back the loan you want to take. Naturally, one of the best ways to prove this is by showing you have a stable job profile. 

The job profile and earning capacity of the loan-taker directly affects the amount of money that they can borrow. If you're someone who changes jobs on a dime or have prolonged periods of unemployment, you could be in for a bit of explaining to do before you convince the lender that your credit is good!

Bolster your credit score

One of the most important factors that lenders use to assess your creditworthiness before granting you a loan is your credit score. It ranges between 300 to 900 and a good credit score for personal loan is anything above 750.

For this reason, you'll want to make sure you work towards maintaining a good credit score before you approach a potential lender for a loan.

Fortunately, it's not that tough to maintain a healthy credit score. Make sure you repay on time. Better yet, rather than having to remember the date of repayment every month, you could automate the entire process through your bank.

Another solid way to ensure a healthy credit score is to cut down on the number of credit cards that you are actively using. When you use the same card over and over and make your payments on time, it reflects positively on your credit score.

Opt for a lengthier repayment tenure

If you're not in the best position to apply for a loan, you might want to consider going for a longer tenure. This can help lower your monthly EMI. You can easily look up an online EMI calculator to arrive at an ideal tenure where the interest rates and EMI suits your repayment capacity.

So it goes without saying that if you do opt for a longer loan term, try to make sure it doesn't come with higher interest payments. Whenever you come into a bit of extra financing, make it your first priority to pay off the loan or at least make a part prepayment.

Multiple applications are a no-no

If you're struggling to get a loan and are contemplating firing off loan applications to multiple lenders, then stop. That's because it comes off as desperation on your part and paints an unflattering picture of your current financial situation.

It's also worth noting that every time one of your loan applications gets rejected, your credit score takes a dip. That will certainly dash any slim hopes you had of getting a loan even further.

If nothing works, let things cool off a bit

If your loan application does get rejected, then try to hold off on trying again for at least six months. As mentioned earlier, a rejection affects your credit score negatively, and applying multiple times over a short span paints you as more of a risk.

Instead, if you resist applying for another loan for a six-month period or more, you are proving that your finances are stable enough to sustain your expenses during that period without having to take a loan.

When you take loans using the mPokket instant loan app, be it an education loan, a service loan, or a salary advance loan, timely repayments improve your CIBIL score, which will help you be eligible for larger loans and even improve your employment prospects.

That's why, If you are seeking an instant student loan or salaried loan and wondering where to turn for some quick credit, simply Simply download the mPokket online loan app, register by uploading a handful of documents, and post the online loan approval, borrow instant personal loans of up to Rs. 50,000. mPokket loans for students and loans for salaried are both credited straight to your bank account.

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Say you have a solid relationship with your lender. You've maintained a healthy credit score and are always good for timely repayment. In such cases, you might be eligible for a topup loan.

Put simply, a topup loan is a financing option availed by a borrower over and above the existing loan amount. It is usually put towards purchases such as home loans.

The reason for the aforementioned conditions is due to the caution exercised by banks before offering a topup loan, in order to insulate themselves from any defaulting by the borrower.

What do I need to know about topup loan eligibility?

A topup loan is eligible to you only when you have taken a home loan already and have been repaying the amount on a steady basis for at least a year. Remember that a solid track record in repayment is one of the key determining factors behind whether you're considered for a topup loan or not.

What are the benefits of a topup loan?

Provided you meet the above criteria, a topup loan offers plenty of benefits such as convenient interest rates, affordability, flexibility, and a lot more.

Interest rates

When a topup loan gets approved, it is done on the same terms, conditions and interest as the original loan. However, based on how good of a relationship you have with your lender, as well as your eligibility and the lender's own policy, you could possibly get a different interest rate or tenure. You could possibly even get a waiver on a few changes.

Ease of eligibility

Given that you already have an existing relationship with your lender, there is no need for your creditworthiness to be reassessed. Your existing credit history will be the primary basis on which your eligibility will be decided upon.

A good avenue for emergency funding

Given that a topup loan doesn't require the application of a new loan, it significantly streamlines and speeds up the disbursal process. This makes it a viable option to turn to for meeting urgent requirements.

More affordable than many other finance sources

While the interest rate for a topup loan might still be around 1.5 to 2 per cent higher than a home loan, it's still lower than say, a personal loan or a loan against property.

Flexible repayment

A topup loan has a long repayment tenure, which lets you have a significantly relaxed repayment plan in place, as per your convenience. Of course, it will depend on the tenure of your existing home loan. But when you consider that a personal loan has a five-year tenure, a 15-20 year tenure of a topup loan still sounds far more appealing, doesn't it?

Use as per your needs

Another aspect of a topup loan that adds to its versatility and flexibility is that you can use it as per your needs. This is because there's no restriction on usage. So you can use the topup loan however you want, be it to pay for home expenses such as repairs or upgrades, purchase of a vehicle, pay for education or even take care of emergencies.

Personal loans and home loans are more suited to help you fulfil your long-term commitments. But for those occasions when you absolutely need to purchase something, our instant loan app is the way to go.. 

If you are seeking an instant student loan or salaried loan and wondering where to turn, simply download the mPokket online loan app. Register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000! mPokket instant loans for salaried and loans for students are both credited straight to your bank account within 10 minutes.

Also read: What are the different types of Instant Loans?

Whether you've just finished college and are experiencing your first taste of the working life or a seasoned professional, it's never too early to begin thinking about the future. With the cost of living not getting any cheaper any time soon, merely running on what you earn isn't enough. Letting your money grow is imperative to ensuring a comfortable future.

Some may see saving and investing as two sides of the same coin. While it's true that both are important for setting up a stable financial future, there are certain, key differences.

Sure, both can help pad your future. Saving is generally considered a safer option but with that safety comes lesser returns. Investing, on the other hand, entails a bit more risk, depending on the type of investment, but there's more to gain too.

it's important to know which suits you better, as per your goals and lifestyle. With that being said, let's delve a bit deeper into learning about the differences between saving and investing.

Similarities between savings and investments

Both saving and investing involve putting some of your money away to help it accumulate.

To that end, both require their specialized accounts with financial institutions. For saving, you have to open an account at a bank. For investing, you can open an account with an investment broker or get a brokerage account to buy and sell stocks, bonds, mutual funds and even gold investing.

Both savers and investors ensure they have adequate funding in their bank accounts before tying up a sizable chunk of their money in saving or investing. This is because of unexpected expenses such as emergencies.

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Differences between savings and investing

Most people think saving and investing are the same thing. While they do share similarities, as we've covered, there are key differences, mainly to do with the type of assets involved.

Saving primarily involves bank products such as savings accounts, fixed deposits and even public provident funds (PPF). Meanwhile, when it comes to investing, you deal with stocks, bonds, mutual funds and exchange-traded funds.

Advantages of saving

• With bank products being quite liquid, you're usually assured of getting your money when you need it. A slight penalty might be applied in some cases.
• You know upfront the amount of interest you stand to earn on your balance.
• It is quite easy to do and thus more accessible.
• No upfront cost to be incurred.
• You can rest assured that your savings will be safe in your bank account, so little or no risk is involved. For this, do try to stick to reputed banks.

Disadvantages of saving

• You earn considerably lower returns than you possibly could by investing instead.
• Given the low returns, inflation will reduce your purchasing power over time.

Advantages of investing

• You have a better chance at keeping up with inflation and stabilizing your purchasing power, especially if you own a broad collection of stocks.
• Like bank products, investing products are also quite liquid. You can easily convert a stock or bond into cash.
• Investing generally offers higher returns than saving, provided you choose your stocks wisely.
• Investing could potentially reap profits that raise your net worth and let you accumulate your wealth over a shorter time.

Disadvantages of investing

• Unlike with saving, investing doesn't always guarantee returns.
• Depending on factors such as the economy, you may get back less than what you originally invested.
• Given its risky nature, you'll need to be dependent on an expert if you're not sure what you're doing.
• While it's tempting to go after the best short-term investments, you should ideally let the money stay in your investment account for a period of five years or more in order to better ride out any short term fluctuations.

Conclusion - which is better, saving or investing?

As we mentioned at the beginning of this feature, whether saving or investing is better depends on your personal circumstances.

As a rule of thumb, stick to saving if you need to use the money soon (within a year or less), whereas if you don't need to touch it for a longer period (five years at least), then invest it. 

Certainly, your emergency fund should always be kept in your savings and never invested.

Savings should be targeted to meet your day-to-day goals such as buying a new gadget or a weekend's getaway while investing wisely enables you to realize long-term goals such as buying your own home or a car.

So, ideally, depending on the funds at your disposal as well as your life's priorities, you could dabble in both - seek out the best savings scheme and best investment option that checks the most boxes for you.

Whether you are a student or a professional, unforeseen expenses can sometimes make your savings take a hit. In such cases, why not avail of an instant personal loan instead of digging into your savings? After all, it's easier to pay off a personal loan at a reasonable rate of interest over a period of time than bleeding your accumulated wealth.

If you are seeking an instant loan for student or loan for salaried and wondering where to turn, simply download the mPokket app, register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000! mPokket instant loans for students online and instant loans for salaried  are both credited straight to your bank account within 10 minutes.

As we near the end of July, there's reason to smile for all of us. After all, who doesn't like a good bargain? That's what's in store, literally, as many of the popular e-commerce outlets will be having mega online sales.

Finally, after weeks and months of curating a wishlist of desirable items, you can look forward to actually buying some of them during the many discount sales that will be running.

Of course, for those of you who might not have a wishlist ready but don't want to miss out on a good deal either, fret not. We have put together a small but practical list of things that you're likely to consider purchasing at some point in the not too distant future anyway. Be it the Amazon sale, Nykaa sale, or any other sale of your choice, you're sure to find these items at a discount price:

Power bank

For better or worse, our mobile phones have almost become as essential today as the clothes we wear. You probably cannot imagine stepping out of the house without your mobile in your pocket. What used to be a simple calling device has now become indispensable to the smooth functioning of our work, relationships, and even leisure.

All that use leads to quick depletion of the phone's battery, however. How often have you found yourself freaking out about running out of juice at inopportune moments? Not to mention how inconvenient some charging locations can be while outside your home. That's why we recommend considering a decent fast-charging power bank. It's one of the most popular items during any sale and you're sure to find a solid deal. You can carry it in your bag wherever you go and rest assured that you won't run out of power when you need it the most.

Also read: 5 common credit card mistakes and how to avoid them

Dumbbells

With the second wave of the dreaded COVID-19 pandemic beginning to recede, gymnasiums across the country are opening up again. However, with the on-again, off-again nature of the lockdowns and restrictions, an expensive gym membership might not be of much use until things settle down for good.

But you can't put a pause on your daily exercise. If you're afraid to step out for a daily walk, you could consider buying an affordable home workout kit. And nothing's more basic than a pair of dumbbells. They are quite affordable if you look around a bit, and during a sale, you're sure to find a good deal.

Formal clothes

Sure, formal clothes might not be the first thing that comes to your mind when you think about shopping during a sale! Usually, we're more focused on the 'fun' and 'snazzy' things. However, being responsible and mature adults, we're often forced to set aside our hard-earned money for more important things in life and wait for a sale instead.

But here's the thing; the next time you go for a job interview, you'll be glad you spent on some good formal wear. Not to mention, having a fuller formal wardrobe will also reflect well on you and your work at the workplace. And at the end of the day, what's good for your career is usually good for your bank balance that will fund your purchases during a sale!

Cheap earphones and earbuds

Like most young people these days, you likely enjoy listening to your favourite tunes on the go. And if not the latest hit songs, many love to soak in information about their favourite topics by listening to podcasts.

It's nearly impossible to spot college students or young professionals without some kind of listening apparatus on their person, be it headphones wrapped over their heads or earbuds plugged into their ears. 

After being subjected to such frequent use and travel, a sale is a good time to consider going for an upgrade. You'll find solid deals on some of the best budget earbuds. Particularly during the Amazon upcoming sale, you'll find limited-time discounts that are an absolute steal. So much so that you could even consider going a grade higher instead of restricting yourself to cheap earphones.

Also read: No cost EMIs – Merits & Demerits

Why use mPokket during the July sale? 

During a sale, finding the best deals is a task unto itself. However, sometimes, there are limited-time discounts or flash sales that only last for a few hours or less. Adding to the tension, these deals are often limited by stock availability or percentage claimed.

In such situations, a quick and timely cash infusion could prove very helpful. At mPokket, the 'instant' in instant loan is a very real thing. From applying for a loan to completion of direct cash transfer to your bank or Paytm Account is done within 10 minutes, leaving you with enough breathing space to complete your purchase.

Also, If you are seeking an instant student loan or salaried loan and wondering where to turn for obtaining loans online, simply download the app, register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000! mPokket instant loans for students online and loans for salaried are credited straight to your bank.

So don't wait, add mPokket to your arsenal and get ready to gun for some great deals!

There used to be a time when obtaining a loan was quite an arduous process. Even then, you didn't have any assurance of getting it. Many were forced to turn to shady loan sharks to get some much-needed credit.

Thankfully, those days are in the past. Obtaining a loan today is considerably easier and streamlined. Competitive plans ensure you are spoilt for choice when it comes to borrowing money.

When quick and effortless financing is the order of the day, instant loans can be quite helpful. 

Especially for those times when a cause for unexpected expense crops up, we might not always be in possession of funds to pay for it. For such occasions, an instant loan is the need of the hour. They can be easily applied for online and are processed quickly, with minimal documentation and fast disbursement.

Instant Loan Eligibility Criteria

But you must be well-versed with the ways in which they work. This includes being aware of any eligibility requirements that are in place. Here are the eligibility criteria:

Credit Score: In order to obtain an instant personal loan at an affordable interest rate, a healthy credit score goes a long way. A credit score of over 750 is ideal for this.

Age: Meeting the age requirements set by the lender is imperative in order to be eligible for an instant personal loan. Depending on whether you're a student, salaried employee or a self-employed entrepreneur, there may be different age limits in place. So ensure you check out the age requirements stipulated by the concerned bank or NBFC from whom you're looking to borrow from.

Also read: What is CIBIL score? All you need to know about CIBIL score and how to check it using your PAN

Now, let's take a look at the different types of instant loans available:

Personal Loans: Offered by numerous banks and non-banking financial companies (NBFC), personal loans are by far the most widely availed unsecured loan when it comes to dealing with financial shortcomings. Your eligibility determines how high of an amount you can borrow. Compared to secured loans, the interest rates are usually on the steep side when it comes to personal loans. On the flip side, however, you get a flexible tenure and convenient repayment terms.

Short Term Personal Loans: A short-term personal (STPL) loan can be for an amount as low as Rs 1000 and are mainly being offered by digital lenders and NBFCs such as mPokket. It's a relatively nascent concept in India but catching on quickly among the youth in particular. It's a convenient solution to meet end-of-the-month cash crunches and unexpected expenses that may crop up. In order to avail an STPL, you can usually just apply online — usually through an app of the lender — then upload the necessary documents and the cash is usually disbursed straight to your bank account instantly.

Loan Against Credit Card: If you happen to be a credit card user, you could be eligible for a loan against your credit card. Your repayment history and credit card limit will determine your eligibility, of course, but once approved, funds are disbursed swiftly after minimal processing. If you wish to find out more, simply head over to your credit card provider's website.

Loans Against Savings and Insurance: If you have invested in small savings instruments such as fixed deposits, car insurance, and health insurance policies at your bank, you could be eligible to apply for a loan against savings and insurance, also known as a demand loan. It's offered by plenty of banks and NBFCs these days. Do note that your loan amount, which could go as high as 90 per cent of your savings value, will be determined by your policy's maturity value and repayment record as well.

Topup Loan: As the name indicates, topup loans let you avail extra funds on top of your existing loans. Since your personal details are already known to the lender, processing of the top-up loan is done quickly with a quick form fill-up.

Whether you're a student or salaried professional, when it comes to instant loans, you cannot go wrong with mPokket. We offer cash loan, easy loan, quick loan, and short term loans. 

To begin, simply download the app and register by uploading a handful of documents. Post-approval, you can borrow instant personal loans of up to Rs. 50,000, depending on your credit score and repayment history. We credit the amount straight to your bank account!

Life throws a lot at you sometimes. However, there's no denying that even a modicum of financial stability goes a long way towards assuaging some of those woes.

That's why it's imperative to have a financial plan at the ready. It will allow you to sleep at night with the knowledge that, come what may, at least financially, you have a strategy for most situations.

Whether you're on the verge of entering the working life or a grizzled veteran of the rat race, a sound financial plan is something you should not skimp on.

It's important to assess your cash inflows and outflows, and know where to invest your money. Not all of us are cut from the same cloth. Knowing how to manage your funds according to your needs is important.

Why should I bother with a financial plan?

Here are some of the main reasons why it's important to have a financial plan:

• You can maintain an optimum balance between income and expenses
• It helps you manage your cash flows and cut down on any unnecessary expenditures
• Helps you avert any potential tax liability
• Helps you pick the best investment and earn the highest possible return 
• Facilitates better wealth management
• Secures retirement life financially
• Solidifies insurance planning to ensure the needs of dependents are adequately taken care of

Where do I start with a financial plan?

Before you go about formulating your financial plan, you need to get a firm grasp of where you stand financially. This means taking a good hard look at your cash inflow and outflow on a monthly and yearly basis.

Leave out any one-time expenditure such as expenses incurred during an emergency, as these do not reflect the norm. Focus on the essentials, such as income, rent, insurance payments, groceries, travel, among other things.

This will leave you with a good idea of your net disposable income that you can put towards investments. 

Next, take stock of all your assets, by valuating any land or property you may own, gold, and existing investments such as fixed deposits and mutual funds. Experts recommend subtracting the value of your residence and gold, in order to obtain a more realistic picture.

Ok, now how to make a financial plan?

What are your goals?

First off, pinpoint and prioritize your life goals. Then figure out the kind of funds you'll need to cover the financial component of those goals. Say you're looking to own your own home at some point. You'll need to be cognizant of the fact the price could be significantly higher by the time you get around to it.

Are you well covered?

Before you veer towards any sort of investment, first you have to ensure that you and your family are adequately covered for medical insurance. If you have dependents, ensure they have the necessary term life insurance coverage

Invest as per your needs

One-size-fits-all may apply to particular things but certainly not when it comes to investments. In the same way that an off-road vehicle is better suited to rocky terrain than a sleek sedan, certain investment types are more appropriate for the kind of goals you have. So balance the risk against reward, the rate of return, liquidity and other factors that pertain to you.

Once you're sure, don't veer

After careful consideration, you've finally put together a financial plan. Congratulations. But now comes the hard part; maintaining the discipline to avoid drastic changes to that plan.

Stay ahead of taxes

Always aim for optimal tax savings under the income tax laws of the land. Don't pay unnecessary taxes by investing in inefficient schemes. At the same time, don't run only after schemes that offer the best tax benefits.

Keep track and consolidate

Savings accounts, credit cards, lockers, debit cards, Demat accounts that you don't use anymore should be done away with. Don't hold on to them since many of them have certain criteria such as minimum balance or auto-renewal which could end up costing you unnecessarily.

Keeping debt in check

Always keep tabs on your existing loans and try to clear your debts at the earliest. After all, it doesn't make sense if your total return on investments is being far outpaced by repaying loans at a high interest rate.

Taking stock

Even when you have checked all the boxes when it comes to putting together your financial plan, you need to ensure it keeps humming along nicely. Timely reviews and subsequent action, if any, will ensure that the performance of your financial instruments is running in line with your long-term goals.

Whether you're a college student or a young professional, for those occasions when a bit of quick credit could go a long way, nothing fills the void quite like the mPokket online loan app.

If you are seeking an instant cash loan or salaried loan and wondering where to turn, simply download the mPokket app. Register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000! mPokket instant loans for students online and loans for salaried are credited straight to your bank account within 10 minutes.

You might also like: 6 ways to deal with self doubt at work

In today's world of instant loans and credit cards, it's no surprise that credit scores are more important than ever. A healthy credit score makes it that much easier to obtain loans or access higher credit limits at competitive rates of interest whenever needed. Lenders are less likely to hassle a potential borrower who has a good credit score.

But have you ever wondered what goes on behind the calculation of those all-important scores? For that, we need to know about credit bureaus.

What exactly is a credit bureau?

Credit bureaus are agencies that collect and analyse data pertaining to the credit transactions of an individual or business. These credit transactions include information such as which credit cards were used, loans that were taken, and their repayments. Timely payment of bills and income tax data also fall under their purview.

Where do they get all this information from? It's sourced from agencies that specialise in data collection, money collection, as well as lending companies, among various other entities and outlets.

Once all this information is collected and analysed, a credit bureau can begin to put together a profile of the person. His or her creditworthiness factors in traits like default history and repayment behaviour, among other things.

Ok, now what's a credit score?

Based on the financial information collected about a person or entity by the credit bureau, it assigns them a credit score. They can be broken down as follows:

750 or more: An excellent credit score and attests to highly responsible financial behaviour

600-750: A medium score. It attests to a financial behaviour that's not averse to the occasional risk or two. The score could be down to factors such as missed payments, missed or late filing of income tax reports, or a considerable amount of debt. Timely payments of any outstanding equated monthly instalments (EMI) and cutting down on outstanding loans can easily raise the score back up.

Below 600: A poor credit score. Individuals with scores this low have to think quickly and make a few major decisions to improve their credit score. Not doing so could make them credit-ineligible in the future.

Which are the top credit bureaus in India?

There are four credit bureaus in India, and here's a detailed look at each one:

Experian

Experian was established in 2006. In 2010, they became the first credit bureau to secure a license under the Credit Information Companies Regulation Act of 2005. Aside from providing its own brand of credit report and credit score, Experian India also provides risk scores and portfolio scores. 

Experian's credit score rating lies between 300-900 and their reports are generally on the less expensive side.

TransUnion Credit Information Bureau

Another credit bureau to obtain a license in 2010 was the TransUnion Credit Information Bureau (India) Limited, or CIBIL. Founded in 2000, they cover analysis for both individuals and organisations. Their credit score rating ranges between 300-850. For companies and similar entities, CIBIL assigns what they call PERFORM score.

Also read: What is CIBIL score? All you need to know about CIBIL score and How to check it using your PAN

CIBIL is India's most well-known credit bureau and they maintain the information of over 1000m individuals and entities. It consists of three main divisions - Commercial Bureau, Consumer Bureau, and Micro Finance Institution Bureau - which collects all the information needed.

Aside from Credit Information Reports and CIBIL Scores for individuals, CIBIL also produces CIBIL Ranks and CIBIL Commercial Reports for enterprises. Their members include most major banks and NBFCs, as well as housing finance companies and institutions.

Equifax

As a company, Equifax dates back to 1899. However, Equifax India, headquartered in Mumbai, is a joint venture between Equifax Incorporated, USA and seven of India's top financial institutions. They have been registered as a Credit Information Company in India since 2010.

Equifax's credit score rating ranges between 1-999. Along with credit scores for individuals, they also provide risk scores and portfolio scores. And for companies, Equifax provides portfolio management, credit fraud reports, risk management reports, and overall industry diagnosis, among various other reports.

CRIF High Mark

Like the rest of the four credit bureaus, CRIF High Mark also obtained its license in 2010. However, what separates it from the rest is that it is the only one approved to operate by the Reserve Bank of India.

Also read: How is the Crif Score Calculated? Practices That Negatively Effect the CRIF Score

Both individuals and corporates are covered under CRIF High Mark's credit rating analysis and their credit score rating ranges between 300-850.

If you are seeking a student loan or salaried loan and wondering where to turn, don't hesitate to check out mPokket. When you take loans from mPokket, be it an education loan, a service loan, or a salary advance loan, timely repayments improve your CIBIL score, which will help you be eligible for larger loans and even improve your employment prospects.

Simply download the app, register by uploading a handful of documents, and post-approval, borrow instant personal loans of up to Rs. 50,000, based on your credit score and your repayment history. mPokket quick student loans and instant loan for salaried are credited straight to your bank account.

As we have previously discussed, debt consolidation is a handy way out when you've piled up a litany of debts. However, as we also noted, it has its own pitfalls. In this feature, we shall go into some detail about how you can avoid them:

Consider all your options

The prospects pitched by debt consolidation are tempting enough that many jump at the chance without taking time to evaluate all the options on offer to them. Given the high level of stress one faces after having piled up a stack of debts, this is understandable. However, it's worth considering the options because one of them will suit your situation better than the others.

Debt consolidation loan: Signing up for a secured debt consolidation loan or unsecured personal loan with the bank or other financial institutions.

Balance transfer: This involves transferring all your credit card debts onto a single low-interest (as low as zero per cent) credit card.

Personal line of credit: This requires you to open a line of credit to pay off the entirety of the debt that you have incurred

Isolating the primary reasons behind your debt

While debt consolidation might offer a linear path towards the first step of going fully debt-free, it is ultimately just a band-aid for a wound that you need to know how to avoid suffering in the future.

This means isolating the factors that led to the gradual swelling of your debt, change your ways and make the necessary changes to avert a similar outcome again.

Start off by studying your going over your past expenses with a fine toothcomb, such as your various bills, credit card statements, payment receipts. Then figure out where you're overspending and what you can cut down on. After you've pinpointed these things, start anew with a budget in mind, and ensure you maintain the necessary self-discipline to practice it.

You've still got to pay off the debt consolidated loan - Figure out how

Okay, so you've managed to consolidate your debt and are hopefully on your way to a debt-free existence soon. However, till then, there's the very real threat of not being able to pay off the loan consistently.

Merely making the minimum payments won't cut it this time around. It will only extend your repayment, during which you could stack up even more debt.

That's why you first need to decide what portion of your funds you can set aside for repaying the debt. For this, planning a budget revolving around set repayment amount would help. Apply the emergency brake on all non-essential expenditure and use any extra funds you may come into, such as bonuses, refunds, or even a secondary source of employment, towards paying the debt.

Avoid returning to uncontrolled spending

Consolidating all your debt frees up a fair bit of money. At least that's how it seems. But remember those funds are there to help pay off your loan and tide you over while you make changes to your spending habits.

The first step towards that new approach is curtailing your spending as much as possible. Hide your credit cards and avoid using them till your debt is paid off. However, do avoid closing out your credit cards altogether - especially your oldest cards - as the subsequent credit length reduction will impact your credit score adversely.

Avoid a long repayment tenure

We get it. When you've landed up in a sea of debt, funds are going to be tight. However, that doesn't mean a longer repayment tenure for your debt consolidation loan is a good idea. That's because you will end up paying more over time by way of interest. 

Before you settle on a debt consolidation loan, compare the repayment terms of each lender and pick the one with the shortest tenure.

Of course, if you're acutely short on funds, you may have no choice but to opt for a longer repayment tenure.

At mPokket, we firmly believe loans should be available at the drop of a hat, when you need it most, particularly students and young professionals whose dreams and aspirations are at a budding stage.

However, we also believe in fostering a sense of responsibility when it comes to paying off debts. To that end, we offer flexible repayment options that let you decide your own repayment schedule. We also offer incentives for timely settling of dues, such as raised credit limits and mCoins. This applies to both student loans as well as loans and salary advances for young professionals. So don't wait, download the app now and take an instant loans online after a quick, hassle-free and paperless process.