10 Ways to Earn Passive Income

Having a 9 to 5 job might be luring for those who usually enjoy their own comfort zones but it can eventually prove to be monetarily insufficient. Your current job might not be able to carry the huge strain of the bills flooding in. To make both ends meet, you might even decide to do double shifts or 2 jobs simultaneously in spite of the fact that how hectic and robotic that can make your life. There are more effective ways to have multiple streams of inflows that usually require one-time investment of time and money and you’re good to go.

So, Here Are The 10 Ways You Can Earn Passive Income:

1. Invest in Real Estate:

Real Estate is considered a relatively safer mode of investment. It involves buying, holding and then selling properties and making money out of the price appreciations. Although the initial investment usually requires a big sum, yet the steady flow afterward is a relief.

2. Rent a Space:

If you have your own personal house and a couple of rooms of it are unused, you can set it up as a vacation rental for guests and tourists. You can also even put it up as a space for rent on Airbnb or on a similar house rental website.

3. Invest in a Business:

One way of having a passive income is investing in a business. Being a non-active partner in a business gives you the freedom of exemption from the day to day business operations but still be able to reap the profit it makes.

4. Patents:

If you own something that you created and has a wide range of audience as well who would benefit from it, you can patent your product and let businesses use it. Large businesses pay royalties on the use of your intellectual property.

5. Portfolio with Dividend Paying Securities:

Owning a portfolio with a diverse set of securities, mainly those who pay dividends on fixed intervals, ensures a steady flow of income periodically.

6. Manage Financial Plans:

If you have a concrete knowledge base of financial investments, you can charge people for managing their investments and devising their financial plans.

7. Blogs and Websites:

If you own a blog that engages quite a number of visitors and have a knack for good content that you post regularly (not necessarily daily),  then you can set up AdSense on your website to advertise products and earn whenever anyone clicks on the advert links. It’s that simple! You can also choose to build websites for clients, it takes some efforts but pays a great deal.

8. Write an eBook:

You can write an eBook with original, informative content and sell it up in a bookstore. It’s a one-time effort and once you market around your book through your blog or network, it starts selling out and there you have a steady passive stream of income.

9. Build an Application:

Building an application and putting it up for free on PlayStore, or App Store, can help you earn through advertisements you place in between. Your application just needs to be useful, original and engaging. You can even place an ad-free version where the user pays a small amount to get rid of the ads.

10. Sell Your Art:

You can create music or artistic paintings or even graphical content and sell it up online. There are websites which allow you to upload your art on their website and pay you a certain percentage for every time someone buys it from their website.

 

 

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The Fundamental Factors That Move Stock Prices

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People often look for a second source of income to have as a backup option.  After all, who doesn’t mind a few extra bucks? There are many ways to do so, like freelancing, blogging, etc., but most of them will require putting in extra efforts. Hence, a lot of people choose to invest their money and enjoy the returns. There are various financial instruments that can help you achieve your desired returns but one of the most intriguing one among them all is ‘the Stock Market’.

The stock is a unit of ownership in any business. If you own a stock, you own a certain small fraction of that company. And consequently, a stock market is a place where stocks of various listed companies are bought and sold. The prices of stocks are changing all day long based on a number of factors. In reality, it is impossible to quantify all the factors that influence a stock price, let alone be able to predict the exact price the stock will be worth. Yet there are some factors which can help us make an intelligent guess and we will be discussing some of those factors here. The following methods are used for investing in long term:

Company Performance:

Knowledge Required: Basic Accounting knowledge, ability to read financial statements of different companies.

Company performance is one of the factors that influence the price of its stocks. A good performing company may not necessarily have an upward trend or an increasing price at all times. Sometimes, a company may take on loan for a particular project’s investment and weigh down. Therefore, the scales of liabilities on its financials, increased debt, or non-performing debts, usually are a sign of declining company performance but not in every case. As in our example, the loan is an investment in a project which can be profitable and have almost twice a return on its investment. Hence, there is more to financials than a simple increase in debts or assets.

Investors use tools for determining company performance. These tools, known as ratios come under the methods of fundamental analysis. By seeking different accounts in the financials, ratios are made which can give a simple output on the basis of which decisions can be taken regarding investment. There are many ratios but two standard ratios used, which are recommended for beginners as well are:

–         Earnings per share: Ratio of company’s profit to a number of outstanding shares, EPS is a measure of a company’s profitability. The higher the value, the better option the company is for investment.

–         P/E Ratio: Calculated as market value per share divided by EPS, it is an indication of how much an investor is willing to pay to earn $1. A high P/E ratio usually means that investors are willing to pay more mainly because they are expecting growth in the company.

External Factors:

Knowledge Required:  General understanding of latest happenings in news.

Another factor that greatly influences stock prices are external factors, which come under technical analysis. Political riots, technological advancement, etc. are some of such external factors. These factors cannot always be quantified but having knowledge about these can give us an intuition as to the trend the price is likely to follow; a political event in favor of a country can boost stock prices in general. Whereas, a technological discovery can impact technology sector more. Some such external factors which impact particular stocks, a whole sector or complete stock market, are as below:

–         Inflation or deflation

–         Substitute products/services of a company

–         Political Events

–         Liquidity of stocks (invest in actively traded companies)

–         Demographics of investors

Market Emotions:

Knowledge required: Thorough understanding of notations used in stock tickers.

The stock market is a combination of various stocks and a market itself exhibits certain trends based on the continuous trading going on during trading hours. The prices are constantly fluctuating of active stocks due to selling and buying happening in large volumes. These spontaneous trading are often influenced by collective emotions of traders that as described by behavioral finance, is one of the major factors for price trends in the market. There are two periods which are a consequence of market emotions:

–         Bullish period: during this period, there is excessive buying of stocks in the market, due to which the prices of stocks go up and the market follows a general upward trend.

–         Bearish period: during this period, there is excessive selling of stocks in the market, due to which the prices of stocks go down and the market follows a general downward trend. It is usually a consequence of a bullish period as a market suffering extremities balance itself eventually.

Conclusion:

Forces that influence the stock prices are uncountable and there is no way to be able to understand all of them at once. But there are some factors that can be kept in mind while choosing companies to invest in. Remember, it is considered a good practice to keep your investment diversified that is, not invest all your money in a single company or sector.

Image Source:Pixabay

TOP 3 BITCOIN MIXERS

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Bitcoin is the first digital currency based on strict cryptography rules. It is the only digitally produced, transacted and consumed currency that is indeed decentralized (no central authority is going to control it). This feature of Bitcoin spots it as different from normal currency.

Bitcoin owners meet over the distributed ledger called block chain where the sender and receiver addresses can be easily tracked. This privacy issue of the technology introduces the acceptance of Bitcoin Mixers also known as Tumblers.

Bitcoin Mixers have become so popular from recent years because they disconnect the tie-in and provide seclusion to the Bitcoin owners.

The purpose of this article is to unveil the top 3 Bitcoin mixers and elaborate their services how they are different in them.

Helix by Gram

Helix by Gram is super easy to use. It provides a friendly environment with each step clearly mentioned. It is also accessible from TOR. Grams need no account, no registration or authentication. The Bitcoin owner is just needed to provide the address and dirty coins, and can get them cleaned in 30 minutes. Mark that Helix takes only 2.5% fee and send you the new ones. Simple, Speedy and Easy features distinguish Gram among all.

Helix by Gram is a definitive darknet bitcoin mixer. It cleans your older bitcoins and returns you what has not been used before on the darknet. It also provides several safety and security features for your bitcoins. Any customer can trade mix and the older bitcoins for new ones. Helix by Gram enjoys 1000+ satisfied customers, 10,000+ BTC cleaned to date and amazingly 0 bitcoins lost.

You can access Helix by Gram from here http://gramshelix.com/

Bitmixer

Bitmixer is another amazing service. It owns an amazing chain of reserved bitcoins that will instantly provide you your mixed coins without any wait. It uses a remarkable piece of code that does not mix your coins on the second transaction.

Bitmixer is a giveaway solution which costs minimum of 0.5% plus some steep transaction charges on each address. It is also a no entry fee tor accessible service.

It comes with a virtual currency guard wallet, making it safe for your bitcoins. With Bitmixer you do not have to wait for a long time. They have readily available mixed bitcoins that you can get right when you trade yours. You can also invest with Bitmixer and partner with them in their reserves. The minimum amount to invest is Bitmixer is 100 BTC.

You can access Bitmixer from here https://bitmixer.io/

Bitcoin Fog

Bitcoin Fog is an only TOR accessible service in which account is obligatory. Bitcoin Fog is undemanding that works like all the other bitcoin tumbling services. The point to notice is that it has a withdrawing limit. Bitcoin fog is there to cover up for your tracks on your behalf. On Bitcoin fog, the mixing process does not start until you deposit some amount of Bitcoins. The minimum limit is 5 BTC. There is a certain limit for all the deposits. It is visible to all the users while they are making a deposit.

You can only access Bitcoin Fog over the TOR Network.

Picture Source:Pixabay

Credit Cards and The Cashless World

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With increased use of credit and debit cards all over the world, the idea of a cashless society seems little in question. We have witnessed the progress from cash only to writing out cheque, to bank cards, ATMs and more recently ‘tap and go’ and mobile pay. Today, cash is playing a less important role in the society and may as well become obsolete. But are we ready for this? What do the stats say?

A recent ING International survey stated that one in four Aussies would be willing to live in a cashless society. About 34% of the section in Europe and 38% from that of America wanted to see world as a cashless society. Also, 50% of the respondents from Europe already prefer using cards over cash.

The Milestones Report from the Australian Payments Network found that there has been a 22% decline in the cash withdrawals from ATMs between 2011 and 2016. Digital payments grew, with a 37% increase in the direct entry (e.g. direct debits) transactions from 2011 to 2016, and that of 72% in the card transactions over the same period of time.

Canada is not leaving behind either. A large number of people in Canada prefer using credit or debit cards over cash. Canada is also one of the leading nations to adopt new payment technologies, such as, PayPal, online transactions, and mobile banks etc.

Stats speak louder

World has advanced far on the road to a cashless society. The Milestones Report found that most of the countries are just on the verge of being deemed as cashless economies, with only 15% of transactions in cash. Many museums prohibit cash payments for admission and you can even make donations to charities without cash. Many banks no longer accept or dispense cash in their branches. This has led to an increase in the launch and availability of payment apps. Bill and coin transactions represent only 2 percent of commercial activity.

Why is a cashless society desirable?

Today, banks and businesses prefer electronic payments because they make robberies almost impossible. Countries like USA, UK and more, prove that not only is it possible to live cash-free, but also attractive and potentially beneficial.

Since electronic records are traceable, any transaction would be difficult to hide from tax collector, leading to a better economy and future. A cashless society will reduce black marketing significantly as well. Both France and Spain have passed the laws that limit cash transactions of $1,080 and 1,000 Euros respectively. Any cash purchase beyond this is completely illegal.

Privacy for convenience?

A major concern with a cashless society is the loss of privacy. Online transactions are potentially accessible and can be traced and a transaction history can reveal a lot about you. Places where you have used your credit card, places where you have been and a list of everything you bought can create a detailed picture of who you are communicating with and what you are doing at all times.

Despite concerns, people increasingly prefer credit cards to cash. We already pay our bills online, we prefer paying for Uber rides or air tickets via online banks or cards. Also, it has been 18 years since the World’s first cashless payment method, PayPal was introduced.

So, here is the deal! Even today, a great number of people in a country like India still do not prefer going for cashless transactions. They rather withdraw cash from the banks to make their payments, pay their bills and so on. However, the fact is that the technology is here to ensure ease and security in our lives.

Here are a few reasons why we would suggest people in India to opt for cashless transactions: You can pay your utility bills while lying in your couch, you can transfer money to your loved ones borders away without having to walk all the way to bank, you do not have to carry a wallet full of cash to a grocery store, you can always stay updated about your current balance on a real time basis.

Also, every cashless transaction is more detailed and traceable. When you have cash at hand, at times you don’t even realize that you are buying something which is not actually required. Also, the cashless transactions keeps you updated about every single payment made which makes it more reliable and secure than cash transactions.

 

3 Investment trends you must avoid!

Do you ever wonder how some people invest in just the right things? And that their investment decision never yield bad results? This may be a bit too far-fetched because every investor makes some mistakes and learns from it. But the best way to be a good investor is to learn from other people’s experiences and make the most out of their advice. Life is after all too short to learn from your own mistakes!

Below are the three investment trends you should avoid if you are investing for profit and growth:

Investing in Brand Names:

Most of the investors are generally involved in making this mistake. The dazzling image of the company leads people to believe that the stocks are more profitable. But this is just a false front and many brands are in deep trouble underneath the surface. If it is long term security than the brands are a good place to invest because they well-established with large capitals but they are not a very smart investment opportunity in terms of profit and growth.

These stocks are less risky, so they should occupy a small portion of your overall collection. With overvalued stocks, there lie little growth opportunities and hence, avoiding large investments is the key if you are investing for profit and growth.

Investing in Penny Stocks:

Penny Stocks have little capitals invested in them and hence, they fetch little profit and their trade price is also low. These stocks are risky for investment because they are controlled by sizable traders. Penny stocks are terrible options to both, invest or trade. The reason for the growing investment in penny stocks is because of the thinking that bulky investment can be made at cheaper cost with high selling price to yield maximum profit. The investors based on this knowledge make large investments that prove to be fruitless most of the times. Because of the lack of right management, this is an investment you should avoid under all circumstances.

Overlooking Stock Value because of Price:

This is the most common problem with investors who are new to the market. Quite often these investors gamble in stocks with luring prices but there’s no actual market value to the stocks at close inspection. Without proper market analysis, the stocks look like a successful investment plan with a high yield promise. But behind the entire glamor, these stocks are quite unstable and are not a very good investment opportunity. You should properly evaluate the background of the company and try to know the actual stock value instead of going for the deceitful price.

What are the Techniques to trade Right Stocks at Right Time?

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Picture Source: Pixabay

Today, the surge in stock prices has made the trade market flourish with amazing results. With the rising and falling prices of stock in an instance, the stock trade market has made it crucial for all traders to be vigilant with each trade. Timing, along with the market knowledge of the stocks, is the most important aspect in stock trade. Thus, in order to be successful in trading stocks, it is imperative that you know which stocks to trade and at what time. Timely decision making is important when it comes to stock trading.

Selecting the right stocks for the trade can be difficult, especially if you’re new to the market. Stock selection does not depend on the popularity of a company or a brand name. The market variables change every day and to make the best out of your trade, you need to do a thorough analysis of the market. This can be challenging, but in order to make the right decision, you need to select the right time to start your trade. The best time to start off is early in the morning. Stock trading is similar to entering a battle and remember, nobody enters a battle unprepared! So, start preparing early and do a thorough analysis of the stock market in the morning.

Let us have a look at some techniques that will help you make the right decision:

Pre-Market analysis is Important:

In your pre-market analysis, look for stocks with value worth what you’re willing to spend. Volume is important, so look for stocks that are heavy in volume. Filter out stocks that trade thinly by checking the average volume for 30 days. Check the analysis for future market value of the stocks for picking the best ones out the list.

Dig Deeper into The Right Market:

Now, with your best selected stocks, do a clean trade off with high volume stocks and set your minimum value of the volume you want to trade, like 50,000 shares per 5-minute bar. This is what most of the traders will have their eyes on! You can also look for other loop holes or opportunities in the market that other traders don’t see by doing a much thorough analysis.

Define the Sectors and Domains:

Define your own sectors or domains you have a much deeper knowledge in, which can help you picking the right stocks. You can also use your previous experience in setting new boundaries or in enhancing your trading skills. The best way to improve your dealings is to focus on a single or at most 2 stocks for trade. Select them on the basis of popularity and or your previous experience.

Follow these simple guidelines to venture into the world of stock trade with ease.

Disclaimer: Please do not make any financial decision solely on the basis of information provided above. The views and ideas expressed in this article are solely of author and do not necessarily reflect ideas in general.

 

Savings: What’s your perspective?

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Recently, A young enthusiast asked me about the importance of saving. His parents asked him to start saving but he (like most of us during youth) want to enjoy present life and didn’t want to give up on any comforts for the sake of future. Well, to some extent both (in their shoes) are right. Savings is essential but it does not mean that you should sacrifice on each and every thing, otherwise money will become definition of your life. It also does not imply that you start enjoying present without giving thought to future.

There are negative effects to both sides: Savers often end up with ‘regrets’ and spenders with ‘financial problems’ in future. What is required is equilibrium which can be answered by How, When & Where to save.

Let’s take a look –

How:

Does more earning mean more savings? That does not make sense always. Have you ever noticed why some people are very good at saving and others find it difficult to save?  It depends upon personal money handling habits. To an extent saving habits depends on your brought-up, cultural factors. However, psychology decides the way you look at money. There are savers and spenders. Spenders love to spend money on current to enjoy life rather than saving it for future. They find their happiness in buying and comfort. Savers on the other hand – don’t enjoy losing money and gets excited when they see their savings grow.

If you are a spender then try to make your transactions in cash or debit card. Keep credit cards usage limited. A few changes like cutting on trips to grocery stores, unnecessary entertainment, Budgeting for expenses, keeping fixed cost low can help a lot in saving money.

When:

Saving at right time is very important. Moving a fixed part of your salary as saving on regular basis can help you save better and automatically put limits on your spending. If we go by thumb rule then 25% of your salary should go to savings but not less than 15%. These days it is often known as ‘Pay to yourself first’. This small step can save and accumulate large sum over long term (compounding).

Where:

Saving in right instruments and doing the right purchases could help you save more. Buying in bulk/wholesale for nonperishable products will give you happiness of buying right and saving money. However, there are certain areas where saving money should not be given importance e.g. cheap products for health, food. This will often end up with high expenses towards health and Doctor visits. Health is wealth and therefore where to save is important to understand.

Don’t make savings “goal” of your life but accept it as a part of lifestyle so that it will not be stressful.

Happy Savings!

 

Investing for Child’s future

Investing for your Child’s Future

Saving and planning investments for your child is one of the foremost item in every parent’s life. Kids are one of the priorities for every parent and to safeguard their future. With increase in education costs and inflation, it’s becoming eminent to start savings for kid’s higher education / marriage at the earliest. If we take into consideration the current educational situation then it is not only accumulating funds for college but also comes with additional costs like Tuition/coaching fees, year round study supplies, project works etc. Education is going to be very costly affair and it is better to start preparing now.

Planning & investing for your child’s future will vary as it’s mostly depends on the child’s age. If a child is 4-5 years old then parents will have more time in their hand to accumulate money but if child is approaching higher studies i.e. 12-14 years old then they don’t luxury of time. With this ‘time’ variation, options of investments will also change.

Following are some of the good options available for investing for child:

Mutual Fund SIP: 

This is an excellent option to accumulate money over the long term for your child’s education/marriage purpose. Investing in mutual fund through SIP way can help you to reach the required corpus. Only important factor is ‘Time’ rather than amount of investment because effect of compounding comes from investing time horizon. Sooner you start bigger will be the corpus.  A simple SIP of INR 5000. each month with a good equity fund can give you around INR 25 lacs in 15 years, assuming 12% annualized returns.  Increasing amount of SIP every year could also benefit you with more sum at the end of tenure.

Recurring Deposit: 

This is another option available for long term purpose. Same like SIP you can start with small amount. The returns are not high as compared to mutual fund SIP but it’s a safe investment and returns are fixed.

Public Provident Fund (PPF): 

This is one of my favorite option. It comes with triple benefits of compounding, tax exempt and decent sum at end of tenure. PPF is also safe option as returns are guaranteed. It also gives flexibility in investment.

Sukanya Samriddhi Scheme:

This is one of the good initiative taken by our Honorable Prime Minister Shri. Modiji for better and secure future of girl children in India. Under this scheme, any legal guardian or parents can open the account at the time of birth of child till she attains age of ten years. This scheme gaining popularity as it offers high interest rate and it’s a EEE(EEE means tax exemption on investment (80 c), exemption on interest received and exemption on maturity amount ) product like PPF.

Gold ETFs: 

Gold ETF’s or e-gold is also a good option of investing for child’s future. It is risk free as it’s not in physical form and gives good returns. Gold investment is more for hedging purpose therefore do not invest all your money only in gold.

Term Insurance:  

Taking a pure term insurance is always recommended. In case of an any unfortunate event all this planning could get wrong and therefore insurance plan can safeguard this crisis.  But this does not mean to buy ULIP plans or any child insurance plan. Combination of term insurance and SIP, will give more returns and security than other expensive plans.

Fixed Deposits: 

Fixed deposit is one of the safest investment tool. Though it does not offer tax benefits like PPF but it offers safety and fixed returns. Do search and compare between different FDs before investing. (https://fund-matters.com/2016/02/07/fixed-deposit-schemes-how-to-get-most-out-of-it )

 Choose from the above suggested options which is/are best suitable to your own needs, risk capacity and time frame. Invest early so that your child can get good benefits in future. Do teach your child about money and importance of savings which will help him realize the value of money. (https://fund-matters.com/2014/08/10/teach-your-kid-the-value-of-money )   

I hope this information will help you make the right decision. Happy Investing!

Sources:

NRIs in USA/Canada can invest in Indian mutual funds

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Good News for USA/Canada based NRIs….!  NRIs based in USA and Canada can invests in mutual funds in India now.

Due to FATCA(Foreign Account Tax Compliance Act) and  due to stringent rules in the USA, most of the fund houses in India were not accepting applications. But now India signed the Inter-Governmental Agreement (IGA) with USA to improve international tax compliance.

List of fund houses that currently accepting investments from NRIs based in US and Canada

  1. -Birla Sun Life Mutual Fund
  2. -SBI Mutual Fund
  3. -UTI Mutual Fund
  4. -ICICI Prudential Mutual Fund
  5. -DHFL Pramerica Mutual Fund
  6. -L&T Mutual Fund
  7. -PPFAS Mutual Fund
  8. -Sundaram Mutual Fund

Some Important points:

  • Documentation required and process for investments is same for all the investors. KYC, Additional KYC & FATCA details are compulsory for all mutual fund investors.
  • For offline investments for NRIs, some fund houses may ask for additional declaration signed by client.
  • L & T mutual fund house does not allow USA/Canada NRIs to invest in closed ended funds.

 

 Source: Economic Times

How to setup Financial Goals!

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Whenever an Investor ask me on How to start investing, the first question I ask – what are your investment objectives? Almost 80% of them don’t know the “right” answer OR they just say – earn more money.

Investing without any goal is like travelling without destination. Also if you do not have any specific goals in mind you cannot choose a right product for investment. So the main thing before starting any investment is to decide your goals.

How to decide goals?

Financial goals are simply those things which you want to achieve or dream about. These goals will be different for different investors like buying a new home, retirement or daughter’s wedding. Goals should be realistic, clear, and measurable and should have a time frame.

But remember earning more money or become rich is not a goal. Robert Kiyosaki rightly said, “Money is not a goal. Money has no value. The value comes from the dreams money helps achieve.” Your goal should be based on making your life and future financially secure and money is a tool which helps you achieve it.

There can be more than two or three goals and each goal should have specific time period, importance and its own cost. Decide and write down these details on a piece of paper.

Prioritizing your goals:

Prioritize your goals on the basis of importance and time. Some goals need longer time e.g. retirement, while others are important to be achieved in next 3-5 years.

Divide your goals in three main categories:

  • Short Term Goals (1 years)
  • Medium Term Goals (3-5 years)
  • Long Term Goals (more than 5 years)

 Plan to achieve your goals:

 Planning to achieve goals is a process and it should include:

  • After prioritizing, decide how much money you need to save to reach your goals based on available time frame. Write it down.
  • Before starting savings do checklist of available assets, cash/savings already with you.
  • Budget your expenses. It will help you figure out how much you can save. Change your spending habits. Saving money depends mostly on your spending habits.
  • Clear your credit card debts, try to reduce the use. The interest on credit card is one of major thing which lowers down your savings.
  • Identify your risk tolerance level. Do not stretch yourself beyond your limit.
  • Above steps will give you clear idea about what investment products you should choose. And therefore, select the investment products which is best suitable to your own goals, risk ability and duration.

Keep monitoring your goals. Adjust the savings, time whenever and wherever needed. Download some good financial apps or register with some financial websites to keep a check on it.

Good luck and Happy Investing!