Daily Archives: July 17, 2024

Planning an international adventure without burning a hole in your pocket is totally achievable! Going on trips is something non-negotiable, all of us need a break once in a while. But a vacation doesn’t just happen, We wish it did but it comes with comprehensive planning and we at Fincocktail have just decided to make it easier for you (as we always do) making sure you don’t get wrapped around in the same stress you are planning to catch a break from. 

This reminds me of a quote from Emily Henry’s book People We Meet On Vacation “On vacation you can be anyone you want. Like a good book or an incredible outfit, being on vacation transports you into another version of yourself”. We couldn’t agree more!

As much as we love international travel, the hardest part is always the money matters, even for us. How ironic! But we’ve figured out the best way to transact while away from India!!

Many of us want to travel the world but it’s always so expensive! Apart from the cost of air tickets, stay, sightseeing, and other basic stuff, carrying the cash to spend on all this and more is simply too much. Credit cards aren’t a great option either given that they charge a bomb of a fee for forex transactions. But we’ve got a solution!

Forex Cards! They are just like debit cards but for multiple transactions! You can just walk into your bank and ask them to convert a certain amount of money into a Forex card and when you’re travelling abroad, you can just use this card in the local currency. Here’s all you need to know:

• It’s like a prepaid travel card that you can load with a currency of your choice. You can use this just like a credit or debit card to pay for your expenses at restaurants, stores, duty-free stores, and even airports in the local currency abroad. You can even withdraw local cash from an ATM at low to no charges!
• Getting a Forex card offers the best Forex rates. It’s the cheapest way of carrying and paying in foreign currency internationally: it’s safer than cash, cheaper than other cards, and as convenient as credit/debit cards. You can use it for multiple trips, and enjoy special privileges and discounts wherever you go. If it gets stolen or lost, you don’t have to fret! You can cancel the card at ease, and use the leftover money on future trips!
• Want to get one? You just have to check with your bank if they offer a Forex card and they’ll set you up! 

And we haven’t even come to the best part about Forex cards! You can choose to manage multiple currencies on a single card, making it easier to travel across different countries. 

It is surprising how many people are yet not aware about forex cards, something which is super accessible and available at every bank near us, but what’s one of the cheapest hack to save money which everyone knows about yet overlook that tiny checkbox, ignoring it,

It’s TRAVEL INSURANCE! 

Some things which can be covered under travel insurance (varies from plan to plan)

Concierge Services: Assistance with booking reservations, tickets, and other travel-related needs.

Legal Assistance: Help in finding legal advice and representation if needed.

Translation Services: Access to translation services in case of language barriers.

Quarantine Coverage: Expenses incurred due to being quarantined abroad, including extended accommodation and meals.  

And so much more!  

Unsure about wanting to spend on Forex cards AND travel insurance? It is a hassle to go out there and look for both but guess what, some premium forex cards come with travel insurance coverage, offering benefits such as emergency medical assistance, trip cancellation, or lost baggage reimbursement. 

As you embark on your international escapades, here’s a golden rule: Adventure doesn’t have to break the bank. Amidst the excitement of international travel dreams, there’s one savvy strategy that transcends borders – saving money. Whether it’s scoring budget-friendly flights, optimising currency exchange, or seeking local gems, remember that financial mindfulness can enhance every journey.

Make sure to check out our YouTube video where we talk about travel insurance!

Let every passport stamp become a symbol of smart savings and unforgettable experiences. 

There was a time when a LOT of finance creators were dissing grandparents’ favourite investment option (Fixed Deposits). But, FDs are BACK in action, and can now BEAT inflation.

Now considering everywhere else, there seems to be plenty of uncertainty, people are considering getting FDs back in their portfolio because they’re offering up to 8% in returns in some cases!

So, we thought we could chime right in and talk about your parents’ one true love in the name of investments: Fixed Deposits aka FDs!

What if we say we’ve got an actionable tip for you, with a better way to invest in FDs.

FD Laddering

FD laddering is a strategy where you split your money into fixed deposits (FDs) with different maturity dates. Instead of putting all your money into one FD, you spread it out across several, like rungs on a ladder. As each FD matures, you can reinvest or use the money, creating a steady income stream.

For example, creating an FD of 10 lakhs for three years at a 7% interest rate will give you a fixed return. But if you split it into three parts and create an FD with each part for 1, 2, and 3 years respectively, at differing rates of interest, one of these will mature every year. By reinvesting each maturity amount annually, you will make a lot more money.

Still a bit confused? We will break it down for you 

If you have Rs 3 lakh to invest, rather than investing it all at once for 3 years, you can divide it into 3 FDs of Rs 1 lakh each. One FD matures each year, providing liquidity annually. This strategy is known as an FD ladder. Similarly, you can create an FD ladder with a 5-year tenure by reinvesting the matured FD annually.

Here are 3 LEGIT reasons to ladder your FDs: 

• Smart Risk Management: Think of FD laddering like spreading your bets at a poker table. By splitting your money into different FDs with various maturity dates, you’re not putting all your eggs in one basket. This way, you’re cushioned against sudden interest rate drops and market changes. This way, you have the flexibility to access some of your money without closing the FD before it matures.
• It’s like hitting the sweet spot in a game – FD laddering lets you play the field. By locking in different interest rates over varying periods, you maximise your overall returns. It’s a bit like getting the best deals from multiple stores at the same time!
• Flexibility on Tap: Picture having a stash of cash on hand whenever you need it. With FD laddering, you’ve got a constant flow of funds becoming available as each FD matures. It’s like having a financial tap that you can turn on whenever you want to fund a goal, tackle an unexpected expense, or simply reinvest for more growth.

Exploring smarter ways to invest and save is key to securing financial stability is literally the only way to achieve your financial goals in 2024! Stay informed, stay proactive, and continue to let FinCocktail usher you toward financial empowerment!