Am I rich or poor? It’s a question many silently ask but rarely answer for themselves. Is it income, lifestyle, or peace of mind that defines our true wealth?
Am I rich or poor? It’s a question of perception, not numbers
Recently, my daughter commented on our small car, comparing it with others around us. I shared my reply to her on Twitter. That turned bit viral, and few asked me the price of the car (to judge my net worth), and few branded me as I am poor 🙂 (Sharing the tweet below) That small remark sparked a big thought in my mind — Am I rich or poor? Who decides this — is it me, my family, or the society I live in?
My daughter said our car is the smallest on the street. I told her that I had no car loan, was fully owned, and had spent just 3% of my financial assets on a depreciating asset. That’s a win 🙂
— BasuNivesh Fee Only Financial Planners (@BasuNivesh) June 7, 2025
This isn’t just about wealth on paper. It’s about how we feel about our financial lives. For some, richness means a luxury lifestyle. For others, it might simply mean living without debt, peacefully and healthily.
How Society Distorts Our Financial Self-Worth
We often measure our wealth by comparing it with others. Live in a modest neighbourhood, and you may feel rich. Move to a more affluent area, and you may suddenly feel poor.
“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” — Will Rogers
Our perception of wealth gets hijacked by society. But in reality, whether you’re rich or poor should be defined by you, not the crowd around you.
If you live in a society where your neighbours are poorer than you, then you always feel RICH. Inversely, if you move to a wealthier society than you are, then you will always feel poor in yourself. In simple terms, if you surround yourself with people who are financially poorer than you, then you will be rich and vice versa.
Peace of Mind and Health: The True Measures of Wealth
For me, real richness is not about crores in the bank. It’s about peace of mind and good health.
You might have Rs.100 Cr in assets, but if you’re stressed, unhealthy, or constantly comparing, then what’s the point?
“It’s not your salary that makes you rich, it’s your spending habits.” — Charles A. Jaffe
I’m not denying the importance of money. It matters. But what matters more is knowing how much is enough for you and your family to live a meaningful life.
Status of My Financial Life: A Personal Reflection
Let me share a bit from my own journey.
I had only two financial goals:
My daughter’s graduation and post-graduation
My own retirement
Fortunately, I achieved the first goal much earlier than expected. Now, I focus solely on the second.
Today, I have a retirement corpus that can cover about 25 years of my current expenses. Some may say it’s enough, others may disagree. But I’m satisfied — and that’s what matters most to me. But it does not mean I set my retirement age. For me the retirement is when my body and mind no longer support working for me. Until that period, I am happy to work, and I love working.
I started with zero net worth in 2011, right after I quit my BPO job and completed my CFP certification. Since then:
I purchased an independent house and cleared the loan in 2–3 years
Bought a car without any loan
Built my life completely debt-free
No shortcuts, no magic — The secret is “never increasing our expenses (subject to inflation) even though our income increased drastically”.
Simple Living = Rich Living
Despite a rise in income over the years, our lifestyle hasn’t drastically changed. Apart from accounting for inflation, we live with the same simplicity. This decision played a huge role in helping us accumulate wealth.
Around 90% of our expenses are needs, and only 10% are wants. That’s the kind of balance we try to maintain.
“Wealth consists not in having great possessions, but in having few wants.” — Epictetus
Am I Rich or Poor? My Answer
I feel rich — not because of a fancy car or house — but because:
I have no EMIs
I’m debt-free
I have peace of mind
I’m healthy as of now (Daily, I walk around 10,000 steps and do yoga)
And I sleep peacefully at night (I get a sound sleep at around 10 AM and get up at around 5.30 AM)
Even if today, our family income drops to zero, we can live a king-size life comfortably in our native place with our current corpus. That’s true financial freedom.
So, yes — I am RICH, in my own terms. I don’t need validation or certification from others to feel rich 🙂
What’s the Real Problem Then?
This blog is not about boasting. Nor am I saying you should follow my path. Your age, career, responsibilities — everything is different.
But here’s the issue I’ve noticed: Most people crave society’s approval of their financial life.
We often forget to look inward — to assess where we started and where we’ve reached. Instead, we copy others, chase trends, and fall prey to FOMO (Fear of Missing Out).
I’ve never been jealous of my clients, many of whom have a higher net worth than me. I don’t compare myself to neighbours, friends, or relatives.
At the end of the day, what matters to me is:
Can I sleep peacefully?
Am I healthy?
Am I able to provide basic comforts for my family?
If the answer is yes, then I am rich, regardless of what society thinks.
The Trap of Lifestyle Inflation and Overconfidence
The biggest mistake of our generation is assuming that:
Our current income is forever
Our current health is permanent
We spend recklessly assuming we’ll earn forever. Living paycheck-to-paycheck without any buffer or backup plan is nothing less than a crime — especially if you have dependents.
Final Thoughts: Define “Rich” in Your Own Terms
So, am I rich or poor? I define it for myself — and so should you.
Avoid the noise. Forget what society wants you to project. Each rupee spent to impress others is a crime against your future financial freedom.
“Spending money to show people how much money you have is the fastest way to have less money.” — Morgan Housel
Define what is enough for you. Live a life based on values, not comparisons. Stay away from the FOMO mindset, and build a life that offers you peace — not pressure.
Because true richness lies not in what you own, but in how little you need to be happy.
For Unbiased Advice Subscribe To Our Fixed Fee Only Financial Planning Service
If you find value in these articles, please share them with your inner circle and encourage them to Sign Up for my Rich Habits Daily Tips/Articles. No one succeeds on their own. Thank You!
The #1 cause of Divorce is infidelity. Right behind it, at #2 is Financial Stress.
According to the American Psychological Association, approximately 40-50% of first marriages end in divorce.
So, I found it very interesting that the divorce rate for the self-made millionaires in my Rich Habits Study was only 19%, or less than half the national average. Why were the self-made millionaires in my Study able to defy the odds of divorce?
The answer is that they were able to find a partner who shared their dreams, goals, habits, values, positive mental outlook, commitment to each other and money mindset. In other words, they married right.
Finding a life partner who shares your work ethic, financial goals and life plan is crucial to success. When both spouses are on the same page, pulling the same cart together, realizing dreams, goals and the life you desire becomes attainable.
One strategy that gives both spouses some financial breathing room and helps to dramatically eliminate financial stress is for each spouse to have their own separate bank account. Now, these separate bank accounts can be either be funded through budgeting or through separate side-gigs of each spouse.
For those who do not have side-gigs and must budget, set aside 5% of the household net income, which equally funds both separate accounts. Example: You and your spose have a Net Income of $10,000 a month. Five percent of $10,000 = $500. Each separate bank account is funded, each month, with $250.
This gives each spouse some space, financially, to do as they please without having to seek permission, negotiate or argue with their spouse about the money they spend each month.
Ruchi is a News Reporter covering the US stock market. She has been following and analyzing American public companies for more than 15 years.
Updated on
Reviewed by Steve Rogers
Steve Rogers has been a professional writer and editor for over 30 years, specializing in personal finance, investment, and the impact of political trends on financial markets and personal finances.
Food is one of the most visible items in the average American budget. We eat daily and shop for food frequently. Groceries are also one of the more flexible items in a budget: you can’t change your rent or car payment, but you can shift your grocery shopping patterns. Let’s look closer at the average cost of groceries and how it varies with location, income, and family size.
Groceries are usually defined as food items that are prepared and consumed in the home. Money spent on eating out or ordering out doesn’t qualify. Consumable items often purchased in grocery stores, like cleaning supplies and personal hygiene items, may also be classified as groceries.
Average Monthly Food Spending
Here’s a breakdown of the average American monthly spending pattern. Food is the third largest expense, but it’s not broken down into groceries and food prepared outside the home.
Food spending includes groceries and food away from home, which is any food that you pay someone else to prepare for you. On average, Americans spent $779 per month on food in 2022 and $9,343 over the full year. Here’s how that breaks down.
How Much Does an Average American Spend on Groceries Each Month?
When considering only grocery expenses, the average American spends about $475 monthly and a total of $5,703 throughout the year.
Are Americans spending more than they need to spend on groceries?
The US Department of Agriculture has created four food plans that Americans can follow; the Thrifty Plan, the Low-cost Plan, the Moderate-cost Plan, and the Liberal Plan[1].
These plans take into consideration the age and gender of a person to calculate the average food cost. The plans are built on the assumption that all meals are cooked at home and meet nutritional recommendations. Figures are updated regularly to account for inflation.
Here are the average food costs listed in the December 2023 USDA Food Plan[2,3]:
The average monthly grocery bill of a family of two adults and one five year old child in the US following the official USDA moderate food plan is $898. That’s substantially higher than the average household food expenditure of $779. The disparity is because many American households don’t have children, which brings down the average expenditure.
US Census data indicates that the average family household size is 3.2 people, while the average non-family household size is only 1.25 people. The average food expenditure is not broken down by family and non-family households, but family households will have substantially higher food expenditures than non-family households.
Higher Income Earners Spend More on Groceries
Income has a major impact on grocery spending. Unsurprisingly, a higher income rolls out a smorgasbord of options. People with higher incomes can afford to pay more for organic produce, imported foods, and gourmet items[4].
Low incomes also influence overall choices. According to a 2019 study, lower-income households purchase fewer healthy foods like vegetables and dairy products than households with a higher income. The study noted that “lower-income households had lower (poorer nutrition quality) scores compared with higher-income households”.
Low-income households also pay more for the food they buy. Consumers can save significant amounts by buying non-perishable items in bulk, but a tighter budget puts money-saving bulk purchases out of reach. Low-income households shop online less frequently, and they have less access to large grocery stores with competitive pricing.
How Has the Cost of Groceries Changed Over the Years?
Average food expenditures for both food prepared at home and food ordered outside the home have increased steadily for many years, with a particularly sharp jump during the high inflation period of 2022[4].
Food prices increased sharply during the inflation surge in 2022. Food price inflation abated somewhat in 2023 but was still well above historical averages.
Egg and poultry prices were hit by an outbreak of Highly Pathogenic Avian Influenza (HPAI). Egg prices had the largest price increase (32.2%) between 2021 and 2022 of any category tracked by USDA. Beef and veal prices increased the least (5.3%) between 2021 and 2022 and generally declined from peak prices in November 2021.
The USDA predicts that food-at-home prices will drop 0.6% in 2024, with food-away-from-home prices forecast to rise 4.9%[5].
The Average Cost of Groceries by State
The average cost of groceries varies considerably by state. Hawaii and Alaska typically see the highest costs, as many goods have to be shipped over large distances[6].
Conclusion
Income is a fundamental factor influencing household spending on groceries. Higher income allows households to allocate more money for food and other expenses. High-income households may have the flexibility to choose premium and organic products, contributing to a higher overall grocery bill.
Lower-income households often face budget constraints, leading them to make cost-conscious choices. Dietary choices, cultural preferences, and lifestyle decisions influence the types of food items people purchase.
Household grocery spending is a complex outcome influenced by a combination of factors, including income, demographic characteristics, location, preferences, economic conditions, and external events. Understanding these factors helps policymakers, businesses, and individuals make informed decisions about budgeting, resource allocation, and responding to dynamic market conditions.
Ruchi is a News Reporter covering the US stock market. She is located in India but has been following and analyzing American public companies for more than 15 years. Previously, she worked at Businessday Nigeria and has written content for Insider Monkey and Zacks Investment Research.
The content on finmasters.com is for educational and informational purposes only and should not be construed as professional financial advice. Finmasters is not a financial institution and does not provide any financial products or services. We strive to provide up-to-date information but make no warranties regarding the accuracy of our information.
January 29, 2023 Posted By: growth-rapidly Tag:
Uncategorized
The financial field is not only limited to banks or companies in Wall Street, contrary to what many people believe. The financial field covers a lot of different financial services companies, including but not limited to banks, insurance companies, investment firms, stock exchanges, real estate investments, hedge funds, credit rating agencies, etc. So, if you ‘re asking what companies are in the financial field, then you have come to the right place.
Financial service firms provide a range of services, including:
Banking services (e.g. checking and savings accounts, loans, mortgages)
Investment management and advisory services
Wealth management and retirement planning
Insurance services
Payment processing and transaction services
Foreign exchange and currency management services
Risk management and financial analysis services
Capital markets and securities trading services
Consumer finance services (e.g. credit cards, personal loans)
Financial technology (FinTech) services (e.g. mobile banking, digital wallets, blockchain technology).
Below is a list of companies in the financial field:
There are many companies in the finance field, including:
JPMorgan Chase
Goldman Sachs
Citigroup
Wells Fargo
Bank of America
Morgan Stanley
Capital One
American Express
Berkshire Hathaway
BlackRock
Fidelity Investments
Vanguard Group.
Companies in the finance field:
JP Morgan Chase
JPMorgan Chase & Co. is the first in the list of major companies in the financial field. It is an American multinational investment bank and financial services company headquartered in New York City. It is one of the largest banks in the United States and provides a wide range of financial services to individuals, corporations, and governments, including:
Retail banking (checking and savings accounts, mortgages, loans)
Corporate and investment banking
Asset management
Wealth management
Treasury and securities services
Card services and merchant services
Auto finance
Commercial banking.
Goldman Sachs
Goldman Sachs is second in the list of companies in the financial field. It is an American multinational investment bank and financial services company headquartered in New York City. It provides a wide range of financial services to clients, including:
Investment banking (e.g. underwriting, mergers and acquisitions advice)
Institutional client services (e.g. sales and trading, prime brokerage)
Investing and lending (e.g. investing in private companies, providing loans to clients)
Investment research. Goldman Sachs is known for its expertise in serving large corporations, financial institutions, and governments, and for its investment in technology and innovation.
Citigroup
Citigroup is third in the list of companies in the financial field. It is an American multinational investment bank and financial services company headquartered in New York City. It provides a wide range of financial services to clients, including:
Consumer banking (e.g. checking and savings accounts, loans, mortgages)
Investment banking (e.g. underwriting, mergers and acquisitions advice)
Capital markets (e.g. sales and trading, market making)
Wealth management
Treasury and trade solutions (e.g. foreign exchange, payment services)
Card services
Insurance services. Citigrouproup operates in over 160 countries and has a significant presence in emerging markets.
Vanguard Group
The Vanguard Group is fourth in the list of companies in the financial field. It is an American investment management company that provides a range of financial services to individuals and institutions, including:
Portfolio management services for individuals and institutions
Trust services
Annuity products
College savings plans. Vanguard is known for its low-cost investment products and for its focus on passive investment strategies, such as index funds. It has a large and growing client base, and is one of the largest investment management companies in the world.
Wells Fargo
Wells Fargo & Co. is an American multinational financial services company headquartered in San Francisco, California. It provides a wide range of financial services to individuals, businesses, and institutions, including:
Retail banking (e.g. checking and savings accounts, mortgages, consumer loans)
Wealth and investment management (e.g. financial planning, asset management)
Capital markets (e.g. sales and trading, underwriting)
Corporate and investment banking
Insurance services. Wells Fargo has a large retail banking network, with thousands of branches and ATMs across the United States, and has a strong presence in the middle market commercial banking sector.
Bank of America
Bank of America is an American multinational investment bank and financial services company headquartered in Charlotte, North Carolina. It provides a wide range of financial services to individuals, businesses, and institutions, including:
Retail banking (e.g. checking and savings accounts, mortgages, consumer loans)
Wealth and investment management (e.g. financial planning, asset management)
Capital markets (e.g. sales and trading, underwriting)
Corporate and investment banking
Insurance services. Bank of America has a large retail banking network, with thousands of branches and ATMs across the United States, and also has a significant presence in investment banking and wealth management. The bank has a focus on sustainability and environmental, social, and governance (ESG) issues, and has made a number of commitments in these areas.
Morgan Stanley
Morgan Stanley is an American multinational investment bank and financial services company headquartered in New York City. It provides a wide range of financial services to individuals, corporations, and governments, including:
Investment banking (e.g. underwriting, mergers and acquisitions advice)
Institutional securities (e.g. sales and trading, market making)
Alternative investment management (e.g. private equity, hedge funds). Morgan Stanley is known for its expertise in serving large corporations, financial institutions, and governments, and has a strong presence in investment banking and wealth management. The firm is also active in sustainability and impact investing, and has made a number of commitments in these areas.
Berkshire Hathaway
Berkshire Hathaway is an American multinational conglomerate holding company headquartered in Omaha, Nebraska. It is led by Warren Buffett, one of the world’s most successful investors. The company’s primary business is insurance, through its subsidiaries, including GEICO, General Re, and Berkshire Hathaway Reinsurance Group. Berkshire Hathaway also has a large and diverse investment portfolio, with holdings in a wide range of companies, including:
Apple
Bank of America
Coca-Cola
American Express
Johnson & Johnson
Kraft Heinz
Moody’s
Verizon
Wells Fargo Berkshire Hathaway is known for its long-term investment philosophy and for its focus on operating businesses with strong market positions and consistent earnings power. The company has a reputation for being a reliable and efficient holding company, with a strong track record of value creation.
BlackRock
BlackRock is one of the major companies in the financial field. It is an American multinational investment management corporation based in New York City. It is the world’s largest asset manager, with over $9 trillion in assets under management as of 2021. BlackRock provides a range of investment and financial services to individuals, corporations, and governments, including:
Portfolio management services for individuals and institutions
Institutional consulting services
Risk management and insurance services
Aladdin, a cloud-based technology platform for investment management BlackRock is known for its expertise in using technology and data to drive investment decisions, and is a leader in the use of passive investment strategies, such as index funds. The company has a strong focus on sustainability and environmental, social, and governance (ESG) issues, and has made a number of commitments in these areas.
Put Your Money to Work
Managing your money effectively starts with careful planning. With SmartAsset, you can get matched up with three advisors who can empower you to make smart financial decisions. SmartAsset also helps take the mystery out of retirement planning by answering some of the most commonly asked questions in a simple, personalized way. Learn more about how SmartAsset can help you find your advisor match and get started now.
Home » Make Money » How to Make Money Without a Job: 26 Ways to Earn Money Outside the 9-5
Breaking free from the traditional 9-5 is more achievable than ever with these 26 innovative income streams. Ready to redefine your concept of earning?
Are you trying to win the Mega Millions, but your numbers never seem to come up? It may be time to look for better ways to make money. Fortunately, you can earn extra cash without going and getting a “real job.”
What are the best ways to avoid sitting in a cubicle all day? Some money-making strategies require an upfront investment, while others let you earn money in your free time with the help of apps.
One of the easiest ways to earn money is by signing up to participate in market research studies. You won’t make much, a few dollars here and there, but you can create a free account and get started within minutes.
You’ll be paid in PayPal cash or gift cards for sharing your opinion and completing other tasks online.
E-Poll Market Research is one of the top companies to consider for this type of work. They make it easy to create an account and answer survey questions.
However, there are plenty of other options to consider, including:
American Consumer Opinion
While market research gigs won’t make you rich, it’s something you can do during your spare time.
2. Write an eBook
If you have a book idea, turning your story into an eBook can help you earn passive income without a regular job. Kindle Direct Publishing can even help you format your book for Kindle, at which point you can market and sell your book to millions of potential readers who shop on Amazon.com.
How much can you earn writing eBooks? That depends on how many books you write, how much you sell them for, and how successful you are at marketing your book. Selling 20 books per month with a profit of $7 per book would net you $140 per month and $1,680 per year.
Meanwhile, selling 100 books per month at $7 per book would net you $700 per month and $8,400 per year. Need a little inspiration? Here’s an article that shows you how to make your first $1,000 selling eBooks.
3. Start a Blog and Monetize It
You can earn a lot of money by starting a blog or niche website and monetizing it. I should know. I started Good Financial Cents more than a decade ago, and have earned millions of dollars through the monetization of this site since its earliest days.
How do you make money blogging? Earning real income with a website isn’t as easy as it looks, but there are plenty of monetization strategies you can try.
If you’re curious about what it takes to earn money blogging, consider signing up for my Make 1K Challenge. It’s free and can help you earn your first $1,000 online with some of the blog monetization strategies I’ve already mentioned.
4. Start Freelancing
You could argue that freelance work is like a regular job, but working at home and on your terms is much different from traditional employment. The fact is, most freelancers are fully remote – they can work from anywhere in the world with a laptop and an internet connection.
Plus, they can hire and fire clients based on their personal needs and preferences, and their income potential is unlimited. According to ZipRecruiter, freelancers in the U.S. average $63.53 per hour.
Of course, you’ll need a marketable skill to find paid work as a freelancer. This could be freelance writing, design skills, marketing expertise, or something else.
You can use several websites to market your skills as a freelancer, including:
5. Get Paid to Lose Weight
HealthyWage makes it possible to earn money while you lose weight. You won’t earn a ton of cash through the app, but you can earn a few dollars and use it to supplement other income you have.
The more weight you lose, the more money you can make. For example, the HealthyWage website claims some of their clients who lost more than 100 pounds managed to earn anywhere from $1,400 to $3,000.
However, the HW weight loss calculator shows potential earnings of $578 to $828 for people who only have 15 pounds to lose.
6. Rent Out Your Car
If you have a car you rarely use and want to earn some side income, you can consider renting it out with Turo, a ride-sharing platform that connects car owners with people who need a short-term rental. You can set your price, although you’ll have more success if you price your car competitively.
Nicer vehicles in high-demand areas can easily fetch rates that surpass $100 per day through this platform. Turo notes that in-demand cars rented out regularly can bring in anywhere from $10,000 to $20,000 per year in net profit.
Plus, almost anyone can rent out their car provided it meets the guidelines of the Turo platform. Your car must be 12 years old or newer with less than 130,000 miles. It must be worth less than $200,000 (no Lambo’s), and you must also meet Turo’s auto insurance requirements.
7. Rent Out a Room
Do you have a spare bedroom in your home that you never use? Maybe you have a basement or garage apartment you could fix up and begin renting for a profit?
Either way, Airbnb lets you rent out rooms and other spaces in your home on any dates you prefer. You must let renters know they’re renting a room in a home vs. an entire apartment or house and provide as much additional detail as possible.
The amount you can earn will depend on where you live and the type of accommodation you can offer. However, expensive cities like Chicago, New York, and San Francisco have plenty of rooms for rent that go for well over $100 per night.
8. Rent Out Extra Space
You may not have an entire room you can rent, but even if you have some storage space, Neighbor.com allows you to rent it out to others in need.
Common spaces rented through this platform include
Storage Space for a Boat or an RV
The Neighbor.com platform makes it easy to advertise your unused space so that people nearby can inquire if they’re interested. Also, note that the platform offers insurance that can protect you if some of your client’s items are damaged or stolen while in your care.
How much can you make renting out extra space? It depends on how much space you have to rent and where it’s located. However, Neighbor.com shows a range of rental space options that cost anywhere from $20 to $100+ per month.
9. Invest In Dividend Stocks
Investing in dividend stocks is one of the best ways to earn money without a regular job. Many early retirees find a way to live and pay bills based solely on the dividends they receive from various stocks.
But what exactly is a dividend stock? For the most part, they are regular stocks but with a track record of sharing their profits with investors through dividends.
Since dividends are paid by profitable companies, they tend to be seen as less risky for investors. If you’re curious about what it takes to get started with this strategy, this post explains how to invest in dividend stocks.
10. Get Paid to House Sit
Housesitting is an option if you’re somewhat mobile and can move from place to place. Generally, you can find house-sitting gigs through word of mouth, referrals, or online portals like Craigslist.org or Facebook Marketplace.
That said, not all house-sitting gigs are paid. Some offer the potential for exotic travel instead and free lodging for a week to several months.
Either way, a website called TrustedHousesitters is the best place to find house-sitting gigs. Some jobs posted are for house-sitting only, while others require house sitters to provide basic care for pets or plants.
If you have serious wanderlust and want to travel far and wide, this platform can help make it happen. Many gigs posted online are in countries like Australia, Ireland, France, and Switzerland.
11. Take Care of Dogs and Cats
If you love animals and want to earn money taking care of them, several platforms can help turn your dream into a reality.
For example, Rover.com lets you provide basic care for dogs or cats in your home, or you can pick up dog walking gigs. Another mobile app, called Wag!, lets you do more of the same.
You can set your rates for all types of work through these platforms, and your availability. While earnings vary by location and job, most people watch dogs and cats for anywhere from $40 to $100 per night.
12. Invest in Real Estate
Real estate investing may seem like a pipe dream if you hope to earn income without a job but hear me out. There are many ways to earn income through real estate without owning physical property or dealing with the hassles of being a landlord.
You can invest in real estate investment trusts (REITs) that let you build wealth over time. You can also use a platform called Fundrise to invest in real estate with a minimum investment of $10.
Fundrise lets you purchase eREITs, large investment funds that acquire, own, or operate multi-residential and commercial properties. The income you earn is entirely passive since it handles the work of finding income-producing properties and managing them.
While returns are never guaranteed, Fundrise investors have achieved very solid returns. Investors who use the platform earned an average return of 7.31% in 2020, followed by 22.99% in 2021, 1.50% in 2022 and -7.45% in 2023 (their first down year).
* Minimum investment of $10
* Open to all investors
* Online easy to use site and app
I’ve been investing with Fundrise since 2018. Disclosure: when you sign up with my link, I earn a commission. All opinions are my own.
13. Invest Your Spare Change
You can earn income on your spare change by investing it using Acorns. The roundup savings app syncs to your debit or credit card rounds up every purchase you make to the nearest dollar, and invests the difference. Once it’s set up, there’s no work on your part.
Most of the money is invested in ETFs and managed by the world’s top investment firms like Vanguard and BlackRock. While this app makes it easy to invest small amounts of money, it’s not free to use. Personal plans start at $3 per month, while a family plan costs just $5.
14. Complete Basic Tasks On TaskRabbit
If you’re looking for some paid gigs that are relatively easy, consider setting up a profile on TaskRabbit, an online platform that lets you get paid for completing various tasks, such as:
Projects typically pay between $30 and $100, although some pay significantly more than that. TaskRabbit also lets you pick and choose the jobs you want to take on based on your availability so that you can work entirely on your schedule.
15. Sell Photography
If you love taking photographs and have a knack for getting professional-looking images, you can use your skills and expertise to sell photos online.
Websites like Depositphotos and iStockPhoto pay photographers to supply them with stock photos they can sell to writers, publications, and various online platforms.
The best part about this side hustle is that you can get started with the equipment you already have. While you can use a professional camera if you want to, many smartphones take professional-quality photos.
16. Earn a Bank Bonus
Earning a bank bonus is another way to earn money without a regular job, but you’ll need an upfront investment to get started. Most bonus offers require you to deposit a specific amount of money and keep it in your account for up to 12 months.
You may also be required to set up direct deposit to earn a bank bonus, and other terms and conditions may apply.
Where can you find the best bank bonuses? While bonus offers constantly change, you can start by checking with banks like Chase, HSBC, Radius Bank, and Wells Fargo.
17. Flip Furniture
Flipping furniture requires some upfront legwork and potentially even some artistic talent, but you can earn a solid income with this strategy if you know what you’re doing.
Essentially, this side hustle requires you to shop at thrift stores, garage sales, and online platforms to find furniture that will ultimately sell for more than you paid.
From there, you can sell the furniture as-is or clean it up and paint it with the goal of fetching an even higher price.
18. Drive for Uber or Lyft
You can make money driving for Uber or Lyft on your own time, picking and choosing the days and hours you want to work.
Not only is rideshare work one of the most flexible side hustles, but you can earn $20 per hour and more with tips.
NOTE:
You do need to have a clear driving record, and your car must meet basic requirements for either platform.
19. Sell Stuff You Own
If you are low on free time but still want to make money without a job, consider selling stuff you don’t need. An array of online platforms makes it a breeze, although some platforms work better for selling.
For example, you can use Poshmark to earn money selling used clothing and accessories, while used electronics tend to sell best on platforms like eBay.com, Decluttr, BuyBackWorld, and Gazelle.
If you have home decor, furniture, or workout equipment to sell, you’ll almost always do better unloading those items locally on Facebook Marketplace.
20. Start a YouTube Channel
Starting a YouTube channel is another way to earn money without a job, but that doesn’t mean it’s not work. The fact is, that creating quality videos and building an audience takes a lot of creativity and time. Plus, not everyone who tries to build a YouTube channel will succeed.
That said, you can earn income without a regular job. I know because I have done it with my YouTube channel, Wealth Hacker.
How much you can earn on YouTube varies quite a bit, but it’s possible to earn thousands of dollars per month. If you’re curious about monetizing videos, my in-depth guide will show you how to make money on YouTube.
21. Donate Plasma
Donating plasma is a unique way to earn money without a job, although it’s not very glamorous. DonatingPlasma.org makes it easy to find plasma donation centers in your area, and you can earn as much as $100 for your first donation.
That said, subsequent plasma donations typically earn closer to $50. You’ll also be limited by the number of times you can donate plasma within a month. However, it’s possible to use this side gig to earn an extra $500 per month, which you can use to supplement your primary income.
22. Become a Crowdworker
If you are willing to complete various tasks that help regular workers do their jobs, consider becoming a crowd worker. This gig will have you finishing up to-do lists of jobs that don’t require specific technical skills.
For example, you may get paid to proofread documents, label images, update a resume, complete a form, or complete a data entry assignment.
Several platforms help you find crowd-working gigs, but the best ones include Microworkers and Clickworker.
23. Shop for Groceries
If you want to do something simple that will get you moving, consider delivering groceries using apps like Instacart or Shipt. You get paid hourly, plus tips and all you have to do is head to the store, purchase groceries according to a list, and deliver them to people in your neighborhood.
The gig is extremely flexible, similar to driving for Uber or Lyft.
24. Deliver Packages With Amazon Flex
Another non-job gig lets you get paid to deliver packages for Amazon.com. You can do this through a platform called Amazon Flex, which promises its drivers anywhere from $18 to $25 per hour.
Unlike a regular Amazon job, Flex lets you pick the day and the hours you want to work. To get started, you need to create a free account, get approved, and start reserving blocks of time you want to deliver packages.
You won’t get the total value of your gift cards, but you should get 90% or more of the gift card balance for each card you sell. While selling gift cards for less than their total value may not seem ideal, it’s better than not using them and getting nothing in return.
26. Take Online Surveys
Finally, you can earn small amounts of money by signing up with the best online survey sites. Not only is this side hustle as easy as it gets, but you can participate and get paid during your spare time and even on your phone.
RECOMMENDED:
Survey Junkie is the best online survey site since you can redeem the points you earn for transfers to a PayPal account, a bank transfer, Amazon.com or Walmart purchases, iTunes purchases, and more.
Other online survey sites to check out include the following:
With all this being said, you’ll want to keep in mind that most surveys only pay a few bucks and that some only pay you with gift cards, while others offer the option for PayPal transfers. Make sure you understand how each survey site works and how you get paid before you sign up.
Final Thoughts on Making Money Without a Job
There you have it, 26 ways to make money without a job. While many of the jobs on our list won’t replace your 9-5, they can be a great way to increase your income so you can pay off debt or break the cycle of living paycheck to paycheck.
Check out the video below if you’re looking for even more ways to make money.
When I started working out of college, I had one stream of income. My job.
Now that I’m in my forties, with twenty-plus years of work behind me, I have several streams of income. Most of them are passive but none of them are special.
And on the internet, there are thousands of “charlatans “experts” who will want to “teach” you about passive income. There is no course on passive income, it’s these three steps:
The only way to get passive income is to invest in assets that produce cashflow.
The only way to get cash to invest is to save your money.
And the only way to save money is if you spend less than you earn.
And so if you work backwards, the goal is to save your first $1,000. Then $10,000. Then $100,000.
Check out this brilliant Charlie Munger quote:
The first $100,000 is a bitch, but you gotta do it. I don’t care what you have to do – if it means walking everywhere and not eating anything that wasn’t purchased with a coupon, find a way to get your hands on $100,000. After that, you can ease off the gas a little bit.
If you don’t have $100,000 sitting in a brokerage account, your entire goal (financially) is to get to $100,000.
If you have no savings, $100,000 can seem unattainable. It’s a HUGE number.
So let’s break it down.
Step 1: Get to $1,000 in savings
Your first goal is to save up $1,000. Scratch and claw your way to $1,000. This means cutting the fat in your budget and trying to save as much as possible.
This is important because if you do not have $1,000 in savings, it means you do not have an emergency fund. Any small emergency can derail you for months if not years.
You need to cut as much bullshit out of your budget to get to $1,000 so that one financial misstep or accident doesn’t set you back.
Step 2: Get to $10,000 in savings
Once you hit $1,000, great! Your next target is $10,000.
$10,000 is far but within reach. It’s also a sum that can be attained through the cutting of expenses, budgeting, and leaning on side hustles to earn extra cash. You can start doing things like switching banks to get a bank bonus and earn hundreds of dollars each time.
If you get an 8% return each year, that first $10,000 will get you $800.
$800 sounds OK but not world changing, right?
But as you grow your assets more and more, compounding will be working on a larger number.
This is why it’s so important to save and invest. If you don’t, you will forever be trading your time for money. You want to build the habit now.
Step 3: Get to $50,000 in savings
Once you have $10,000 and are investing that money, it’s important to realize that it’s much harder to save your way to $50,000. You now have to lean more on the income side of the ledger and find ways to build that up.
But at $50,000 and 8% return, your money is earning $4,000 a year. $50,000 becomes $54,000, which now gets you $4,320 a year. The interest keeps going up each year because your balance goes up.
If you start with $10,000 earning 8% a year, it takes about 10 years to get over $20,000.
But then only another 5 years to get over $30,000.
Then only 4 to get over $40,000.
The time it takes to add $10,000 gets shorter and shorter.
That’s the power of compounding and eventually your money starts to earn more than you do. This can be both scary and exciting. (I call it escaping financial gravity)
When it grows at 8%, over 30 years you’ll have 10x’d your money.
$10,000 becomes $100,000 – and that’s with no additional contributions and no extra work by you.
That’s why saving your first $10,000 is critical. You want to get that compounding clock started as soon as possible. The longer it works for you, the more your portfolio will grow.
Where do you put it?
First, make sure it’s in a high yield savings account so you’re earning interest. It won’t be a ton but it’s better than 0.01%, which is garbage.
Then, you want to put it in a brokerage account and invest it in a three fund portfolio:
Domestic stock “total market” index fund
International stock “total market” index fund
Bond “total market” index fund
These are Vanguard’s versions but you can use anything low cost (Fidelity, Charles Schwab, etc.):
Auto and homeowners’ insurance have gotten a lot more expensive in recent years. Many people experienced premium increases of 10%, 20%, or more on their renewals. Inflation in materials and labor, technological advances in vehicles, weather events, and natural disasters are all causes to blame.
A friend asked me which insurance company I used for my homeowners insurance when AAA insurance wanted over $3,000 a year to insure his home. I sent him to the independent insurance agent I use. The agent placed him with the same company I’m with. The premium was a little over $1,000, saving him $2,000 a year.
Sales and Service Channel
Home and auto insurance companies sell and service policies through different channels. Some insurance companies market directly to consumers by heavily advertising on TV and streaming platforms. I’m sure you’ve seen ads from GEICO. You buy their policies online, use their website to renew or make changes, and call a toll-free number for customer service.
Some companies sell policies through a group of captive agents. Both the company and the agents are exclusive to each other. You go through a State Farm agent if you want insurance from State Farm. The State Farm agent only sells policies from State Farm. Allstate and Farmers also operate under this model.
Some other companies sell through independent agents. These agents are small businesses that sell policies from many insurance providers. They serve as a shared outsourced sales and customer service department for the insurance companies they represent.
It doesn’t cost you anything to use an independent agent. Insurance companies pay commissions to independent agents, saving money on advertising and staffing their own sales and customer service call centers. The independent agents handle all consumer interaction, including new policy sales, coverage changes, and claims.
Using an independent agent doesn’t guarantee you’ll have the lowest premiums. The agent can shop for you among all the companies they sell for, but they can’t quote policies from companies that don’t sell through them. You can only find out whether GEICO or State Farm offers a better deal by going to GEICO or State Farm. Getting quotes from an independent agent only taps into a pool of insurance carriers that you otherwise don’t think of.
Finding an Independent Agent
I found my independent agent when I first moved to a new state. I read the comparison report published by the state insurance department (see State Government Helps You Find Lower Auto & Home Insurance). One company jumped out as offering substantially lower premiums, especially in homeowners insurance.
This insurance company is over 100 years old, but I had never heard of it because it only operates in one state. I saw on their website that they only sold through independent agents. I used the “find an agent” feature on the website to find this local independent agency.
Safeco (owned by Liberty Mutual) is a large national insurer that sells exclusively through independent agents. Using Safeco’s website is an easy way to find an independent agent near you. You are not trying to get insurance from Safeco; you’re only using its website to find an agent. An agent that sells for Safeco also sells for other companies.
You can also Google “independent insurance agent” plus the name of your city.
One-Stop Shop with Better Service
I started working with my agent on a renter’s policy when I was renting. The landlord wanted us to show proof of renter’s insurance that covered sewer backup. Most renter’s policies don’t cover sewer backup because it’s typically covered in a landlord’s policy. The agent put in extra effort to find a renter’s policy that met the landlord’s demand. The premium for the renter’s policy was only $150 a year. The agent’s commission on it couldn’t be that much.
An independent agent is separate from the insurance company. You can tell the agent things that you don’t necessarily want to tell the insurance company yet. When I had a broken windshield, I asked the agent whether it was worth filing a claim and risking raising my premium. The agent told me how that specific insurance company typically treated glass claims on renewals. When I was considering buying a home, I asked the agent for a quote to factor it into the budget, even though I don’t own the property yet. When I needed a home inspector, I asked the agent for a recommendation, which worked out great.
The agent re-shops my auto, home, and umbrella policies among the companies in their universe each year. If another company offers a better deal, the agent asks me if I want to move my policies. This creates competition among insurance companies that sell through independent agents. The business moves away quickly if an insurance company isn’t competitive.
Your insurance policies may move from one company to another but you still interact with the same independent agent with continuity. Consulting an experienced agent for your insurance needs is much better than calling a remote call center. I also feel good about supporting a local small business and smaller insurance companies as opposed to national and international giants. If the bottom-line price to me is the same, I’d much rather see money going to local small businesses than ad spending going to media conglomerates.
Some insurance agencies also sell health insurance. The agency I work with has a person trained and licensed for ACA health insurance. He helps people with annual enrollment. Using an agent for ACA health insurance doesn’t cost anything extra. The agent earns a commission from the insurance company. The insurance company keeps the commission for itself when you enroll without an agent.
***
If you have only bought auto and home insurance from a national brand, a local independent agent gives you another channel to other insurance companies. You may or may not get lower premiums through that channel, but it’s worth a try. If premiums are comparable, you may like the better personal service from an independent agent and feel good about supporting a local small business.
If you are paying an advisor a percentage of your assets, you are paying 5-10x too much. Learn how to find an independent advisor, pay for advice, and only the advice.
A financial lease is a cost-effective way for businesses to access essential assets—such as equipment, vehicles, or machinery—without the burden of immediate ownership. It allows companies to preserve cash flow while acquiring long-term control over operational assets. In this arrangement, the lessee pays fixed rentals over the lease term, with an option to purchase the asset at a nominal price once the term ends.
This approach is increasingly favored over traditional loans for its flexibility and lower capital strain. In this comprehensive guide, our financial planners in Bangalore break down the concept, benefits, key features, types of lease financing, and practical use cases—helping you navigate leasing as part of a broader financial strategy.
This guide will help you understand how financial leasing supports smarter asset management and long-term planning.
What is a Financial Lease?
A financial lease is a contractual agreement where the lessor (financing company) allows the lessee (user) to use an asset for most of its useful life in exchange for fixed lease payments. The ownership, however, stays with the lessor until the end of the lease term, at which point the lessee may have the option to purchase the asset at a predetermined price.
Leasing Definition in Finance
In general terms, leasing in financial services refers to a financing method where an asset is rented instead of purchased. It provides flexibility, conserves capital, and often includes maintenance and service agreements.
Features of Financial Lease
Several features of financial lease distinguish it from operational leases and other financing methods:
Long Tenure: Typically spans most of the asset’s useful life.
Transfer of Risk and Rewards: The lessee assumes risks like depreciation, maintenance, and insurance.
Purchase Option: Often includes a clause to buy the asset at the end of the lease.
Non-Cancelable: Once agreed upon, the lease generally cannot be cancelled prematurely without significant penalties.
These features of lease financing make financial leases a practical option for asset-heavy businesses.
Types of Leasing in Financial Services
Understanding the types of lease financing is essential when choosing a lease that aligns with your business goals. Here’s a quick look at the types of leasing in financial services:
1. Financial Lease
As discussed, it allows long-term usage with the possibility of asset ownership at the end.
2. Operating Lease
Short-term in nature, the lessor bears the risk of obsolescence. Common in equipment and vehicle rentals.
3. Sale and Leaseback
Involves selling an owned asset to a leasing company and leasing it back, thereby freeing up capital.
4. Leveraged Lease
Involves multiple parties—typically a lender, lessor, and lessee—to finance high-cost assets.
5. Direct Lease
Involves a direct contract between the lessee and lessor, commonly used for machinery and IT equipment.
Advantages of Lease Financing
Why should a business opt for lease financing over outright purchase or bank loans? Let’s explore the advantages of lease financing:
1. Capital Conservation
Leasing frees up working capital, which can be used for other operational or growth-related activities.
2. Easy Access to Equipment
Businesses can obtain the latest equipment without a heavy upfront investment.
3. Flexibility in Terms
Leases can be customized based on payment structure, duration, and end-of-term options.
4. Tax Benefits
Lease payments may be deductible as business expenses, potentially lowering taxable income. That’s where tax consultation services and a reliable tax planner can help you navigate regulations effectively.
In some cases, leases don’t appear as liabilities on the balance sheet, improving financial ratios.
Finance Lease Advantages and Disadvantages
Like any financial product, finance leases come with pros and cons.
Advantages
Fixed, predictable payments
No large upfront investment
Option to own the asset
Access to high-value equipment
Disadvantages
The lessee is responsible for maintenance and insurance
Lease is usually non-cancelable
Cost over time may exceed asset value
May not offer flexibility if the asset becomes obsolete
How Financial Leasing Works: A Step-by-Step Breakdown
Let’s simplify how a financial lease transaction typically unfolds:
Asset Identification: The lessee identifies the asset (e.g., machinery or vehicle).
Lessor Engagement: A leasing company purchases the asset on behalf of the lessee.
Agreement Signing: The terms, such as duration and payments, are mutually agreed upon.
Asset Delivery: The asset is handed over to the lessee for usage.
Periodic Payments: Lessee makes fixed monthly or quarterly payments.
End-of-Term Option: The lessee may purchase the asset, extend the lease, or return it.
Real-Life Example of Financial Lease
Case: A Manufacturing Company
A textile manufacturer in Bangalore needed advanced weaving machinery costing ₹40 lakhs. Instead of depleting working capital, it chose a financial lease arrangement with a tenure of 5 years and fixed quarterly payments.
Outcome:
The company preserved liquidity
Benefited from predictable expenses
Acquired machinery that boosted production
Eventually purchased the asset at a nominal cost
This example illustrates how financial consultant services can structure leasing solutions tailored to operational goals.
Is Financial Lease Right for You?
Financial leases are best suited for businesses that:
Require high-value assets for long-term use
Want predictable payment schedules
Are okay with maintaining the leased asset
Plan to eventually own the asset
However, startups or companies with rapidly changing needs might benefit more from operating leases or shorter financing options. Consulting a financial management advisor can help evaluate suitability.
Financial Lease vs Operating Lease: Key Differences
Feature
Financial Lease
Operating Lease
Ownership
Possible at lease-end
Retained by lessor
Lease Tenure
Long-term
Short-term
Risk of Obsolescence
Borne by lessee
Borne by lessor
Cancelability
Generally non-cancelable
Cancelable
Asset Use
Most of its useful life
Partial use
The Rise of Tech-Enabled Leasing in the Digital Era
As businesses embrace digital transformation, financial leasing has also undergone a significant evolution. What was once a paper-heavy, manual process is now being revolutionized by technology. Today, companies—especially startups and SMEs—can explore and secure lease financing entirely online.
Digital leasing platforms are simplifying the process through:
Real-time credit assessments for faster approvals
Automated documentation that reduces paperwork and manual errors
App-based lease management for real-time tracking of payments and schedules
Instant comparisons of leasing options from multiple providers
These innovations not only speed up the leasing cycle but also offer greater transparency and accessibility. Businesses can now make quicker, more informed decisions with minimal administrative overhead.
Another emerging trend is the integration of IoT and smart tracking in leased assets. This gives both lessors and lessees the ability to:
Monitor asset usage and wear in real time
Automate maintenance reminders and service logs
Extend the life of high-value equipment through proactive insights
Reduce misuse and downtime with data-backed analytics
Such advancements are particularly useful for industries that depend heavily on machinery, logistics, and IT infrastructure. As leasing becomes more intelligent and agile, it’s essential to work with a knowledgeable financial consultant who understands how to blend traditional lease structures with modern digital tools.
Whether you’re a growing enterprise or an innovation-led startup, tech-enabled financial leasing is paving the way for smarter asset acquisition and more strategic financial management.
Regulatory and Tax Considerations in India
Under Indian taxation laws, lease payments in financial leases are not considered direct purchases and may be treated differently for depreciation and GST purposes. This makes it vital to have professional guidance through investment planners or tax advisors to ensure compliance and benefit optimization.
Future Outlook of Leasing in India
The leasing sector in India is expected to grow rapidly, driven by increasing asset costs, evolving business models, and digital lending platforms. As businesses become more agile, financial leasing will evolve to encompass newer models like equipment-as-a-service and cloud leasing for IT infrastructure.
Conclusion
Understanding what a finance lease goes beyond textbook definitions. It’s a powerful financial tool that offers flexibility, capital efficiency, and strategic value for businesses. From startups acquiring their first major asset to enterprises scaling operations, finance leasing stands out as a sustainable alternative to traditional loans and purchases.
If you’re exploring ways to optimize asset acquisition and cash flow management, Fincart’s expert financial planners in Bangalore are here to guide you. We offer tailored financial advisory services to help you align leasing decisions with long-term financial goals.
Why Gilt Fund NAV fall after RBI rate cut? Understand why NAVs dropped despite a 0.5% repo rate cut, with insights on yields, RBI policy, and market reactions.
The Reserve Bank of India (RBI) recently reduced the repo rate by 0.50%, marking the third consecutive rate cut. Naturally, many debt fund investors—especially those invested in Gilt Funds and Gilt Constant Maturity Funds—expected a rally in NAVs. After all, bond prices and interest rates generally move in opposite directions. When interest rates fall, bond prices rise, leading to capital gains, especially in long-duration bonds like those held by gilt funds.
But what surprised many investors was the exact opposite: on the day the RBI announced the rate cut, the NAVs of constant maturity gilt funds actually fell.
This anomaly has created confusion and concern among investors. In this article, we’ll delve deeper into this counterintuitive outcome, analyze what really drives gilt fund NAVs, and understand the broader macro factors influencing the debt market—especially why a rate cut doesn’t always mean rising gilt fund NAVs.
Why Gilt Fund NAVs Fell Despite RBI’s 0.5% Rate Cut?
What Are Gilt and Gilt Constant Maturity Funds?
Before diving into the reasons, let’s clarify what gilt funds and constant maturity gilt funds are:
Gilt Funds invest primarily in government securities (G-Secs) of varying maturities (minimum 80% in G-secs, across maturity). They are zero-credit-risk products, meaning the principal and interest are backed by the Government of India.
Gilt Constant Maturity Funds are a subtype of gilt funds that only invest in G-Secs with a constant maturity of around 10 years (minimum 80% in G-secs, across maturity), as mandated by SEBI. These funds are highly sensitive to interest rate changes due to their long duration.
Because of this sensitivity, they are typically expected to perform very well during a falling interest rate cycle.
The General Rule: Interest Rates vs Bond Prices
When the repo rate—the rate at which the RBI lends to banks—falls, it signals an easing monetary policy. This typically results in a fall in yields across the bond market and a rise in bond prices.
Here’s why:
Bonds issued earlier (at higher interest rates) become more attractive.
New bonds will be issued at lower yields, making existing high-yield bonds more valuable.
This pushes prices of long-duration bonds (like 10-year G-Secs) higher.
So, NAVs of gilt funds, especially constant maturity funds, usually rise when rates fall. Then why didn’t this happen recently?
What Actually Happened on the Day of the Rate Cut?
Let’s analyze the market behavior on the Friday when the RBI announced the 50 basis points cut.
Bond Yields Spiked Instead of Falling
Despite the rate cut, the 10-year G-Sec yield rose by around 5–7 basis points. This means bond prices fell, since yield and price are inversely related.
This is the primary reason why NAVs of constant maturity gilt funds fell on that day. These funds are directly linked to the 10-year G-Sec, so any spike in the yield translates into a fall in NAV.
But why did yields spike on a day when they were supposed to fall?
Deeper Analysis: 5 Key Reasons for the Gilt Fund NAV Fall
1. Bond Market Anticipation Was Already Ahead
The bond market is forward-looking. It had already priced in the rate cut well in advance. When the actual announcement was made, there was no surprise factor.
In fact, many traders had already booked gains on expectations of the cut and started selling to lock in profits, leading to selling pressure and rising yields.
2. Dovish Rate Cut, But Hawkish Commentary
The RBI’s monetary policy statement matters as much as the rate cut itself.
While the rate cut was dovish, the accompanying commentary was neutral to slightly hawkish, which spooked the bond market. Here’s what made investors nervous:
No clear future guidance about further rate cuts.
Caution regarding inflationary risks.
Increased emphasis on fiscal concerns, which could lead to higher government borrowing.
These concerns reduced expectations of an extended easing cycle, thereby causing yields to rise.
3. RBI’s Silence on Open Market Operations (OMOs)
The bond market was expecting the RBI to announce Open Market Operations (OMOs) to absorb excess supply of government bonds.
But the RBI didn’t mention any new OMO calendar.
This disappointed the market. Without RBI support, there’s a risk of bond oversupply, which leads to falling prices and rising yields.
In a simple way to explain, when the government borrows money (by issuing bonds), there’s a lot of supply of bonds in the market. If too many bonds are available and not enough buyers, bond prices fall and yields go up. This is bad news for gilt funds, as their NAV drops when bond prices fall.
To prevent this, the RBI sometimes steps in and buys bonds from the market through something called Open Market Operations (OMOs). This is like a big buyer entering a market to support prices.
But in this case, although the RBI cut the repo rate, it didn’t say anything about buying bonds through OMOs. This made investors worry:
“If the RBI doesn’t step in, who will buy all these bonds? Prices might fall!”
So, due to this lack of support from RBI, the bond market reacted negatively, bond prices fell, and as a result, gilt fund NAVs dropped.
4. Concerns Over Fiscal Deficit and Borrowing
The government’s borrowing program and fiscal health play a crucial role in bond markets.
Due to rising subsidies, welfare schemes, and tax revenue shortfalls, the market expects a higher fiscal deficit, which means more bond supply.
More supply leads to:
Lower prices
Higher yields
Negative impact on gilt NAVs
Remember, constant maturity gilt funds invest heavily in 10-year bonds. So, any indication that the government will flood the market with bonds causes their prices to fall.
5. Global Cues and U.S. Bond Yields
Indian bond markets are not immune to global interest rate trends.
Around the same time, U.S. Treasury yields were rising due to:
Strong economic data
Reduced expectations of U.S. Fed rate cuts
Foreign investors (FIIs), who hold significant portions of Indian bonds, often react to global movements. Rising U.S. yields reduce the attractiveness of Indian G-Secs, leading to FII outflows, selling pressure, and rising yields domestically.
Should Investors Worry About Gilt Fund NAV Fall?
Not necessarily. Here’s why:
Do note that Gilt Funds are highly volatile in nature (even though they invest in government bonds). Hence, explore Gilt Funds only for your long term goals. Hence, never use Gilt Funds by looking at past returns for your short term goals (or even for medium term goals).
Volatility is normal in debt markets, especially in long-duration products like constant maturity gilt funds.
Even though short-term NAVs may fall, the long-term return potential remains intact, especially if the interest rate cycle continues to ease gradually.
Gilt constant maturity funds are suitable for investors with a time horizon of more than 5–7 years (Gilt Constant maturity funds are best suitable if your goals are mothan 10 years away), who can tolerate interim volatility.
What Should You Do Now?
If You’re Already Invested:
Don’t panic due to short-term NAV movements.
Stay invested if your time horizon is long and you’re aware of the volatility.
Constant maturity gilt funds are not for short-term parking or for conservative investors.
If You’re Planning to Invest:
Be clear that duration risk is high in these funds.
These funds work best when interest rates are expected to fall steadily over time.
Consider entering in phases (SIP/STP) rather than lump sum, especially during volatile times.
Conclusion
The fall in gilt fund NAVs, despite the RBI’s rate cut, may seem confusing, but it’s a classic example of how market expectations, fiscal concerns, and global cues can override straightforward monetary policy logic.
While the repo rate is a key driver, the bond market reacts to a range of factors—RBI’s guidance, future rate outlook, supply of bonds, and global interest rates.
As always, debt fund investing—especially in long-duration categories like gilt constant maturity—requires a solid understanding of risk, patience, and a long-term approach.
For Unbiased Advice Subscribe To Our Fixed Fee Only Financial Planning Service
Father’s Day is a special time to show appreciation for the man who has always been there for you. While traditional gifts like ties and mugs are nice, sometimes the best presents are those that speak to your dad’s unspoken desires. This year, why not surprise him with something he secretly wants but would never ask for? Here are ten thoughtful and unexpected gifts that will show your dad just how much you care.
1. A Day of Relaxation
Canva
Many fathers work tirelessly without taking a moment for themselves. A day of relaxation, whether it’s a spa day, a massage, or simply a few hours of peace and quiet at home, can be the perfect gift. Consider booking a local spa or setting up a relaxing space at home with his favorite music, snacks, and a comfortable chair. The opportunity to unwind and de-stress is something he might never ask for, but will deeply appreciate. This thoughtful gesture acknowledges the hard work he puts in every day and gives him the break he deserves.
2. Quality Time Together
Canva
In the hustle and bustle of daily life, quality time often gets overlooked. Dads cherish moments spent with their children, even if they don’t vocalize it. Plan a special day out doing something he loves, whether it’s fishing, hiking, or attending a sports game. These shared experiences create lasting memories and strengthen your bond. This Father’s Day, give him the gift of your time and undivided attention, showing him how much you value your relationship.
3. A Personalized Gift
Canva
Personalized gifts have a unique charm because they show thoughtfulness and effort. Items like custom-made watches, engraved tools, or personalized photo albums can make your dad feel truly special. These gifts not only serve a practical purpose but also hold sentimental value. He might never express his desire for such items, but receiving something tailored just for him will undoubtedly touch his heart. It’s a tangible reminder of your love and appreciation.
4. A New Gadget
Canva
Dads love their gadgets, even if they don’t always stay up-to-date with the latest technology. Consider getting him a new tech toy, like a smartwatch, a high-quality pair of headphones, or a smart home device. These gadgets can make his life easier and more enjoyable, blending practicality with fun. He might not ask for these items himself, but they can quickly become his new favorite thing. Keeping him updated with the latest trends can also make him feel more connected and tech-savvy.
5. A Subscription Service
Canva
Subscription services are a gift that keeps on giving. Whether it’s a streaming service, a gourmet food delivery, or a magazine subscription, there’s something for every dad. These services provide continuous enjoyment and are a reminder of your thoughtful gift every time he uses them. Your father might never think to indulge in such luxuries for himself, but he will certainly enjoy the variety and convenience they bring. This is a gift that shows you understand his tastes and interests.
6. A DIY Project Kit
Canva
If your dad loves to work with his hands, a DIY project kit could be the perfect gift. Kits for building models, crafting furniture, or even brewing beer at home can offer hours of entertainment and a sense of accomplishment. These projects allow him to immerse himself in a hobby he loves and create something tangible. He might never request such a gift, but he’ll appreciate the opportunity to dive into a new project. Plus, it’s a great way to spend time together, helping him with the project or admiring his work.
7. A Cooking Class or Gourmet Experience
Canva
For the foodie father, a cooking class or gourmet dining experience can be an exciting gift. Classes that teach new culinary skills or experiences like a chef’s table dinner can be incredibly rewarding. These gifts cater to his love for good food and provide a memorable experience. He might never admit to wanting to improve his cooking skills or enjoy a fancy meal, but these experiences can bring him great joy. It’s a unique way to celebrate his passion for food and perhaps learn something new together.
8. Outdoor Gear
Canva
If your dad enjoys the great outdoors, new gear for his favorite activity can be a fantastic gift. High-quality camping equipment, fishing gear, or hiking boots can enhance his adventures. These gifts show that you pay attention to his interests and support his hobbies. While he might not vocalize his need for new gear, he’ll appreciate the thoughtfulness and practicality of the gift. Encouraging his outdoor pursuits is a wonderful way to celebrate his adventurous spirit.
9. A Memory Book
Canva
Creating a memory book filled with photos, mementos, and handwritten notes is a deeply personal and touching gift. This book can capture cherished moments from your childhood to the present, reflecting the special bond you share. Your dad might never ask for such a sentimental gift, but it’s something he’ll treasure forever. This gesture shows how much you value your shared history and the memories you’ve created together. It’s a heartfelt way to honor his role in your life.
10. An Experience Gift
Canva
Experience gifts, like tickets to a concert, a weekend getaway, or a hot air balloon ride, offer unforgettable adventures. These gifts create lasting memories and provide something to look forward to. Your dad might not think to treat himself to such experiences, but he’ll relish the opportunity. These gifts show that you want to share in exciting moments and create new memories together. It’s a fantastic way to celebrate Father’s Day with a touch of adventure and fun.
Make This Father’s Day Unforgettable
Canva
This Father’s Day, step beyond the ordinary and surprise your dad with a gift that speaks to his unspoken wishes. Whether it’s relaxation, quality time, or a new gadget, these thoughtful presents will show him how much you care. By choosing a gift that aligns with his interests and passions, you’ll create a memorable day that he’ll cherish forever. Don’t forget to include a heartfelt message to express your appreciation and love. Make this Father’s Day unforgettable by giving your dad the surprise he never knew he wanted.
Amanda Blankenship is a full-time stay-at-home mom. Her family recently welcomed their second child, a baby boy, into the world. She loves writing about various topics, including politics and personal finance. In her spare time, Amanda loves to play with her kids, make food from scratch, crochet, and read.
