Wednesday, 18 July 2012
Wednesday, 11 July 2012
Now a days we have so many creative financial ballet dancers playing around that everybody is creating new names for the same old basic products.
You can do only 2 things in financial space.
You can either loan or you can Own.
All equity products mean you own the investment & Debt product means you loan the Investment.
So When you invest in PPF or provident Fund you LOAN your money to Government @8.5 % or8.8%
when you make as FD you loan money to the banks @ 9% or whatever....
When you keep money in savings bank account you loan the money to banks @ 4%
this is very important point which normally people miss, when you are doing nothing with your money you are actually giving the money on loan to banks on which they make money.....
Why I am saying this is because if you keep the money in the Bank savings account it means you are making money for banks.so do not keep money in savings bank account........
When you buy a share you pay money to OWN part of the company. which means you will get part of the money which company makes after
Selling a product
Less: Expenses to make& market the product
Less: Salaries of all workers & managers
Less: Interest paid to all loan providers (normally banks)
Less : Government taxes.
Sunday, 8 July 2012
Well yes, I want to discuss how you should not take loans.
A.You must not take a loan for anything which Looses Value.
This means you must not take a loan for CAR,LCD TV,TWO Wheeler,Travel Etc. You should take loan only on Items which will increase in value over time.
B.You must not take loan because You are eligible.
Loan must not be taken just because you can take it.So if you have the money you should use it instead of taking loan, the only exception to this rule is If your investments are earning more than the Interest being paid on the loan.
C.You must not take the wrong loan.
Well this is a stupid one but. if you need to take the loan it must be from the cheapest source.so if you have to take a loan it should be A personal Loan or a loan against gold instead of Credit card loan....
D.You must not take loan because it is easy.Believe me if you take a loan because it was easy to take you are Dooooomed.it is worthwhile to make the extra effort & take the loan which has more formalities for a few days... if you are not able to handle the extra formalities for a few days/weeks initially , then you are going to going to pay a lot of extra money over the years through various charges etc, because you will be too lazy to notice..........
Sunday, 1 July 2012
Do you know how much you spend in the month at least on a gross basis?
This is actually the most important part of financial life.unless you know how much you are spending or saving you will not be able to plan anything in life!
But this is a very tedious job & normally after initial few days we stop writing down the expenses.
I use a very simple solution for this purpose.
I know from my experience that It is very difficult to keep track of expenses & is very tedious so I found a simple way of doing it, I maintain 2 inter-linked bank accounts, 1st account is only for incomes (Salary, Dividends, Interest Etc.) & Investments,
2nd account is only for monthly cash expenses, EMIs, credit card bills & other small purchases etc.,
So every month I transfer amounts to A/c no.2 from my Income Account,as long as you keep the discipline of making all the expenses from the A/c No 2 it is allright.
by 2nd or 3rd month you will know exactly how much you are spending,
Thursday, 14 June 2012
We need to file various letters or requests to our ITO for purposes like Refund request, Revalidation of Refund Cheque, Correction of Details in The Cheque. Bu we do not know the exact details about where our file is registered.
The following link will provide you all the details about the concerned ward,Area Code, Assessing officer grade, Range etc. which is necessary for various request letters.
Tuesday, 12 June 2012
Are you always worried about the renewal date of FD or you are confused when you want to know about the current value of your Mutual fund holding or you always keep forgetting about your Insurance Policy number or Your FD/bank account Number.
Well this is a normal problem faced by all the investors, this in fact makes people forget about some of their holding for example deposit kept with the bank for Vault....
There is a very simple solution to all this Use a portfolio manager.I have searched Internet for this purpose & I feel the best portfolio manager is provided by Moneycontrol.com The link is given below.
the best thing about this portfolio manager is it is free of cost & I think everyone should make use of this facility, it also secure because you need to log in for this purpose.I personally keep even the PF Account numbers etc in this account.....