Tuesday, November 29, 2016

The Basics of Financial Wisdom That Schools Don't Teach You

With generations of people now living in constant debts and surrounded by temptations of credit and luxuries beyond their means, Financial Planning becomes more important than ever. But unfortunately, our schools don't teach them and our media sources are sold out to advertising that preaches exactly the opposite. And that is why I chose to put this out there for the few that will listen to this much needed advice. A lot of it is inspired by the 30:30:40 principle and by Dave Ramsay's books.

This is just a quick glance at the most important basics:

The Fundamentals of Financial planning

1. 30 % of your income must be used for monthly living expenses.

2. 30% of your income must be used for Liabilities repayments.

3. 30% of your income must be SAVED for your future LIVING.

4. 10% of your income must be spared for entertainments, vacations………..

5. 6 month monthly income must be available for emergency fund  { LIQUID FUND },  it can be CASH or cashable investments.

6. Home loan must be registered and apply  on both husband and wife name.  {Both can get benefits on Home loan Tax benefits}

7. Buying second house for investment is not advisable  [ Survey reports - it will fetch you only around 3% return]

8. After age 45 years not supposed to enter into any BIG LIABILITIES [reserved for Higher education of children and wedding of children which generally will happen around 45 to 50 only - incase you have them or you save this for your retirement dream plans]

9. Joint account is compulsory @ Bank savings account.

10. Property must be registered on both Husband and wife name. [As per legal act – after husband first legal heir is wife, after wife it will go to children only]

11. Regularly check on Nominations at all financial instruments.

12. Only in insurance policy,  Claims payable to Nominee.  In other financial instruments legal heirs certificate is must to get back the settlement

13. Don’t take any financial or investment decisions  EMOTIONALLY

14. MEDICLAIM is must [ in spite of Group mediclaim coverage given at office [After retirement there is no mediclaim coverage. After 50 years its very tough to enter into mediclaim]

15. For your jewelry LOCKER,  Only one lakh is payable by bank,  if theft or fire happen at bank. Provided insurance done.

16. Like same way Government guaranteed only one lakh for your FD also. [Fixed deposits with Banks upto Rs. 1 lakh only are backed by deposit insurance]

17. Must know all tax implications.  You cannot avoid paying tax. But you can minimize by way of investments.

18. All financial documents must be kept safely.

19. Financial investments must be followed through personal financial advisor.

20. Review your financial portfolio every six month.

Hope this advice helps.

Pushkaraj S Shirke

Monday, November 14, 2016

Indian Demonetization: Who is it really helping?

Whats the point of killing cash and then introducing cash with higher value??? Isn't it easier to then hoard that? If you want to walk a road, might as well walk it the whole way. Kill all cash currency over 100 rupee value and introduce electronic cash facilities and e-wallets to even the lowest strata of society.
This whole demonetization drama hit the terrorism industry hard. and thats the only REAL positive outcome it has had and probably will have. But that too, it has only affected the financing of the foot soldiers - not of the source. But yes, any respite, is good respite from the monster of terrorism that reeks in India.
But what this has done for the ruling party is helped cut away all the funding sources for its opposing parties. AND THAT TO ME SEEMS TO BE THE REAL END GAME OF THIS MOVE. Since the ruling party now has legitimised all its corporate funding, it has cut the life line of all opposing parties which did the business of garnering/purchasing votes quite like it did too earlier - via hard cash. (yes, not breaking news, but political rallies and poll rigging is still very much funded by hard cash aka hoarded black money - truck loads of it.)
Those really, truly, whole heartedly into the black money business are smart enough to have legitimised businesses and investments made out of black money. The biggest hoarders of 'black money' from india have swiss accounts and own companies and high paying government contracts on their overvalued services.
And all those talking economy and progress, thats all yet to be seen. So just wait and watch now how the drama unfolds. And lets hope for the best. Because like it or not, opposing or for it, we are all together in this same boat together.

- Pushkaraj S Shirke

Tuesday, November 8, 2016

The Truth about MLM and Pyramid Marketing Companies

MLM makes you millionaires?
For all those on my timeline that fall prey to HERBALIFE and such crap, this is a must watch. The PYRAMID Scheme has been declared fraudulent and yet many innocent people still believe in it. It's an absolute brainwash that is fed to its victims time and again so much so that they cant see how fraudulent it is - and ardently support it. They are so close to it that they can see the strings.
If you know a victim of such a scheme, please share this with them - event though their likely response will be ' but our company is different' - which is the same as the response of a mother who blindsides the evils of her adopted child who is sheer evil just out of compassion for having been together so long that separation would hurt.
but you have to try.

Multilevel marketing companies claim to be legitimate businesses, but some seem awfully…pyramid shaped. John Oliver and Jaime Camil demonstrate how they work.

 - Pushkaraj S Shirke

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