How to play Rich Dad's Cash flow Classic Game - Step by step idea

How to play Rich Dad's Cash flow Classic Game - Step by step idea

I heartily loved to play games in the ground as well as on my PC-Mobile, especially with cricket. When i was changing my focus on Personal finance, i searched a lot of games related on finance. I had downloaded few more App games with a word, 'MONEY'. But, it was not filled up my brain. Finally, i got a game which one gives not only entertaining, but also provide the Financial awareness.



Rich Dad's CASH FLOW CLASSIC GAME:


Already, i had an experience with Robert kiyosaki's RICH DAD POOR DAD book. So, i have a little eager to visit the game. I was noted that the Cash flow game app for mobile costs a little bit (Around ₹ 180 /-) , but the Rich Dad website presents a free 'Cash flow classic' game for PC. So, i just registered on Richdad.com site and tried it a while. Rich Dad's Cash flow game concept is get addicted, not only as a game - it gives you a detailed knowledge on Personal finance. This thing helped me a lot on how to manage my cash flow.


It's time to see, how to play this Cash flow classic game.



Step 1:

Go to:     http://www.richdad.com/classic    ( or )

               http://www.richdad.com/promotions/Cashflow-Classic-Evergreen
           

• Signup for free with your name and email.

• After Registration, you can login with your credentials.

Step 2:  

On login, click the Play Cash flow classic now,

• Check the Adobe Flash player updated for the Web Browser, you are using.

• After Loading Data, you can hear a dice sound that welcomes you. Click anywhere to continue in the Right side bottom.

Step 3:

• On loading games, you can see a list to 'Select a game'. On this page, you select any list or create a new game yourself.

• On creating a new game, you select a number of players with minimum of two (You and Robot / Remote ). Then Click the create game and begin game.

Step 4:

• On choosing your Dream, you can see the salary and savings. 

• You can also see your Financial statements in the left side, by clicking the "Financial Statement".

Step 5:

• To play the game, you have to roll out the Dice. 

• On Every Roll, the dice will gives you an idea with a monthly paycheck, Business Deals and owe to pay.

• You can pass the deals, if you are not interest. But, you have to pay the committed pay, which are compulsory deductions like Taxes, Rent, Loan, Child expenses.

• On Financial Statement section, you have the INCOME, EXPENSES, ASSETS and LIABILITIES.

Your game concept is, you have to don't get bankrupt or get in to the rat race. So, Out of the Rat Race is the win for you, to be Rich or Create Wealth. 

What the game actually gives you...

• Tells and gives a Finance awareness and manage your personal cash flow.
• Get out of your comfort zone.
• To Avoid Debt, which eats your financial life.
• Learn to invest
• Making you to be an Entrepreneur mind set.
• Creating opportunities to make passive income and finally a good financial education.
• The Investing game.

At first, you can try the game in the Rich dad website, then you can purchase the cash flow game app on playstore, if you want. The Physical Board game kit also available on Amazon website.

It's not just a game, a Financial Education Initative !

Rich Investing -  www.richinvesting.blogspot.com

ETF vs Mutual Funds

ETF vs Mutual Funds

Nowadays, Mutual Funds are the favorite one among most of the people. Bank Interest rates are ticking down and the India Inflation rate also around 3 - 4 %. Many of us, keen to invest in mutual funds with a simple knowledge or as plain (Not known). Last week, one of the reader requested an answer in Quora.com , Is it the time to invest in mutual funds and how the mutual funds differ from ETF (Exchange Traded Fund). I had posted my answer on reply. So, that's why i am looking here to share the related information in my blog about ETF and mutual funds.

Generally, Mutual funds categorized as Two:

• Debt Funds

• Equity Funds

Debt funds are good, if you are looking like as a Bank FD (Fixed Deposit) or RD (Recurring). It gives a solid returns more than the Bank deposits. Indexation Benefit also available on LTCG (Long term Capital Gains), if you hold more than 3 years.

Similarly, Equity funds have a LTCG benefit, if you hold on your investment more than one year. Recently, BSE (Bombay Stock Exchange) is making a case for reinstating of long term capital gains on equity investments. (See here:  Remove long-term capital gains tax exemption: BSE )
Popularly, Equity funds are very helpful for the long term and gives a better return, stick with your financial goals.

( image courtesy: Daria Shevtsova@pexels.com )

However apart from mutual funds, ETF is also a fashionable word for the new comers on investing. ETF is nothing but, an exchange traded fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism. ETF are also based on market index (Sensex, Nifty), Sector wise, Gold etf, and few more.

ETF vs Mutual Funds - How it differ ?

You should understand this,

• Exchange Traded Funds (ETF) will trade throughout the day (Trading) like shares, but mutual funds trade only at the end of the day at its NAV (Net asset value).

• ETF have a charge of trading or broking commision, while buy or sell. on the other hand, mutual fund comes with the charge of Expense ratio on your investment.

• Most ETFs track to a particular index and therefore have lower operating expense than actively invested mutual funds.
• 
  

Kindly, share your views or comments with a smile :)

Rich Investing - www.richinvesting.blogspot.com

My Portfolio - Stocks - Updated on Nov - 2017

My Portfolio - Stocks - Updated on Nov - 2017

I am preferring to buy the stocks through Value Investing (Fundamental Analysis).

Here-now, i wish to report my portfolio - Stocks which is updated on November, 2017

 























You can notify that, my investment goes in different sector like Banks, Pharmaceuticals, IT - Technology, Automobiles. I have been heavily invested in Technology about 40 percent with the shares - HCL and Infosys (Infy) and the lowest in Paints with Berger Paints - 1.75 % I am also looking to invest in Energy, but not now with the current valuation.

Result Session:

• As on November 30, 2017 - My Portfolio (Stocks) returns with 10.22 %  (2017-18)

• Past three years (Financial) returns are: 10.43 % (2015-16), 12.51 % (2016-17), 10.22 % (2017-18).

• Currently, 8 of 10 stocks are Advanced (Profit) and 2 stocks are declined (Loss).

• On my stock portfolio, NALCO performed with the highest returns of  (106 % ) on my investment and the lowest with TATA MOTORS (-12 %) loss.

• I believe that Tata motors are at good valuation and will make profit on a long term investing.

Kindly share your views / comments with a smile :)

Rich Investing - www.richinvesting.blogspot.com

My Investment portfolio - updated as on Oct - 2017

My Investment portfolio - updated as on Oct - 2017

I am believing the Investment Portfolio objectives is the crucial thing not only for the wealth creation, but also gives the detailed knowledge on Investment opportunity.



Here is my Investment Portfolio ( Updated as on October 31, 2017)

I am also believes that my realty side depends on my father's asset (Non-cashflow). So this is my diversification too, rather than spending my money for owning a home. It's hard to me that i am not interesting to invest in Gold, but may consider in future. I am looking for an alternative investment(s) in the upcoming days.


On the above pic, i had mentioned the debt securities splitted as 'Debt mutual Funds' and 'Bank Deposits' and you can note that my majority of investment is behind on my Retirement savings (PPF, NPS).

Thanks for the SEBI (Investment adviser) L1 course and exam, it helps me to extract the knowledge of Asset allocation and Investment strategies.


My Financial Investment objectives are like:

• My Family Retirement planning
• My Kid's Education and other goals
• My Future Business plan
• Retire Early plan (REP)

You can also share your views / comments on this post.


Rich Investing with my investment portfolio.

#myportfolio

Set your own Budget Planning

Set your own Budget Planning

Hi, welcome to - "How is my Budget Planning today ? "

We all have a Budget or may not :)  But, we have an expense and less over savings or investing. We often like to watch the Government's Union Budget and finding the pros and cons for ourselves. If someone asking you, what's your budget planning today ? Then, it seems a different for us, even we ask ourselves. How many of us have a personal budget planning today ?

A Question with triumph !

Of course, most of us don't have the plan to initiate for the Personal opinion, on Budget Planning and also we haven't experience that on results. We are always discussing or gossiping about the Government's fiscal deficit and how we can see our self debt on finance ? Self Financial analysis also an important one and it should be primary than any other, to make Financial planning and be Financially free.

Why i need Budget Planning ?

• Track our Daily Income / Expense.
• Track our Needs and Wants.
• Plan for the Emergency required and unexpected one.
• Prepare for our personal Financial Goals and Retirement savings.
• Financially, we can grade our values.

How to set your own Budget Planning:

• Buy a new Note book (or) download the Expense manager app or related one.
• Input your daily income, expenses and savings.
• Track you monthly reports on Income, Savings and Expenses.
• Do it regularly - After completion of 3 months, you have a PQFR (Personal Quarterly Financial Report).
• Now, you can have an idea on your PQFR that,  what is your income, where your money spending and how is your savings or investing.
• You can do the same PQFR analysis for Half yearly, Annually.

(Image source: unsplash.com/@stilclassics )

Post Analysis:

On our Personal Quarterly Financial Report (PQFR), we can make or set our own budget planning like how much money need for the monthly fixed expenses, and how can we increase our savings, what is the opportunity lies for our secondary income.

Use, the Super Budget 50:30:20

• 50 % Needs of our total monthly income
• 30 % Wants...
• 20 % Savings / Investment...

Let's ready for your own Budget setup :)

Rich investing !

What's your Earning - A Personal Cash Flow Meter

What's your Earning  - A Personal Cash Flow Meter

Earning money, isn't an easy one ?

Absolutely, Earning money is an easy one, but it's hard to keep (grow) it. I mean that the Jobs and Earning money are easy on these techie days. Somebody have the value on their Dignity, Prosper and many of us have, earning more (Money) is a big value. Still, few one can make easy and more of them think that, it's hard to earn. Everyone of us, feeling that the rich one have more money and other's can't. But is it a right away to tell ?

Not always, many of us hurting their health to make wealth (Money). Even Apple's Steve Jobs had earned a lot and respect too, but the health was not support for him.

I am not telling you that, you have to earn more to be Rich (or) Financially Independent. The think is, how you utilize the earnings and to grow, while you have a little money or No job.

What you have Earned ?

As an individual, he earns ₹ 1,00,000 /- salary per month and spending ₹ 99,000 /- , then he actually earned just ₹ 1,000 /- ( 1,00,000 - 99,000 ). He is not earning ₹ 1,00,000 /- (Not keeping). If another one is earning ₹ 20,000 /- and saving a ₹ 5,000 /- at the end of the month, then his expense went as ₹ 15,000 /- and earn a way of ₹ 5,000 /- by saving. Your Earning money must grow is an important.

But, we socially dropping a word that a person earning  ₹ 1,00,000 /- is a wealthy one and who he earns just ₹ 20,000 /- and saving a ₹ 5,000 on that called as a Middle or lower class men :)

" If you born poor, it's not your fault. But if you die poor, it's your mistake"

- Bill Gates, American Business Magnate ( Microsoft Corporation)

"Earning in simple terms, that your Spending should be lower than your income and saving a some percent on that(income) to earn. "

This will help you to give an additional (or) secondary source of income.


Suppose, you have owned a Home to live and you want an another one. If your plan for the home is to Rent, then it's your choice and may create secondary income. Else, it's absolutely ridiculous. Many of us taking a loan for their second home and they are thinking that they are good on Saving Taxes. You have to be know truly that, you are spending your hard earned one for your second home. We must aware about the building depreciation, maintenance, insurance and taxes. Your second home may benefit for the Government to earn taxes or good for the House plumber for their maintenance fee :)

If you have a second home for rent, you should know the Rental yield which is satisfy or  not.


For Example:

Your Home Value:   ₹ 50,00,000 /-
Rent per year:          ₹ 1,50,000 /- ( 12,500 X 12 months, after cutting the maintenance)

The Rental yield is at 3 %  per annum


Suppose, if you are going to invest in a Bank FD - 1 Year, which gives 6 % p.a. instead of second home.  then,

your earned interest income ( 1 Year):  ₹ 3,00,000 /-   [ ₹ 25,000 X 12 months, before taxes ]

Which is more than your second home and Zero work here on FD.  You can now think about the other instruments which gives more than bank deposits.

Had you kept the Gold, in Jewels or any size of other type. is it earning for you ? It may appreciate on price in the market, while you sell. We also keep the gold in physical for so many years, without earning a single rupee. It's not an asset, but an expense. What's your earning yield on your physical gold ?


Suppose, if you are started a business with an investment of ₹ 5 Lacs and your monthly business expense at 2,000 and getting an income of ₹ 10,000 /- , then your monthly income cash flow from business is at ₹ 8,000 /- (10,000 - 2,000). If you sell that business in future for a particular value it may appreciate (more or less). Some times, may your customer or retailer not paying after getting the product from you. It will also make delay on your monthly cash flow. So, What you have got in your account on that period is meant an earned cash flow.

Investing a part of your income to grow regularly. Your regular cash flow meter is on your regular savings or investing. Keep it on systematic.  I recommend you, that you can try the Rich Dad Poor Dad's  CASH FLOW CLASSIC game (Web / Google playstore) - The game about investing. So, you can get a better idea on your income, savings, debt and understand about the Cash flow meter.

Start  your meter with postal savings, bank deposits, stocks, mutual funds, realty, or any regular cash flow offer...

RICH INVESTING 

The Sharp Knife cuts (hurts) your dream - Inflation

The Sharp Knife cuts (hurts) your dream -  INFLATION

Can anyone tell, 'Why your dreams never come true ? "  OR  Not always ?


I am always start with a caution and raising questions myself. Even starting an article with a question in this blog :-)

No need to worry (or) stop, but we have to ask question by ourselves, with a word, 'CAUTION'. We are having the fixed habits, but not having a flexible one.

• We go for the School Education
• We go for Graduation
• We go for Job
• We go for Wedding
• We go for Kids
• We go for teaching the above to our kids
• We go for Retirement

and finally, we felt bad that something we are not achieved (or) not happy with what we had / did.

Why... ?

On our school and graduation days, we have so many dreams and likes to get. Then, we think that we can get after our job (Day Job). But, that is the area, we don't have a flexible one. We go for a job, We Spend... Spend... Spend... on our money, not with our precious time ! The time is the matter that can take us to get our dreams and likes on Live. But, we felt badly and go with a fixed one. We have a dream like buying a fancy Car, Apartment, Foreign Trip, Giving a Rich Dinner for your friends. Then, What ?

We just spending, but not achieving for our dreams and likes. Because, we are getting a salary or a single income from our business(Self Employed). We also hanging with our Increment, Promotions, Bonus Pay checks. Even sometimes begging with our Employer(s). We have to understand primarily that the Increment, Promotions, Bonus are giving just for your time or work to the production. If the company make profit, they will do the above for your work or time. Not for you :) The Employer(s) also an individual, if he wants a robot (Automation) for his production, then he can. Really Not for you :) They no need to care about you always, but sometimes. They really need their growth of the company or Government. We think that we don't have a precious time, that's why the employer providing you the PF (Provident Fund), Medical, Insurance, Pension and Gratuity Benefits (We think). So, we also saving a little with our salary. But, we can't get our dreams with that little one. 

Of course, they are providing you some monetary benefits, but they could not save you from the Sharpe Knife.

The Sharp Knife - Inflation

Can you think again, why the Government or Employer giving you the monetary benefits like Increment, Promotion, PF, Bonus,etc ?  They just protecting your work and time from the sharp knife, called Inflation. They can survive ! If the employer is going as a defaulter, some one can undertake their business. Even the Government going on bad debt, they can print more currencies to protect them, then what about you ?  

Inflation just eats you and gaping you from the dreams and likes of yours.

"Inflation is an increase in the cost of living due to rising prices of daily needs. It also being decline in the purchasing power of your money”. 

Work and time for the production; Demand and supply for the inflation !

Usually on many occasions, we plan and save for our buying a Car, Home, but the cost of living (Inflation) rising and beating us. Then we go for the EMI, Loans, debt, etc. Finally, we entered into the Rat Trap, the knife hurts you more. And you too asking your kids to do the same, what you did !

We need a solution with the trap, A Flexible one like a Government (or) Employers' business. We mostly thinking that 'Taxes' are the enemy for us. Taxes is also a good one for us, to improve. Taxes is not a matter, so that we can do saving and investing for the best one. We have to save and invest regularly with a small amount, but take a plan that beats Inflation. May be your Goal (or) Dream is for a short term, 5 Years or 15 Years, you must create the wealth more than the Inflation is important.

• Don't hang yourself under the knife.

• Don't buy cheaper products on Insurance and Investing, and don't confuse with the two (Insurance and Investing) also.

• Try to learn and understand the investment products and its risky that beats the Sharp knife (Inflation).

Knife is not on your hands, but Life is :)

source: tradingeconomics.com

Why Estate Planning should be mandatory ?

Why Estate Planning should be mandatory ?

Do you know about Investing Expenses ?

The expenses that can generate (or) produce an income, so that we can save / invest a part of money, would be deducted from our Regular Salary or Business income like as other expenses.

We daily saving / investing for our Goal based information. We regularly seeing what about our yield to date (YTD) on Returns. Our Dream goals are better and far more, it may be 20 years or 30 years or more than that. We depositing in a bank, mutual funds, stocks, realty, gold, etc. We are telling these investment instruments  will for the future of our Children. But, would you know, it's exactly fit for our kids or will settle as 100 percent for our kids ? We can't know. That's why we are talking about, ' The Estate Planning'. It's not just like a simple as we are thinking a Real Estate Property.

The Estate Planning:

“What makes greatness is starting something that lives after you.”

So, we should mandate ourselves to do for our Children (or) After us.

Estate Planning… refers to the Organized approach to managing the accumulated assets of a person in the interest of the intended beneficiaries.

We can have Enough Money...

We can have Big Goals...

We can have Better Wealth...

But, we should direct that above to whom you wish. Unfortunately, Nomination and Heirs are creating trouble after our absence. So, we most concentrate and plan of our Estate Planning. 

• During the Life time:

1. Joint Holding
2. Family Settlement
3. Trust
4. Gift
5. Power of Attorney

• After Death:

1. Will
2. Nomination

Will:

Will is defined as, the legal declaration of the intention of the testator with respect to his property, which he desires to be carried into effect after his death. 

The person who making the Will is the testator. His rights extend to what are legally his own and this Will comes into effect only after the death of the testator.

The person who is named in a Will to receive a portion of the deceased person's estate is known as a legatee.

The person named in the Will to administer the estate of the deceased person is termed as an Executor.

Nomination:

It is the right conferred upon the holder of an investment product to appoint the person entitled to receive the monies in case of the death.

A Nomination is seen as formal bequest authorized by the holder of the asset, though in the event of a dispute the nominee's position is reduced to being the trustee of the bequest, the final owners being decided according to the applicable laws of succession.

Note that: Only an individual can nominate. Nominee can be an individual, company or trust, depending on the terms of the investment or asset. Nomination can be appoint either at the time of starting an investment or any time, and it can be modified any number of times. 

The Purpose of the Nomination is simplification of payment process in the event of the death of the holder and not the equitable distribution of estate.

Joint Holding:

It will ease to enable specific family numbers, such as the spouse / partner or children, easily access assets through the simple method of Joint Holding. It means that the property is held by more than one person and can be accessed by the Joint holders subject to the mode of operations.

Usually Demat Accounts, Mutual Funds, Stocks, and Bank accounts can be held as Jointly. We should remember that if there is any legal contest among the heirs, joint holders right to the asset can be superseded by laws of succession as they may apply.

Family Settlement:

This is an instrument used to achieve peace and harmony in the family when there is a dispute or claims to the property that can lead to a long drawn out litigation. 

The main advantages of a family settlement are, Family arrangements are not treated as transfer and so there is no worry about Capital gains tax. It's also not treated as Gift. (Gifts are taxable sometimes as income from other source, subject to exemptions provided u/s 56(2)(vii) of the IT Act.)

Power of Attorney (POA):

POA is an instrument method by which a person may formally authorize another person to act on his behalf or as his agent on all matters or for a particular type of transactions. POA can have Donor and the Donee. Both the parties should have attained the majority, be competent to contract.

Usually, it helps on managing the sale of assets and related on Court dealings.

Mutuation:

When a property or asset acquired by a person from another one, on becoming the rightful owner of the asset should ensure that all the titles of the asset are correctly transferred to his name. 

It helps in updating the Revenue records to ensure proper revenue collection from the person who owned the asset or property.

So, we needed it as Mandatory ourselves for the Estate Planning same like Aadhaar (Unique Identification), PAN, Voter Id and GST (Goods and Service Tax). May be the Government will put mandate this in future.

There are so many legal counters in the court regarding this Estate Planning, due to non-appointed of Nomination, heirs, proper Will and other settlements.

How is my Budget Planning today - April - June 2017 - PQFR

How is my Budget Planning today - April - June 2017 - PQFR

As we had discussed the 'Budget Planning' in the past two posts. Here now, i am keen to submit my PQFR (Personal Quarterly Financial Report) for the Quarter - April - June 2017.

Set your own Budget Planning

How to set a simple Budget Planning 2017

The report below created by me, is based on the Super Budget 50:30:20

On the report, my fixed expenses are vary due to Medical costs and grocery items on my relative appearance :)  kindly note that i mostly maintain the savings / investing above the Super Budget terms with 30 percent plus. I believe in savings / investing for my child and for the Retirement. So, it would insist me to Retire Early :-)

You can also do the PQFR yourself and go further with honest :)

If you interest to share any comments, i wish to listen for that

Rich Investing with PQFR !

SIP vs Lumpsum Investing - The better choice

SIP vs Lumpsum Investing - The better choice

Which one can you choose, Rented Home (or) Lease (or) Buy it ?

This is the choice we have for a home, as for the savings or investing, we had a plenty of investment products like Bank Savings and Deposits, Bonds, Mutual Funds, Stocks, Realty, gold, etc. But, it's all about how we started it. As a traditional background in our country, we mostly choose our choice like Regular small savings from our grandparents. The old method of savings or investing are a collection box called as Hundial, Postal small savings, Bank fixed deposits, buying a gold in a very small quantity, purchasing a piece of land for our children. Nowadays, it becomes more fashion as the investment method changes slightly with a Regular savings frequency mode and a bulky amount of deal at once. That is what we called earlier, Recurring deposits and Fixed deposits. Now it comes with the word, "Systematic investment plan (Recurring) and a Lump sum investing (Fixed deposit). So, now we are talking about the fashionable SIP and Lump sum investing.

SIP (Systematic Investment Plan):

'SIP' is nothing but drink something by taking in small, like 'he took a sip of the Red wine'  :)☺

Systematic Investment Plan (SIP) is an investment method that usually given by the mutual funds to its investors, to invest their money in a fixed amounts as periodically. This frequency mode may be weekly, monthly or quarterly. This SIP investment method is a disciplined strategy that the investors can make 'Rupee Cost Averaging', while the market price is low or high, it benefits the investors.

It is usually recommended for the small and retail investors who don't have the large amount of money to invest.

Lump sum investing:

It is an investment method with a Single (or) One time payment of investing. When you have a large amount of money on your hand to invest and if you couldn't able to invest regularly, then this is your better choice of investing at once.

It benefits the investors especially for the medium - to - large, who can utilize the market when it is low or Market crash.

It also gives the benefit of the Power of Compounding gets itself from the first day of investing, but you should be aware about the Market fundamentals and its movements like Economic factors.

Have you made Investment Insulation ?

Have you made Investment Insulation ?

'INVESTING' means the act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit. This is what the Investopedia describes.

Most of us while listening the word, 'Investing' is about thinking themselves, just putting some money on any Assets (Financial or Physical) and make a profit without knowing the importance of Financial Education. If somebody have ₹ 10,000 /- or ₹ 1,00,000 /- they simply buying an asset (Thinking that are Investing) without knowing the Risk of Investing.

Prevention is better than cure.

As for the Financial Education, Securing your assets whether financial or physical is mandatory. Securing your Assets / Investments is nothing but, it's an Investment Insulation. Investment Insulation protects your investments through the Insulation factors. It protects your daily financial life while your investments may make loss or No Earnings on investments.

We can also compare the Investment Insulation with the 'Net worth' of an individual.

Insulation Factors:

If you are looking to buy a Stock / Real Estate Property / Business (those are Risky), then ask yourself the Investment insulation before you buy.

Insulation Type	Factors / Benefits
Have you Sufficient Coverage of Insurance ?	Take Proper Term Insurance, Health and Accident Cover – Protects unexpected accident or loss, Health concerned
Have you made the Emergency Fund ?	Savings of 6-10 months of income – Loss of an income / job, Medical Expenses, other Emergency required
Have you  Monthly Saving / Investing ?	Recurring, Provident Fund, Mutual Fund Systematic Investment plan(SIP) – Financial Goal Planning like Child Education, Marriage and Retirement Corpus

And some other Factors are...

• Save Water - Protects our Legal Heir
• Consume Less - Electricity Power
• Planting Tree - Save Nature

That is what, Dev Ashish of Stable Investor tells that, 'Buying Health Insurance protects Your Wealth, not Health' based on these Investment Insulation.

Investment Insulation is not only for an individual, but it's a Social Obligation. 

7 Ways to Invest Life like a Zen

7 Ways to Invest Life like a Zen

Investing is always like a Mantra. It focuses for a Long term in a silent way. I am not talking about the Speculation or a Short term, but for the Long term with a sip of Water. We know how the Buddha and Billgates created the Tremendous Empire. As they had a different goals to consider, but they had a life as a Zen. The Master Shunryu Suzuki said,

Zen is not some kind of excitement, but concentration on our usual everyday routine. 

For a Long term Investor too, there are few ways to invest his life like a habit of Zen.

1. Invest Regularly and Stick to Fit:
   The most basic of Zen thought tells 'Work your day with little things and without any connection. You may walk alone for five minutes a day, Helping others what you have, Learn a language daily for 10 minutes or save Rs. 10/- daily for your kid - This is the way, how Buddha and Billgates grown on their Duty. So, Invest Regularly with any amount, but stick to it (Fit).


2. Love the Investing:
   Always taste the richness what you had. If you fail on some thing, Love and Learn it. Smell the taste of your food, but not just eating out. If you are a regular tooth brusher with a right hand, try now with your left hand also. Market Crash and Interest Rates decline are the normal aspect of Investing. Just love, it will keep you Rich.


3. Financial Goal for what would you need (Need and Desire):  Do it yourself (DIY) and Do what you like. Prepare a goal and work for it 30 minutes daily. If you are not satisfied with your current job or not liking the environment around you ? Just forget it, do what you really like or need. Focus yourself, to make changes.


4. Long Term Investment and Worry free of Volatile: Life is not a Permanent, even look for the long term investment. So, we can protect from the Volatile. Every day is not a same day and we have ups and downs. If restricted on anything, just Introspect yourself and remove the obstacles. Live in a Present and forget about what you had in the past. As, we saying that the life is not a permanent. Enjoy Yourself !


5. Concentrated and Delayed Gratification:
    Do one thing at a time and make it a habit. Don't rush for the Multi-tasking. If you have a work, do it with concentration of 20-30 minutes. Try it yourself and feel the concentration. If you are going to clean the room - Just clean it, but not with watching TV too. If you are looking to invest in stocks, then valuate the stock with financial statements. But don't confuse with the others like speculative. Delayed concentration is a big thing for Investor's appreciation in the long term. So, be concentrated and work slowly.


6. Achievable Financial Goals: Proud yourself. Nature gives us a marvelous structure and life with peace. No need to waste it. The Nature protects everyone, even we are killing the Air and water. So, take a financial goal and must achievable. Don't worry about the Market or others' Returns, See your portfolio returns with your Goals.


7. Invest in What you know:
    Be Lazy; Don't take all things in your head. Say, 'No' and Do what you know. If you are not aware of anything, Learn it and then implement. Again be lazy, but wake up early in the morning. Because, you are going to love yourself. Invest your money and life in what you know and learnt.

“You should study not only that you become a mother when your child is born, but also that you become a child.”

– Dogen Zenji

Signing off here with Rich Investing :)

How to set a simple Budget Planning 2017

How to set  a simple Budget Planning 2017 ?:

Budget is a term which referred to, 'A Sum of money allocated for a particular purpose '.

Annual Budget of a Government every year is an exciting one for everyone, but it's a Pokey (Laggard) one for announcing their own personal budget. Before making (or) set a Budget plan, we have to understand why we need a Budget (or) Budget Planning ?

'Budget' allowing us to create a Plan for Spending of our money and also it helps to ensure that we have a enough money for the things we need.  A personal budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment.

Investopedia also refers the following 6 Reasons, why we need a Budget: 

1. It helps you keep your eye on the prize.
2. It ensures you don't spend money that you don't have.
3. It leads to a happy retirement.
4. It helps you prepare for emergencies.
5. It sheds light on bad spending habits.
6. It's better than counting sheep.

(Source:  http://www.investopedia.com/financial-edge/1109/6-reasons-why-you-need-a-budget.aspx )

Before making a Budget Planning, you should track yourself about the Income, Expenses and Savings / Investing. Then, how to track ?

• Take / Open a New Notebook (or) Use Expense Manager App - Write down your Daily Income (Mostly Salary  by month), Expenses and savings /Investing, if any.

• Calculate the Total at the end of month (Income, Expenses, Savings/Investing)

• Do it for the Next 3 Months.

• Now, you have a clear idea that you have a Personal Quarterly Financial Report(PQFR) :)  - Income, Expenses, Savings/Investing and Balance available if any.

• Track your individual objective expenses (Like Transportation, Food, Entertainment,etc), Income or Cash Flow, Savings/Investing for the last 3 month. And now set an Average expense price for every objective that what you had spent in the past. (Eg: Transportation - 1000/-, Entertainment - 1200/-, Eating out - 1000/- ,etc)

Set a Budget Planning:

• We are going to set a Budget Planning using Budget 50:30:20 Method.
• Calculate your Income / Salary / Cash flow after Deductions such as Taxes, Pension Contribution. - Now you have a Take Home pay
• Limit your Needs - Up to 50 % of your Take Home pay (Mandatory or Fixed Expenses)
• Limit your Wants -  Up to 30% of your Take Home pay (Day-to-Day Expenses or Flexible expenses) 
• Spend at least 20 % on Savings / Investing / Debt Repayments (Financial Plan,Loan)

Illustration:

Mr. 'X'  getting a Gross Salary of ₹ 3,00,000 per Annum. After deduction of 20% (Tax, NPS/EPF), his net salary arriving at ₹ 2,40,000 per annum. i.e., ₹ 20,000/- monthly.

Gross Salary - ₹ 3,00,000 / Year

Net Salary - ₹ 2,40,000 / Year (or) ₹ 20,000 / monthly

Monthly Expenses / Savings / Investing:

• Mandatory (Fixed) Expenses: (₹ 10,200/-) -  51 % of his Net Salary

·       

    ( Accommodation / Rent, Transportation,Food, Utilities(Phone,Internet,TV), Electricity Bill,  Insurance)

  

• Day-to-Day Spending (Flexible): (₹ 6000/-) - 30 % of his Net Salary

·        (  Entertainment, Hobbies,Outing and Eating, Shopping, Fitness) 

• Savings / Investing / Debt Repayments: (₹ 3800/-) -  19 % of his Net Salary

·       ( Retirement Fund, Emergency Fund, Car Loan, Foreign Trip)

Budget Value Analysis:

• Take an average expenses, income, savings/investing/debt repayments for every objective
• Divide the Monthly Expenses, income, savings/investing/debt repayments by the monthly income /Cash flow
• Take the value of every objective.
• Some analysis for you...

If Mandatory Expenses plus Day-to-Day spending (MED) / Net Salary  is,

•  <  0.75               - Good and Great !
•  >  0.75  <  0.85  - Be Cautious
•  >  0.85  <  1.00  - Bad / Worst
•  >  1.00               - You may Bankrupt :(

If Savings plus Investing (SI) / Net Salary  is,

•  > = 0.25         - Good and Great !
• < 0.25 > 0.10  - Try to increase the level
• < 0.10             - Your kid is awaiting for you / You may depend someone for your                                           Retirement.

You can use like the above for analysis with the every objective (Expenses,Saving,Investing). If you hard to calculate, use the Expense Manager and get it on !

Budget Planning with Rich Investing :)