9 personal finance mistakes to avoid….

All of us have made these mistakes, so let’s begin by seeing how many of them we can avoid/minimise…

I am normally a person who likes to say ‘be careful’ rather than say ‘do not break it’. The mind always sticks to the most important word — so the ‘break’ sticks in our head. However there are a few mistakes that I have been seeing and hearing from IFAs, websites, etc. and think it is necessary to summarise them in one place.

1. Optimism

This is a lovely thing to have, except when it comes to investing. When people invest in equities they have some outlandish expectation — say 28 per cent CAGR (compounded annual growth rate) or 17 per cent CAGR. No clue who gives them such ‘lofty’ expectations. Yes, some of us have got it in the past, but hey we have perhaps just been lucky.

A Rakesh Jhunjhunwala or a Vallabh Bhansali have got much higher returns, but you have no clue about the efforts and team work that has gone behind all this. A Naren Sankaran (Of ICICI) or a Motilal Oswal is perhaps capable of getting far better returns, but their risk taking capacity and sheer size of funds managed puts a huge limitation to the returns.

So please temper your expectations.

Just because you expect less it does not mean you will not get it. Keep your expectations at a far more realistic 20-25 per cent OVER PPF returns — so if you get 8 per cent in PPF, expect to earn about 10-11 per cent over a long period of time, tax free. It can do magic to your portfolio over say 50 years like it has done for some of us early starters.

2. Risk and return

The fact that you take more risks DOES NOT MEAN YOU HAVE TO GET greater returns. It is not your RIGHT; it is just that the odds favour you. If it were so certain, there would be no risk at all. Long term can mean really long term — say 13 years and you may have just lost patience after 12 years and 5 months.

Be very clear that for goals that are 7-8 years away equity is a good investment, but you will need a back up plan just in case it backfires.

3. Consumerism

Buying every shiny thing on the store shelf or on Amazon and Flipkart are not the way to create wealth. When you feel like buying something, wait. Think of the last 5 items that you bought and what you did with that. Clearly the manufacturer and the shop keeper want you to buy all that is made and displayed. It is up to you not to do so.

Investing more and for a longer period is the only route to a great portfolio.

4. Complications

Planners love to complicate things, ignore complex plans. Simpler plans are far superior.

5. Inertia

Good and noble intentions will not protect your family or create wealth for you. So get off your backside and get that term insurance, medical insurance, provident fund nomination form, …NOW and start your investing programme, NOW.

If you do not believe this, see the amount of money lying in bank deposits, savings banks, post offices around the country!

Even better see your own savings bank account and see how much of interest has been credited. Kickass start.

6. Impulsive actions…

…while in spending, investing, saving, eating and health issues only lead to pain later on. Learn some meditation and act in leisure. Relax, do not get bullied by bankers, contractors, salesmen, cousins, friends, television experts — by anybody.

Collect all the data, and then sleep over it for a day. Take a decision after a few hours, preferably 24 hours. Do not believe the agent who says “this scheme is closing…” Some agents have been using it for the past X number of years and doing it very successfully. When you have the money, a new scheme is born every day. Usually in a better form.

7. Ask

Ask the people who know before you invest. Parachutes are to be on your back BEFORE you eject from the plane, it cannot be sent to you mid air…

8. Greed

If you have invested in 50,000 shares of a company at Rs 30 a share and the price goes up to Rs 50 in two weeks time, great. Partial booking — of say 1000 shares every time a share jumps an X per cent is not a bad idea at all.

It is only the owners who can ride a share from its start to eternity — like a Premji or a Narayana Moorthy can/ will do. Yes there are many theories here, but hey, greed kills more than it makes you go. Be careful.

9. Mess

Do you have 40 items in a portfolio worth Rs 1 crore? You are a mess. You need to have no more than five. Okay make it 8, but not more. So please prune the mess, and clean it up.

Source………P V Subramanyam in www. rediff.com

Natarajan

 

Message for the Day…….” Hearts filled with the nectar of love indicate genuine humanity in people “…..

Humans are those who consider love as the only quality to be fostered and stay away from inferior qualities as if they are snakes. Bad conduct and bad habits distort the humanness of people. Hearts filled with the nectar of love indicate genuine humanity in people. True love is unsullied, unselfish, devoid of impurity, and continuous. The difference between human(manava) and demon (danava) is only ‘ma’ and ‘da’! The letter ‘ma’ is soft, sweet, and immortal in symbolism, while the sound ‘da’ is merciless, lawless, and burning. Are they humans who have no sweetness in them and who endeavour to suppress the craving for immortality? Theirs is the nature of demons, though the form is human! For, it is the character and not the form which is primary. Good nature is resplendent on the faces of true humans as bliss (ananda). But without that goodness, even if they are infatuated with joy, the face will indicate only the destructive fire of the demon; they won’t have the grace of spiritual bliss.

Sathya Sai Baba

This Giant Indian Railway Bridge Is Going to Be the Highest of Its Kind in the World !

You might have seen many extraordinary marvels of engineering. But this project will definitely make your jaw drop.

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We’re talking about the massive single-arch bridge being constructed over the Chenab River, between Bakkal and Kauri in Jammu and Kashmir.

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The bridge is 1,315 meters long, 359 meters high, and will be the tallest railway bridge in the world.

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Quick fact: It will be 35 meters higher than the Eiffel Tower!

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Located at such steep slopes, one can only imagine the level of skill it took to design and construct this engineering masterpiece.

Watch this video that explains the mind-blowing construction of the bridge and how India is creating a masterpiece that is one of its kind in the world.

Source……..Shreya Pareek  in http://www.the betterindia.com

Natarajan

When a Bird Died in His Arms, This Man Decided to Rescue Every Injured Bird in Jaipur….

Thousands of birds, some endangered species included, are injured and maimed every year during kite flying festivals across India. This is the story of one man and his NGO, who are fighting to rescue and rehabilitate the helpless creatures and spread the message of compassion.

It was Jaipur’s famous kite flying festival, Makar Sakranti, in 2006. An injured bird fell right in front of 34-year-old Rohit Gangwal. He picked it up to take it to the bird shelter but it was too late. The bird died in his hands.

This incident troubled Rohit so much that he got a few friends together and started an organization to rescue injured birds every January, the month in which the kite flying festival is celebrated.

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Rohit Gangwal

“Every year, thousands of bird die due to the sharp threads people use to fly kites in the sky during this festival. I thought this is the time when immediate intervention is required,” says Rohit.

Rohit and his friends would go out on the roads to look for birds that had fallen. They would give them treatment and food, and as they got better, release them where they found them.

Gradually, his work was noticed by others and he started receiving emergency calls for bird rescue around the year.

So Rohit decided to form an NGO, Raksha, to rescue and rehabilitate injured birds and reptiles. Today, the Raksha team rescues two or three birds every day. Rohit now has a team of about 50 volunteers who work with Raksha for free.

What do they do?

The Raksha team

The Raksha team

Raksha’s core work is to rescue and rehabilitate injured birds. The volunteers are first trained using a dummy bird before they actually go on a rescue operation. After a few weeks of training, the volunteers know how to provide basic medication and treatment to a rescued bird.

“In some cases the bird is too small to feed itself so we feed it till it is big enough. After a few weeks, when the bird starts feeding itself and is healthy enough, we release it at the location from where we first rescued it,” says Rohit.

Raksha does not just provide medical intervention. The birds are prepared to deal with the ‘outside world’ during the time they are healing.

“Our team keeps their food at different locations and they have to find it. Once we release them out in the world, they’ll have to find food for themselves. This is like a training for them,” says Rohit.

The seriously injured birds that will take a long time to heal are kept in a ‘bird orphanage’ and looked after regularly by the volunteers.

Injured birds are rescued immediately by the experts at Raksha.

Raksha also has a 24×7 helpline, which enables people to report injured bird cases.

This NGO’s work is not just restricted to rescuing birds; they also rescue reptiles (mostly snakes). With help from a team of experts, Raksha has been actively rescuing and rehabilitating snakes from residential homes, school buildings, and other such urban locations.

“If a reptile is hurt we bring it to our orphanage but release it after 24 hours because it is illegal to keep it beyond that time,” says Rohit.

The law in India says that keeping snakes in captivity and their display in public is prohibited under the Wildlife (Protection) Act 1972 and is an illegal activity.

Going the extra mile

Every year hundreds of birds get injured due to the kite flying festival.

Every year hundreds of birds get injured due to the kite flying festival.

 

The team also rescues snakes.

The team also rescues snakes.

The good Samaritans at Raksha also spread awareness about compassion towards birds and other animals among children. They go from school to school to talk about how students and teachers can help injured birds and how they should be more considerate towards the feathered species by not flying kites. They provide the children with bird feeders and water bowls to encourage them to love and care for birds.

The Raksha team has also organised snake bite management training programmes for those who are exposed to the risk of snake bites. “The event is focused on security guards, engineers, and other people who work in high exposure areas,” says Rohit.

The Impact

The team rescues over 300 birds every year.

The team rescues over 500 birds every year.

The team also organizes health camps for the birds.

The team also organizes health camps for the birds.

Today, the Raksha team rescues and rehabilitates over 500 birds every year. They have also helped change the mindset of hundreds of school children towards birds, teaching them compassion and training them to give basic medical treatment to injured birds.

The team also teaches school students to be more compassionate towards the birds and animals.

The team also teaches school students to be more compassionate towards the birds and animals.

Manan Tholia, a volunteer at Raksha, recalls an incident from when he went to a school to spread awareness about this cause. The session inspired the kids of the school so much that they managed to rescue an injured bird the next day.

“An injured bird fell in one of the classes. Maybe it came in the class accidentally and hit the fan, or maybe it was attacked by some other bird and entered the classroom. The students made a small nest for the bird, fed it and took care of it for a day. And when the condition of the bird did not improve, they called our helpline. We went to the site and rescued the bird. It was because of our session that the kids felt the need to help the bird, otherwise mostly people do not know what to do in such cases,” says Manan.

The birds are rehabilitated when they are cured.

The birds are rehabilitated when they are cured.

Though Raksha has been catering to the needs of injured birds for nine years now, they still struggle to find good volunteers who can give enough time to the cause. The organization runs on donations in kind, where they get medicines, bird food and other necessary material. They also get some monetary support from individual donors.

“We want to expand more, reach other cities and address more cases,” says Rohit. Thanks to Raksha, hundreds of birds that are injured every year now have someone to look after them.

You can learn more about Raksha by visiting this website.

Source…..Shreya Pareek in http://www.the betterindia.com

Natarajan

Message For the Day…” The path of dharma mandates that you give up hatred against others and cultivate mutual concord and amity…”

Whatever you are dealing with, you must first grasp its real meaning. Then, you have to cultivate it daily, for your benefit. By this means, wisdom grows and lasting joy is earned. The two basic things everyone must be super clear are dharma and karma (action). Righteousness(Dharma) has no prejudice or partiality; it is imbued with truth and justice. So if you choose to adhere to dharma, you must see that you never go against it. It is wrong to deviate from it. The path of dharma mandates that you give up hatred against others and cultivate mutual concord and amity. Through concord and amity, the world will grow, day by day, into a place of happiness. If these practices are well established, the world will be free from disquiet, indiscipline, disorder, and injustice. The wise, who are impartial and unprejudiced and have resolved to follow Dharma, must walk on the path of truth (sathya).

Sathya Sai Baba

Space Station Fly over of British Columbia’s Coast Mountains…

Snowcapped rocky mountain range on the coast photographed from orbit

ESA astronaut Tim Peake (@astro_timpeake) took this photograph over the west coast of Canada from the International Space Station on Dec. 31, 2015, and shared it with his Twitter followers on Jan. 5, writing, “I was lucky enough to fly a helicopter in these Rocky Mountains once – I’m a bit higher this time! #Principia”

The photograph shows Canada’s Coast Range of mountains, with King Island and Burke Channel in the center. The Pacific Ocean is visible at the bottom and north is to the left.

Image Credit: ESA/NASA

Source……www.nasa.gov.in

Natarajan

Message for the Day…”Among Sacrifices [yajnas], I am the Repetition of Name(nama-yajnas)”…Lord Krishna in Gita…

Lord Krishna declared in the Gita, “Among sacrifices(yajnas), I am the repetition of the name (nama-yajna).” For curing grief and earning joy, temples where the name of God can be remembered are very essential. Remembering the name (smarana) grants bliss; there is nothing more fruitful, charming or blissful than this activity! Sage Vyasa wondered, “Having the great yet simple name, on the ever available tongue, and the temple where His enchanting image is installed so that people can sing His glory in an exalted voice… why should people hasten toward the gates of hell?” So too, Saint Tulsidas, who lived constantly in the temple and sang of the joy he tasted, lamented, “Alas! When people give up the name and the temple, and seek peace and joy in other places, I am reminded of the foolishness of those who forsake the rich and tasty fare on their plates and beg with outstretched hands for the remains from other’s plates!”

Sathya Sai Baba

The Unique Flower Auction at Aalsmeer…….

The Aalsmeer Flower Auction or Bloemenveiling Aalsmeer in Dutch, takes place in the town of Aalsmeer in North Holland near Amsterdam Schiphol Airport, and is by far the busiest and largest floral market in the world. Everyday 20 million flowers arrive here from all over the world. Whilst a large majority of the flowers sold here are from the Netherlands, many come from far off places like Ecuador, Colombia, Ethiopia, and Kenya. The warehouse itself, where the trading takes place, is the largest building by footprint in the world, covering 518,000 square meters or 243 acres.

Flowers arrive the night before the auction, at around 10 PM, and are cooled and sorted during the night. The auction starts early morning. Carts of flowers are presented to the buyers, one at a time, while they bid on them. The flowers get bought and distributed almost immediately. By late afternoon, all the flowers will have moved out and the warehouse prepared for the next round.

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Crates of flowers waiting to be auctioned off at Aalsmeer Flower Auction. Photo credit: CGP Grey

 

 

Flowers in Aalsmeer are sold using the infamous Dutch auction system. The price is set high and a clock starts ticking down from 100. As time falls, so does the price of the cart. The first person to make a bid gets the cart. Anyone buying too fast risks overpay, but those waiting too long for the price to drop may go home empty handed. This unique system was invented in the 17th century for selling Dutch tulip bulbs, and is based on a pricing system devised by Nobel prize winning economist William Vickrey. The ingenuity of the Dutch auction ensures that flowers are sold off quickly while extracting the highest price out of the dealer who wants the lot the most.

The bidding process can be seen on the large screens inside the auction room. Visitors are allowed but neither them nor buyers can get close to the flowers. The most interesting aspect of the Aalsmeer flower market is seeing the logistics in action, rather than admiring flowers up close. The closest one can get to the flowers are from two elevated walkways high above the busy warehouse. The actual trading can be observed through soundproof windows high above two auction rooms.

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Photo credit: faungg’s photos/Flickr

 

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The auction room. Photo credit: faungg’s photos/Flickr

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Photo credit: faungg’s photos/Flickr

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An auction in progress. Photo credit: bert knottenbeld/Flickr

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Photo credit: faungg’s photos/Flickr

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Photo credit: bert knottenbeld/Flickr

 

Sources: European Traveller / Flower Experts / Investor Words

Source….www.amusingplanet.com

Natarajan

” It’s easy to get carried away… but stay grounded…”

Pranav Dhanawade getting ready to start his innings on Tuesday. He went to make an unbeaten 1009. – PHOTO: PRASHANT NAKWE

Pranav Dhanawade getting ready to start his innings on Tuesday. He went to make an unbeaten 1009. – PHOTO: PRASHANT NAKWE

Amol Muzumdar was part of Mumbai’s eight Ranji Trophy titles. Having retired as the second-highest scorer in Ranji Trophy, he is now a television expert

Let me start on a light note. Even in book cricket, you will find it virtually impossible to score a thousand runs. It is just unthinkable.

To put things into perspective, not many times are you left speechless. And it is something that would put you in that position. Any form of the game. To not commit a mistake for that amount of time and to keep connecting the ball for that long is something incredible, to say the least.

Mumbai school circuit has always been robust, especially when it comes to batsmen. I have seen two outstanding schoolboys (Kambli and Tendulkar) plunder tons of runs against hapless bowling attacks since my schooldays.

But over the last decade, there has been more than one instance of a run-machine in schools finding it difficult to elevate to the next level. The world has evolved and so has the media. I am sure he would have given dozens of interviews and would have been approached by numerous talent scouts by now.

But he has to realise that it’s too early for him. It’s imperative for him to keep his head on his shoulders. It’s very important for his parents, for his coaches, for his senior players to keep him grounded. Of course, what he has done has never been achieved but there are many other things which have not been achieved.

Just look around, and you will get a good perspective. It’s important for him to keep looking. I know it’s easy to say for us but you have to do it. He needs to be proud of what he has achieved but at the same time he has to keep looking around, and just take this as a stepping stone. He has laid the foundation for building a career and now it’s up to him how to shape it up.

Many would feel that coming from a humble background, it’s easier for him to get carried away. But I wouldn’t say that. It’s entirely up to the individual and the environment that he grows up in. There will be successes, there will be failures. I hope he is a humble guy and I am sure he would settle down. At the moment, he is bound to be high and he would enjoy the wave but I hope he enjoys the lull later on as well.

It is often said that after a huge knock, the next innings differentiates the ordinary from the exceptional. But I would say forget about the next knock, each of his innings over the next five years would be important. Everyone will be watching what this kid is doing. But the fact that he has made international news at the age of 15 means there is something to be tapped. You need to keep an eye on him. And he needs to stay grounded.

(Amol Muzumdar was part of Mumbai’s eight Ranji Trophy titles. Having retired as the second-highest scorer in Ranji Trophy, he is now a television expert)

source…….