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Stock Market Collapses on a Family - Some lessons from a tragedy

It seems that NOT all are receiving the good wishes

I wish you all everyday and in every post  ....

 

The Stock markets are tumbling and taking a bad fall all over ...

Along with the families who have substantial funds invested in it

 

The price of this free fall is being paid by families like those of

Karthik Rajaram, an NRI who shot his wife and three sons

after his funds were wiped out in the current collapse ...

 

An IIT Chennai graduate and an MBA from the University of California,

Kartik had gone bankrupt after the stock market crash....

 

My sympathies are with those who have lost a good amount of funds

in the stock market, but only to an extent ... It ends where common sense

is deliberately disregarded to fulfill lust for short term gains and

where risks taken are not calculated ......

 

The lives lost cannot be regained, but their deaths can at least

be used to salvage some redemption for them if the rest were to

learn lessons in common sense from this tragedy ...

 

Lesson no. 1 - Do no put all your eggs in one basket. 

 

A cardinal priniciple of survival is having a contingency plan

That means having options or creating them where they don't exist ..

And if it is not possible to do that, then the venture shouldn't be

attempted unilaterally, but only after taking everyone into confidence

who are bound to be affected by taking such a big risk ...

 

And if one is a family Man, such ventures without contingency plans

are a strict No No ...howsoever tempting and attractive the offer may seem ...

 

Always consider the "what if" scenario ...

What if it fails ?? where does that leave you??

especially if you have no options or have prepared for none ..

 

If you can handle the odds,

If you feel confident of handling the odds,

And most importantly, if the rest who are going to be affected

are with you in all of this, then and even then ...

reconsider before going full steam ahead ...

 

 

Lesson no 2 - Save for the rainy day until you break even

 

As you keep on earning a profit, set some aside until you break even

before you start taking bigger risks ... A good rally or a good

break initially shouldn't result in going all out ....

 

Believe me, Not even if the gut feeling is right

Because when you are on a roll, every feeling feels like gut feeling

 

Unless you are a person who has grown up listening to his conscience

a LOT, believe me again, you won't be able to distinguish

between the feeling of confidence due to euphoria of success

and a real solid gut feeling ......

 

SAVE until you break even (and do factor in the rate of inflation when you save)

Once you break even, then go with your gut feeling in taking risks, if you have to ..

 

For then even if you lose, you will at least be back to square one rather

than in the hole from where you won't be able to pull yourself up ...

and where suicide looks a very inviting option ...

Not the kind of option you wanna work with ...

 

Lesson 3 - INVEST

 

Invest some of the profits in guilt edged securities ...

Once you break even, you may take bigger risks ...

If they pay out and you make a profit, set some aside for

investing in safe securities ...

 

Your financial adviser would be able to guide you in this ..

GET ONE - You won't regret it ....

These people spend their working day studying the Financial

markets and the economy ... they have a better hold on the

pulse of the market and economy ...

 

Just one caveat - Get someone who who you trust and

someone who knows the value of hard earned money

and how to manage it .....

 

This short article is by no means to serve as a portfolio of finance

But just an outpouring of thoughts brought on by tragedies

like those of Rajaram, which could have been totally avoidable

 

The biggest loss is of lives of Rajaram's children

which were yet to flower and were snuffed out for no fault of theirs ....

 

They were the Investment that would have paid off all of His debts

If only Rajaram had invested some of his funds to give them a future

away from the burning pyres ....

 

May God bless their souls...

 

FW: 20 tips to outsmart inflation

The basic needs of man are food, clothing, shelter and entertainment. Today, most of us have graduated from needs to luxuries. When the newspaper headlines were screaming inflation at 11.9 per cent, it became a topic of worry. Today, the challenges are not just high standard of living, high commodity prices, it's job loss too. How do you deal with meeting your basic requirements with less means to buy them?

While eating just one meal a day is good for Yogis and is a nice way to cut down costs, that is not what I'm suggesting. Instead, Try something simpler.

1. Eat at home!

Eating out can be expensive. If you are spending Rs 200 on eating out compared to Rs 50 at home, you would be surprised to know the kind of amount you are spending. A systematic investment plan of Rs 150 (200-50) a day saved for 30 years can give you returns in excess of Rs 5 crore!

2. Know what you are buying

Plan your shopping. If you fill your cart with everything that catches your eye, chances are you will be spending a lot more. Instead, plan your meals for the week ahead and make careful note of what you need to buy. Purchase only the items on the list, avoid the rest.

3. Wear your blinkers

Stores are designed to make you go through a long walk to reach for your most basic items. Reason — you can tricked into buying what you don't really need. Most basic commodities are found towards the end of the store. So, the next time you go shopping, you could skip the other outlets and move towards your destination. Lower priced products are placed at the lower levels — not at eye-catching levels!

4. Shop on a full stomach

When you're hungry and shopping, you may end up buying lot of things that look like food! You might also pick up what you don't really need. On the other hand, you can easily avoid unnecessary shopping when you're a full stomach.

5. Do you really need bottled water?

You can take a bottle of water when leaving home rather than buying when you're out.

6. Use public transport:

The amount of money you can save while using public transport is amazingly high. Think of parking charges, petrol, car depreciation, etc. It is also good for your health — the walk to the nearest bus stop or railway station, climbing the stairs, are all good cardio vascular movements and helps your heart.

7. Shop sans the kids

Hungry, tired, cranky kids increase the amount of time it takes to get your shopping done. Kids can really bug you into buying things which are bad for your health and for your purse. Leave them at home when you go out shopping.

8. Buy in bulk

You can save a significant amount of money if buying in bulk. Pay attention to the prices and pick up the family size package if the per unit cost is lower. However, you need to realize that bulk buying has a dark side too! If you are not a big user of any particular product, it could mean wastage. In a worst case scenario you might throw away the excess, or use more — just to get rid of it. Both these actions actually increase your usage instead of reducing your costs.

9. Use store reward cards / coupons

If you visit a particular store often, you can sign up for their reward card. In some cases, stores raise their prices when they offer reward cards, and without the card your bill will certainly be higher. If the card offers other benefits, such as a preferred (or free) parking, free schemes, etc., be sure to maximize your benefits before they expire. Many newspapers carry coupons which entitle you to some discount on the things you buy. If you find coupons, use them.

10. Buy local products

For instance fruits. Whenever I step into a big branded store, I was pushed into buying 'American grapes'. I fell for it once, and realized only on billing that it was Rs 400 a kg! The Indian variety is normally available for Rs 40. Locally grown or produced food is often available at a cheaper price because you don't pay for long transportation costs, American labor costs, American insurance, etc.  Stick to foods grown locally. This is good even from a health point of view.

11. Choose unbranded goods

There is a huge cost difference between a branded product and an unbranded one. Even in case of 'expensive' items like dry-fruits, if you buy it from a wholesale-retail shop you will find a 20 per cent price difference. Some branded foods like cornflakes, are more expensive than dry fruits on a per kilogram basis. If you thought potatoes were selling at Rs 18 a kg, you are correct, but when it gets converted to branded chips, it becomes a little expensive, about Rs 350 a kg!

12. Men are bad shoppers

It is not so much of a gender issue. But the truth is men do not have much patience and that shows while shopping. So, if you are a man, realize that shops know and understand this. So things are arranged in such a way that when you are in a hurry you will end up buying the most expensive items. Look around to find cheaper items.

13. Compare prices and stores

I personally do not compare prices and stores but my wife has a degree in this! She knows which shop is good to buy vegetables, branded goods, unbranded goods. And she plans her shopping accordingly.

14. Shop in sales offers

In India, September to December months are considered as 'festive season'. This is the time when most of the shopping happens. Surprisingly, Hindus, Muslims and Christians have some festivals for which they buy new clothes during this period. So, stores generally keep a pre-festive sale in July-August and a post-festive offer in January. Use these sales to build your wardrobe. You can even get good deals!

15. Shop less frequently

The lesser the number of trips to the shop, the lesser you will buy! So, if you are making more trips to the store, it is time you reduced them.

16. Pay in cash

When you buy your day-to-day requirements with your credit card, you run the risk of paying your credit card dues late. So, for all the saving you have been doing, you may give it away in the form of interest. Cash is a good option. Besides, you tend to be more careful when making cash payments.

17. Check your bill

You should check all the statements which have a financial implication be it your credit card statement, mutual fund statement or your groceries bill. Scanners are fine, but there are possibilities of mistakes. So, you must see the bill before you pay.

18. Buy leather goods in monsoon and umbrellas in winter!

Buying goods in off season will cost you less. If it's monsoon, check out for sale on leather goods and umbrellas in winter.

19. Use solar or gas appliances:

Even in places where piped gas is available people do not shift to gas water heaters / gas air-conditioners. It is amazing to see the number of people in Ahmedabad (Gujarat, India) who have shifted to gas — for economics not just because electricity is available. Do not dismiss a saving of Rs. 300 per month as trivial — see the impact over a few decades.

20. Use energy saving lamps

You will see a big difference in your electricity bills.

Change, we can!

All it takes to bring about a change is a different perspective. Are we all leading the lives we dreamt of once? Can we ever lead such lives?

Change.

A long time ago, when I was a little yearling, my parents would put in Herculean efforts to feed me even the smallest slice of mango. To this day, I don’t understand what made me hate mangoes so much without even having eaten them (at that time). Such was my resistance that three adults put together chasing me, holding my face and opening my mouth failed to put that tiny bit of yellow fruit in it!

One fine day, two years (or so I think) later, I vaguely remember my father telling me in a cool and composed voice, ‘Son, look at this mango, so tasty it is! I am going to have a bite. I suggest you try one little piece. If you like it, let’s eat it together!’ With a sullen face, I hesitantly tried it. Then something happened. A taste lit up my mouth and it felt just great! I had never tasted such a soft and sweet thing before! I longed for more.

It is said that my parents got very few mangoes to eat after that experience.

This example has driven me many times in the years to complete my chores, finish my homework, or studies, and many other things. What message does this convey?

Many a time I have seen—and I am sure all of us would have seen—that approaching things from a different ‘angle’ makes the difference between possible and impossible. Yes, change, we can.

I recently got a video from a close friend which very elegantly showed how people respond to the same old things when shown from a different point of view or with a slight touch up. This was an ad from Volkswagen and showed all the traffic in the subway station in Odenplan, Stockholm, Sweden shifting to the new touched up escalator, while no single soul used the good old staircase next to it. It follows with snippets of some technicians and painters working on the staircase for a few days, during which the staircase is made into a giant keyboard. It was seen that about two out of three people used the stairs instead of the escalator just for want of that pure joy of bouncing on a keyboard!

Ironically, the world is currently going adverse to this logic. (What logic? The fact that humans can do anything if they are interested in that particular task.) To make something happen, a person needs to be genuinely interested in that ‘something’. One either shows the same old job from a new viewpoint or the person eventually grows interested in it.


How this applies to people today

Now we come to the central theme of today’s article.

Having established the logic described above, let’s look at how this applies to people today. Nowadays, people go about their lives doing nothing but routine jobs. The brain is becoming slower and slower. All activity is centering on making a lot of money and eating good food. What happened to all our physical talents? I see around my own self that colleagues are getting more and more digitized with every passing day. Remember that you and I are also immediately enclosed in that group.

How many of us actually observe a regular physical fitness regimen? How many of us let our hobbies flow out just for the pure joy of it? How many of us actually voluntarily take our minds off work to do something pleasing, at least once in a while?

Everyone of us has 24 long hours each day. Let us make the most of these moments! Let us change our ‘angle of view’ of life, let us turn a new page.

Let us rekindle a childhood hobby and brighten our lives a little bit every day, or whenever possible. Let us not make excuses about jobs and obligations. Let us follow our heart. Let us take up at least one hobby and devote our time regularly in its pursuit. Let our routine life become a small part of the big picture that is our own self. Let us strive towards personal excellence and happiness.

Big talk, you would say, isn’t it? How am I, a commoner/busybody/(VIP with many responsibilities), supposed to do it, you would ask. Here’s how…

Go on, complete that novel you had begun reading last week; work on that painting which you so heartily longed to do; play around with all those intricate machine parts to make that robot you dreamt of in college; do something that you wanted to do and never did! Experience the joy! Rejuvenate yourself! Unlock the door to infinite enthusiasm and energy! Do something every day that brings a smile on your face or calms your mind or elates you or just makes you feel lighter and brighter!

Man thinks technological and financial development has taken him a step closer to what many people would call God! But it definitely stands far from the truth! Today, humans are straining themselves to survive. Let us go a step ahead. We are the highest beings on the planet, aren’t we? Let us live life to its fullest, and not just the barest. Let us not just survive, let’s THRIVE!

Will you bring about a change today?

DO NOT sit on your wallet!

this is something which we are not focusing in our daily life but can produce multiple problems in spine especially for those who have long sitting hours. Make sure that when you sit in your office chair your wallet should be not in your back pocket(Not only Wallet don’t sit with anything in your back pocket).

ERGONOMIC TIP: Do   not Sit on Your Wallet!!!

 

Your wallet can be real pain for your back and the waist, and it can even lead to shooting pains down the legs. Sitting on a wallet for prolonged hours every day can compress sciatic nerve which passes beneath piriformis muscle and leads to piriformis syndrome, low back pain & self-inflicted sciatica. The wallet acts as a wedge that forces the pelvis, spine and body out of alignment. Just as you would not sit on a brief case or a rock for an extended period of time, you should not sit on your wallet. Anyone who drives more than a half hour sitting on a wallet is a candidate for sciatica or back pain. The healthiest option is to move the wallet to your front pocket. If it’s must to keep your wallet in your back pocket, you should remove it before you sit down.