This picture depicts the typical mindset of an average investor. I was one of them.
How about you??
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This picture depicts the typical mindset of an average investor. I was one of them.
How about you??
I am sure most of guys in Bangalore have realized that the Shell petrol bunk finally gave in and reduced the price of petrol. I was filling petrol for my bike from Shell regularly. They have two kinds of petrol, one is “special” and other is “ordinary”. “Special” petrol is of high octane value petrol called Shell Super petrol. “Ordinary” petrol is of lower octane value called Shell Normal petrol. The special petrol was selling at a premium price of Rs. 4 than the ordinary petrol. I was willing to pay that extra money because my mileage had increased honestly I did not measure it but I am sure that it gave me more than 4 kms than the ordinary petrol from other petrol bunks.
After sometime, they started selling only the “special” petrol when enquired with an employee, he said the company was not making a great business and if they wanted to be in business they had to sell only “special petrol”.
Investing means putting your money work for you and you not working for money. In other words, money works for you and the value of money increases after certain period of time. We have a tendency to work hard, sometimes very hard for money. I have realized that it is not at all necessary to work very hard to make money. You can make money if you are little smart, thats it. If you think that only working hard gets you money then think again, there are finite number of hours and you have to work more hours and if you work more hours then when will you enjoy with your hard earned money? No leisure then what is the fun of working hard?
There are many different ways you can go about making an investment. This includes putting money into stocks, bonds, mutual funds, real estate, or starting your own business. Sometimes people refer to these options as “investment vehicles,” which is just another way of saying “a way to invest.”
Investing is not Gambling. Gambling is just putting your money at risk and the outcome is not sure, you may or may not win and you always hope to win. It is just about luck and nothing else. Investing is not about luck, it is about taking calculated risk. RISK is part of investment and you can’t completely be sure of making money but the probability is high that you will make money. A investor does some ground work and expects some solid profit after considering the risk associated with the investment where as a gambler just invests and prays so that the investment he made provides him the profit.
To make it clear, consider this. A gambler buys stock based on a “HOT TIP” and does not know much about the company or anything related remotely to it whereas a Investor buys stock only based on the analysis and thorough investigations that he performs and expects considerable amount of profit for his investments.
My personal view is that, you can be an investor or a gambler, I am sure you can make money either being an investor or gambler. But be clear with your path. I don’t wish that you claim to be an investor but you act like a gambler.
Hello Friends,
My intension of writing articles in this blog is not very specific to only Indians. I wish to share what I have learnt from investing, saving in short playing around with my hard earned money. The concepts which I share in this blog should be more or less helpful to people from different countries. But since I know nothing about other countries other than India, I can hardly comment or say something specific about it. (Sorry for it :(.. ) I will try to write more articles which is not country specific in the topics related to investment, stock market and others.
I would appreciate if you drop a word or two about my blog. It gives me immense pleasure to know that people from different parts of world actually read my blog and I hope some day or the other I will bring about a change in their financial thinking. I am sure I will achieve it.
Once again, Thanks for all my readers who read it regularly and encourage me with their kind words. You guys rock. Keep Visiting. Feel free to ask questions or suggest topics which you want to hear from me. I will do my best.
Saravanan.
Failing to Plan is Planning to Fail.
I always believe that it is very important to plan and execute our activities. It is always a good thing to do. Likewise our plan for the financial future is also very important. If we start early then we can reach our financial goals pretty easily, the delay that we gonna do to start or plan our financial future will cost us dearly. Now we are all undergoing what Inflation is. My dad used to earn 5k per month 10 years back and from then on till few years back there was no issues with his earnings. We had a great life and our future looked bright as well. Now I earn more than that but still the future looks dull, it is uncertain as to how it is gonna be. This is all because of not proper planning.
Honestly, planning solves most of the dreadful situations that we might face. I think these should be in your mind while planning your financial future.
1. Set a goal as to how much wealth you want to accumulate and have a definite period.
2. Have medical insurance cover.
3. Get precise information of how your money comes and where it goes.
4. Decide when you plan to retire. ( I don’t expect others to decide that for me)
5. Start investing or saving for your retirement.
6. Investment : What kind of investment? when you plan to do it and how you plan to do it?
7. What are your other important personal goals that can affect your financial planning ( higher studies, marriage and others)
These are some of things that come to my mind immediately when I think of my financial planning. Why I insist for a plan is, once we decide to do say investing 10k in stocks, we will do it no matter what. But we don’t decide or plan and hence spend money unnecessarily. This is my personal experience. I am sure most of you guys will be just like me or similar to me. I think once we overcome this stupid habit we can make great progress with our financial future. All that we want is Financial Freedom and I guess we should achieve it as soon as possible so that we can do better things in life rather than chasing money and surviving.
Make an early start. Plan your Financial Future.
Engineer's Finance 