Financial and business news and articles
Saurabh Dhanuka
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Homepage: http://allfinancehelp.blogspot.com/
Posts by Saurabh Dhanuka
Money is something for which you trade your life energy
Feb 27th
Have you ever wondered when are you going to die? Sounds strange, Isn’t it? Today I visited one of the site which actually predicted my year, month and day of death. Though I never believe in these things still just for fun I wanted to see how many more days I am alive. How can a website estimate how much life you have left. That is not at all possible.
But the question is what this have to do with personal finance? It is actually very much related because that can help us in revealing what we think of our money?
What is Money according to u? As per me it is :
A medium or an exchange involved for the payments of your debts. Money is power, it is a source of luxurious living, a source of comfort and security. The best definition that I have come a crossed about money is : “Money is Something for which you trade your life energy”
Give a deep thought on this. Majority of people in this world get money by giving up some part of our lives. Just imagine you go for work, work hard, earn some money and by this time your death clock is ticking down. No doubt when you are young, you are more energetic and can convert some of this excess into money. But the saddest part is that it only a conversion not a storehouse.
Our life is traded for money and once it is done, it cannot be changed back to original. The only goal that would left with us would be of striking a balance to convert the sufficient life energy into the money that you will need for enjoying rest of your life.
Cost Counting
To apply this principle you need to find out your hourly wage. This will help you in providing the information on how much your life energy is actually worth of. This is how you will be able to measure the cost of money spent equivalent of value of life energy lost. Why not you try some eye opening conversions i.e. take general examples from your daily life. Like:
Calculate how much energy do you spend at your work? Check if you spend less energy and still you can be happy or not? how much energy you are using to buy any new things for your family and many more such examples.
I am not saying that you should never spend money, but you should find a point where you are spending more and still being happy and joyful. You have to learn to say ” I have enough and I dont need more… “.
So always remember that when ever next time you spend enough money do nos forget to ask yourself how many hours all these purchases costing you, not only this, is it really worth or not? Do come back and share your views with us.
Romance on a Budget
Feb 5th
With Valentines Day just round the corner its once again time for a pleasant surprise for your beloved. Valentine’s day is a symbol of love, cupids, roses and of course hearts. Several days before the love holiday begins, the stores are lined up with an assortment of expensive gifts for your partners. As the day approaches, you may find the your thoughts have begun to turn to finding the best gift for your partner, for that special someone in your life.
Expensive gifts often proves to your loved ones that how much you love them, but they will also make a pretty hefty dent in your wallet. So what can a frugal minded person plan for the valentines day? Giving an expensive gift always will not help your love boost, but giving something special to your loved ones will definitely arouse that feeling of love in them.
Let me share some of my ideas with all of you on what you should gift him or her on this day of love and romance.
Some cheap Valentine’s gifts for her
No doubt girls love flowers, chocolates, soft toys and also sweet things whispered into their ears. I have seen many of you gift your partner traditional fourteen roses in a bunch on valentines day. Rather what you can do is gift her one rose everyday starting from 1st February to 14th February. The best thing is one rose per day will be less expensive for you. The prices of the flowers are inflated on the V-day.
I agree that women love roses but roses now days have become very boring and moreover the prices of roses are extremely high on v-day. Now you will think of giving carnations to her instead of roses. Please do not do that. Carnations are cheap alternatives to roses. A bouquet of daisies is a better choice.
Time is the best gift you can give to your partner. Women love spending time with their partners. I would advice you not to waste your money on restaurant bills, rather spend the day in opting something she loves.
If you really want to surprise her then learn cooking a month before v-day and prepare the dish she loves. Trust me cooking is a very seductive way of celebrating this love day.
If she loves reading, then spend sometime with her in any book store, buy her the most recent novel. Pamper her with some sandwiches and coffee as she enjoys a good read.
If your partner is a sports freak, then spend sometime in afternoon teaching her favorite sport, maybe watching some games with her or maybe take her out for a live match.
Some cheap Valentine’s gifts for him
A women should not gather information from various means of media and decide the gift for his partner. Rather she should create a gift which she thinks will be unique for his man.
If your partner loves sports, then you should give him a treat by surprising him with chilled beer and nachos and by watching with him a non-interrupted game of his choice.
If you guy is an Art lover, then surprise him by taking him to a candle light dinner and visit a local art exhibition with him. If you want you can buy him a painting which is usually at a lower cost.
If he is into music, then download all his favorite songs and gift him a CD. Both of you can enjoy a perfect dinner with a perfect music of his choice and then a perfect long drive. Keep a few dollars with yourself aside so that you can buy him a CD pack of his favorite band.
If he loves photography then take him out to the country side for the best photograph sessions.
Love an be expressed in many ways. Gifts can be many but the only special gift which you can give him or her is togetherness. That is an ultimate gift for your partner and that is the ultimate deceleration of your love on Valentine’s day.
Understanding your finances:1st step to controlling your debt
Jan 25th
If you don’t really understand your finances, you’re bound to find it harder to get / keep them under control. It’s true of anything, but it’s particularly true of personal finance matters – that’s one reason there are so many companies, charities and government organizations which exist to help people get to grips with their money and control their debts. These two questions are right at the heart of your personal finances. When you know exactly where your money is coming from and exactly where it’s going, you’ll know: So, start by writing down everything you receive in a month: Add it all up to get your Total income. Next, write down everything you need to spend in a month: (Please note that this list includes payments to your priority debts but not payments to your non-priority debts (see below).) Add it all up to get your Total expenditure. Take your Total expenditure away from your Total income and you’ll get your Disposable income. This is the money that’s available for: Your priority debts are the most important ones, with the most serious consequences if you don’t keep up with them. If you fall behind on your payments, you could have your possessions removed by bailiffs, or have your gas / electricity supply cut off. If the worst comes to the worst, you could be evicted – or even imprisoned! (Having said that, you should have plenty of warning if any of your creditors were thinking about taking action against you, giving you the opportunity to get some debt advice and sort out your problems before things got so far.) Unsecured loans. Credit cards. Store cards. Catalogue debts. Overdrafts. Some Hire Purchase agreements (for non-essential goods). These are your non-priority debts - but that doesn’t mean you don’t have to repay them! It just means they’re less important than your priority debts, since the consequences of non-payment aren’t as serious. So staying on top of your non-priority debts is important – but staying on top of your priority debts is vital. That’s why your priority debt payments make up part of your Total expenditure. Your non-priority debt payments will have to come out of your Disposable income. If your Disposable income isn’t enough to cover your payments to your non-priority lenders, your creditors may agree to accept lower payments if you ask them – and show them that this is the best way for you to clear your debts. Just bear in mind:
Understanding your finances: income and expenditure
Understanding debt
Find Answers to Foreclosure Questions on Foreclosure Avoid
Jan 21st
Nearly everyone I talk to has been affected by the real estate crisis in one way or another. From the very wealth to the extremely poor, everyone has been touched in some fashion. Even the commercial real estate market is now starting to get hit.
With so many businesses cutting back or closing their doors, more and more office spaces are sitting empty. Foreclosures seem to create more questions than they do answers.
While it’s true that a few real estate investors are finding some great bargains on foreclosed homes, home owners are left out in the cold wondering how this happened and what the will do next. One site, Foreclosure Avoid, has put together foreclosure blog which helps home owners find answers to their questions about foreclosures. Do not miss to check this interesting video :
Boost your financial IQ
Jan 19th
People with high IQ have one thing in common, they recognize patterns, even the most complex ones, and they can act upon it. Making the right choice at the right time is very valuable, and it happens more often than you think. IQ is not limited to paper puzzles, many real-life situations can be categorised and mapped on patterns, for which the solution then becomes obvious. The main problem is to be able to identify the pattern in the first place. This is what intelligent people with high IQ scores are good at.
For example, highly intelligent people schematize real-life situations into decision trees which enable them to come up with the best strategy. Normal people tend not to do that, especially when the situation becomes complex. We, normal people, are submerged by the complexity of the situation and we just guess and pray for our choice to be the right one. Now, just try to see yourself in the future, what kind of car you want, where will you live, how many children you will have, etc. Just try to imagine what the costs will be and the associated nest egg you need to build up over time to be able to achieve it, can you come up with the funds you need? Probably not. A gifted person might make a quick calculation and tell you that she needs to invest $500 a month to achieve her objective, but most of us can’t do that without help. This is where simulation models can save your life. Simulation models are built to compute the real-life situation for you, because not everybody has a high IQ. Financial planning models are there to this work for you, peak at the future and tell you how much you need to save today to be able to achieve your objective tomorrow. Financial planning models are therefore boosting your financial IQ; No surprises, just see the future, define your strategy and make the best decision to achieve your goals.
Why Would You Need A Irish Visa Credit Card If You Live In The UK?
Jan 19th
An Irish Visa credit card is a good idea if you live in the UK. You never know when some type of emergency will come up that you need a credit card for. It is also very convenient when it comes to reserving hotel rooms, buying flights, or shopping online. Such a credit card can come in handy for a variety of needs. You will find plenty of different offers though so take your time to find one that is perfect for you.
With an Irish Visa Credit Card you will pay interest for the money you access on it. Having a low interest rate compared to a very high one will significantly impact the amount of money it costs you to use that credit card. The goal should be to get as low of a credit card offer as you can when it comes to the rate of interest.
Be wary though of offers with a lower rate for a small period of time. After that, the interest rate could be extremely high. In the long run you are better off having an Irish Visa credit card with a moderate interest rate that doesn’t go up after you have had the card in your possession for a limited period of time.
If you are interested in an Irish Visa credit card, you can find plenty of great offers on the internet. It only takes a few minutes to apply for one. Then you will be notified by mail if you have been approved or not. There are credit card offers for all credit situations so find one that is a good match for your current situation.
You can also apply for a business credit card. That is a very good idea if you have your own business. Mixing your personal accounts and business accounts is difficult to manage. With a separate credit card your business can start to build a solid credit history. It also keeps your personal finances out of the business world.
In order to be approved for an Irish Visa credit card you will need to offer several pieces of verification. The most common one is verification of your identity. The second one is verification of your income. You need to be able to show you have a method of paying back the credit that is extended to you. Verification of residence in the form of utility bills is often required as well.
Lessons from the credit crisis
Jan 18th
I used to joke about the fact that taxi drivers know everything about high speed Internet, the difference between cable, ADSL, ADSL2, or even satellite dishes, but when you ask them about how compounding and inflation works, that was none of their business.
This anecdote shows very well what the general trend was before the crisis, finance, even simple personal finance, was for the big shots in Wall Street, bankers and financial advisers. They were there to look after your money, to advise you on your investments, and to prepare your nest egg for your pension.
Unfortunately, it went all wrong. The finance professionals are collecting your money to invest it wisely and to advise you on your investments? That was the tale until we discovered that the pension funds are digging holes so deep we won’t be able to get out of it, banks were packaging CDOs based on mortgages from subprime borrowers who would never be able to pay it back, private equity companies were going public to raise money from mom and pops whereas in the end they destroy jobs. That is what happened, and all of it with your money.
Finance, and more specifically financial planning, is not complex. Although you might believe it is complex, it is less difficult to understand than Internet technology. The problem is that finance and financial concepts have been kept away from the crowd to benefit from information asymmetry. This means that you end up paying more for the service just because you don ‘t know how it works, even if it is based on very simple concepts.
So, what to do about it? Spend some time to learn about personal finance and financial planning, it is the best investment you can make. And guess what, you can do it for without paying a dime.
ProsperityPersonal.com offers interactive graphical tools to do your own financial planning taking into account retirement, buying a property, education fees and much more, everything for free.
Although building a financial plan on your own might be a little complex at first, you can start by using the application to understand the effect of compounding, why inflation is your worst enemy, and how buying a property can affect your long term cash position.
The site comes with many articles and examples on how to use the application, for beginners as well as for advanced users. With its friendly user interface and cute icons, the tool offers a very intuitive way of understanding financial planning.
Educational Article: Paying the Man
Jan 16th
The current financial situation in the
At some point in the near future, the Federal Reserve will be forced to decide whether to tighten the access to credit. In order to stem monetary inflation, the Federal Reserve will need to raise interest rates in order to contract the availability of money in the system. If this happens, it will result in a higher prime rate and higher credit card rates. This will increase the yield on short-term treasury notes, and will prompt many bond investors to sell their long-term bonds to purchase shorter term notes with higher yields. As more people sell their long-term bonds, it will push down prices and force up the yield.
Another option for the Federal Reserve is simply allowing price inflation to roll through the economy. This will happen as credit markets normalize, and more dollars end up chasing fewer goods and services. This will inevitably result in higher prices for consumer and capital goods, including housing. As prices continue to increase, a resurgence of the ‘bond vigilantes’ will occur as more people refuse to buy government bonds at the current low rates. As the government needs to discount their bond offerings to clear the inventory, it will push up effective interest rates on long-term bonds.
Regardless of which event transpires, there is an extremely high likelihood that long-term bond rates are headed up in the near future. This phenomenon will also push up mortgage rates since most mortgages are indexed against government bonds. As the mortgage rates continue to increase, the number of people in the pool of home buyers will decrease because higher rates translate into less buying power per dollar of monthly payment that a person can afford.
As more people transition out of the home buyer pool into the renter pool, it will increase demand for rental housing. This increase in demand will eventually manifest itself in higher rents as the supply of rental housing adjusts more slowly than the movement of people into the renter pool.
An important factor to consider is that income property owners will benefit greatly from this effect, as it will place upward pressure on rents. These increased rents will provide additional cash flow to people who bought at low fixed rates and locked-in their cost of borrowing for three decades. The most important point of this unfolding event is the fact that the window of opportunity to act will be closed very soon. Once inflation begins to occur, or monetary tightening commences, it will be too late to capture the best deals that are currently in the marketplace.
The reason is because either event will be quickly followed by a step-up in interest rates, which will decrease affordability for income property investors. Because of this, it is critical for prudent investors to act now and lock-in their cost of debt at the current low rates; this will protect you against the coming increases in interest rates by making them work to your advantage, instead of to your detriment.
Ultimately, we must ‘pay the man’ at some point by enduring the market correction that must eventually result from current government policy. By taking action now, you can benefit handsomely from the coming economic disruptions while many other people are enduring the problems implicit with trying to get something for nothing.
The Customer is always not Right!!
Dec 19th
I am sure this is always the case when the company takes side of unreasonable, demanding and an angry customers instead of you. I do not believe that this is the sign of a loyal employee.
The customers are always not right for your business
One man who was a frequent visitor of a shop in southwest. He was always disappointed with each and every aspect of that shop’s operation. He was often called as the pen pal because whenever he used to come into the shop, he used to write one complain in the customer feedback book.
He didn’t like the fact that the shop owner didnt assign any seats for elderly people in his showroom. He didnt like the idea of serving hot dogs inside the shop, he was not satisfied with the billing procedures of the shop and lastly he was not happy with the performance of the shop attendants there. He had to complain in every small issue related to that shop.
His last letter was directly to the CEO of the showroom which went to his desk with a note: ‘This one is for you Mr. CEO’. The CEO of the showroom Mr. Koller replied him back with a note which said, “Dear Mr. Roger, we will definitely miss you. Love Koller.”
“The Customer is always Right” is a phrase that was introduced in 1909 by Harry Gordon Selfridge who is also the founder of the departmental store called “Selfridge’s”. The phrase is used by businesses to :
1.) To make sure that all the customers get the best services from the employees.
2.) To make sure that the employees are giving the best services to their customers.
But in the recent years this concept seems to be absconding because this is leading to a bad customer service.
I wanted to share with my readers the top 4 reasons why The customers are always not right:
1: It gives a negative impact on your employees
I remember when I went to Texas I met a person called Mr. bethune. He was the owner of one of the best fast food center in Texas called “Humble food hub”. He believed that the phrase customer is always right is actually wrong. Whenever there was any conflict between his people and the rude customers he always used to take side of his employees.
There is always a possibility to get back a loyal customer but there are always very less chances of getting back a good royal employee. He always used to say that ,”just because you are buying food from our shop and paying us that doesnt mean you will abuse my people.”
The foot fall in his shop per day is around 10k and out of those 10k there is always a chances that one or two customers will be demanding jerks. It is your employee who is working for you and not that rude jerk. He never treated his employees like serfs. He knows how to value them. He never allows an environment of resentment in his restaurant.
2. It gives demanding customers an unfair advantage
If you keep on using the slogan “The Customer is always right” in front of your customers, it will give them a right to do whatever they feel like. They will start demanding just anything. At this point of time the job of an employee becomes more difficult.
Abusive customers get better treatment that nice employees. So it is always advisable that be nice to nice customers and be bad to bad customers.
3. Not all but some Customers may be bad for your business
The business owners often feel that more the customers more is the business. But some customers can actually be bad for your company.
I have read this story of a American IT service provider called ServiceGopt. It said, that one of their technicians went to one of the customers house for maintenance task and the customer treated with her very rudely. She finished her task very calmly, returned office and told the entire story to the management. They went ahead and canceled the contract with that customer.
Just like Koller who dismissed that irate gentlemen from coming to his shop, similarly ServiceGopt fired an irate and rue customer. After all it was a matter of dignity and self respect of a female employee.
4. It often results in bad customer service
Roseworth Travel Services took it even further. CEO Sara Roseworth wrote an excellent book called “Your customer comes after your employees”. She argues that when you put your employees before your customers there will always be an healthy environment in the office. If employees are happy and satisfied, customers will automatically start feeling satisfied.
Employees who are always happy will provide better customer services at work because:
- They have a habit of caring people, especially their customers
- They are always energetic
- They will interact with them in a better way
- They are more motivated to work
But if the customers are put before the employees then it clearly indicates that :
- Employees are not values properly
- treating employees fairly is less important
- That employees do not get respect from the customers
If this prevails, employees will stop caring about good service.
So put your people at first and let your people put the customers first.
Some Black Friday Tips on Wacky Thursday
Nov 27th
I am just in love with these crazy named days like Black Friday, Shipping Monday, Cyber Monday, etc. I decided this time that I will move away with these days but you know it is kind of hard and difficult for a finance blogger like me. So I decided instead of avoiding it I will share some of my personal tips with all of you regarding Black Friday.
I have decided that I am gonna hit at the noon time this year and see what happens though I really avoid all these dramas. I am sure even this time best buys gonna make some huge income tomorrow. Lets see what happens.
So now lets get back to some Black Friday interesting and funny Tips
You should be aware of what you need ahead of time – You should always check the stores just before the thanksgiving day. Talk to sales representatives in person and ask them which product will be reducing prices. I am pretty sure all goods are not in sale on Black Friday. The store people display them because they buy those goods in huge quantity.
Keep Your Ads with yourself - Now this is interesting. Same HP printer both Walmart and Target is selling. But Target is selling it at $10 discount. So until and unless you keep the ad with yourself as a proof wall-mart will not the match the price. So it is advisable to keep a copy of an ad with yourself.
Be a Gladiator and shop – Yes you saw it right. Place yourself in a war, a war of shopping. Consider yourself as a shopper with a mission. I will personally recommend that go for shopping with teenagers and not old people because they can run fast.
Take help from Big Boss i.e. Google – How can we forget our boss at this time. If you do not have time to go through the newspapers about the Ads, then please google it. You will get hundreds of websites with Black Friday sale information listed on Google. You can also view the websites of wal-mart and Target on Internet beforehand.
Make Friends with the Sales Associate - If you really want to get inside the scoop of everything, the most important thing is to befriend with the sales associate of the store. These sales associates are well versed with all the sales prices. They can easily get you from one department to another. Listen to their advice and then plan your shopping strategy.
The crowd outside wall-mart at 3 am last year
Just party dude – I don’t think you need a reason for partying. Most of us go in a queue at 3 am but we are afraid what if we are not able to wake up. The best advice is party late night. Finish the party and run to get in to the queue.
Do not get Tired soon – After partying all night you might feel tiring and all the enthusiasm before reaching the store is dead. Do not allow this to happen. Party for sometime. Do not have too much brandy or vodka.
Choose the best crowd – As soon as you reach the store you will find at least 5-10 queues. Choose the best crowd and go and stand with your feet positioned properly there with loads of oxygen. Do not get too excited. Do not allow anyone to overtake you.
Have a back up pay plan – It might happen that you reach the cash counter and credit card is rejected. So at that point of time you should have a back up of your money. Carry some good amount of cash with yourself so that you dont feel embarrassed infront of thousand people.
Cross checking is a must – Always before reaching the cash counter do the cross checking of your list. Make sure you have purchased everything and nothing important is left out. If you miss even one thing you have to wait until next year turkey day.
You have to be very patient to stand in that queue. My goodness!!! Crazy People
Okay I guess that is more than enough for you guys. If you really find anything else out of this list please do share it with me.
The only thing you can learn from these tips is Planning. You should plan your activities before hand. This will help you in saving hours, if not dollars when you are shopping with full stamina. Most importantly enjoy thanksgiving not only with your family members but with everyone you know.
God Bless all!!!
