Smart Money Management for your kids

The more time you give to your children, the better they grow;

The more time you give to your Money, the better they grow.

  • Open a Savings A/c on your child’s name. Guide him how to save money he receives on birthday or any other occasion in his savings account.
  • Make him understand the difference between Saving & Investing.
  • Don’t take your child along with you in ATM to withdraw money as they might mistaken that they will get money whenever required.
  • Make them understand the educational expenses you are paying on monthly or early basis.
  • Ask them to write / maintain the monthly household expenses book.
  • Invite them to hear the financial discussions, they cannot express their views but can logically think on it.
  • Make them understand why the loans has been taken for Home, Car or Education, the breakup of EMI’s, Prinicipal & Interest.
  • Visit an orphanage & donate some with your child through which he will understand the things he uses are not available to them.
  • You have started the Journey of becoming a Smart Investor, its your duty to train your child to become a smart investor by teaching him about financial literacy, products like mutual funds, stocks etc.

Financial Literacy is need of the hour, moreover staying happy in any situation & changing the view towards Money is required.

Happy Children’s Day

#kaustubhdeole, #artharthifinancialservices, #theequitylearners

Thugs of Investor’s Money

People fail to believe or have trust.

We, the people, make same mistakes again and again, yet never learn from it.

Why do people take undue advantage of us?

Any Guesses…..Because we give them the sole right to take from us.

Have a look at these headlines & try to understand our behavior.

Sanskar Investor Scam – 100 Crs

Saiprasad Group of Companies Fraud – 4000 Crs

Maple Group fraud – 400 Crs

Q-Net Multi Level Scam – 2 Crs

Janata Sahakari Co-operative Bank Fraud – 5 Cr

Defence Personnel Co-operative Hsg Society Scam – 3500 Crs

The Royal Twinkle Star Club & Citrus Check Inns Scam – Over 8000 Crs

DSK Scam – 2043 Crs

Rose Plotting Scam – 400 Crs

Amit Bharadwaj’s Bitcoin Ponzi Scheme – 2000 Crs

Rs. 20000 Crs Scam in Pune in 5 yrs

Recent News:-

A Dombivli Jeweller duped people of 15 Crs

According to Financial Stability Report released by RBI on June 26 says, In 2018, there are more than 6000 registered fraud cases amounting to losses of more than 30000 Crs.

In my understanding, people are growing impatient & lack three important virtues of investing – Contentment, Pragmatism & Contemplation.

Contemplation states that Blindly chasing investments for Windfall Returns has its pitfalls.

In current market situation, not a single entity or person can assure or guarantee you extra-ordinary returns.

Patience is a good virtue.

Please remember the fact:

Great Returns / Success is derived from Long Term Patience, Contentment, Pragmatism & Contemplation.

#kaustubhdeole

#theequitylearners

#artharthifinancialservices

#learningneverstops

Do you Really want to get Rich / Wealthy?

Ask Yourself – “Do you Really want to get rich / wealthy”?

Is it on your priority list OR are you happy going through life living salary to salary and retiring at 58 and then wondering how to spend the next 20/30/40 years of your life?

Not many people are cut out to create wealth. In fact most people do not.

How much time do you spend each day thinking about it?

What?

You don’t even think about financial independence once a day and you expect to get there in your 40s?

Forget about it.

You think you CANNOT resist spending Rs. 200,000 on that bike that you are dreaming off or on a car costing Rs. 12,00,000 when you have not thought about Investing for Financial Independence?

Forget financial independence in your 40s, after all you do not want it as badly as you want your car or house, do you?

Likewise, what are you willing to sacrifice to build your Retirement corpus? It takes some sacrifice, and the longer you delay that sacrifice, the larger the sacrifice becomes.

If you are 33 yrs, and not yet set up any SIP for retirement, and all your money is in Bank FD, Real Estate, ULIPS, LIC etc, kiss your early retirement / wealth creation dreams a Happy Goodbye.

Cost of Delay:-

The longer you delay the lesser the chances of you being able to create any wealth.

The longer you delay, the lesser retirement corpus.

The longer you delay, the longer you have to work.

The longer you delay, higher chance of you working forcefully even if your health doesn’t support.

The longer you delay, the sooner your happy retirement dreams will fade away.

#theequitylearners

#artharthifinancialservices

P.S- Interested people can contact us for Financial Independence Program.

Muhurat Stock Investment Tips

A conversation between a Client & Financial Planner.

Mahesh : Happy Diwali Dr. KD. I checked today’s Money control. It says..next diwali..45k and sent top 15 stocks to invest.

Dr. KD : Happy Diwali to you and your family.

Do you know, last year prediction from money control. Check following details.

Mahesh : Oh…

Dr. KD : Even they recommended top 10 stocks.

COMPANY/PAL/TARGET/ACTUAL

Note: PAL – Price at Last diwali
Target – Given by moneycontrol
Actual – today’s price

BATA/ 800/925/ 1022
CYIENT/520/645/619
LNT/1224/1425/1354
MANNAPU FIN/100/147/84
MAHINDRA HOLID/350/520/221
DHFL/620/650/228
KARUR V B/110/180/79
ASIAN GRAN/490/570/180
BLUE STAR/675/850/576
TV TODAY/360/402/375

Mahesh : Oh.. Except one or two, all are down. Then why do they predict?

Dr. KD : Because it is their business and they earn from it. We should believe in our financial advisor not the online companies.

Mahesh : Yes Dr. KD, There is no short cut to become wealthy. We have to give time.

#artharthifinancialservices

http://www.moneycontrol.com/news/business/markets/sensex-likely-to-top-45k-by-diwali-2019-icici-bank-maruti-among-karvys-muhurat-picks-3130471.html/amp

Automobile Atrocities

Recently I purchased a Verna from a Hyundai dealer. The cost came about 15.20 lakhs. When I checked the invoice, the insurance component alone was 73K. I found that it was on the higher side.

When I checked with one of my friend in the Insurance industry, he said he can do it for 53K for 12 Lakhs IDV (Insured declared Value), with the same insurance cover, which includes bumper to bumper with consumables.

If the difference value was 2K or 3K, I could have gone with the dealer itself. But when the difference value was about 20K, I was not able to digest.

I inquired with the Sales Manager of the showroom, why there’s a huge difference between your insurance with the other insurance companies.

He said, we will cover everything boss including consumables whereas other insurance companies will not cover those. Since this insurance comes from Hyundai; you will not have any problem in the claims.

I was little confused, again and went back to my close friend and inquired about that. He told that, the Sales will get a kickback from their company for promoting their own insurance. Hence they will say all cock & bull stories. If you are ready to fight it out, I will back you for getting the insurance.

Still I was not convinced. I thought it was prudent to clarify this issue on my own. I googled it to find out the truth, the motor vehicle insurance act, the law clearly says that, one cannot force the buyer to buy the insurance from them. It’s absolutely the discretion of that individual to choose the insurance company.

I decided to speak with CRM of Hyundai. Got a reply stating that, since you are buying the car from us, you need to take the insurance from our company only? The moment when I talk about the Motor Vehicle Insurance Act, she kept quiet and said, I will ask the concern person to speak with you sir!!

Since there was no revert for my calls, I wanted to document the same and I wrote couple of mails, but it remained unanswered. The delivery date was scheduled; the sales manager was pressing me for the remaining payment. The situation was forcing me to take decision. The difference amount of 20K was still stitching my mind continuously.

I called the Hyundai Customer care number in New Delhi. The executive who spoke to me was very clear in her statement. We will not force any customer rather we cannot force any customer to buy insurance from us. He requested me to take the Sales Manager on con-call.

I called the Sales Manager; I once again started the story from the start. Because I wanted them understand the entire story. I allowed him to talk more; he went on to say, as per Hyundai Policy, the new customer has to take the insurance from the dealer only. Otherwise the customer would face a problem if any claim arises in the future. The Sales Manager not aware that, the customer care executive is over hearing the entire conversation.

Suddenly the customer care officer, interrupted the conversation and asked the Sales Manager, gentleman can you please quote where it was mentioned in the policy.

The Sales Manager was bamboozled with that intervention of Hyundai people. When he understood that it was Hyundai people, he assured that he will do the best to satisfy the customer.

I must appreciate the courtesy and professionalism with the Hyundai customer care people.

Later the dealer accepted to take insurance from outside and I saved about 20K for myself.

On the following day, the Sales Manager had called me and gave a nice compliment in a sarcastic way – I never seen a customer like you sir!!

Jokes apart, with a little rigidity, I saved my money.

When I shared this information with my friends, surprisingly no one aware of that, we can take the insurance from outside as well, this made me to dig deeper about this insurance fraud.

Since I live in a large gated community; I get an opportunity to see all brands of cars, every week I use to see a newly registered car in our community. Out of curiosity, I started checking with new car buyers about this. Shockingly no one was aware of such things. They all told me, we thought it was a package.

So next time, if your friend or relatives buy a new car for themselves. Please share this info with them, help them to save their money and demand for a big treat.

For a matter of fact, it’s happening with all familiar brands. The awareness has to come from the people.

In 2017, over 32 lakhs of car were sold in India. Even if you keep the insurance margin to 10K per car, you may need a calculator to calculate the swindled money from the public. It was staggering 320 crores of money has been looted from our pocket.

Every month, the corporate is pocketing 26 crores of rupees from us. This is only the car segment alone. There are some other segments like commercial vehicle, Agri-vehicles, two wheelers and many others.

We can keep this atrocity in one side and we talk about another atrocity which people are doing to themselves.

Only 4 out of 10 people take the car on every day basis. Which directly translates around 60% people is not doing any justice to the EMI they are paying.

For a 12 lakhs car, you pay an EMI of Rs. 25K per month, which translates about 3 lakhs per annum. Apart from that, you have fuel cost, insurance cost, depreciation cost and service cost.

For 20,000 kms, let’s take average mileage of 12 km/per litre. Which directly translate into Rs. 1,33,000 (11K per month), then insurance amount of Rs. 40K (3333 pm), then 10% depreciation of 1,20,000(10k p.m.) and service cost of 20K (1600 pm)…. Which all adds up to Rs. 25933.

And it doesn’t stops there; you add up your EMI of Rs. 25,000 then add the other component of Rs. 25933 = 50933.

Hence your spent per month is Rs. 50933.

Based on your car value, you can calculate it accordingly.

If you are not driving anything less than 20,000 kilometres, we can charge a criminal case against you.

Now again who is helping the corporate, the same ignorant people. My request is, if you are going to drive less than 20,000 kilometres per year, please don’t buy a car. Instead hire a Merc, wherever you go. It works out much cheaper than owning a car.

Per annum spent Kms ran Rs spent per km
635196 30000 21 Rs.
635196 25000 25 Rs.
635196 20000 31 Rs.
635196 15000 42 Rs.
635196 10000 63 Rs.
635196 8000 79 Rs.
635196 5000 127 Rs.

** Per annum spent derived from 52933*12
** Rupees spent was calculated kms ran / pa spent

I can keep adding another atrocity by the consumer. Only 50% of the car owner washes their car everyday. Out of which only 10% cleans the interior.

I have seen many people were driving their NEW car with the polythene cover in the seat. They are trying to safe guard the seat. The R&D team works very hard to give a comfort for the car owners to give a pleasant experience to drive their cars. But we are not enjoying it, in spite of paying money for that car.

Author: Unknown

Source: Facebook

Money Lessons for your Kid Part – 3

Changing times, social media like facebook, instagram, whatsapp has impression on kids.

Learn how to teach them money lessons.

Money lesson for your kid aged 15-16:

Explain loans & credit reports before the bad habits of his peers get ingrained in him. Ensure he understands the importance of high credit score to eventually get the loans for things he wants, e.g. a house or a car in future. Make him understand how loans work — principal, interest, repayment, good loans Vs bad loans, tax benefits (80C, 80E etc), Insurance cover for loans etc.

Money lesson for your kid aged 17-18:

Give them more leeway in Bank A/c where they can store the money & write cheques. Don’t add money to this account. They should fund it from their savings. Have them write cheques for costs like student activity fees, and sit down with them monthly to balance account. Also, discuss topics like work-life balance, financial freedom etc.

Money is great, but it’s worthless if you’re not leading a balanced life.

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#kaustubhdeole

Money Lessons for your Kid Part – 2

Why Money Lessons are important for your kid in changing markets.

Money lesson for your kid aged 11:

Keep pointing out advertisements of different brands to your kid. Explain how they try to manipulate consumer’s emotions by making their products look cool through paid advertisements.

Money lesson for your kid aged 12:

While shopping, point out a cheaply-made product & a higher quality alternative, explain the difference (the feel of fabric, brand etc.) and how to choose between the two. If you buy eco-friendly product, explain why you’re willing to spend more on it. She should learn smart purchases rather than just the cheapest.

Money lesson for your kid aged 13:

Get in the habit of clarifying financial concepts. Tell your kid, ‘I invest in Mutual funds, Bonds, Stock Market etc to make money grow’. Show the ups & downs of Nifty (just call it ‘the market’) and explain why people invest in it.

Money lesson for your kid aged 14:

Make your teen work for extra allowance, e.g. chopping vegetables etc. Let her feel the power & freedom of making & spending money. E.g. if she wants a Rs 1200 jacket, explain that she’d have to babysit for 12 hours at Rs 100 per hour to afford it. Convey that she has to work in order to get what she wants.

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#kaustubhdeole