Thursday, 30 November 2017

Colombo Stock Exchange Trade Summary 30-Nov-2017

Quote for the day

"If you feel positive, you have a sense of hope. If you have hope, you can have courage." - Kathrine Switzer

Wednesday, 29 November 2017

Colombo Stock Exchange Trade Summary 29-Nov-2017

Quote for the day

"Nobody comes to Earth to dodge problems. We come here to take 'em on." - Richard Bach

Tuesday, 28 November 2017

Colombo Stock Exchange Trade Summary 28-Nov-2017

Quote for the day

"Success is not measured by what you accomplish, but by the opposition you have encountered, and the courage with which you have maintained the struggle against overwhelming odds." - Orison Swett Marden

Monday, 27 November 2017

Colombo Stock Exchange Trade Summary 27-Nov-2017

Quote for the day

“Don’t focus on making money; focus on protecting what you have.” – Paul Tudor Jones

Sunday, 26 November 2017

12 Tips to Deal with Setbacks in Life

By Celestine Chua

“We all have problems. The way we solve them is what makes us different.” — Unknown

“It’s not stress that kills us, it is our reaction to it.”
— Hans Selye

Have you ever experienced moments when things don’t go your way? It could be small setbacks such as your boss reprimanding you, not reaching your goal target, or losing something important. It could be big setbacks like failing in your business, losing your job, or getting a divorce.

You’re not alone. All of us have times when things don’t go as we expect. I certainly do too.

When you face negative incidences, what do you do? Do you beat yourself up? Do you become very negative? Or do you learn from it and move on?

While we cannot change certain negative events that happen to us, we can change how we react and cope with them. When we do not cope with our negative experiences properly, we get trapped a negative cycle, causing ourselves more damage. We also waste time harping on the incident rather than move on. By learning to deal with setbacks, we can deal with life’s big challenges more effectively.

Here are 12 tips to deal with setbacks in life.

How to Deal with Setbacks in Life: 12 Tips

1. Take a step back and evaluate

When something bad happens, take a step back and evaluate the situation. Some questions to ask yourself:

  1. What is the problem?
  2. Am I the only person facing this problem in the world?
  3. How does this problem look like at an individual level? At a national level? On a global scale?
  4. What’s the worst thing that can happen to me as a result of this?
  5. How is it going to impact my life in the next 1 year? 5 years? 10 years?
For example, say you overslept and you’re running late for a meeting. Most people will panic and become extremely stressed out. If we apply the set of questions to the situation, we’ll find that it’s not such a big problem after all. For example:
  1. What’s the problem? You overslept and you are running late for a meeting.
  2. Am I the only person facing this problem in the world? No. People oversleep all the time. In fact, there are probably thousands of people who are in the exact same predicament as you are right now.
  3. How does this problem look like at an individual level? At a national level? On a global scale? At an individual problem, it seems like a big issue. You’re late and your counterparts are likely going to be pissed off. But at a national level, people are late every day, and life goes on. No one cares about someone oversleeping in the comparison to national issues such as politics and the economy. At a global scale, the problem becomes so minute that it can’t even be seen as a “problem.” People are dealing with worse things like poverty, famine and death. Imagine you’re a kid experiencing famine in South Africa right now. Would you care about waking up late? I didn’t think so either.
  4. What’s the worst thing that can happen to me as a result of this? Your colleagues may have a bad impression of you. They may think you’re not serious about your work. Most likely, nothing’s going to happen. In the worst case scenario, you may get fired.
  5. How is it going to impact my life in the next 1 year? 5 years? 10 years? By itself, your problem isn’t going to have any impact in the long run. It’ll just fade away as with other days in your life. 1 year from now, you’re not even going to remember this incident. 5-10 years later, it’s totally insignificant. Of course, if you are late every single day, you will likely get fired.
Doing this exercise is not to undermine the problem or disclaim responsibility, but to consider different perspectives, so you can adopt the best approach. Most problems we encounter daily may seem like huge issues when they crop up, but most, if not all, don’t have much impact on our life beyond that day. Hence, there’s no reason to get so stressed up over them.

2. Vent if you have to, but don’t linger on the problem

If you feel very frustrated and need to let off some steam, go ahead and do that. Talk to a friend, complain, crib about it, or scream at the top of your lungs if it makes you happy. Don’t coop up your frustrations if they’re grating you, because it’s not healthy to do so. It’s like putting the lid on a pot of boiling water — the heat and pressure will only increase. No sooner will it explode, and you don’t want to explode in anger!

However, don’t get stuck with venting. Some people are angry all the time, and it makes them very unattractive both inside and out. Some taxi drivers are very angsty and it’s tiring to face them. They complain about everything the whole time, and after 10-15 minutes of talking to them, you feel like you’re done. In fact, I came across one yesterday when taking the cab.

While venting may temporarily relieve yourself, it’s not going to solve the problem. You don’t want to be an energy vampire. Vent if you have to, but do it for say, 15 to 20 minutes. Then move on.

3. Realize there are others facing this too

Like I mentioned in Step #1, even though the situation may be frustrating, you’re not alone. There are over 7 billion people in the world today, and chances are other people have faced the same thing before too. Knowing it’s not just you helps you get out of a self-victimizing mindset.

4. Process your emotions

When things don’t go our way, unhappy emotions are triggered. These emotions need to be processed. By process, I mean to gain awareness and deal with them in a conscious manner. This is different from “repress,” where you bottle up your feelings or even deny them.

How do you process your emotions?

  1. Journal. Write your unhappiness in a private diary or blog. It doesn’t have to be formal — it can be a brain dump on paper or new word document. Delete after you are done.
  2. Acknowledge your thoughts. Don’t resist your thoughts but acknowledge them. This includes both positive and negative thoughts. By acknowledging, I mean recognizing these thoughts exist. So say, you have a thought that says, “Wow, I’m so stupid!”, acknowledge that. If you have a thought that says, “I can’t believe this is happening to me again,” acknowledge that as well. Or if you have a thought that says, “I’m so clumsy,” acknowledge that too. Acknowledge every thought that arises. Know that acknowledging the thoughts doesn’t mean you agree with them. It’s simply recognizing the existence of said thoughts so that you can stop resisting yourself and focus on the situation on hand.
  3. Audio taping. Record yourself as you talk what’s on your mind. Tools include tape recorder, your PC, and your mobile phone (most mobiles today have audio recording functions). You can even use your voice mail function. Just talking helps you gain awareness of your emotions. After recording, play back and listen to what you said. You might find it quite revealing.
  4. Meditate. At its simplest form, meditation is just sitting/lying still and observing your reality as it is — including your thoughts and emotions. Some think that it involves some complex mambo-jumbo, but it doesn’t. Read: How to Meditate in 5 Simple Steps
  5. Talking to someone. Talking about it with someone helps you work through the issue. It also gives you an alternate viewpoint and consider things from a different angle.
5. Uncover what you’re really upset about

A lot of times, the anger we feel isn’t about the world. You may start off feeling angry at someone or something, but at the depth of it, it’s anger toward yourself.

One time when I lost my transport card, I was angry about it. The problem wasn’t the loss of that one card, but that I had a history of losing cards — plus I just added a big sum of money into the card. I was angry at how I didn’t put the card in my bag, where it would be more secure. I was angry at why I placed the card in my jeans, which was probably how it got lost — it probably dropped out as I was walking. I was angry at the loss of my money. I was angry that I was always losing my card, and this time right after I topped it up with more money.

Deep down, I was really angry at myself. I didn’t know why I was such a klutz. I was just pissed off with how careless I was — that I would lose things so easily. I was angry at how I made things difficult for myself because I wasn’t conscientious enough. I was angry at how I was doing my best to be a good person in this world, yet there I was, self-sabotaging my efforts with these trivialities. I was angry for being a loser.

After you uncover the root of your anger, what can you do about it? How can you improve the situation? Go to Step #8, where you define your actionable steps. Our anger comes from not having control on the situation. Sitting there and feeling infuriated is not going to change the situation. The more action we take, the more we will regain control over the situation, the better we will feel.

6. Give yourself a break

If you’re very stressed out by the situation, and the problem is not time sensitive, then give yourself a break. Take a walk, listen to some music, watch a movie, or get some sleep. When you’re done, you should feel more revitalized to deal with the situation — with objectivity. A little love and care for yourself go a long way.

7. See this as an obstacle to overcome

Helen Keller said, “Character cannot be developed in ease and quiet. Only through experiences of trial and suffering can the soul be strengthened, vision cleared, ambition inspired and success achieved.”

Whatever you’re facing right now, see it as an obstacle to overcome. In every worthy endeavor, there’ll always be countless obstacles that emerge along the way. These obstacles are what separate the people who make it, and those who don’t. If you’re able to push through and overcome them, you’ll emerge a stronger person than before. It’ll be harder for anything to get you down in the future.

8. Focus on actionable steps

In every setback, there are going to be things that can’t be reversed since they have already occurred. You want to focus on things that can still be changed (salvageable) vs. things that have already happened and can’t be changed. The only time the situation changes is when you take steps to improve it. Rather than cry over spilt milk, work through your situation:

  1. What’s the situation?
  2. What’s stressing you about this situation?
  3. What are the next steps that’ll help you resolve them?
  4. Take action on your next steps!
Applying this to the situation where I lost my card, this was what I got:

1) What’s the situation?

  • The card is lost.
  • I did not know where I lost the card.
  • I’m already on the bus and well on my way home.
2) What’s stressing/annoying me about the situation?
  • Losing $50 because of my carelessness. My parents have cultivated the value of thriftiness in me, so it feels lousy to lose good money that could be used for better purposes.
  • Inconvenience I caused for myself for losing my card – I have to pay cash for my fares until I get my new card. I also have to make my way to the station just to buy a new card, and that’s one additional thing to do in my long list of to-dos.
  • Losing my card even though I’ve been making conscious effort not to let history repeat itself
3) What are the next steps that’ll help me resolve them?
  • Get my new card as soon as possible tomorrow, so as to minimize my inconveniences.
  • Work harder and recover the $50 loss via 1-2 more ebook sales on my blog.
  • Ensure the new card doesn’t get lost again next time. I’ll make sure to stash the card securely in my bag every time, every time I board/alight the bus – basically, during the times when the card is used.
After you have identified your next steps, act on them. The key here is to focus on the actionable steps, not the inactionable steps. It’s about regaining control over the situation through direct action.

9. Understand how it occurred (so it won’t happen again)

A lot of times we react to our problems. The problem occurs, and we try to make the best out of what has happened within the context. While developing a healthy coping mechanism is important (which is what the other helping points are on), it’s also equally important, if not more, to understand how the problem arose. This way, you can work on preventing it from taking place next time, vs. dealing reactively with it.

Most of us probably think the problem is outside of our control, but reality is most of the times it’s fully preventable. It’s just a matter of how much responsibility you take over the problem.

For example, for someone who can’t get a cab for work in the morning, he/she may see the problem as a lack of cabs in the country, or bad luck. However, if you trace to the root of the problem, it’s probably more to do with (a) Having unrealistic expectations of the length of time to get a cab. He/she should budget more time for waiting for a cab next time. (b) Oversleeping, because he/she was too tired from working late the previous day. He/she should allocate enough time for rest next time. He/she should also pick up better time management skills, so as to finish work in lesser time.

So for my problem, it occurred because I play down on the importance of looking after my personal belongings all the time. By being more careful with my items from now on, I can better prevent such a situation from occurring next time.

10. Realize the situation can be a lot worse

No matter how bad the situation is, it can always be much worse. A plus point vs. negative point analysis will help you realize that. For example, when I applied this to my lost transport card:

What’s bad about the situation:

  • I just lost $50 of good money that could be used for other purposes.
  • I need to buy a new card asap to replace the old one. It’s a hassle and additional thing to do.
  • My traveling will be inconvenienced until I get my new card.
The upside:
  • The situation could have been worse – I could have lost my wallet, which would be terrible, because it would be a serious pain to replace my identification card, credit card, membership cards, etc inside. Moreover, that means losing more than just $50 too.
  • Or, there could have been more money inside, say $100 or $150, which would be a bigger loss.
  • I learned the importance of taking care of my possessions – And not to be complacent about them.
  • I’ve become a more careful and conscientious person.
This activity helped me see (1) Things could be a lot worse. This wasn’t as bad as I thought it was. (2) There’s a silver lining in every cloud and it’s up to what you make out of it.

11. Do your best, but don’t kill yourself over it

Do your best to address the problem, but don’t feel bad when things don’t pan out the way you want.

When I was in my previous company, I was handling a huge amount of responsibilities. Every day felt like a firefighting session. Everyone was constantly stressed out, and the atmosphere was sometimes high strung.

However after a while, I realized no matter what happens, even in the most dire of situations, there is always a way to address it. It’s just a matter of how you deal with it. Things will run, and life will still go on.

Hence, no matter how bad your situation may seem, do your best, but don’t kill yourself over it. Life is too beautiful to worry so much over daily issues. Take a step back (#1), give yourself a break if you need to (#6), and do what you can within your means (#9). Everything else will unfold accordingly. Worrying too much about the outcome isn’t going to change things or make your life any better.

12. Pick out the lessons from the encounter

There’s something to learn from every encounter. What have you learned from this situation? What lessons have you taken away?

From my situation, I learned:

  • To be more careful when it comes to my personal possessions
  • There is an upside to taking better care of my possessions. In the past I would not think that there is any point to do so, since I assumed they’d be there all the time.
  • How to handle my emotions better
  • How to tackle similar situations next time
  • That if I link my transport card to my bank account in the future, it will allow me to get a refund the next time
After you identify your learning points, think about how you’re going to apply them moving forward. With this, you’ve clearly gained something from this encounter. You’ve walked away a stronger, wiser, better person, with more life lessons to draw from in the future.

Quote for the day

"Ability is the result of mental and physical toughness, resourcefulness, and powerful concentration." - Howard A. Tullman

Saturday, 25 November 2017

Wisdom from a detective - 10 Things You Can Learn From Sherlock Holmes

By Morgan Housel

I read A Few Lessons from Sherlock Holmes by Peter Bevlin. It's a really fun read, a collection of quotes from Holmes stories with life lessons that are full of wisdom.

Here are ten things I learned (all direct quotes from the book).

1. Approach problems with a blank mind:

We approached the case... with an absolutely blank mind, which is always an advantage. We had formed no theories. We were there simply to observe and to draw inferences from our observations. ... I have not all my facts yet, but I do not think there are any insuperable difficulties. Still, it is an error to argue in front of your data. You find yourself insensibly twisting them round to fit your theories. ... It is a capital mistake to theorize before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts.

2. Take a multidisciplinary approach to learning:

Considering many ideas over a wide range of disciplines give us perspective and help us consider the big picture or many aspects of an issue. Breadth of view... is one of the essentials of our profession. The interplay of ideas and the oblique uses of knowledge are often of extraordinary interest. ... One's ideas must be as broad as Nature if they are to interpret Nature. All other men are specialists, but his specialism is omniscience.

3. Be selective about what you believe:

I consider that a man's brain originally is like a little empty attic, and you have to stock it with such furniture as you choose. A fool takes in all the lumber of every sort that he comes across, so that the knowledge which might be useful to him gets crowded out, or at best is jumbled up with a lot of other things so that he has a difficulty in laying his hands upon it. ... Now the skillful workman is very careful indeed as to what he takes into his brain-attic. He will have nothing but the tools which may help him in doing his work, but of these he has a large assortment, and all in the most perfect order. It is a mistake to think that that little room has elastic walls and can distend to any extent. Depend upon it there comes a time when for every addition of knowledge you forget something that you knew before. It is of the highest importance, therefore, not to have useless facts elbowing out the useful ones.

4. It is so tempting to fool yourself:

The greatest sign of an ill-regulated mind is to believe things because you wish them to be so.

5. Ensure you aren't blinded by your discoveries:

But some of us are too much attracted by the thought of rare things and forget the law of averages in diagnosis. There is a man who is very proud of having diagnosed a rare abdominal disease on several occasions. But as for some years he made this diagnosis in every obscure abdominal condition, of course being nearly always wrong one cannot feel that he deserves much credit.

6. Knowledge and education can backfire:

Perhaps, when a man has special knowledge and special powers like my own, it rather encourages him to seek a complex explanation when a simpler one is at hand.

7. You have to tame and filter your own ideas:

Nothing can be done without preconceived ideas; only there must be the wisdom not to accept their deductions beyond what experiments confirm.

8. Simple problems can be the hardest to solve:

Paradoxically the strange crime is often easier to solve than the common one. I have already explained to you that what is out of the common is usually a guide rather than a hindrance. ... It is only the colourless, uneventful case which is hopeless. ... It seems, from what I gather, to be one of those simple cases which are so extremely difficult. That sounds a little paradoxical. But it is profoundly true. Singularity is almost invariably a clue. The more featureless and commonplace a crime is, the more difficult it is to bring it home.

9. Data can increase confidence faster than ability:

More information isn't necessarily better information but it may falsely increase our confidence. What is not worth knowing is not worth knowing. A wise man sees as much as he ought, not as much as he can.

10. There's still so much important stuff out there we don't know:
The world is full of obvious things which nobody by any chance ever observes.

Quote for the day

"Enthusiasm is one of the most powerful engines of success. When you do a thing, do it with all your might. Put your whole soul into it. Stamp it with your own personality. Be active, be energetic, be enthusiastic and faithful, and you will accomplish your object. Nothing great was ever achieved without enthusiasm." - Ralph Waldo Emerson

Friday, 24 November 2017

Colombo Stock Exchange Trade Summary 24-Nov-2017

Colombo Stock Exchange Delisted Counters From 1989

Quote for the day

"Disciplining yourself to do what you know is right and important, although difficult, is the highroad to pride, self-esteem, and personal satisfaction." - Margaret Thatcher

Thursday, 23 November 2017

Colombo Stock Exchange Trade Summary 23-Nov-2017

Quote for the day

"You have to believe in the long term plan you have but you need the short term goals to motivate and inspire you." - Roger Federer

Wednesday, 22 November 2017

Colombo Stock Exchange Trade Summary 22-Nov-2017

Quote for the day

"Success is not measured by what you do compared to what somebody else does. Success is measured by what you do compared to what you are capable of doing." - Zig Ziglar

Tuesday, 21 November 2017

Sunday, 19 November 2017

3 Different Investor types – Which is Best?

By Raviraj Parekh

Last Sunday I have visited my friend and we had discussion about Investments and Investors. Our discussion points were –
  • How different type of people does investment and what are investor types?
  • Why only few investors make more money than other?
  • What it takes to be a true investor?
Well after long debate we could make out three different investor types.

Different Investor Types

Type-3 investor

Type -3 Investors are not financially educated or sound in terms of finance. They often seek advice from friend, relatives for investment. These investors are from usually job oriented mindset and they make investment from retirement & money saving prospective.

They don’t know much about investment & finance and they have to rely on the advice of so-called experts.

What do you think Type-3 Investor can become financially free ever?

Type-2 investor

Type-2 Investor are bit aggressive they take interest in finance and often ask question before doing investments. These questions are like:-
  • Where do you think I should invest my money in?
  • Do you advice to buy real estate?
  • I have few share of XYZ company should I sell them?
  • Which stock I should buy for 5 year prospective?
  • Everyone advice to diversify portfolio what do you think?
Type-2 Investor take advice from professional experts or domain expert before making investment.Type-2 investor should interview several tax advisor, financial planners, stock brokers and real estate experts before deciding anything. Type -2 investors must see that investment advice is genuine and not given only to earn commission.

High income employees and self-employees fall in this category because they have less time to look for good investment opportunity.

Type-1 investors

Type -1 investor’s opportunist they are always looking for good investment opportunity. Types -1 Investor are smart and they know every aspect of investment and asset class. Examples of type -1 investors are ‘Rakesh Jhunjhunwala’ or ‘Warren Buffet’.

Type -1 investor are very good at number. They do lot of research before making investment. Type -1 Investor are very successful in terms of investments.

What type of investor are you?

  • In order to know what type of investor you are you have to ask simple question.
  • Do I have full knowledge about asset class where I am investing money?
My investment decisions are based on what?

If you do not carry enough knowledge about finance and often take advice from friends and relatives you are in Type-3 investor.

While doing investment if you take advice from financial planners, stock broker or any professional experts than you can consider yourself as Type-2 Investor.

If you are independent in terms of doing investment after gathering advice from expert & after carrying proper analysis and study you are Type -1 Investor.

Of course you need lot of financial education and network of financial expert in order to become Type-1 and Type-2 Investor. You should start working in that direction become financially independent.

Quote for the day

"Faith is reacting positively to a negative situation." - Robert H. Schuller

Saturday, 18 November 2017

7 Errors Traders Make in Bull Markets

By Steve Burns

Here are the seven most common errors traders make in a bull market.
  1. They wait for a correction to get long that never happens. So they end up missing a big part of the up trend.
  2. They do not get long with a big enough position size or enough leverage so they end up underperforming the market.
  3. They do not buy the small dips when they get a chance.
  4. Perma bears do not believe in the bullish move higher so they sell short losing money in a market where it should be made easily by being long.
  5. Some fundamentalists think the market is too expensive so they stay in cash missing a strong up trend as they wait for buying opportunities at better values.
  6. When the dip they were waiting for finally happens they are too scared to buy it and they then begin to fear that the market will crash.
  7. Instead of making money too many get obsessed with calling a market crash because they believe the market prices are too damn high.
The best strategy for a bull market is to not fight it but instead sit back and enjoy the ride.

Quote for the day

"Every great man, every successful man, no matter what the field of endeavor, has known the magic that lies in these words: every adversity has the seed of an equivalent or greater benefit." - W. Clement Stone

Friday, 17 November 2017

Colombo Stock Exchange Trade Summary 17-Nov-2017

Quote for the day

"Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it." - Lou Holtz

Thursday, 16 November 2017

Colombo Stock Exchange Trade Summary 16-Nov-2017

Quote for the day

"People will let you down in this life, promises will be broken, you should expect less of others and trust more in yourself." - Leon Brown

Wednesday, 15 November 2017

Colombo Stock Exchange Trade Summary 15-Nov-2017

Quote for the day

"Our anxiety does not come from thinking about the future, but from wanting to control it." - Khalil Gibran

Tuesday, 14 November 2017

Colombo Stock Exchange Trade Summary 14-Nov-2017

Quote for the day

"The best government is that which teaches us to govern ourselves." - Johann Wolfgang von Goethe

Monday, 13 November 2017

Colombo Stock Exchange Trade Summary 13-Nov-2017

Quote for the day

"The biggest commitment you must keep is your commitment to yourself." - Neale Donald Walsch

Sunday, 12 November 2017

5 Types of Money Personalities and the Mistakes They Make

By Dana Anspach

Everyone approaches life, money, and saving in a different way. By understanding your approach, you can avoid common money mistakes that people like you are prone to making. Below are five types of people, and the financial mishaps they tend to make.

1. The Entrepreneur

Entrepreneurs and small business owners don’t think of retirement in traditional terms. They have a vision for their business and they put all their energy and financial resources into the business.

They are absolutely sure it will work out. Entrepreneurs need to maintain that level of certainty while also keeping their financial house in order.
Biggest Money Mistakes for Entrepreneurs
  • Cashing out retirement plans to fund the business.
  • Using too much debt.
  • Getting behind on taxes, particularly self-employment taxes.
Best Advice for Entrepreneurs
  • Maintain an adequate emergency fund both personally and for the business.
  • Using debt wisely to fund the acquisition or start-up of a business by developing a realistic business plan and projection of income and expenses. Don’t borrow until you’ve established this.
  • Make contributions to a retirement plan each year even if it is just a few thousand dollars to an IRA or ROTH IRA.
  • Get a good accountant and meet with them to set up quarterly tax payments.
2. Steady as They Go

If you are an excellent saver and spend within your means, then you fall in this category.

For example, do you fully fund your IRA or 401k accounts each year, and always have savings in the bank? Have you stayed at the same job for quite awhile? Do you have company benefits and perhaps a pension? If you fall in the steady-as-they-go category it is likely you’ll be able to retire earlier than many of your peers.

It’s also likely you’ll enjoy retirement by spending within your means.

Biggest Money Mistakes
  • If you’re the steady-as-they-go type, honestly, there isn’t much you need to watch out for. You’ve probably got your financial house in order.
Best Advice
  • Run a financial projection. You may realize you don’t need to save quite as much. Maybe there’s enough to do a few extra fun things along the way.
3. The Professional High Income Earner

Doctors, attorneys, accountants, surgeons and other similar professions tend to fall into two sub groups. Some are excellent savers, more like the steady-as-they-go group above. Others make big incomes, and develop big lifestyles to match. The big income/big lifestyle type have problems in retirement. They do not save enough to be able to maintain their lifestyle. It is a shock to them when they see that they must either work far longer than anticipated or make a substantial change in their standard of living to save enough.

Biggest Money Mistakes
  • Not realizing that when you make a lot, you must also save a lot to be able to maintain that lifestyle later in life.
  • Letting ego dictate your spending decisions.
  • Using too much consumer debt like big car loans and credit card bills.
Best Advice
  • Pay yourself by setting aside dedicated amounts to go to savings before you buy the nicer car, big house or decide on a private school for the kids.
  • Run a plan so you know how much you need to save to maintain your lifestyle. If you’re not willing to give up your lifestyle now, realize you will be forced to downsize everything later.
  • Set monthly spending limits.
4. I Know I Should, But

Save? What, I need to save? If you spend it as soon as it’s in your bank account, this would be you. If you don’t change your ways you’ll need to plan on working until you take delayed Social Security at 70.

Biggest Money Mistakes
  • Not saving anything.
  • Doing no financial planning of any kind.
Best Advice
  • It feels good to have money in the bank — really, really good. Just try it. Once it's there, if you really don’t like, you can always go spend it.
  • Try a financial fast. It’s one of the best ways to get a handle on spending.
5. Doing Ok, Having Fun Along the Way

If you save some and spend some you probably fall in this group. You might think ‘No one knows what the future may bring.’ You better take that trip now or buy that cabin or the boat… and it’s ok because you’re also contributing to savings on a regular basis. And sometimes it is ok; other times the spending can outpace the savings and catch up with you later.

Biggest Money Mistake
  • Fully funding tax-deferred accounts like 401k plans, but having no after-tax savings.
  • Waiting until a few years away from retirement to create a financial projection that shows you what your retirement income might look like.
Best Advice
  • Hire a financial advisor. You can easily move into the steady-as-they-go group with a little planning.
  • Create a balance of tax-deferred savings and after-tax savings. When you retire, if all your income must come out of a tax-deferred account, taxes will take a bigger hit than you might think.

Quote for the day

"Winners compare their achievements with their goals, while losers compare their achievements with those of other people." - Nido R Qubein

Saturday, 11 November 2017

10 Golden Rule of Investment

By Raviraj Parekh 

How to invest money? What is a golden rule of Investment? Well, saving and investments are the foundation for the financial success. However, many of us neglect to put this into practice and, therefore, faces difficulties in achieving financial goals. Most individual accept that they invest in financial products without understanding. In short they don’t take informed decisions. This will cause a delay in fulfilling financial dreams of the individual. Considering this fact, I am here with 10 Golden Rule of Investment. These rules will surely help you to achieve financial success.

Rule 1 – Invest Regularly

We earn regularly, we spend regularly, but we don’t invest regularly. So, my first golden rule of investment is “Invest Regularly”. The regular and systematic investment will help you to achieve your financial goals like buying house, car etc. Most of these goals require substantial money upfront in order to be fulfilled. The regular investment will help you to fulfil these goals.

Rule 2 – Start Early

The day you start earning money you should start making investments. The earlier you start more return you will get on the investment. The compounding effect helps you to earn interest over interest. You can build substantial wealth by starting at the early stage of life.

Rule 3 – Understand Financial Product before making investment

The third golden rule of investment is to understand the product well before making an investment. It reminds me about one old proverb: “All that glitters is not gold.” There are many products available in the market which is complicated in nature. If you are planning to invest in these products you should understand it properly. I have seen marketing of some products are done in the manner which will lure investor with unrealistic returns. You must stay away from these products. This product may contain some hidden risks which are unknown.

Rule 4 – Diversify your Investment

You should diversify your investment. Never keep all your eggs in one basket. Invest in multiple investment products as per your financial goal and risk appetite. Diversification does not give you guarantee in profit, however, it will help you to reduce the overall risk associated with your portfolio.

Rule 5 – Monitor & Re-balance your portfolio at regular interval

You should monitor and rebalance your portfolio at regular interval. The ideal frequency of monitoring your portfolio is six month.

At the younger age, you should explore and invest in equity because at the initial stage your risk taking capacity is high. As you grow old you should reduce your investment from equity and invest in fixed income/debt-based instruments.

Rule -6 – Expect Reasonable returns from Investment, Exit once you reach target

It is better to expect reasonable returns from investments. Once you achieve your investment target you should book the profit and exit from the investment. Never expect unreasonable returns from the investment. For example, if you think that your investment has potential of earning a return of 15%, you should exit once you reach this target.

You should never become greedy. Remember “No gain satisfies a greedy mind”.

Rule -7 – Never invest or sell in Hurry

You should do a proper analysis before making an investment. You should hold back yourself from buying or selling in a hurry as it may lead to financial losses. Proper study and homework are necessary to make a profit from investments.

Rule- 8 – Inflation and Taxes will eat your returns

Inflation and Taxes are two important factors you should consider before making the investment. You should judge investment product from the actual rate of return. The actual rate of return is return is given by investment- Inflation rate – Taxes.

We cannot control growing inflation rate, but we can select tax friendly investment option to earn more returns.

Rule -9 – Spend Time on your investments

You should spend sufficient time with your investment, before and after making an investment. Proper homework will help you to select a right investment. Performance monitoring after investment will help you to stay on track. If you can’t spend time with your investment you should get in touch with a financial planner.

Rule -10 – Don’t make Investment only on Tips

Last golden rule of investment never relies on tips for making an investment. Instead of investing on the basis on tips, you should consider fundamentals of the investment instrument.

I would like to end this article by sharing a most effective rule of money management by Warren Buffet.

"Rule -1 Never Lose Money.
Rule -2 Never Forget Rule -1"

Hope this golden rule of investment will help you to achieve financial success.

Quote for the day

"Only a burning patience will lead to the attainment of a splendid happiness." - Pablo Neruda

Friday, 10 November 2017

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Quote for the day

"Time has a way of demonstrating that the most stubborn are the most intelligent." - Yevgeny Yevtushenko