Answer this question Honestly. Don’t rush, think about it and then answer this very important question. If you get salary cut of 10% and you have to live with 90% of your salary; how will it affect you? In this article we will see some important insights on spending habit and psychological issues.
Most of the people do not save anything at the end of the month and the biggest reason is that they are not left with anything (as they say). “Supply creates its own demand”.
This applies to Personal spending also. When we have money in our hand we will come up with million reasons as to why we have expenses and why we can’t do with any money less than that.
Answer these questions:
If you get a salary cut by 10%, will you be able to
– Pay your Rent
– Meet all the household expenses
– Pay your children fees
– Spend on all the important things like Entertainment, eating out, occasional
splurging etc etc….
I can bet that most of you will have answer in YES!!
If people control and prioritize their spending then it’s totally possible to live in 90% of salary. Just close your eyes and imagine a situation that you are now earning just 90% of your regular salary. Small savings can make up large chunk of investments.
If you try to answer the above questions then the answer would be a YES for almost all of you. There can be some exceptions but i am talking about majority.
For some people they may require cutting down on totally useless stuff and reducing expenses on things which can/should be avoided. Some of the examples are
If you see go out 5-6 times a month, reduce it to 3-4
If you see 5 movies a month, reduce it to 4
Anything where you can do with less spending
Does saving 10% means that you start living a Frugal life?
Please understand that saving money does not mean depriving yourself. The only thing I’m saying is that we Indians especially in Metro cities have slowly started going the American Way, i.e. Spending more than what we earn. From last couple of years, we are using to much of credit cards in the way we shouldn’t be!
We are a nation which saves but do not invest properly and now we Indians have started spending like never before. Spending is good, spending on useless stuff or stuff we can do without can be like cancer. It will not hurt you immediately, but kill you some day.
Now after you have realized that we can really live with 90% of our salary, what can we do with it. SAVE IT!! what else?
I believe (and I can prove) that saving 10% of your salary is only what you need to do to achieve all your goals in Future, provided you Start Early and Have realistic goals.
A person who is 25 yrs old and earning 40,000 per month if saves 10% will his retirement(60 yrs) would be having anywhere from 2.3 crores to 6 crores if he earns anywhere from 12%-16% in long term which is totally acceptable. See how to calculate this in this video.
What to do?
Next time you get your salary, take 10% out of it and deposit it in some other bank account. Just try to see if you can do with 90% of your salary. I bet you can do it. Saving 10% of your salary can have drastic effect on your investments. You can create nice wealth using Equity in long term.
One of the readers Ramjee comment is worth notice. Please see his comment.
That was on the bulls eye. A little bit of decrease will not effect lifestyle much, but has a lasting impact on your wealth. I have an automated schedule put to transfer 15% of my salary (a fixed amount every month, which is revised if sal.changes) to another account. At end of 6 months it feels good to see the lump sum which can go in for further investments. “
What he did is worth appreciation. I hope people learn from him.
Conclusion
We don’t save because we think we can’t save. Whereas if you try its totally possible. Just to try do this next month. When you get your salary, take 10% out of it and deposit it in some other account and try to live with 90% of your salary, see what all your are missing and if you are facing some difficulty or not.
To see more tips on savings and spending, you can refer to Ramit Sethi’s blog.
Do you have any question or Doubt in Mind regarding Financial Planning , Insurance , Investing ? This form can be used to ask any question from Jagoinvestor . Make sure what you ask makes sense 🙂
In this article we will discuss the 8 Key points which a new comer should understand before entering in the world of stock markets.
It may happen that you already have all of this in mind and you do understand them at a subconscious level but let’s go through them again and discuss it.
This is Part 3 of “How a newcomer should start in Stock Markets” series. Read Part 1 and Part 2 before reading this article. We have some so called Cosmic Rules in Stock Markets which if broken will eventually ruin your someday is not immediately.
Let’s see them very briefly.
1. Don’t put all your money in stock markets:
Never ever, put all your money in stock markets. If things go wrong you will be ruined for ever. If you have 50 Lacs and you choose to put all your money in markets because “you are sure that its going to double in 4 months” this means you are also saying that “I am ready to get ruined if the markets crash and goes down to 10 lacs”.
Most of the people like to see the first picture but don’t expect second one to happen even though probabilistic the second one is more likely to happen. Better look for “low risk-or-good” returns, rather than “fatal-or-exceptional” returns. Any money which you want to throw in trash can be used for such high risk Investing or trading.
2. Cut your losses Short:
I know telling you this gives no surety that you would follow this. It takes time to understand by making mistakes over and over again and learning from it. But still, “Cutting your losses short” is the “Rank 1” Rule in Stock Markets. One who can master this single rule can rule markets.
When you start making losses, your emotions come into play and it says to you “Its coming back and once its back to Rs XXX I will get out”. Don’t listen to it to this voice. The simple rule is “You were wrong, accept it and get out and look for something else” and its damn too tough to understand this in the initial stages.
Mistakes in Stock markets are fantastic if you learn from them. They are more valuable then the right things you do in markets.
We know that markets move in zigzag fashion, up-down-up-down like this and its true. But some people wire this in mind in such a way that they always try to force market to reverse from its path and justify that it moves in up down fashion.
If markets are going up, in their subconscious mind they feel like markets will now reverse “because they move in zigzag fashion” and hence it should now reverse, this belief entices them to invest or trade in opposite direction. The interesting thing is that people don’t understand what encourages them to go against the trend.
My one and half years of trading experience (not very beautiful one) tells me that this is the reason why we do against the trend and once we control this, it can change our luck. There is no luck in stock markets, it’s simply your thinking. “Change your thinking, your luck will change”
5. Everything is Probabilistic here:
“Buy RELIANCE above 255, Target 273, Stop loss at 245”. Now our Mr. Newcomer will read this in newspaper or listen it from the GOD a.k.a “Markets Expert on CNBC” and take the trade, things will go weird or may go the way predicted but most of the times things will go wrong.
He will be wondering who is wrong? Market? That expert on TV? His Dog? Mr Obama? whom to blame? Everyone in the world but not himself. He will never look inside himself. Everything is probabilistic here, Out of 100 times things may work 60-70% (depends) of time and not work rest of the times.
When it does not work, you have to control yourself and accept that its not working rather than forcing markets to work for you.
6. Don’t listen to Stock Markets Experts on TV:
Why do I say this? Markets “Calls” are least important things in Stock markets (i believe) and you only get that least important information from TV experts. What you don’t get is vital things like psychology to trade, Money management rules, Discipline to follow every time you take the trade. Those calls are in isolation.
They are not generated by a consistent rule, you can get calls from here and there and all of them will be kind of random to you. Other problem can be that you don’t know the time frame of the call. If you don’t understand all that I just told the easy way to understand is to answer this
“If listening to TV experts was really worth, Why am I not making money”
“How many people do you know who make living or earn exceptional returns by trading what experts tell them”
At last, the point is not that the ‘calls and advice’ works or not? They may work but not for you. There is lot more than getting calls and acting on them.
Another important thing why you should stay away and avoid listening to them is because most of their calls are for “forcing you to trade more” which will eventually generate more brokerage and commissions for trading companies.
Read this article from Shyam Pattabi to understand more on this.
Question : Why do experts give more of BUY calls and very less of “SELL” calls?
My Answer : When some one “SELLS”, he is out of trap, he is out of stock market, he pays commission once. But when Someone “BUYS”, he is trapped in markets, He already paid once and has to pay one more time to get out, so SELL = Commission 1 time and BUY = Commission twice for sure :), Ohh.. Did I discover something here 🙂
7. Have realistic Expectations:
One of the important reason for failure in stock markets is setting unrealistic goals. You see 100% made in a week, 50% in a year, 10% in a day and you think: If 10% is possible in a day or a week then 100% in a year is a child’s play OR you think like if I buy this I will sell only after its tripled.
Once again I say “We learn from History that we do not learn from History”. Have you seen what is the best long term returns from stock markets all over the world. That’s around 15%-20%. That’s it. I am not saying that you can’t get 50% in a year ever, you will get it and everybody gets it, but sometimes.
Over long term you should have expectations of 5-10% more than what safe instruments return or have a target of 4-5% more than what markets give. So anywhere from 12%-20% is good return to expect from long term. In short term there will be chances where you get exceptional returns like 50% in a week or 500% in a year.
But let them come to you don’t force them to happen. Unrealistic Expectations force us to meet them by hook or by crook and that’s when we do mistakes and take unnecessary risk to achieve them and burn out hands badly.
“Want to understand markets, have a girlfriend and try to understand her psychology. People who are already in relationship (males) have an edge I think as Markets and Girls are very much same”
8. Be ready to Make mistakes and Learn:
Some of the best Traders and Investors who are successful today and are multi-millionaires didn’t become one overnight. They Failed miserably in Markets but never quited. They learned, learned and learned from their mistakes. Markets like Life give us opportunity to make mistakes and learn.
As I like to say “Making Mistakes in a privilege which unsuccessful people don’t get in life”. Making mistakes is Great, if you are ready to learn from them.
I came up with the first ebook on “Basics of Technical Analysis” . For now I have used the data of my earlier posts only for this ebook , but it has all the data at one place and hence will be good for readers who only want to concentrate on Technical Analysis . Download Link
Please let me know how is the Ebook and If you are finding any difficulty in downloading it . Also feel free to share the ebook with your Family and Friends . No issues .
I hope to come up with another Ebook soon , on “Basics of Financial Planning for New bees” .
As always , Shyam Pattabi came up with an excellent article on his blog where he shares his views on how mis-selling happens in India and why people fall in trap of “advice” and “calls” from agents and other financial services companies , And his analogy on he post is excellent . I came up with similar topic some days back on “Why do you need a Financial Planner” , have a look on that too .
In this short article, we will see a very useful website which gives you all the information on Fixed Deposits and Banks in India
FD is a tool of saving some part of your income in a fixed account for a fixed time period and earning some interest on that amount. It is a traditional way of saving and we observed our parents taking advantage of Fixed Deposit account for investment purpose since our childhood.
Different banks offer different rate of interest on FD accounts. If you want to invest your income in this traditional tool then you should search for the best bank with best interest rate before investing your money.
Let’s take an example..
Person ‘A’ says: “I want to invest Rs 1,00,000 in a Fixed Deposit for 2 yrs in a public Sector Bank. I come in 30.9% Tax bracket. Which is the best Bank for me that will provide the maximum return?”
He again says: “I also wan to get all the information on the Bank in India at a single place; Which is the website I should checkout?”
How do you answer this question?
You will find the solution for these questions once you read this complete article. Let’s go for this step by step….
How to find out Best Fixed Deposit?
FD accounts are offered by banks and NBFC’s (Non-Banking Financial Companies). NBFC’s offers higher interest rates to attract more accounts and raise capital.
If you want a safe FD then banks are the best option. If you want to invest in companies then before investing you should search for the company details before investment. You can see the criteria and schemes of top companies here.
So if you want to invest Rs 1,00,000 for 2 yrs and 3 months in a Public Sector Bank and you belong to 30.9% Bracket, it will filter out the the list of best Banks that suit your needs and provides best return.
It will also tell you what will be your final profit after paying tax and what will be your gain after factoring in Inflation (based on your expectation of inflation percentage).
See the following screenshot for the above figures. (click to enlarge)
In current time there are two banks which are offering higher interest rates on FD. These banks are ING Vysya Bank and Lakshmi Vilas Bank. The rate of interest they are providing is 9.25%.
Maturity amount
Interest Earned
Interest After Tax
Gain After Inflation
Currently The information on the website is updated twice a week.
Information about a particular Bank
The interest rate is different for each bank. So if you want to open your FD account in a bank, you should check for the interest rates offered by different banks.
Also checkout this link to learn some basic stuff . Way2Goals Software India Pvt Ltd is the company behind http://www.way2goals.com/ . Conclusion
This is an excellent tool dedicated to Banking Information especially information on Fixed Deposits. Way2Goals is one stop destination for any information on Banking Sector. There is scope of adding lots of things, but I believe it will come with time as any other thing in Life. Great tool!!
If you come up with tools like these please share it with others here :).
Today we will discuss the important aspect that all the new beginners must understand to know what exactly they want to do in stock markets. In this post we will see what are the different types of things they can do.
In this first post, “Why Stock Markets attract and looks Easy we saw the reasons why Stock Markets attract new people and the issues related to it. In this post let’s explore what are the different options available for you.
So, you are new to stock markets and you have heard lots of people making good money. You jump in, open a trading account, read some blogs online which claim to have 80-90% success rate and you jump in to buy some stocks. You make money or loose money which really doesn’t matter in short run.
What you are concerned with is the long term view if you are serious about investing and trading. If you are not serious, I would recommend you to go somewhere else, if you take stock market as hobby, it can be proved expensive hobby and I am telling you this upfront!
Below is the way how New comers behave in Stock Markets, click on the pic to enlarge.
Let’s see some of the most important things a new comer should ask himself/herself.
Who am I? A Trader or an Investor?
This is one of the most important question you have to answer. Are you a Trader or an Investor?
Who is Investor?
Investor is someone who buys the stock for long term. Investing in itself is a word which means that you are putting your money in something and you expect it to grow over time. This has to take with fundamentals, company’s potential, long term prospects, cash flow, profit and losses.
See it as investing in a business, now what type of business would you choose to invest in? It has to be something which will grow over time from its current levels. You are not concerned about the short term movements as the focus should be on the long term view.
If the company’s share prices are providing value over its current price and it has consistent track record along with good future prospects and many more things like these, you will buy it.
Who is Trader?
Trader on the other hand is someone who buys and sells the stock for short term. He is not concerned much about long term prospects of a company. He is more interested in what stock will do good in short term. His decisions are more based on news, technical analysis, gut feeling and things like those.
If you are a beginner to the stock market investments then you should watch this video:
What will I Trade/Invest In?
Another important question to ask is What you want to trade or Invest in?
If you are an investor you can choose from Large Cap companies (NIFTY companies), MID CAP companies or very small penny companies. Each of them offer different risk and reward opportunity. But you have to be clear with what you are going to invest in.
Because once you are clear with it you can make some strategy for it and follow it. Juggling from one stock to another will lead to confusion and is definitely not recommended.
If you are Trader, you have to choose from Stocks, ETF’s, Futures or Options. Each of them are different from one another and requires specific knowledge to understand them. Its a critical factor to know what you are going to trade into.
Once you know what you are going to be involved with you have a clear road map and then you can move forward to next thing.
What will be my Time Frame?
Another important thing to consider is the time frame for which you are going to invest or trade.
For Investors, it can be very long term (10+ yrs), medium term (3+ yrs), short Term (1+ yrs). It depends on your personality, your ability and time to be involved with stock markets.
Something which works for a person with short term view may not work with a person who has long term view. So each time frame has its own advantage and disadvantage. You just have to choose one and be clear about it.
For Traders, you again have to choose your time frame and your style of trading. You can be
Positional Trader whose holds the trades from some weeks to some months
Understand that each time frame is different and each will yield different result. Two people with different view on market and different time frame can both make money.
Example:
You are bearish on market and you say that Markets are going to fall soon. I say that I am bullish and markets may go up. For next 3-4 days markets move up and I make money based on my judgement and then markets fall heavily and you can make money based on your judgement.
So the important thing here is no one is wrong the only thing is different time frame. So before listening to anyone you also have to understand their time frame.
Many analysts on TV channels will give calls like “BUY RELIANCE at 2130, with target of 2200, SL 2100″, Don’t go and buy RELIANCE next day because you have no idea about the time frame of the person advising you to buy such stock, what is the analysis behind it and what are the risks involved. It may work once in a while but its a recipe for disaster for long term.
Conclusion
” A person who wants to do everything eventually cant do anything “
Stock Markets have different kind of things and offer different ways of making money. If you are not clear on how exactly will you do things.
Its a tough game then, the first important step is to Identify what you want here, just like in Life we must be clear of what we want to do and then be good at it, learn about it and just consistently improve in it. The same we must do in Stock Markets.
“Investors will not have to pay an entry load for investing in mutual fund schemes anymore. They will instead pay a commission to their distributor or advisor directly and the quantum of the upfront commission would be mutually agreed upon.”
More Competition and hence little cheaper for Investors
Now agents will not be getting commissions from Mutual Funds companies which means that now there is direct competition among Agents. The agents can only ask for more if he really gives good service to buyers else they have to settle with a low commission which will be decided by customers.
This means now we can bargain with the agent on commission percentage and if he is not ready with what we offer him/her. We can look for someone else who is better and fits us.
Higher Quality of Service and more transparency in Market
Now agents will have to deliver much better quality of service and be more transparent with investors as their bread and butter is directly linked with Investors and not with the Mutual Fund Companies.
Lots of agents will now move to sell ULIPS rather than Mutual Funds
This move will also force lots of mutual funds agents to shift their focus on ULIPS and similar products which have commission linked with premium paid by customers rather than fee based model like we now have in case of mutual funds. This means more miss-selling in ULIPS is on the cards.
See the following New Video To understand
Update: thanks to income.portfolio for this.
AMC’s are allowed to use 1% of redemption in mutual funds for commission to agents and all the marketing costs. Its the money from exit loads which has to be utilized in commissions and other marketing costs. Most of the mutual funds have less than 0.5% of 1% of exit loads at this point and with this rule of SEBI, it can not go above 1% in future. Also it can be “up to 1%”. So this 1% will be used for every type of cost incurred by mutual funds.
Now most of the funds will have exit loads only if investor gets out in short term like 6 months or 1 yrs. Hopefully it will not be after 1 yr. So its a concern for those who are short term investors. Its not a matter of concern for long term investors as far as I think.
Also, now there is no need for PAN Card for investing in mutual funds up to Rs 50,000 through SIP as per SEBI new rules.
I am out for a 2 day weekend Trek to Kumaraparvata. So no article till Monday morning. I will post the 2nd article of “How a newcomer should start in Stock Markets?” Read Part 1 Here .
This is going to be important and useful series of article. Today we will discuss how a new-comer to stock market should start. In these series of articles we will discuss following things.
Why stock markets attract and look easy
Understanding what you want to do exactly
What are important things when you are in stock market
How a new comer should start in stock markets
Why Stock Markets attracts?
You must have heard lots of stories about people who became millionaire over night or in a short span of time from stock markets trading.
There are two kinds of people who make money from stock markets:
# First kind, are the people who make money because of luck. They buy some thing, it goes up and they think it was their skill that made the profit. Next time they buy something again and wooo!!! It makes money again and now they are the king!!
Then comes one day when their “best time in the market” is over and they start loosing money and this time its “bad luck in market” as they say!! They keep on trying to prove that they are knowledgeable and have mastered the skill to understand how markets operate.
At last they go bust and return from where they started. Smart people in this category are those who make money once or twice because of luck and don’t come back. I appreciate their smartness.
# Second kind of people are those who are real game players, They have done their homework, failed lot of times, learned from their mistakes and worked hard to make money. They know the rules of stock markets and take it seriously.
They are successful traders or investors.
People hear that lots of people make lots of money in short span of time from stock market and how easy it is to just open your trading account then choose some stock, later on buy or sell and magic happens! You make money. This is Far from truth!!
This thinking that “Lots of money can be easily made from stock market without much hard work” is the main reason why stock markets attract lots of people.
Why it looks easy?
“BUY OR SELL”, that’s all you have to decide? Either you will Buy something or you have to sell something. One of the renowned trader Larry Williams says this is the reason why most of the people think that its an easy thing to make money in stock market because they have very less decisions to make i.e. BUY or SELL
This is a human psychology which tends to believe that anything with less decisions is easy and one can do it. Everyone thinks “I am different”, “I know all these people where not able to make money, but I can understand things better and I can do it in a different way”!
This thinking is appreciated but, until it becomes over confidence. It’s true that you are different and you can do it but each and every area has some ground rules and unless you follow it thoroughly it’s almost impossible for you to succeed.
What you must understand?
You have to understand that you are a newbie and a small player!  A new born baby ,who cant even crawl in  the world of stock markets, but dreams of running a marathon and that too on one leg 😉 . Each profession needs specialization and experience and Making money from stock markets is no different.
Just like becoming a Doctor, Engineer or anything like that demands extreme study, experience, knowledge and other things specific to that profession, stock market demands all of that. The people who want to make money without doing it can not sustain for long and will hurt themselves very very badly.
We will discuss more of this in 4th part of this article “How a new comer should start in stock markets?”.
In this post, we will discuss on why do you require a Financial Planner to do your financial planning? Each and every area has an expert who understand and has skills for that profession whether it be Doctors, Engineers, Lawyers etc!
Likewise, we have Financial Planners. Now, don’t confuse financial planners with Mutual Funds Agents or Insurance advisers! NO!
Let us see some Important Points on why we need a Financial Planner.
They see your Financial situation as a whole and not just specific Parts:
One of the major issues with our country is, here each area is seen separately and not as a whole. An Insurance Adviser will randomly suggest you a policy without understanding what is your Insurance Requirement.
All that they will say is that your Insurance requirement is 8-10 times of your annual income, which is not the right way of calculating the actual Requirement. Mutual Funds advisers will just pick some Mutual fund for you without understanding your Risk-Appetite and your Future Goals.
They don’t take care of your Tax planning, Estate Planning (wills and Legal Documents) or your Cash Flow etc etc.
A Financial Planner on the contrary acts as a Doctor to your Personal Finance, who will very closely study each aspect of your Financial Life.
He will understand your Risk Appetite, your current outstanding liabilities, your Future Goals, your Future Needs and Requirements, your Insurance Requirement, your Investment needs and finally come up with a Financial Plan and Recommendations which will take care of each aspects in total.
Financial Planner will Educate you:
Financial Planners will make you logical reasoning behind every suggestion he makes. He will make sure that you agree and understand everything, so that in future you can take similar decisions yourself.
Has any Mutual funds adviser told you why SIP is better for you? Or Why You should expect great returns in long term from Equity?
Financial Planner wants to make your Financial Life Better:
Financial Planner’s goal is not limited to Insurance planning or Investment Planning. In fact a Financial Planner is trying to make your overall Financial Life better and paves a smooth financial path for you, which you can start walking on.
Your overall Financial life is made up of different components Insurance Planning, Investment and Retirement planning, Estate Planning, Tax Planning etc etc. He will take care of all these aspects.
Financial Planners are Certified or they under Certification and have deep knowledge:
How many agents or any kind of Adviser you have seen is competent enough to advise you? What is their relevant experience in that field? Most of them are just under their respective company’s Training.
A Financial Planner should be a CFP or undergoing CFPÂ qualification. CFP is the highest level of certification all over the world in the field of Financial Planning. You can also look for people who have deep understanding of Financial Planning and are undergoing the course.
As CFP is new in India, there are many students who are under the learning process and are very good Financial Advisers (You can count me one if you like).
They have good network base:
Good Financial planners will have excellent network of Agents and Other professionals who can be helpful to you in the best possible way. Like for example, if he recommends you to go for a Term Insurance, he may also recommend you some company’s Term Plan and may recommend you to some good and trusted Agents.
This will again be an important thing which you should consider. A Financial Planner may or may not have share in the Commissions.
Watch this video to know the importance of financial adviser:Â
What is the general Process Financial Planners Follow?
The first step they will follow is to get out each and every strand of information out of you that will help them to understand your situation correctly and in depth. They will try to capture each aspect of your Financial Life through a Questionnaire.
It’s like a Doctor trying to get every information about you to give you a prescription. Then they will analyse each aspect and come out with the Plan and recommendations.
They will not simply come to you and recommend you some mutual fund or insurance policy understanding if you need it or not. Infact they will do your Financial planning in the same way as you would have done yours if you were a Financial planner 🙂 .
They can also assist you in future in monitoring your Financial plan depending on your agreement with the financial planner. Just like you have your dedicated Family Doctor, see him as your Family Financial Planner.
I have enough knowledge about Products and Financial Planning, I constantly Read Financial Magazines and Blogs and keep updating my knowledge. Why should I hire a Financial Planner in that case?
Great!! If you are doing this, it’s much appreciated. You have to understand that
Financial planners are dedicated Professionals in the field. They have undergone tough training and may have much better detailed understanding of the nitty-grittes of Financial Planning which you may lack.
You may have good knowledge and understanding and you may your self take care of your Financial life to great extent. It’s you who have to answer how your Financial Life must be, “Not Bad” or “Excellent” & “Perfect”!
Also it may happen that its your un-true understanding that your understanding is very good. You may have good understanding in one field, but what about other fields?
A financial planner may also have good competence in understanding of Financial markets, Derivatives Markets, Law governing tax etc and these keep on changing and one needs to be updated with the information.
However if you have great interest in Personal Finance and already have great understanding and knowledge, you can enroll for CFP and start a new Career! Dont forget to keep in touch with me!! 🙂
What about the Cost?
Everything comes with the cost. Definitely and if you need Quality then you need to pay quality cost for it as well. But don’t be horrified by the fees you pay to Financial planners, you have to understand the difference between Price and Value.
Just seeing the numbers may make you feel over-charged, but when you concentrate on the value it adds to your life, you will be amazed. If you pay Rs X as fees to Financial Planners you will save many times of that because of the alterations and changes he has brought into your financial life.
Its like if you fall sick then you pay for medicines. No questions asked!! Either pay and save yourself and be happy OR just live in hope of it getting cured by itself, but it will actually get worse and one day kill you.
But my Financial life looks great to me, I don’t see any issues, my insurance cover is fine, my Investments are great…?
Baby, you don’t know a lot of things in that case… Life is waiting for you. There are many people who think they are totally fine and at last they are diagnosed by Cancer and most of the times its at the last stage, don’t wait so long get it checked now!!
My Family and Friends are forcing me to see a Financial Planner? what should I do?
No! You should only see a Financial Planner when you yourself realize that you need one. This is an issue with our country, most of the people do not know and do not realize that their Finances Stink!! Only when it goes out of control they will realise that time has come and by then its too late.
What is stopping you to at least get your financial checkup done by a Financial planner? He will make you realize first that you need it badly and once you agree you can hire him to fix it.
Conclusion
Majority of Indians are totally clueless about Financial planning and only it has happened that in recent years some awareness has been created about it. Most of us try to fix finances on our own without accepting that we are not competent enough to do it all!
WE need a professional. Don’t you pay to Doctor or Lawyer or any other Professional then why not hire a Financial Planner? Go for it!! Jago Investor!!
Note: For people who need my Financial Planning services can mail me
What do we do when we face some issue with Banks, Mutual Funds, Credit Card company, Insurance Company and so on?
The first thing we do is to file a complain with them for our problems and then we wait for their answer. What if we are not satisfied with there reply and want more justice.
We can then lodge a complain with their regulators Ombudsman and grievance cells. Let us see this in more detail.
What is Ombudsman?
The ombudsman is the internal complaint department for socially responsible organizations (governments, companies, societies, etc.). The ombudsman has complete access to the organization’s records and personnel, and the knowledge to understand how things work internally, in order to investigate complaints made against the organization.
So we have Bank Ombudsman, Insurance Company Ombudsman and Mutual funds companies Ombudsman etc.
When should you Approach Ombudsman ?
The first thing you should be doing is to contact your Bank/Mutual Fund Office/ Insurance Company and file a complaint with them. If you do not receive any response within some specified limit of days, you should further your complaint  with the Ombudsman.
What If Ombudsman do not reply or take Action?
All the Ombudsman bodies comes under the purview of Right to Information Act (RTI act of 1995). They are legally bound to reply for any complaints made by them ,considering its as per the stated rules.
Note : Ombudsman are the next level of bodies to complain , first try to resolve matter personally with the Bank or Insurance company which is creating problem for you.
