Should you buy 2nd house as an investment? (28 min video discussion)

I along with my teammate Sagar, recorded a 28 min video discussion related to this topic – “Should you buy 2nd house as an investment?” yesterday. We talked about various pros and cons which are often missed by those investors who are thinking of buying the second house for investment. Watch the video below

What we discussed in this video?

  1. When does it makes sense to buy a 2nd house?
  2. How does it impact your cashflows and stress level?
  3. Why are investors so attached and attracted to buying “Real Estate”?
  4. What are the real-life issues which investors face after buying the 2nd house?
  5. Is it an emotional decision or a financial decision?
  6. Why buying just 1 hour is enough for 95% of investors?
  7. Why illiquidity is a big issue with buying a 2nd house?
  8. How 2nd house can create a good second income, and in which cases?

Do let us know if you have any comments after watching the video!

7 Incredible reasons why you spend more money each month & How you can control it ?

Wow .. Today I am going to talk about your SPENDING habits and what governs it. Spending money is a critical part of anyone’s financial life and pretty much define’s how our financial life looks like.

Spending more is pretty much a reason why we go to our work, because at the end of the day, money has to change hands, be it now or later. In a way its a beautiful creation of this world. We have some great things in life today because we have spent money on it and bought it.

While I can keep talking about the best parts of spending , today I want to cover why we spend “more” and why we sometimes go beyond out set limits.

money saving tips for Indians

Most of the investors financial life today is highly screwed mostly because of their spending habits and the way they deal with their expenses, and many fall into the trap of “living on paycheck month after month” . So Today I want to pick few reasons which force us or makes us spend more money than we should . Lets look at each point in detail and yes – grab some coffee 🙂

Reason #1 – Because you don’t use CASH

Yes – This one simple thing can urge you to spend more.

The whole payment system has transformed totally in last 10-15 yrs in our country. There was a time when you carried cash every time you went to market to buy something. You knew how much you will be spending before hand, carried exactly that much money with some small buffer amount and bought the stuff you wanted.

Be it Milk , Vegetables, Grocery, Petrol or anything else.  It was simple transaction. Exchange money and get what you want.

Then credit cards and debit cards happened. They arrived as “convenient” ways to make payment and this convenience came at a big cost.

Paying by Cash is emotionally painful

While cards gives you convenience, it also takes away that emotional feeling which you get when you pay by CASH. When you pay cash, you take out the money, count it, can think about it and it leaves your wallet and you “feel” that something parted away with you. This is not the case with credit or debit card.

This can be clearly seen in online shopping. A lot of people buy things on impulse using their cards online, the bought items arrive and you take it because you mostly have no choice. Compare this with paying cash, you think you want something, order it with cash on delivery and then let some time pass.

In this option, you have enough time to think back on your decision simply because the money has not yet left your wallet (with cards, it’s already gone) .

This is exactly what happens in real life too, people who buy things on cash on delivery often change their mind and reject to buy things because now they think they no longer need it. Read the report below

Cash on delivery is the most inconvenient payment option. It allows customers too much time to change their mind,” said K Vaitheeswaran, the founder of, which sells books and electronic goods, was the first to introduce the payment method more than a decade ago. It realised in about a year that cash on delivery was “painful”. Rejection rates are at about 45%, partly because there is no upfront cash commitment, according to Vaitheeswaran.

Source – Economic Times

Cash discourages spending

While this might not be consciously visible to you and many will deny this, but as per various studies, its shown that cash payment discourages spending, while using credit cards or gift payment encourage spending. Below you can read one of the studies on this topic.

Priya Raghubir, PhD, of the Stern School of Business at New York University, and Joydeep Srivastava, PhD, of the Robert H. Smith School of Business at the University of Maryland, College Park, asked participants to read various buying scenarios and answer questions about how much would they spend using cash versus various cash equivalents.

In the first study, 114 participants estimated how much they would pay using various payment forms for a vividly described restaurant meal. The results showed that “People are willing to spend (or pay) more when they use a credit card than when using cash,” the authors wrote. They attributed the difference in spending behavior to the way cash can reinforce the pain of paying.

Have you ever realised that when you use cards for payments, you are too casual about the actual bill amount, because you can pay any amount at that moment without worrying about it.

Also you generally don’t see the money leaving your wallet at all, the bill comes after a month and by that time, it’s too late to think about it in detail and your only job it to pay that bill. It’s just another bill and nothing else.

You can read this awesome report on cash vs cards payment and do listen to this short audio on this matter.

I am not saying that stop using cards. Do it wherever you feel its applicable and you can’t control things, but “cash payment is a pain” is highly overrated thing. You can very much use cash for various payments in today’s time exactly like you did it few years ago.

In fact you can take out cash from your account in start of the month for all the pre-planned expenses and then use cash for it.

Note that there can be some reasons like cash back and reward points offered on cards because of which you can use the cards, nothing in that. The point I just want to make sure is that using cards can change the spending behaviour in people and you should control that.

Reason #2 – Because you don’t make a list of items you need

Me and my wife shop all our grocery from DMART, a retail chain mostly in all the big cities in India. We once went there to buy “few grocery items” which were roughly 6-8 in quantity, and when I came out of the store after 45 min, I had a bill of Rs 2,800 in my hand with two big bags in my hand which had tons of things we shopped inside.

I didn’t feel much about it at that time, only to realise next morning that once again we bought many things we either don’t need or we bought it in high quantities than required. So what happened when we went to the store without a predefined list of items?

There was a chain reaction of “We need that also” and “Lets keep this too, as its going to finish soon” and then one items led to another and then we went to clothing section and then utensils sections and we could see so many things which we need WANT.

We went there without a purpose and the whole world was open for us to shop, mix this with the convenient method of payment (card) and you don’t have to feel the pinch at the same moment. It’s a deadly combination !

The other problem is that you buy things on the name of “lets try this once” and also buy things in quantities larger than you need. I once bought peanut butter, just to check why people in US love it so much, but I didn’t love it and only consumed it once, thank god my wife finished it by mixing it in curries instead of raw peanuts !

Did you use the lists many years back while shopping ?

Go back 15 yrs in life and think about those times when you mother handed over the small piece of paper which had those 10 things written down along with quantity. It was easy then, you went with the list to shop, handed over the slip to the shopkeeper and waited there for 10-15 min and that was it.

Good that my wife still does that most of times when we do the monthly grocery shopping. My wife has actually take written down all the kitchen ingredients (109 items) in excel sheet, taken many print outs and every month she checks what is needed and what is in stock. While we still buy few things which are not in the list, but it’s very small percentage.

You can see the same list of 109 items below

grocery item list for monthly shopping

When you go shopping without a pre planned item list, it’s almost sure that you will buy things you really done need. If Rs 3,000 is enough to cover your actual requirement, you will spend Rs 6,000 just because you don’t go with the list. While I am not saying that you should totally shift to this kind of shopping, at least try it 2-3 times and see if you can stand it or not.

Reason #3 – Because you buy things on on short term excitement

This is mostly for the big purchases (anything above Rs 1,000) . It can be that juicer, the bigger TV, clothes, weighting scale, or even bigger car and house. Most of the people don’t spend enough time to understand if they really need something or not. This is how it typically works

  • You come across something
  • You are delighted by looking at it (and there is also a sale going on)
  • You come across a reason which justifies you wanting it.
  • Buying stuff is easy anyways (net banking debit card or credit card)

And after a week, that same thing is lying at your home unused or used once or twice. Most of the wardrobes are over stuffed by things which was bought on an impulse, because it was on Sale or because they thought they needed it (but in reality they don’t need it)

It’s extremely critical to understand today that the whole world is trying to make the buying process extremely easy for buyers today and tries to lure them with EMI’s (which makes things look affordable)

Let the excitement settle down

The solution for this is to make sure you WAIT for some time, before you buy the stuff. Let some time pass by and let that instant emotion die down.

You came across that great shoe online, where you get 40% OFF, that too with FREE home delivery and anyways your credit card is pre stored on the website – All you need to do is login and punch the CVV number and thats all – You just bought the stuff which you 100% want, but mostly don’t NEED !

I will share my own 2 dumb mistakes I did recently. First I bought a costly bicycle last year, because I so wanted to get into cycling. I joined 2 online clubs, researched a lot on cycles and within 24 hours bought one which I have to admit I hardly used. It still needs my attention.

Next I bought a little bigger size TV recently, which I wanted and needed (I watch lots of TV), but later realised that I should have bought a much bigger one, because now I can’t find much difference in the size I earlier had and the new one which I have now.

I feel I could have avoided both the mistakes, if I waited for 2-3 days and let that impulse die down. If only I had written down 3 reasons why I badly need it, I could have saved myself from the blunder I did, because I know I would not be answer myself on why I need those things strongly.

Reason #4 – Because somebody in your family/friends also have it

I seriously cant speak a lot on this, because it looks so stupid to even think how people buy things just because others have it and not because they need or want it. There are two things here ..

First is Peer Pressure , Just because friends in your group have something, you feel the pressure on you to have the same thing in your life so that you can be equal to them. If their kids go to school A , you also want your kid of go to school A , not school B . If they drive a 10 lacs car, you feel a bit uncomfortable having a Rs 4 lacs car.

The One sided Pressure most of the people feel

Most of the times, this pressure is just one-sided . It’s in your mind and not in your friends mind or even your relatives mind. True friends and people who care will never judge you with what you own and compare it with themselves. If they do, it’s better to let them go out of your life.

quotes on spending money

This peer pressure is clearly visible when it comes to giving gifts to friends/relative and spending on others when they visit you. Just because “they” put Rs 501 in the envelope, next time you can’t put less that, and god forbid if you put Rs 1,001 , now its their turn to “gift” you next time when its their turn.

If you read a book called “Linchpin” by Seth Godin, you will love the way he talks about how the world has become a place of transaction , where no real “gift” or “favor” exists in this world. Even if you truly gift something to someone without expecting anything , still the other party know it does not work that way.

Some day they will have to return the favor !

Apart from the peer pressure, at times there is purely the act of “looking good” and wanting to show off ..

People spend purely because they want to stand apart, because they want to attract some eyeballs and their ego’s are pampered just because others are talking about how great your “stuff” is , not YOU 🙂

Reason #5 – Because money is “available”

I know this would sound strange to many , but a lot of spending happens because there is money available in the pocket. However stupid that sounds, there is huge element of truth in this. Just because you have a lot of money lying with you, all the reasons to spend money seem justified to you.

Many expenses will suddenly appear “unavoidable” . Have you ever been into a situation when the supply of money was restricted for months and months? Did your life move on peacefully or not ? Did you find reasons to postpone or avoid expenses or not?

Always remember a very important point about money ..

“Money is like flowing water, if you don’t give it direction, it will find its own”

Always make sure you define a purpose for your money and allocate it for some goal in life, so that you know what is it going to be used, this is important because next time when you have some low priority expenses coming up, you know you can’t touch the money allocated for some higher priority expenses in future.

I have beautifully explained this in one of my books written by CNBC

Not just label the money, but let it leave your bank account and get invested in some financial product. By default make it tough for yourself to use it (not so tough that you cant use it at all) .


To give you an example, imagine you earn Rs 80,000 per month , after your EMI and other commitments, you are left with Rs 20,000 saving per month. One thing you can do is let it be there in saving bank account and let it grow over time . After 3-4 months, you will have 60-80k in your account and more coming up in future.

At this moment, you are not that happy with your 4 yr old car and your friends are upgrading to a better car and now a small “wish” is seeding in your mind that even you deserve it (I am assuming your old car is still good enough) . In few months, you will surely make your mind to upgrade your car because you have the down-payment ready in your bank account and you also have capacity to pay the EMI for the car !

Compare this with the situation when you have already defined that the extra 20,000 will go into a recurring deposit for next 3 yrs , so that you can accumulate around 7-8 lacs in 3 yrs which will be used for your house renovation, or kids school expenses or some vacation you are looking forward from last many years.

Once you define that and let your money leave your account each month, you virtually don’t see anything lying in your bank account and your tempt to use it for your car up-gradation will die down.

This point is so powerful, that I even decided to answer one of the questions on

What is some money advice I can learn in less than 10 minutes, which will help me become rich?

Understand that I am not against upgrading your lifestyle, you have to upgrade some times when life demands it and when you really deserve it, but most of the people upgrade things not for themselves or for some strong reason, but just like that because they want to show it off or just feel a temptation.

Upgrade your life responsibly if you have to, its tough to downgrade it later 🙂

More Availability of Money and What you can Buy

You can notice that India has changed a lot in last 10-15 years in terms of availability of things we can spend on and even in disposable income lying around. There is a lot of money which can now chase a big amount of things, so naturally the temptation of buying things has gone very high.

I can say with confidence, that your most important expenses today form a very small part of your overall expenses and the big part is on things you don’t need for survival.

So whats the solution ? If you are someone who is left with money each month after your expenses, make sure you list down your goals in life, list out how much money you need to invest to achieve those goals and start your SIP’s in mutual funds or recurring deposits and let your money chase those financial goals .

Reasons #6 – Because small expenses turn out to be BIG by the month end

I love this point and this is something you can relate to easily. A lot of expenses look small in nature or a very small ticket size, but when you look at them on a monthly or yearly basis, they turn out to be a big one.

Something which costs Rs 200 might look a non trivial thing at that moment when you are spending on it, its effect on your monthly budget will not look big, but this is not how it happens in real life, you do the same thing 7-8 times and that means few thousand rupees which does not even register in your mind.

Take an example of online shopping of clothes or gadgets, while doing on transaction, it would be few hundreds or thousands, which does look big, but if you add up all the expenses by the month end or in a quarter, you will realise it was a major one which you didnt even considered while you were trying to recall where exactly your money went.

Watching Movies and Eating Out – The silent expenses

Now – I am a real movie buff (I have even started watching Marathi movies and they are so awesome) and we also eat out quote often. These two expenses are might not look quote big if you focus on it just one time. You feel you so much deserve it and that’s why you are earning so much money, But these can go over board and turn out to be a big number (at times 10-15% of your take home).

You need to keep an eye on it and I am not talking about a mental calculation, but actually writing them down for a month and seeing the real numbers. It might turn out to be a big surprise .

I did exactly that for the month of October 2014. I originally thought that my movies + eating out + snacking expenses should be somewhere around 3,000 and my grocery + veggies expenses should not be crossing 3,500.

But when I actually wrote it down for each day for the month of Oct and saw the real numbers, I was shocked to see that my movies + eating out expenses turned out to be more than double of what I originally thought, on the other hand, my grocery expenses was so less (seems like that month the grocery expenses actually were very less for some reason, as we just 2 of us).

Below you can see the exact numbers

expenses tracking

So what you should do ? Truly speaking – I don’t think one should restrict themselves on spending on things which add up to their quality of life and if you truly enjoy it. You can surely spend money on things you truly wish and cut down on things which are waste or does not add much to your life. Ramit Sethi calls it as ‘Conscious spending’ and you should read his article on this point.

So just be a bit alert on things you are spending on and when it starts going over the roof – take charge of it and control it. Dont be over fanatic over controlling each bit of it, it does work in real life.

Reason #7 – Because of ‘Enjoy today, Pay Later’ trick

The last point I want to cover is EMI option of payments. The option of payment in installment is a powerful tool to make people believe that they can afford a stuff and because the EMI amount fits their monthly income, most of the people buy things much more than they need or can afford.

EMI option in payments is nothing less than a revolution which has driven the consumption levels to insane levels. Everything you can imagine today, especially in online shopping, where you can buy literally anything on EMI and bring it inside to your “affordability zone” by just choosing “Buy on EMI”.

If you look at an example of flipkart , I add Moto X smartphone which costs Rs 29,999 in the cart for buying. Now for someone who has a salary of Rs 30,000 per month (A lot of youth lies in this category) can’t afford this phone because its equal to one month salary.

How EMI option changes the whole equation of affordability

They can purchase it without any issue just because they can buy it on EMI option and suddenly they will just have to cough up Rs 3,500 per month. While this looks really amazing to some people, this is how the debt cycle start for most of the youngsters new into job and then they get trapped into it for many years.

EMI option while shopping

Here is a report from Livemint which talks about the way companies use EMI options

EMIs (equated monthly instalments) aren’t new to Indians, but it’s a strategy that companies such as Apple Inc., Gold’s Gym and others are increasingly adopting in a bid to beat the sluggish economy, convincing customers to overcome their reluctance to spend too much money and to go ahead and splurge on an iPhone or a fitness club membership.

Clearly, India is turning into an EMI nation.

A range of items are available—cellphones, sunglasses, jeans, vacations, hair transplants, gym memberships—as companies seek to drive consumption in a weak economy. And it seems to be working, most evidently in the case of the iPhone, once a rarity, but suddenly more commonplace in urban India.

IndiGo and Jet Airways (India) Ltd, two of India’s largest airlines, are the latest to announce the availability of air tickets on three- or six-month instalments. Although the schemes have been on for a year, the firms’ recent promotion through newspaper advertisements helped persuade dithering customers, especially since fares have surged 25% in the holiday season

Hence, its important to make sure you don’t fall into the trap of EMI’s for those things which you absolutely don’t require and cant afford.

So how to spend optimal money ?

Expenses are important element of your financial, if you earn a lot , its of less use if you also spend a lot , because what ever is left at the end of the month goes into creating your financial wealth in long run. Its important review your spending pattern, various categories you spend money on and talk with your spouse, parents about it and try to optimize it.

Review each thing and see which of those expenses can be reduced or eliminated or shifted to some other category.

At the end of day we all earn money primarily to spend it on things, but at times things get out of control and does not fit into what we had originally planned.

What are your thoughts about this article ? Please write down your comments by clicking here

Financial Life of a cab driver & life of Mumbai

I recently visited Mumbai for some work and it was 7:15 pm in the evening. When I came out of a building in Andheri East, Mumbai.

I had booked a cab from Pune to Mumbai and I was now ready to be back. I called up the cab driver and here is the conversation…

ME – “Bhaiya, kidhar hain aap?”

Driver – “Bas sir, Yahi hun 200-meter piche, 20 min me aa jaunga, aap gate ke pass hi rahiye”

ME – “Main aa jata hun paidal chal kar, Aap bataiye kidhar hai exactly”

Driver – “Arre nahi sir, aap wahin rukiye jidhar hai, itni bhid me Mujhe nahi khoj payenge”

Finally, after a long 20-30 min, I saw a car near me, honking like hell and flashing lights on me. It was my cab driver and he was indicating – “Get inside the car asap”

Finally, I was inside the cab and we were going back to Pune. It took us another 20 min to just get out of the lane. It was really frustrating to just see yourself in the middle of traffic and move nowhere.

The first half of the total time took us to come out of Mumbai and the second half took us to reach Pune. Finally, I reached Pune at 11:30 in night.

Story of the Cab Driver and his Financial life

In this article, I just want to share with you a conversation between myself and a cab driver I met recently. I asked him some questions about his life, a bit about his financial life and his work schedule. I know, it’s not directly related to personal finance, but I think, it’s a good idea to share it with you all as it has some good things to know about.

Tax driver

(The photo above is not the real cab driver in question)

The moment we were out of the lane we were stuck in at Andheri, the driver looked really irritated by the sheer amount of traffic. I asked him – “Bhaiya, Mumbai ki life Kaisi Lagti hai aapko?”

And his answer stunned me – “70 saal jeene waala insaan 50 ke khatam ho jayega, yahi hai Mumbai ki life”

While I knew he was a bit tired and his frustration was making him speak these words, there was surely some element of truth in his words. The way of life, the speed, the running around for everything. It’s really mind-boggling in Mumbai.

Anyways, One my way back to Pune, I had conversations with Driver and here are few things I came to know.

1. He drives 400 km EVERYDAY

Did I ask him if travels to Mumbai often? He said every day. YES – Everyday .. 30 days in a month… May be once in a while there is no pick or drop but in general every day. He said that he does close to 10,000-12,000 KM every month. His legs and Back pains a lot and sometimes it’s so bad, he can’t explain it. We reached Pune around 11:30 pm at night and he had to get back at 4 am again to take someone to Mumbai airport.

2. No family life

I think we felt by good talking to me, and he kept on going.

“Family life nahi hai Kuch Bhi Sir .. Ghar Jata hun, khana khata hun aur sidhe so jata hun”. He told how his life is tough and there is no energy left once he is back home. He has no motivation to talk to his kids, spouse or enjoy with them.

Even when he has to drop or pick someone, he has nothing to do and he just sits inside the car and it’s really tough to do that, day after day, month after month and year after year … It’s the height of boredom”

He was a calm person, but he said that when he is stuck in jams atleast he feels he want to throw away the car like HULK. It was a calm frustration coming out of him.

3. He had Life + Health insurance

I realized that his job is very risky. He has to drive each day and he is prone to accidents. His legs are so important for his job and to earn the money. I thought I will explain to him why he should think of covering these risks and I asked him – “Do have Insurance?”

  • “Yes Sir, I have life insurance and health insurance both from ICICI Lombard”

I was happy and a bit shocked to hear that because I didn’t expect him to have that. He told me that one of his agent friends had explained to him about these products and how it might help him. I congratulated him on that point and said that it’s a great thing that at least he has something. Thank god he did wait to find the “best product”

4. He saved Rs 4,000 per month in Recurring deposit

Though his earnings were limited and he was on a tight budget, he told that he managed to save Rs 4,000 per month. He gave it to his wife every month which is invested in Recurring deposit. I thought it was a great thing and didn’t say anything like “why don’t you invest in equity?”. I think it would have confused him a lot and it was not the right time for all that Gyan. He was doing well.

What do you learn from this?

Let me know what you feel after reading the story of this cab driver? I think that the cab driver did a few things correctly which even many with a lot of privilege fail to do. Like if you see this cab driver, he has a habit of saving some part of his income even though he does not earn as we all do. He had life insurance and health insurance which is really commendable. I know he does not represent an average cab driver from that angle, but still.

Please share your thoughts

How I wrote my 1st book in 500 days – Here is the complete story

Sometime around March of 2010, I was checking my inbox and saw an email from a person from CNBC. The message said that there was an opportunity of me authoring a book on personal finance.

For a moment, I could not believe it.

It was an ecstatic moment for me because I was just 27 yrs old, with 2 yrs of experience in IT industry and 2 yrs of experience running this blog. The world around me was all about python, Perl and servers and here was an email asking me to author a book on money which would be published by CNBC. I was going to be a mini-celebrity and I knew it would be counted as great achievement on my portfolio. This blog was around 2 yrs old at that time.

I replied back that I would surely be interested in this assignment and wanted to know how it works. It was a great coincidence that I had a very rough idea of a book already in place, when I used to fantasize the idea of book writing some day and here was the opportunity knocking my door.

I went to Mumbai, had a quick meet with concerned person and I was all set on the assignment of Book Writing.

Starting of the Book writing journey

The next few days were highly energetic.

I could not believe that I was really writing a book at this age. I had already done more than 300+ articles by that time and had interacted with thousands of investors by that time over comments section of this blog. I had a fair understanding of what kind of book will really help an investor.

I started jotting down all the important points and concepts which I should cover in the book. I thought that writing a book would be easy for me, as I had written so many articles on various concepts already. After all, I just needed to arrange them in a certain manner which looks like a book, change the language of the content to look powerful, add few examples and enough stories to make it interesting and engaging.

I created a Google doc folder and started creating various chapters’ pages. Here is a snapshot of how it looked like finally…

book writing experiance

My initial way of planning and thinking about the book was like this…

I thought, if I wrote 10 pages daily, it would just take 25 days to write 250 pages. If I target the book in 30 days, I would still have 5 days left. I added 1 more month as a buffer period to refine my book and make any changes if required. I thought 2 months would be enough.

The book finally took me 500 days

I know what you are thinking right now. I know I so stupid.

As you must have guessed by now, I had done a very poor job in planning and estimating the time required to write a book. I think it’s not even “poor planning”, it was “pathetic planning”.

I over-estimated my capabilities to the highest level. I finally took 1.5 yrs (500 days) to complete the book and now I will give you insights on why it took so long.

Let me share with you that, I was very clear that I don’t want to do a “good book”. I wanted to write an extra-ordinary book, which is relevant for many years to come and truly helps an investor who is new to the world of personal finance.

I had seen some the other books which were written and they all focused mainly on the “knowledge” part of personal finance. Each of those books had information about various financial products, tax saving avenues etc. I think those kind of books have their own importance and are required. However, I didn’t want to write “just another book” on the shelf, which is giving the same information to investor like others.

What kind of book I wanted to write?

I wanted to do a book, which shakes the investor. A book which shows them the mirror and truly makes them understand some really important principles of personal finance. I wanted to do a book which is ACTION oriented, not just information oriented.

I wanted to write a book which wakes up an investor from their sleep and clears their way of looking at their financial life. A book which acts like a big brother guiding them on how to look at their money matters and builds a guideline for them to follow. And I think, I succeeded in what I wanted to do, the proof is 81 reviews on flipkart, with an average rating of 4.4 out of 5

I was like the director of the movie, who had to make sure he casts the right actor, good story, great scenes, and dialogues and at the end, had to connect all these elements and come up with a master piece. Before I move ahead, I would like to check out a review by “Saravanan A” on amazon. It captures the essence of the book beautifully

reader testimonial for book

I started writing the book

When I finally started writing the book, I started building the book skeleton.

I prepared the chapter names and just wrote down what each chapter will talk about. Trust me it sounds very simple, but it took me over a month to just do that part in proper manner. Write one article was easy, but how do I write a book which is 100X times an article? At the same time it had to be interesting, outstanding, full of examples, insightful and had to have a strong flow at the same time. The book was suppose to make sure it hooks the reader till end.

It was not an easy job

I first created the list of chapters, and the number went upto 22 in numbers. There was so much to write in each chapter. I started with first chapter, then 2nd and then 3rd …


I realized, that I have done everything wrong. After I did 50-60 pages, everything I did looked so damn bad to me. I was not happy with it.

I hit the delete button and all 3 chapters were gone. I realized, I needed to relook at my strategy.

I now started defining the chapter names, sub-topics under each page. I wrote down the headings part of each chapter and what all will go into it. It was like mini-index of the whole book.

This way, it became more easy for me, because now I was actually creating a proper flow and was actually giving the shape to the book. Once I had completed that, I just have to expand each point with 200-300 words and my 800-900 point skeleton book would expand to 100X size and would be a 90,000 words book.

This was a top to bottom approach.

Trust me, it looks the obvious way to write the book NOW. But that time, it didn’t click me. I made a lot of mistakes and lost a good amount of time to just figure out, how to give a good start.


Finally, I ended up with 8 chapters. Some chapters were long, some were very short.

The First Chapter – My best work !

The first chapter I wanted to do was on the topic of early investing.

I was first wondering does this topic deserve a full chapter? After all how long can I write on the point of early investing?

In one line, if you summarize it, it looks like “If you invest early, you can start small , but if you are late, you will have to put more money later to build the same amount of wealth”.

But then were are so many dimensions to this single topic and I was so fascinated with it that I wanted a detailed chapter on this single topic, which is outstanding and goes beyond the simple conversation.

I wanted to give examples, real life analogies and enough data as the backup to prove my point. I found out that though the starting the chapter was very tough, it was not that tough later. Once I was in the flow, I started enjoying the book. I could visualize how a reader will feeling while reading it. What kind of questions they will have and what kind of examples will help them to understand the concept in a better way.

Working in Excel

I did a lot of work on excel, created charts, came up with examples and did a lot of number crunching.

I came up with lots of interesting conversations which would make investors understand the point. I wrote 40+ pages for the first chapter. I read the whole chapter once I completed and I found I can do better, then I went through the chapter, edited it back, and pruned the content, added some more ..

I created the rough sketch of examples and images and the designers at CNBC did an excellent job at recreating nice illustrative pictures which conveyed the same in the book. The eye-catching graphics which they created, increased the richness of the book. Here is a snapshot of what I created and what you see in the book.

How editing happens

I was happy on my achievement

Finally, I was satisfied and happy with my 1st chapter and I was proud of it. I could see the power and impact of the first chapter book on an investors mind.

My goal was simple – “If someone reads my first chapter, he will not delay his investments after that”.

It was as simple as that. Some book readers told me, that they started their SIP just after completing the first chapter, they didn’t even wait for completing the book.

I had done the first chapter in 15 days time and it was the biggest chapter of the book. I recalculated the time I would take to complete the book told CNBC, that I will not be able to complete the book before 6 months. They were happy listening to that 😉 (maybe they knew the reality)

Once I completed the first chapter, I thought of taking the break before I start my 2nd chapter. The short break lasted for 2 months. After working so extensively on the 1st chapter, I was a bit exhausted and was flying high with confidence and every time I thought of returning to the book writing, something or the other came up and made sure I could not concentrate on the book.

My 6 months deadline was about to complete and I was done with just 2-3 chapters only. It was just 40% of the book. For the first time, I was understanding how tough it was to keep your deadlines promises. Whenever someone defined the deadlines for the projects in our projects meetings, I had a dangerous smile on my face.

Finally, I completed the book

Now, let’s cut things short and come to the main point. I finally wrote other chapters on risk and return, insurance, simplicity requirement in next few months.

I also added a chapter called, “Relationship with Money” which touched the point of how our emotions are connected with money and how we see money in our life. It was a very different kind of concept which was introduced by Nandish Desai, my business partner.

So I requested him to write that full chapter because I knew that I will not be able to justify that chapter because of my limited understanding of that subject and I think he did a brilliant job in that. It added a whole new dimension in the overall book and it was aligned with the book mission.

It helped investors to connect with their emotional side of money. Thanks to Nandish to author that chapter (we will soon come up with his 1st book story)

Editing of the Book

Finally, I managed to complete the book in a year. By the time, I completed the 80% part of the book. The editing had started.

I was sending each chapter to CNBC which was now edited by a professional. They checked the whole book for the English language and the sentence duplication. If 3 lines conveyed the same thing, It was merged into one and the sentence was pruned. When the edited version of the chapters came back to me, I was horrified to see how pathetic my English was (I knew it was bad, but SO BAD ?)

The Book Editing

With heavy heart when I asked the editor is that was normal? They said – “YES – It was totally normal and it happens with every writer”. I was a happy writer again 🙂

The Polishing of the book content

I saw, how the editor had polished the book language and made it look more professional. They had also suggested some changes (very minor) and I incorporated them. To my surprise, this whole thing again took few months and finally I got one final version of the book to check for one last time before the first print happens.

I started reading the edited version of the book. This was the first time when I was reading my complete book as a reader. That cute little thing as attachment, on my email was one of the most beautiful thing I had seen. I felt like I was a mother who just delivered a baby after 9 months of labor (1.5 yrs in my case).

I started the first sentence, then first page, first chapter … and finally the whole book.

Happy and Proud Moment

I was extremely happy and proud. I could see that the book was able to make an impact. I had taken a lot of time to do the book, but I had not compromised with the content quality. I didn’t write it with rush.

We originally gave the name of the book as “Jagoinvestor”, because the book focus was to wake up an investor and that name looked appropriate, however after an year, we changed the name to “16 personal finance principles every investor should know”, because it was a more clear name and conveyed what the book was all about.

16 personal finance principles every investor should know Financial Planning Book in India - Personal Finance Book in India

Buy the book – NOW
Today when I look back, I am happy that I was successful in writing the book I visualized. As a first time writer, I did a very good job.

The book has been so powerful, that a lot of investors who read my first book suddenly start acting on their financial lives and some even contact us to do their financial planning. Our best clients came to us by reading our books. A lot of investors who are DIY investors, even they get a lot of value from the book.

What I learned by writing the 1st book (and you should know that)?

A book is a creation, which comes into life after a lot of hard work. There are many dimensions which comes together and then a book takes the shape. Writing a book might be easy, but writing a “good book” is not.

When you read any book, if you get one insight or one learning which can impact your life, I think the author has done his job and you have got your value. A book can have some mistakes, some part of the book might not sound great to you, but be thankful for the good part, ignore the average part.

Now when I read a book, I ask myself if I learned any ONE THING from the book or not? If the answer is YES, I consider the book as great. I have stopped criticizing any author (anyways, I never did) because I now know the other side too. I recently read a book called “Predictably Irrational” by Dan Ariely. My god – What a creation ! .. What a book it was .. If only I was 10% of that author, I would have done wonders!.

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Let me know what do you think about my journey of writing the book? What did you learn from it? Also share if you have read my first book or not?

The dark side of becoming an Entrepreneur – 5 things no one will tell you on face

Have you ever dreamt of leaving your job and starting something on your own? Are you frustrated in your job and don’t see a future? If that’s the case, I am sure that, you must be excited by the thought of “being your own boss” someday. Hence, do read this article fully before you take any final decision.

Last year, when I wrote my own story of how I had quit my job and went full time working on this website, I saw that a lot of people were impressed with my story. Everyone said it was a brave decision. A lot of people could relate to my situation and said that even they are looking forward to quit their jobs sometime in future and jump into entrepreneurship.

job vs entrepreneurship

Pursuing your passion and getting out of your boring corporate job is definitely an amazing experience. It gives you a great satisfaction, sense of achievement and can be extremely rewarding, but only if things go right.

But WAIT .. you know what !!

You probably don’t have much idea of the other side, the darker side and thats what I want you to read in this article.

“Pursuing your passion” is over-hyped

Yes, you heard it right!

I have realized that the positive side of entrepreneurship is often over-hyped. Surely there are many awesome things of being your own boss, but then there are challenges and issues involved, which are buried deep down in the entrepreneurship world, not openly shared or communicated in detail.

When you meet a young entrepreneur who left his well-paying job to pursue his passion, what do you see in his life? I am sure you must be seeing the freedom he has in his life, the exponential growth prospects, no boss to report to and the satisfaction on his face. Right ?

But you never see the problems, issues, challenges and frustration which arises out of being an entrepreneur. I know it very ‘cool’ to leave your job to pursue passion and it has created such a glorious image in the eyes of people, that majority of them want to try it out someday in their life. But remember the old saying …

“The grass looks more, greener on the other side”

side effects of becoming entrepreneur

5 side-effects of being an entrepreneur

I know how amazing it feels when you leave your job to pursue your dream. It’s an awesome feeling. I have done that and been there myself. There is growth prospects, freedom and sense of satisfaction and many other great points. But today we are not going to focus on that because you already know all that. Today, I want to share the darker side. I want to share the challenges and problems which a person faces in his entrepreneurial journey.

I have also contacted few business owners and asked them for their experience and real-life issues they are facing, which you will read below. It would be a great thing to be aware of these challenges, so that in future you can take an informed decision on what to do and which side you should move. So here we go ..

#1 – Be ready with the inconsistent income

The worst nightmare for a salaried person can be an unknown number getting credited in your account every month. When you are into a job, you get a number deposited in your account each month, not less not more. You know the date, you know the amount and you are clear that its going to come for sure.

Things like rent, EMI, household expenses, bills and many other things are already defined and dependent on your salary and for most of the people, they just can’t afford any cut in their salary because their monthly structure will fall like a pack of cards

job income vs business income

When you are into your own work, a big problem is a variable income and this is more true in the starting years. Sometimes you get Rs 40,000 in a month and another month, it can be Rs 1 lac or nothing. Over time, this uncertainty goes down, as your work improves and your foundation gets strong. You slowly move to a more consistent income zone, but still the variability remains in the income.

A real life Experience

Amit Singh, who runs an IT company in Pune shared his real life experience of how he faced cash crunch at one point of time and how he felt about it

You will run out of money and unless you can handle the stress that will follow, you should not attempt to be an entrepreneur.

I will tell you my experience, in the initial days everything was as I had imagined, but then came a time when we had no projects for more then two months we run out of all our saved money, during that time the team I was counting on failed me, we had a very hard and stressful time, but it was ultimately my responsibility and blaming would not have solved the problem.
It took us six months to recover from that two months financial liabilities.

For most of us it’s long working hours and no holidays, for a long time you will not be able to take any vacation and you will be working for average 12-14 hours every day. You should also forget about work life balance, it will only be work.

#2 – You will doubt your decision many times

While a job has its own frustration, working on some venture also comes with its own set of psychological problems. You always wonder if you made the right decision or not, especially if your income is not as per your expectation or if you come across some challenge and that affects your business, you get many sleepless nights wondering if you took the right decision or not.

One of our readers, Rishikesh Sinha shared what he thinks about this point and he shared his thoughts and experience.

Sometimes when I feel low and analyse things around me in terms of monetary and relationships with people, including near and dear ones. I find, entrepreneurship is indeed tough and demanding. I don’t have enough money for disposal, to spend on things that brings happiness or comfort, though momentary it may be. Had I been an employee, atleast I could very well spend on necessary things without blinking an eyelid. But it is not in case of being an entrepreneur, a rupee spend has to be weighed upon. It seems the money I earn is not mine, it is of the customers.

This is about money. In case of relationships even, you find money plays a pivotal role.  Being a brother, being a son, being a neighbour, being a husband, being a friend even, my monetary role — someway or other way — plays its role. And I find it hard to comply with all these roles. I see around, being an employee people have done what they could do the best with themselves. They are happy with no remorse.

Here I find, had I been an employee atleast I could have kept many people happy (if not all) in terms of monetary. People would have looked at me as a successful and resourceful person. But in case of entrepreneurship, since they don’t see money coming out of my pocket, my existence doesn’t count.

One more benefit, that I see being an employee is that he or she becomes the extension of the organisation. This is a great benefit as a person. You are being defined with your organisation. In case of entrepreneurship, it is not the case. You and your business are alone. You are always vulnerable to predators.

If one month goes bad, you start feeling tremors under your feet and it’s really very disturbing fact, because then you extrapolate that one bad month into distant future, and start thinking – “What if the whole year goes like this?”. Your imagination takes you to extreme possibilities and you are devastated. Job has its own challenges and doing your own work also brings its own set of challenges. The image below depicts it quite well.

struggle in job vs business

Only after this has happened to you many times you overcome this feeling and stay relaxed.

#3 – Lack of focus in work

This point is one of my favorite. When I left job, I always thought that now, I am going to be my own boss, no one to disturb me and no one to questions me. I will focus all my energy and time in things which I love.

I was delighted and thought – “WOW – No one to monitor, no deadlines and no one to report to”

What an amazing situation it would be.

However, now after almost 4 yrs, I can assure you that my thinking was wrong. What seemed like a blessing turned out to be a curse. Because there was no one to monitor, and because there were no deadlines, things didn’t happen on time and the productivity went down. I didn’t report to someone, hence there was no one to push me to do things on time, I was my own boss and I always forgave myself for everything wrong I did.

When you are in job, you have a deadline, you have someone above you who will demand things and you are forced to focus on your work. But when you are on your own, its a big challenge to do things on time. The freedom comes at a big cost. I can start my work at 2 in afternoon and unless I have a great discipline, it affects my business. The above points are more true, if you have a home office kind of setup.

Here is what Enterpreneurship article says about this topic

When you don’t have a boss or company tracking your progress, it’s easy to lose focus. Your freedom to do whatever you decide with your time will backfire if you don’t stick to a schedule and plan. Today, things like social media notifications can lead you down time-wasting rabbit holes.

So understand that when you are not into job, its really really tough to follow a 9-5 kind of schedule because it doesn’t exist at all and sometimes you wonder, if a strict timeline and someone yelling on you to be late was a blessing in disguise.

#4 – You can still be frustrated

It’s very much possible that in reality your plans might not workout as per your expectations. You had high energy and motivation when you begin, but then somewhere in between things start settling down and after a while, your whole excitement fizzles away and you get frustrated at your work and different things you have to deal with in life.

Hence, it’s very important that you carefully choose why you want to leave your job and start something on your own. Just because you hate your current job, can’t be a strong reason to quit. I suggest you to find a more stronger reason to quit, because boredom and frustration are part of any kind of work especially if you are not innovating after few years and you get into that cycle again.

A lot of people say “I hate my job” . But that alone cant be always a reason to follow your passion. Here is a comment made by a reader on this topic

But before quitting job just make sure that you are leaving your job because you reallyy passionate abt what you REALLY want to do or start. You simply love it..

It absolutely does not make sense that I hate my current job and that’s why I want to quit it. Always think why you hate your job. It’s because you lack somewhere or you are not having proper skill to do it otherwise you like your job. If that’s the case start working on areas where you are lacking (Comm skills, technical skills etc..)

I am also in Software field and in future my plan is to go in Education field because i think i can really make a difference there but before that i would like to make sure that i am really passionate abt it and i am working on it..

Just because you hate your current job, does not qualify as the reason for doing some business on your own because if your heart is not in that, you will again start hating it. One of my friend Nooresh Merani (appears on CNBC) does exactly that. He left his IT job to become a full time stock trader, not because he hated his job, but because he loved trading 🙂 . Below is his story in his own words ..

The biggest reason for an entrepreneur to become one is to love some work/hobby/ passion for which one is ready to make a lot of sacrifices.

So when i quit an IT job it was the love for being an advisor, trainer , trader and not because i hated my job. Well i loved the 6 months in that job as i was on bench and getting paid for having fun and also run the blog. The worst way to become an entrepreneur is to hate ur prev job.

A lot of entrepreneurs will talk about how when there is no revenue no income and working so much for it was a dark period. It makes all of us feel good as we have taken the other road. There is a tough part when you are doing good business , good income you have to make many more sacrifices as you are a boss 24/7 and not an employee 9-5.

So for example 2007 was equally tough for me in hindsight. As very rarely met my friends, sports reduced , had free tickets to ipl from friends ( he even took his barber ) and i could not make it for even one of the matches. Work was 24/7. Luckily i was single :).

Learnt from that and had a lot of fun in a lean period post 2008 where markets were sideways 😉 . An entrepreneur needs a support staff in his/her family as the toll comes on them for the sacrifices. Entrepreneurship is like another marriage where your wife ( if u have one ) ur mom/dad and friends accept your second wife.

For them to change , sacrifice is tougher.

One standard example – every entrepreneur needs capital/ raw material which can be intellectual, hard cash or money , technology. Also capital requirements are needed to for further growth. What you do not have ? Are you ready to stay on rent ? Are you ready to mortgage property ? Many tough questions.

You will not even get a home loan 🙂 or a car loan easily. I could stay on rent for 8 yrs because of support from parents and then my wife and in laws 🙂 i still do for comfort but have an own flat too.

I always remember these lines even if i plan to work for someone or myself.  The monthly salary is one of the most harmful addictions and the only one which lets you live and not kill.

Nooresh has also done a nice presentation for those who love stock markets and wondering how to become a full time trader

#5 – Your work and life balance goes for a toss

When you get into your own work, the one big issue is that your work and life generally becomes one. Because now you are the boss. You sometimes work from home, you go to office sometimes, you might have few things to work on Sunday’s , early morning and round the clock few times.

Here is a real life experience of one of my entrepreneur friend Harsh Agarwal from his life.

The hardest part of being an entrepreneur is to draw a line between work and personal life. Especially those who started their journey before marriage, they will find it hard to balance the two life. Undoubtedly finding that balance is essential, as soon your personal life will start governing your professional life. Leaving the zone of being workaholic is not going to be an easy task, and here is one quote to help – “Family happiness is the ultimate reward for my hard work”

Success comes with a cost, and sometimes it’s too high. If your friends share the same vision or share the same bandwidth as yours, you will have no problem. If not, get ready to walk alone. Your friends will be supportive, will appreciate your work, but they won’t be there when you need to discuss an important idea or problem. Moreover, success begat loneliness, and when you move ahead in life, it would be harder to have new good friends.

The liberty of leaving your work as it is on friday evening, only to resume it back on monday morning is absent most of the times. You personal life gets affected due to this, because your family wants a separate time from you and they might find it frustrating that you are never completely out of your work.

Should you leave your job, even if you are earning a good enough salary ?

Given the kind of salaries some people are making these days, many a times I feel that one should work for few years even if they are not in love of their job and make some decent money and reach a milestone in their lives before plunging into entrepreneurship.

This is more true for sectors like Software, because I have seen some people making amazing salaries which is just not possible in first few years of struggle when you work on your own and given how important money has become in these times, I think its makes more sense (not always, but in most of the cases) to give some time with focus on making money only and acquire basic things in life first before you plunge to take risk


One of our clients has just returned from Australia and is around 38 yrs old. He has been making good money from many years, and wanted to open his own restaurant in Pune and this thought was in his mind from the time he started working at age of 27. But the salary was too good to ignore. So he decided that for 10 yrs, he will focus all his energy into making money only and reach a milestone first. Today he has a flat with no EMI, a respectable bank balance and now he thinks, that it’s a better time to take the decision of leaving his job to pursue what he wants.

So if in your case, you need to decide if it makes sense to work a little more years only for the reason of making some more money and reach a situation which will allow you to take the decision of quitting you job more easily. Only you can decide that.

Entrepreneurship can be a very lonely world

I asked Ronak Hindhocha, one of my professional friends to share this views on this topic and what has been his experience and below is what he says

Entrepreneurship is a very lonely world unless you have a co-founder who totally understands your business. If not, it can be very difficult to build a team that can match up to a level where they start knowing what you go through day in and day out.

A lot of times, you’d feel like quitting. You can quit from inside but you can’t show it to the world. With each passing failure (whether big or small) things only get tough. To a point where you start questioning whether you’ve made the correct decision by venturing into the unknown.

For entrepreneurs who are in a product business (which works very differently than a service business) it can be extremely painful especially for first time entrepreneurs. You come across so many unknowns and if you are lucky enough to survive the first 2-3 years you almost get used to the daily grind.

Entrepreneurship takes a toll on your personal life. And yet, you cannot survive without their active support. So, you’ve got to try really hard balancing personal and professional life.  It forces you to bring down your standard of living many notches down. While earlier you’d not think twice before going for a movie or spontaneous shopping spree you’d now find yourself defending why those unnecessary splurges no longer make sense.

Entrepreneurship makes you anti-social over period. You no longer enjoy social gatherings where pointless discussions are a norm. So there comes a point where you stop attending them. Your family/friends start wondering if you really care about them. Sure, you’ll piss of some of them. The true friends will remain but lots of them will stop worrying/caring about you. And the anti-social animal within you won’t care either.

You should also view this video below from Nadia Arain, where she talks about the Dark Side Of Entrepreneurship and her experience.

Having skills does not mean everything

Job and business needs different skills, mindset and dedication. Some people are not born to be employees and some are not born to be employers. It’s totally fine to know which side you belong to and accept that fact.

Neil Patel, one of the most famous internet entrepreneur shares his view about what is required for entrepreneur life

neil patel on entrepreneur life

Strategic vs Being Negative

I know that to some people, all what I am saying will sound a bit pessimistic. But that’s not the case, I am just trying to say that you could time your decision in a better way and with proper planning, which will increase your chances of your success with a huge margin.

There are many examples, where a person left the job to pursue the passion and it didnt work well and after 2-3 yrs of struggle, they had to come back to their jobs and that too at a lower salary, because their career went back by few years.

For example, imagine that a person with 8 yrs of experience today has a 20 lacs per year package in year 2015. The person has a choice

  • Leave your job in 2015
  • Make 1 crore more in next 5 yrs and then leave your job in 2020

There is no right choice here, but only “your choice”. You need to check which option works better for you? It should not happen that in order to chase your dreams, you create a situation where you regret it later and your loved one’s suffer so much, that its beyond repair. Take a responsible decision. Darren Rowse has written a great article on this topic

Doing a job can be equally awesome

I want to just make sure that many people who have started hating their jobs, just understand that there is always some kind of struggle involved even when you are not into jobs. You need to relook at things with different perspective and should appreciate what a job has to offer you. The world needs people who are working in jobs, just like they need entrepreneur. Not everyone can be an entrepreneur and it’s totally fine.

A job, might nor offer the equal exponential growth opportunity like a business, but thats fine. You dont need that always. You should appreciate the consistency of income, good work life balance and an atmosphere where you can grow well in life.

I still miss those days in my past company, where we had team outings, working with colleagues which was kind of another family, going to cafeteria to just waste time with my group (not my team), those free lunches and a complete two days of no work. You can always pursue your dream on the side slowly transforming it into a stronger part of your career and also create an income out of it. Take some inspiration from this example if you want to understand more on what I am saying.

Disclaimer – My intention in this article is only to showcase the side effects of being entrepreneur – and various experiences of others. In no way I am saying that one should not try it, but my only focus is that one should be clear about what all they can expect when they leave their jobs to pursue their passion. I am myself one, and very happy with my decision 🙂

I would like to hear your thoughts on this topic and anything you want to share ?

What happens when you accidentally transfer money to wrong bank account ?

Have you ever wondered what will happen if you accidently transfer money online to some strangers bank account ? If you are thinking thats its a rare event, you are wrong. There are thousands of real life cases where a person transferred the money to someone account and then realised that one digit in account number has changed by mistake .

Do you get the money back ?

What are the rules from the bank side and what are your rights as a customer? We will look at this topic today, so that you know what you need to be careful about !

NEFT by mistake to someone else account

Before we go ahead, I would like to show you some real life examples and complains people have given

Real Life Example 1 – How Rajni transferred Rs 30,000 to strangers account

I did online transaction of transferring Rs 30,000 with ICICI Bank on September 30th,2008.By mistake I transferred money to wrong account number which I did not intend to .I wanted to transfer money to Adarsh Kumar A/C – 000501518633 but by mistake i transferred it to someone by name Virender Asati A/C 000501518366.I gave written letter to ICICI bank ,GT Road ,Jalandhar branch on Oct 4th which they are not able to trace and then I gave one more written letter to ICICI,Dwarka Branch ,Sector 5 ,New Delhi where I am holding the account in November and also sent several emails to them through net banking but ICICI back says that they can not transfer the money without Account holder’s permission . (Source)

Real Life Example 2 – How Vipin by mistake sent Rs 1,00,000 to strangers bank account

I am writing to you for a payment of 1 lac rupees through NEFT transfer on 2nd April 2012 to my sister Meena A/C . But due to a very high level technical mistake by HDFC my payment didn’t receive to my sister a/c whereas it had gone to other person account in some where. After few days when I enquired about that same we came to know that you have filled a starting digit incorrect that’s why your payment had gone to other person accounts. Here my question is to hdfc if anybody fill any information inaccurate, account will not be added as i know but in my case my all entries was correct except one digit error as you are telling us. It’s a universal awareness that there are so many mandatory requisite information criteria; when they not simultaneously completed transaction becomes failed like unmatched IFSC Code , unmatched city and even error of gender.

From that date I called so many times to customer care and visited the respective branch but I am not getting any proper answer from them and not knowing that what action is taken from your side. This is very sad to me that your are not taking any action and not giving me any assurance of my money. (Source)

Only “Account number” matters for online transfer

Let me give you shock of your life now.

Do you also think that if you transfer money to someone by adding their name, accounts number and IFSC code and if one of those does not match the transaction should fail and you should get back your money in your account. Right ?

But its far from reality ! . As per RBI guidelines, at the end of the day only bank account number should matter and name of the account holder and IFSC code are additional information which should be ideally checked by bank on their end, but there is no rule like that.

If you mess up with the account number, the transaction can go through you the money will be transferred. Its totally a bank choice and a “suggestion” from RBI to banks that they should ideally match Name and IFSC code before the transaction, but its not mandatory.

Below is the RBI notification for you to read, which clearly states this. I suggest you read it fully to understand how the banking world thinks and works.

RBI Notification for using only account number for online transfer

Responsibility lies with the remitter and not beneficiary

As per RBI directions, the final and sole responsibility of cross checking the account number, Name of the account holder, amount and every other detail lies with the remitter (the person who is sending money) and not the beneficiary (who is getting the money) . You can check numerous times before clicking the final button and after that no one else is responsible for your loss or transaction.

You as customer can not blame the bank to not check details at their end. There are thousands of cases where while typing the account number, one last digit got interchanged with another digit and the person did not realise this and their money is then at stake and in most of the cases , they never got it back. (You can learn more about NEFT and RTGS here)

If the account number does not exist, then surely the money will come back to you, because there is no valid destination to send the money. But if the account number exists and its active, then there are high chances that the transaction will go through .

What you should do if you have accidentally transferred money to wrong bank account ?

If you have made a mistake of transferring the money to a strangers account, then you should follow these steps mentioned below

The first step is to make sure you inform your bank the moment you realise that unintended money transfer has taken from from your end. The bank will then contact the beneficiary account holder and try to explain the situation to them. They will ask the account holder to give them permission to reverse back the transaction. In most of the cases, I have read on internet that the recipient of the money have agreed for the reversal (We have good people in this world, despite widespread belief that world is evil) . Below is a real life incident where the person sent back the money.

Getting back money after wrong transfer of money

In some cases, where the other party is greedy (when amounts are quite big) , the other person might not revert back at all or just delay the whole thing and withdraw the money or just don’t take any action . In which case you really are in a fix and it becomes almost impossible to get back your money.

You should then meet the branch manager of your bank, who can go one step further and talk to the destination bank and if they can help in this or in communication with the beneficiary.

One important point to note here is that bank cannot reverse the transaction from their side without the customer approval, because its a breach of agreement and is not the right thing. You never know what exactly is the whole story and who is saying truth (I can pay you and then just say, it happened by mistake)

icici response in case of wrong NEFT transaction

3 Precautions you should always take while transferring money Online ?

Precaution is better than cure, I personally believe that we are ourself responsible for any money transfer done online. Nothing stops us from taking extra precautions while transferring money online.

Lets see few things you can do ..

Trick #1 – Use CTRL-F to verify your account number

Most of the times, we are typing an account number which we have got in our emails, we look at the number (few digits at times) and then type it in other window when we are adding the beneficiary. What I personally do is once I have typed the account number (you cant copy paste the account numbers in all the bank website, as its disabled) . In that case you can just copy your account number from email, and type CTRL-F and paste the number there and you can visually see if it matches with what you just typed. Below is a screenshot I created for you to understand what I am talking about..

copy paste technique wrong neft

Trick #2 – Transfer Rs 1 first and test the transaction incase of big amounts

If you are transferring a big amount to someone, you can go one step ahead and first transfer Rs 1 and then confirm with the beneficiary if they have got it, and then on confirmation, you can trasfer the full amount. But I suggest to use it only in extreme situations when you really want to make sure if the account is genuine or not. At times, you might come across someone who gives you their account number and you are aware that they are careless by nature, and might have made some mistake while sharing account number, In that case you can take this extreme precautionary step ! .

Trick #3 – Verify the account number from right to left

Generally we are programmed to read left to right and we also match the account number that way, truly speaking, it might happen that we sometimes get fooled by our own confidence (4 zero , might look like 5 zero) .. So its better to also cross check the account number digit by digit from right to left. I personally cross check an account number digit by digit 2-3 times because I transfer any money online. I have never faced any issue of wrongly sending money to strangers account or sending excess money by mistake (One excess Zero in 10,000 and it becomes 1 lac) ..

Spend 1 extra minute to save your self big trouble

I hope you are clear by now that its your mistake if you transfer money to someone else account and you cant held someone else responsible for your mistake. Hence its always better to add the beneficiary account with precaution. Always cross check the account number 2-3 times.

I would be happy to know if you benefitted by this article and if there are any real life incidents around this area. Also please share anything related to this topic in comments section.

5 Inspiring Success stories of people who actually increased their Income? [Bonus FREE EBOOK Download]

With this bonus article, our increasing income series comes to an end. Over the last few weeks, we have been writing articles which focused on increasing income and also shared lots of ideas around it. We decided to end this series by sharing some interesting real life stories.

We also take this opportunity to thank each one of you, for your participation during increasing income series. We received some amazing comments and numerous emails in which, people shared their unique attempts on how they actually increased their income. Each email sharing has flavor of success in it and you will love reading them.

Below, We have shared 5 real life success stories (name changed at some places as per request). Few of these success stories are sharing from our readers who attempted and succeeded in creating an alternate income. They took right amount of risk, they figured out a unique way by which they can share their talent with more and more people, they converted “increasing their income” into a project and the results have been amazing. Here they are!

Success Story #1 – How a Dentist worked on increasing his income

One of our readers who is a dentist by profession runs his clinic in Mumbai. He read the article on increasing income and decided to take some committed steps by which he can also increase his annual income. He has been practicing from last 4 years now and has good number of patients who visit his clinic on regular basis.

dental kit

He took some professional help and designed a good dental kit, which can be of help to his patients and their family members. The dental kit includes some books, video CD, some products and some other educational material in it. He priced the kit for Rs. 1999/- and showcased the kit in his clinic’s reception area. In the last 15 days, they have sold close to 10-12 dental kits and he is happy to see how some extra money is coming in with his creative effort. If you look at the yearly numbers, you can see that a good alternate income would be generated.

With this new offering he is able to serve his patients better and he could also increase his daily and monthly income. Some of his patients have also started sharing the kit content and material with other family members and friends. We congratulate Dr. Ajay (Name changed) and also thank him for sharing his success story with us.

Success Story #2 – Come back of Yoga Teacher

This story is of a marketing professional who turned into yoga teacher. His sharing brought tears to our eyes (Manish was really touched by his sharing and money story). He is in the field of marketing and works as medical representative for a well known pharmaceutical company. His expenses are higher than his income and so every month he finds it difficult to manage his payments. He wanted to increase his income from a long time so that he can start his investments. It has been 9 years in job but because of EMI and other compulsory expenses he could never invested on monthly basis.

yoga teacher

He read the second article on increasing income series and he decided to increase his income by 50%. He is a certified yoga teacher and after a gap of 5 years he decided to once again teach yoga to people. He decided to take some private yoga sessions in morning hours. He started sharing this idea with people and he got 3 students/clients in Nov first week. Though he has not yet exceeded 50% of his income as per plan, but he is now very close it. With this action he will be able to serve others and at the same time he will also be able to earn additional income from his students.

We congratulate this yoga teacher for his come back and for the success. We are going to assist him in starting his monthly investments from Jan 2015

Success Story #3 – Real estate agent who started leading real estate workshop

Real estate is an area where very few quality programs are conducted for investors.  For those who want to invest in real estate it is important to understand the dynamics of real estate world. There are some very simple ad effective strategies which you can learn to make money in real estate world.

real estate workshop example

This guy from Bangalore took on a project to increase his income and out of his commitment he announced his first workshop for his close friends circle and clients. He got 12-15 participants for his pilot workshop and the feedback has been very encouraging. This workshop is not sales driven or just to showcase new properties, it actually educates investors on the legal front and other aspects of real estate buying. He has priced the tickets at Rs. 5,000/- for a one day session, which would bring in a good amount of secondary income. He is even planning to conduct it in various cities if it works out well in future.

We congratulate this real estate agent for starting such wonderful and informative program for real estate investors. As and when we receive full details about this program we will share the details with our readers.

Success Story #4 – Lady who started preparing dog food

This lady’s story is truly inspiring and so we thought of sharing the same with all of you. She is considered to be an expert when it comes to dog food preparation. She has been in this business from last 3 years now.

She is fond of dogs and on one fine day she found that her dog was not happy with the dog food products which were available in market. She tested some recipes on her own and prepared some dog food packets which she also shared with other dog owners in her city. This is where others could see her talent and her first order came in, slowly she started becoming more and more popular amongst other dog owners in her vicinity.

dog food at home

Today she supplies dog food to almost 50 plus Dog owners and she also owns and runs hostel for pets. We congratulate Latha for sharing her talent with more and more people. We also take this opportunity to thank her for being our reader and for sharing her story with us.

Success Story #5 – From homemaker to cooking expert to bestselling author

This story is of lady called Jenish Parmer (Real Name). She happens to be good friend of my wife. I recently attended an event where she launched her book called “Heaven on Tongue”. My wife insisted on sharing her story with jagoinvestor community.

heaven on tongue book

I (Nandish) and my wife (Himali) have witnessed her professional journey and success so far. She loves cooking and has always been passionate about cooking. She started her journey by participating in one national level cooking competition, she won the competition and a big turning point came in her life. She continued to teach and share her passion with more and more people and slowly she started her catering business.

She recently authored her first book called “Heaven on tongue” and right now she designs menu for some of the most popular restaurants in India. Her story is real, inspiring and easy to relate with. She is not a reader of jagoinvestor but still we have included her story in this article (we called her and took her permission)

FREE Ebook download

Our “Increasing your Income” series has ended with this article. We have compiled all the articles and created a nice eBook which you can download and read it offline on your computer or on your mobile (it’s a pdf file) . Download it by clicking here (right click -> save as) , or by clicking on the image below.

Increasing your income ebook download

Please share your views about these 5 real life stories. Do you get inspiration from these stories ? Do you want to share your thoughts?

13 awesome ideas to make extra income other than your regular job [part 5/5]

Do you want to make extra income on a consistent basis apart from your regular job ? In this 5th article under “increasing income” series, we are going to look at some of the ways you can make some extra money other than your salary. I will be discussing 13 ideas, out which which most of the things can be instantly tried out by most of you.

Note that, here were are not talking about creating passive income which requires huge investment. We are mostly going to talk about ideas which can be implemented without requirement of huge capital, but only some time and dedication.

Lets look at these ideas one by one..

1. Consulting in your domain

If you are expert in some area, you can always give your consultancy service to smaller businesses who cant hire big companies. When we were brainstorming with a client of ours to generate second line of income, he identified that he has some great knowledge in the area of terrace gardening. He could see that he can help families with large enough terrace to setup their own balcony garden and earn some fees over weekends or extra time.


Look back at what all you know and have learned over these years, and you will realise that you have some really deep knowledge in some field, and surely there are many who are looking for someone like you, who will guide them well for a lesser fees (compared to professional fulltime companies)

2. Referral Business

Connecting two entities is another great way to make extra money by spending less energy. So can always have an agreement with some business entity to give clients on referral basis and earn a commission. I recently hired a designer for some work and I asked him if he knows someone who can PRINT the designs for me. He referred me to his friend who done the printing work. I am sure he must have got some cut for the referral and there is nothing wrong in it. Its a smart way of earning money.

Here is what Ajay shares in our last article.

I used to refer students to a local computer institute where i myself learnt ms office. they used to pay me 10% of the course fees paid by the student. i used to earn average between 1000 to 3000 monthly those days.

You might not know that even builders pay you 20-30k for each client referred (who bought the house). So now, have you got a friend who is into business or some kind of service ? Just talk to him if you can pass on clients to him and earn some money on it.

3. Create products and sell on Ebay

With websites like Ebay and OLX, you can now sell virtually anything on internet to those who are looking for products. So you can do some handicraft or anything else, which can be created at home in extra time and then it can be sold on ebay. Or you can find some local product which others would find awesome, but its not available in other parts of country and then start selling it online for a profit. Even you can look at some products which are selling at huge discount at stores (wholesale market or under clearance sale) and then sell it on amazon at regular price.

Earning from Ebay

Earlier, when you wanted to sell something along side your job, you needed to have a shop and someone was required to be at shop all the day, not anymore !.

Ramit has a great article dedicated on this topic.

4. Create a Course and Sell on or

If you are an expert in some area, which you think can be taught to others by creating a course out of it, you can always sell it on or and make money on the fees recieved by the students. So if you are an expert on cooking, Yoga, SEO , Designing, MS Excel, Java, Python … whatever.. Create a nice rich course , record your videos and done ! .. You can tie up with these websites and then earn a lot money. Just understand those models and work on it.


5. Freelancing online

If you have extra time with you over weekends or after your job, you can freelance and take small projects. There are many websites like , or where you can earn money by working on projects. There are thousands of people in India who are working full time on these kind of freelancing websites and believe me, they are earning in lakhs. Look at it as a serious way of making money and not just a time pass activity.

earning from freelancing

6. Become a Tutor online if you love teaching

If you have a knack for teaching and if you are an expert in some subject, you can become a tutor online for students. There are tons of websites like TutorVista or where you can try out this. You would need a great internet connectivity for this. It can work best for someone who is ready to work late in nights as many students from US and Canada would be right fit for you then.

7. Tutions at Home

This is the old favorite way of earning some side income. You must have listened to great stories of how many people have supported their families and their own studies just by taking tuitions. Then why not to extend your income even if you have a job ?

Do you know Music ? Are you an expert in Maths ? Vedic Maths ? Yoga or may be cooking ? Do you live in a residential society which has 100’s of other families? Then tutions is a perfect thing you can start give you are good at what you claim to. You can always dedicate 2 hours (if you really have them) and do some basic advertising in your apartment or nearby places and take students to teach them at home. The best part of this kind of tutors is that you refresh your dying knowledge, earn some money at the comfort of your home and you kill time which goes into unproductive things most of the times. is a good place to register and start with.

7. Rent your empty house/room on

Do you know that next time you head over to Goa for a family holiday, you can just rent out the whole house for 6-8 people at just Rs 5,000 a day . Thats correct!

airbnb in india

Airbnb gives you great way to rent your house or even an empty room, if you want to earn some extra money out of it. You can always give your extra room to travellers and people who are looking for 1 day-week stay on Just put pictures of your house/room, explain your conditions and rules, put the facilities and thats all. Clients will find your listing, make the payment online, and if you accept, you host them!.

The best part is that you keep 97% of the fees paid and you don’t have to search for clients yourself . Serve them as they come. If you have a full house at some great tourist place like Goa/Shimla/Manali or those kind of places, you can put your whole house on rental basis. Many people who have a second home or extra room, hire a maid and offer the full range of services of a regular basis. Imagine if your extra room is rented even 5 times a month and you earn Rs 1,000 from it ? Its Rs 5,000 extra income !

8. Teach someone live on Google Helpouts

If you have a skill, you can teach someone live on google helpouts. There are tons of categories like Arts and Music, Cooking, Home and Garden, Fitness and Nutrition and many more .. which you can choose from.

Google Helpouts

In this era of globalisation, I am sure there are enough number of people in the world who would like to pay to someone to learn some thing unique.

9. Do Odd jobs at

Imagine you want your logo/brochure to be designed or want your website andriod app to be created ? It can be done at only $5 (Rs 300). There are tons of odds things you can do at . Most of the times its a small manual task, which is super easy for you, but tough for others.

A small assignment can be done at for $5 and you can raise the fees depending on the complexity involved. There are tons of people in world who are looking at delegating some task at a small fee.


I have used it 2 times myself to get some work done and paid $5 two times.

10. Cooked meals Pickup

I recently ordered some amazing Egg Biryani in Pune (the most delicious) I had till date and the lady sold it from her home through registering at I had to go to the place to pickup the biryani.

That got me thinking how many people in our country cook some amazing things, but never capitalize on it. So if you have people at home who cook some speciality and you feel that it will loved by people in your city, you can start pickup service at home. Get the order, prepare the food , opt to deliver at home (at extra cost) or ask them to pick up from your place. And if you are thinking about preparing “Andhra meals” in Pune, I am your customer already.

11. Starting a Creche at Home

I am not talking about professional/big size creche here. If your home is big enough and there is a scope of it, a simple creche can be started. There will surely be some market for it. If most of the couples living around you are into full day jobs, you can surely cash on this opportunity and think about it.

Even if it means renting another 1 BHK flat and starting your creche there, its worthwhile. See how you can actually implement this – I just gave a direction

12. Freelance writing for someone websites/newspapers

If you are strong in writing and can put your ideas on paper in creative manner, then you can write for newspapers and magazines. I get tons of emails myself for freelance writing (i don’t do it but). Here is what Abhijit kulkarni has done..

earning by freelancing

Checkout how you can put your writing skill to earn more..

13. Sell nutritious health drinks around the Park nearby

One of our readers shared this idea with us. If there is nearby park or place, where people come for walk, jogging early morning, then you can always sell health/vegetable drinks and various healthy breakfast too. I am sure it will help you also personally to take care of your health and earn some extra income.

If you don’t have some one at home to do it or you lack time, you can employ a part time person to do this for 2-3 hours and pay them salary or a profit cut.

14. BONUS IDEA – Be a passive partner in someone else business

I know most of the people can’t do fulltime business, because they are into a regular job. But you can always invest your money, your ideas and some basic level of administration to run a side business along with a 3rd party whom your trust.

There are many awesome people, who have the ability and passion to do some business, but they dont have money or experience or some ideas to implement. You can partner with them and offer to invest money in the business and also contribute your time over weekends or after work if its possible for you.

Example 1 – Image a person who has a shop, you can help him/her start a internet cafe – because you are an expert in computers, networking and know the technical side of how to do it. You can build the systems and overall business. You do the backside work and the other person does the front office job. Divide the profits !

Example 2 – Do you know someone who is looking for a job and can drive well, but has limited time? How about you buy a Maruti Van and ask him to use it to start a pick and drop business for children in school . Divide the profits ! ..

Sonme months back, I heard the founder of in a TIE talk, where he shared that when they desperately needed some money in the starting years of their business, that time – one of the employee of an IT company put in Rs 1 lac in their business and within a year or two, he got back 20 lacs return through an exit option when they got funding later (it was something like this, if not exact)

Can you see a point I am making? I know its not an as easy as it sounds, but at the same time, its not as tough as you imagine. You need to take some level of risk and try out these things if you want to earn extra income.

How to handle .. “But .. “

I know these ideas must have pumped a lot of excitement in you and a lot of you might have a feeling of “But … and followed by some reason”.

Note that earning an extra income apart from your regular job, takes huge commitment. Its simple, but not an easy task. Its not for weak hearted. You will have to keep aside some of your reasons,come out of your comfort zone and take some pain in order to implement it.

It might means waking up early, it might mean sacrificing something in life (Read the story of Anupam on creating second income) , you might have to redesign your schedule, ask for support from others and taking some tough decisions. There is no shortcut when you want to make money in life.

This is exactly why most of the people never create any additional income, because they never take efforts for it. They are just focus on reducing their expenses, where the possibility is limited. Today I invite you to look at the other side, thats INCREASING YOUR INCOME, which has unlimited potential.

Also do not focus on the quantum of money you earn in the starting. What about Rs 1,000 extra in the first month ? It pays your PHONE BILL ! . Thats big thing .. Its EXTRA money afterall. I hope you loved these ideas and you would surely try out atleast one of these over the next 1 month. Plan for it and take action.

I would like to hear some more ideas from you, no matter how silly or crazy they sound. Even if its something which can earn you Rs 100 extra, please share it. Any contribution is appreciated.

Interview with Anupam on creating 2nd income source along with his regular job – part 3/5

Do you want to know how someone created his 2nd income other than the regular 9-5 job ? In this 3rd article for “increasing income” series (part 1 and 2 here), we present an interview with Anupam Mehra from Bangalore, who is one of our blog readers and has agreed to share his story of creating second income in his life. I was very impressed with him because he has done something which most of the people only imagine and never make it a reality by taking extra efforts for whatever reason.

Having Second Income in India

So I mailed Anupam 7-8 questions to answer, so that it can be shared with you all. I am sure you will get some great ideas from him, a lot of motivation to something similar in your own life and at the end, lets start a new kind of culture on this blog where we share our knowledge with others so that it can enrich others life in some way.

Here is the interview ..

1. Can you share very quickly about yourself and what you do right now in job ?

I have post-graduate degree and have about 8 years of experience. My education and profession are in the same field, Electronics. I have broad range of experience in all aspects of product design. I was lucky in a way that in both the two companies that I worked for, there were no set job definitions. For example, some companies have set roles like development, testing, documentation, verification etc. But, for me I had to do all of this at some point of time. This helped me gain good experience overall. I think for all new graduates, embrace this sort of opportunities since it will give you a good idea on what interests you. You can choose to specialize in something that really interests you as you gain more experience.

For me alternate source of income did not mean alternate field of profession. I am really passionate about my area of work. Initially for earning 2nd income, I completed a few projects on freelancer websites like Elance and others. Some of the projects were not related to Electronics, for Ex: Visual Basic Automation, but for most part I did projects in my field of interest only. Some of the projects I quoted a very low price to ensure I got the project. For the past one year, I have been consulting with a US-based company. I am guiding a group of engineers in verifying a very complex design. I have provided a lot of automation tools that I developed, which is helping the engineers improve their productivity.

2. How does it feel to have another source of Income apart from your professional active job income?

To begin with, I wanted more control in my career. I did not want to worry about layoffs, appraisals, not getting onsite etc. I also wanted to see if I can get better at what I do. Of course making more money feels really great. I feel content professionally which makes be feel relaxed at home and I spend more “quality” time with my family. It just means I can save more (and of course my wife thinks she can spend more…).

3. Was it tough to start earning alternate income ? Because most of the time everyone has this complain of “not having enough time” ?

Not having enough time is the first thought that will come to our mind. To being with, I evaluated how much time that I spend on unnecessary activity. One of the first things that I did when I started freelancing was make a commitment not login to facebook, gmail, whatsapp etc while at my work. I am required to spend X amount of hours at work. I was determined to use all this time efficiently such that I would not have to spend extra time in the office. Of course, sometimes I would have to work 14-16 hours a day to meet some deadlines. But mostly I wanted to be disciplined and not spend extra time in the office unnecessarily.

And the good thing about freelancing is you can do it in your own time. After I come home “early” from work, I would spend time with my family, do all the regular stuff, put my 2yr old son to bed and login to work. This sometimes would work well, since my clients would be in the US or UK and the time works out perfectly. I would also wake up at 5.30 a.m. instead of the usual 7.00 a.m. on weekends just to get some work done before my family wakes up. At any point I have not worked for more than 15 billable hours a week. I had made this clear to all my clients as well.

4. How did you identify that you can earn alternate income – Because most of the people complain – “I have no idea what can I do other than my job ?”

The starting point for me was, identifying my strengths. What it is that I can offer better than most? How much time can I spare comfortably on a weekly basis? I explored teaching options that are available, both offline and online. I started off with this initially. As I mentioned before, Visual Basic programming was a hobby for some time which I used to generate some income. Basically once I had an open mind, I was not hung up with the type of work. I was more interested on the service that I can provide and its quality. I offered real value for money initially as I built my reputation on the freelancing websites and then slowly picked and chose which projects to bid/work on. So the question is “what skills do you possess that you can leverage to generate an income?

5. What is one single thing you consider as most important thing one should have in them if they want to create second income source of income ?

Attitude – “Go-Do”

What I mean is I lot of people including me used to have these great ideas when having lunch/tea with colleagues and friends. Some of us have this frustration that “I am wasting my time”,” I should be doing a lot more”, “common guys, let’s start a company on our own”.

But somewhere in the daily grind, we remain in inertia… mostly because we want that comfort zone. You are the CEO, CFO and CTO of your one-person enterprise, be it being employed in a company or working for an alternate source of income. Having the great attitude of believing that you can do it and offer outstanding service to your clients will surely help you succeed.

6. Do you think now when you have a 2nd income source, you have higher confidence to start a 3rd alternate income source too ?

Absolutely! The possibilities and opportunities are limitless. I have just started. I intend to continue this. Some of my ideas require me to invest some capital. I have earmarked a percentage of my Additional Income to fund these. Multiple sources of income -> that’s the long term goal.

7. How has your financial life changed after you have started getting an alternate source of income ? Have your savings gone up ? Has your quality of life improved ?

I have to mention this here. My following of Jago Investor started when trying to correct my mistake of investing in endowment plans. So in the past two years I have corrected my initial mistakes (with the help of Jago Investor blog, Pattu Sir’s Blog etc) as well as started generating my additional income. So, both of these two factors have definitely improved my financial life. My wife and I made a combined decision on what percentage of regular income and additional income we will save. Rest is for spending. By doing this, we are living and saving comfortably.

We save most of our additional income by the way. We do not want to get used spending away this income as it might cause lifestyle inflation which might be difficult to recover from.

Since I am spending my personal time with generating additional income, I am more conscious on spending time with my family. I try to make it “quality” time. I regularly take casual days off where I am completely cutoff from both regular and additional work. I must say I have a supportive wife as well.

This additional income helps me in not worrying about the small stuff. Instead of worrying about the expense most of which is not in my control, I “worry” about increasing my income. This has led to a smoother family life.

8. Do you think having an alternate source of income is some kind of luxury or something which everyone should mandatorily have ?

Different folks, different strokes Manish!

It would be nice to have. I also recognize that some people will not be able to do it. Some folks might genuinely not have the time or would love to spend every free minute with their family or would be really happy with what they earn. My suggestion is people should evaluate if they really want to and can work additionally to generate an income.

Second source of income builds in some security in case of loss of regular job for whatever reason. It could also be a way for a person to transition from a regular job to full-time entrepreneurship.

Sometimes I also wonder if hours of research while choosing a mutual fund which can generate additional 0.5%-1% returns is worthwhile. Can this time be better utilized in updating skills and working for additional source of income?


I would like to thank Anupam to accept my invitation to share his answers for my questions and share it with everyone else. I am sure you must have learned few things from this interview. You might have also got some validation from this interview about your own imagination and thinking. You can also see that someone has really done it and it works and now you will do it in your own financial life

Next week in the 4th part of this series, we will be talking about passive and active income and some ideas around it.

Now the question for you is – Are you working on creating alternative income source somehow ? Have you tried it ever ? and failed ? or succeeded ? Please share whatever you want in comments section below and lets have more conversation around this topic !

“How can I ask my Parents to write a WILL ?” – Are you dealing with this uncomfortable issue ?

Enough has been written about the importance of WILL and why Estate Planning is important and how not writing a WILL can cause trouble to their family if some unfortunate event occurs. However I do not see enough conversation around how kids of today can communicate this hard fact to their own parents and inform them about the consequences of them not writing a WILL .

I know this sounds a bit crazy and if you “dare” to even think of asking your parents about their WILL, the world around you will label you as the greedy son/daughter, who is behind his/her parents wealth who has shown their true colors :).

But calm down, I know its not the case. If you want your parents to write a proper WILL, that does not mean that you are greedy and want your parents wealth (though there are some cases like that). You might just want them to not leave the confusion around or any unneccessary legal complications

The Awkward Moment while talking to parents for writing WILL

Every week, I see atleast 2-3 comments from our blog readers, where there is some property issue and clash between family members because its not clear who gets what part of the pie ? In almost all the comments, I can see that there is no WILL written, everyone in family is clueless on what happens next and what is the first step, everyone has their own reasons of why they deserve more than the other and its gets real messy !

The Uncomfortable Situation

The young generation is facing this as a challenge these days. They can very clearly visualize the future confusion they are going to encounter if their parents do not write their WILL and plan for their assets to be distributed properly, however its nearly impossible to talk to their loved one’s about writing their WILL because they will be labeled as “the greedy son/daughter” .

If children even give a slightest hint that they want their parents to write a WILL, its often taken in a wrong sense. Parents might think that you now want “your share of the pie” . The feeling of guilt in children is so high that they prefer to keep quiet and just be with the flow and face all the issues in coming future.

What can be the issues if WILL is not written ?

Before we move forward, I wanted to share with you what kind of issues a family can face incase of missing WILL

  • They are not aware about the wealth of the family and where its kept
  • They have to hire a lawyer and complete lots of legal formalities incase some dispute arise between family members
  • The “blame game” starts in family and higher chances of strained relations
  • Lengthy procedures of transferring assets in other names

3 Real examples of real life issues faced by Children

Example 1

Hi Manish

My father died in 1999 and he left no will. I have one sister elder to me and she is married since 1980 and living with her husband. Now i want to sell the house in which we are living since last 30 years. The house is still on name of my father. When i told my sister to sign on papers as i want to sell this house, she became greedy and started asking for her share.

Throughout my life I have kept my parents and spent lot of money on their health and livelihood. She did nothing. Even i have spent lot of money on renovation of this house.

Do i need to give any share to my sister. Should I fight a case. Please guide me

Example 2

Hi Manish,

My father in law purchase a land but there is no will, in my family there are my father in law, mother in law, my younger brother in law & his wife & my husband. I know that after his death this land will divided in equally 3 parts – between his wife (mother in law) & his two sons. But I want to know that can my mother in law gives her portion of land to her younger son, because she prefer & loves to younger son, no elder son.

But where my husband wants to take the land equally between he & his brother in future after death his mother (my mother in law). Please give advise what to do in this future problem, so that my husband & his brother not to fight for land in future,

Example 3

Dear Manish

I want your opinion. My father bought a plot in 1996 an died in year 2000 leaving no will survived by me (married daughter) my brother and my mother . My mother constructed a house on the same plot with the help of my brother. the registry of the plot is still on the name of my father but house is on my mothers name.

Now my brother wants to sell the house without my mothers consent who is very old. Can i stop the sale as heir.

In the above examples, can you see the confusion the family has to go through. If there was a WILL written, I am sure the confusion would have been much lower.

How to Encourage your Parents to write a WILL without asking them directly ?

I know its tough to talk about this directly with parents or even in-laws (your spouse also faces the same issue with her/his parents) . So here are some alternatives which can be chosen

1. Make your Own WILL and consult your Parents on it

Most of the parents to some extent understand the importance of estate planning and why they should write the WILL . But somewhere they do not take the final action and feel that still its not the ‘right time’ .

The best thing children can do is, start working on your own WILL and let your parents learn about it as an example . (We can connect you to the right company who can help you write a WILL , fill the form here if you are interested in that)

Even if you have very less networth (couple of policies, and some money in the bank) , still its worthwhile exercise, because you can involve you parents in the process and help them understand what kind of issues arise when WILL is not written. Share with them the process, registration, how one can change the WILL later and other related things. I think some of the parents are aware about it already, just that they never initiate the process of writing WILL and there is no specific reason for it, they feel they will do it “someday” .

2. Educate them using some one else example

Another thing you can do is, as an when the right moment comes, you can tell them about “someone else” and how they are suffering because of absence of the written WILL and the legal consequences they have to face.

You can surely find someone in your friends circle or some one in your relatives who is the right example for this. You can initiate the casual conversation with parents about what they are going through and help them understand that the central issue is absence of written WILL and missing estate planning component. This can put the right food for thought into their mind on estate planning using these examples.

Parents Insecurity and why they do not write the WILL

Almost everyone of us have old hindi movies where parents gave away the property in their children early in their life in the hope that they will treat them well , but their children do not care for them later and parents are in a fix now, because they cant take back their property from them.

A very similar kind of unconscious insecurity is there in every parent’s mind. I am not saying they doubt their children, but somewhere they do not want to take the risk and want to be 100% sure on how they should pass on their wealth to their children and they keep on waiting for that right moment. Not directly related to this topic, but here is an example of what kind of issues old parents are facing.

Show your Parents you are there for them

It might happen that even in your case this insecurity is coming in between. Its important to have the positive atmosphere at home and parents should be confident enough that they are secure and should have high confidence in children. Only then estate planning will become an integral part of every parents financial life and they will do it much before in their life.

I hope everyone who is reading this article, understand that this article is just raising this topic to make sure it helps parents as well as children and they both understand this important step in financial life and its positive and negative effects. Wanting your parents to write a WILL does not always mean that children are greedy, all it means is that they want to make sure the future complications are avoided by completing the right formalities.

I would love to hear what kind of views you have and what you think about this topic ?