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Guide to financial planning

Written By Unknown on Senin, 02 Februari 2015 | 18.00

Financial planning is not a put off. It is an easy to understand and essential part of your life. Give some time to learn and you start a wonderful journey to financial freedom.

FINANCIAL PLANNING. If that word is a put off, don't let it be. It's the all important word in your money dictionary. Here, we simplify it for you.

Step 1 - Put your finances in order
We spend more than half our lives working and saving, but hardly spend any time planning on how to put that hard-earned money to work more effectively. So, how do you plan your financial life?

Put your (financial) house in order
Financial planning starts with a review of your overall financial profile, and not at investing. Before rushing to build an investment portfolio, you need to address the following issues:

Insure your health, life and assets
Start by protecting your family's current lifestyle against events/ expenses beyond your control. Buy appropriate insurance policies for your medical expenses, life, car, and other important assets.


Calculate: How much insurance you should buy

Repay high-cost loans

Paying credit card bills on time can save you more money in interest costs than most of your investments could earn you. Ditto for borrowings that cost you more than 15% pa. So, put high-cost loans behind you, and only then start building your investment portfolio.

Put money aside for emergencies

Deploy some money in short-term investments that can be encashed on demand to help you tide over unforeseen needs and emergencies.

Draw up a savings plan
Income - Expenditure = Savings

Do not leave this equation to chance. Make a savings plan. Put away as much as you can, as regularly as you can, aim to save at least 15% of your take home annual income.

Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.


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Know your customer’s buying psyche

If you can anticipate every objection your customer has on his buying decision…

If you have researched your competition market and found satisfactory solutions to all these objections…

Would it be reasonable to assume you will be able to make a 100% sale??

Selling is an art and the art lies in understanding how your customers like to buy. As a seller you might approach your customer geared with the precise answers to tackle any technical questions that is thrown at you. However, sometimes that is not enough to crack the code of the buyers mind.  Selling based only on logic rarely gets results. Selling should be based on the cerebral & emotional needs of customers.

A thorough homework is obviously necessary before confronting a client. Details about the market, attitude of the industry, requirements of a company, budget of your customer; proper information on these categories are simply essential before the sales meet happens.

Any sales engineer should pitch only after they thoroughly understand the business of the customer. He should show the worth by highlighting the additional value that his product comes with. But a successful sales person should also spend considerable amount of time to understand the behaviour, the mental state and the attitude of the customers behind the buying process and then pitch his total worth in sync with the customers' total buying state.

Buying and Selling Attitude

How would you understand this buying state of your customer?

One has to keenly observe the customer and the particular persistent manner in which the company representatives expresses themselves verbally and non-verbally across buying and usage. Thus, one needs to understand a customer's desires, fears, and motivations. Without this understanding, we can only guess as to why they do or don't do what they are doing. In other words, their behaviour is the gateway to understand whether they will buy from us or do not buy from us.

Every human mind works on the theory of 'Glass Half Full or Half Empty'. You need to understand if your customer is a person who is trying to see at all that the product has to offer that will help add value. Or, is he a person who is constantly trying to find out things that are missing in your offering.

The key is to see yourself as different customers see you.

 

See Yourself as customers see you

ANALYTICAL DRIVER
Customer You Customer You
Critical Industrious Domineering Determined
Indecisive Serious Pushy Single-minded
Moralistic Orderly Harsh Thorough
Stuffy Vigilant Severe Decisive
Exacting Persistent Blunt Efficient
AMIABLE EXPRESSIVE
Customer You Customer You
Comforting Agreeable Manipulative Talkative
Retiring Dependable Undisciplined Dynamic
Awkward Supportive Hysterical Personable
Dependent Willing Reactive Enthusiastic
Ingratiating Concerned Excitable Stimulating
 

(TK Ramesh, CEO, Micromatic Machine Tools Pvt Ltd)


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Prudent to book profits; mkt rally unlikely: Experts

With both the Indian Equity benchmark trading soft on Monday, market expert, Ambareesh Baliga says the sentiment is positive but people are not yet buying.

Sudarshan Sukhani of s2analytics.com says it is difficult to predict the market move and does not think market will see a rally. It is very choppy and not the time to buy anything, he adds.

"At the moment market is not appealing for short-term and will look at sectors like IT, Pharma, banks only when the market becomes a buy," says Sudarshan.

Baliga feels it is always prudent to book out of investments for traders when the market has moved up but positional traders or long-term investors can get into financials like Axis Bank on declines.

Mayuresh Joshi of Angle Broking is also very bullish on Axis Bank , which has been their top pick but advices one to wait for declines on financials to enter them again.

Baliga is not at all bullish on IT, pharma and FMCG and is booking out of them and getting into power and infrastructure space which is the real India story of tomorrow. From the power space he is bullish on  NTPC and from infra on GMR ,  Larsen and Toubro and GVK . Although L&T has already moved up.

Unlike Ambareesh, Sukhani would not buy into power and infra. According to him when the market goes up again, the sectors that performed earlier like IT, Pharma, banks would be the once to look at.

Sukhani said he would be shorting metals and steel.

Speaking about their views on IT sector, Baliga says  HCL Tech can still move up and also Tech Mahindra .

Joshi too agrees with Baliga and says risk reward is in favour of HCL Tech and has a target price of Rs 1960 on the stock. According to him Infosys also presents a opportunity for long-term investors.

Sukahni's IT pecking order is Infosys , Tech Mahindra, then  TCS and HCL Tech together and last would be Wipro .

for the entire discussion watch video


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Gold prices rise for second day on jewellers' buying

Extending its gains for the second straight day, gold prices rose by another Rs 100 to Rs 28,450 per ten gram in the national capital today on pick up in demand from jewellers even as the metal weakened overseas.

Silver, however, met with resistance and declined by Rs 350 to Rs 38,000 per kg. Traders said some buying by jewellers and retailers in view of ongoing wedding season mainly influenced gold prices but a weak global trend as investors weighed prospects of higher US interest rates, limited the gains.

Globally, gold in Singapore traded 0.3 per cent down at USD 1,280.58 an ounce and silver shed 0.5 per cent at USD 17.16 an ounce. In Delhi, gold of 99.9 and 99.5 per cent purity were up by Rs 100 each to Rs 28,450 and Rs 28,250 per ten gram respectively. It had gained Rs 250 in the previous session on Saturday.

Sovereign remained flat at Rs 24,000 per piece of 8 grams. On the other hand, silver ready declined by Rs 350 to Rs 38,000 per kg and weekly-based delivery by Rs 185 to Rs 37,950 per kg. Meanwhile, silver coins maintained a steady trend at Rs 63,000 for buying and Rs 64,000 for selling of 100 pieces. 


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Obama's speech: Gap between what is said what we heard

Written By Unknown on Minggu, 01 Februari 2015 | 18.00

R Jagannathan
Firstpost.com

The big question we must ask ourselves when we discuss President Barack Obama's Siri Fort speech on January 27 is this: did we all hear the same speech? Or did we dissect it according to our individual biases?

If one were to take a look at the buzz on social media, the traditional Modi-baiters saw in Obama's speech, and especially his message of religious tolerance and diversity, as an oblique criticism of the government and its Parivar backers. Thin-skinned Modi-bhakts were upset that Obama gave us a lecture on secularism when America is far from being a just society.

In fact, what we try to read in Obama's speech – or, for that matter anybody's speech – tells us more about ourselves than about the person delivering it.

Those who believe that Obama had the Sangh Parivar in mind when he talked about "freedom of conscience and….. right to freely profess and practice and propagate religion" should also ponder another sentence: "In both our countries, in all countries…freedom of religion is the utmost responsibility of the government but also the responsibility of every person."�(Read� here �and� here �for some of Obama's Siri Fort quotes).

He said�both�countries, not only India. He was probably thinking aloud about freedom of conscience, which is endangered everywhere, including America, where Christian fundamentalists are busy demonising Islam.

His intent became clear when he mentioned the� Sikh Gurdwara massacre in Wisconsin .�The fact is the US and Europe probably house more Islamophobes than India. Obama himself has been the victim of a bitter Christian right-wing smear campaign that which saw him as a closet Muslim, thanks to his middle name "Hussain."

On the other hand, the internet Hindus on twitter seemed to recoil with a guilty conscience on his call for religious freedom. One wonders why. "Ghar wapsi" is nothing if not an effort to reconvert people who left the Hindu faith, and surely freedom of religion applies as much here as in the reverse. Surely, Obama could not have meant a one-way freedom of conscience and religion. He may not back "ghar wapsi", but it is logically implied when he said article 25 of the Indian constitution guarantees "the right to freely profess and practise and propagate religion."

Then again, Obama said this: "Every person has a right to practice the faith that they choose and�to practice no faith at all�and to do so free of persecution, fear or discrimination." What is objectionable in this? There are, arguably, more critics of atheism in god-fearing America than in India. Heading towards Saudi Arabia from India, Obama could have been referring to that kingdom's complete absence of freedom of religion and the death sentence for apostasy. Atheism and agnosticism have never been issues in Hinduism, and Buddhism and Jainism are essentially non-theistic faiths. So where did he really criticise us for Modi-baiters to get ecstatic about it?

Or take his reference to diversity. Obama said "our�diversity is our strength" and cautioned both India and the US to guard against sectarianism.

Note: the operative word is "our". He did not say diversity is only America's strength, but of both countries. It's a compliment to us. He also expanded on this theme: "IfAmerica shows itself as an example of its diversity and the capacity to live and work together in common effort and common purpose, and�if�India, as massive as it is with so much diversity, so many differences, is able to continuously reaffirm its democracy so that is an example for every other country…That's what makes us world leaders."(Italics mine)

Here Obama is essentially applauding India's diversity in the past and exhorting it to remain so in the future. Note the "if" in both sentences. He is essentially saying that both US and India are great countries only "if" they can retain their diversity and keep sectarian differences at bay.

We know that the US is hardly the exemplar in racial justice, as the recent� riots and violence over the shooting of a Black youth �by the Ferguson (Missouri) police prove. It is hardly likely that Obama had just Sadhvi Niranjan Jyoti or Sakshi Maharaj or the RSS's efforts to call India a Hindu nation in mind. US right-wingers call America a Christian nation – a nation where� nearly half the population believes �that Darwin was off his rocker by giving us his theory of evolution when, in fact, God created the world through "intelligent design." Religion and the narrowness of religious beliefs is as much a problem in America as in India.

About India specifically, Obama said: "India is defined by diverse cultures, creed, languages. When we were born, people who looked like us couldn't even vote in our country. There were times when I was treated differently because of the colour of my skin. My grandfather was a cook in the British army. Branches of Michelle's family were slaves as well as slave-owners. A young boy delivering lunch on a bicycle, a young girl hauling a bucket of water. Even as we live in a world of inequality, a tea-seller can become Prime Minister. Everyone has a chance."

Does this remotely sound like Obama was just giving us a lecture on how secular and just America is superior to communal India?

Then Obama talked about women's empowerment, the girl child, and safety. We could take this as mild criticism of us, given our daily news fare of rape and sexual harassment. Or we could take it as a challenge we all need to meet. He said: "Every girl's life matters. Every daughter deserves the same chance as our sons. Every woman should be able to go about her day...and be safe and be treated with the respect and dignity that she deserves."

This is hardly something to take amiss, when our own Prime Minister talked about the same issues on I-Day and there is now a�Beti Bachao, Beti Padhao�scheme on the anvil.

On climate change, he said what needed to be said: that we have to learn to grow with far less use of fossil fuels than before. Who can argue with that?

The moral of the story is simple: what we got was a heart-felt message from the US President, but we read it as a condemnation of Modi or the Sangh parivar. It goes to prove a basic human truth: there is a gap between what is said and what we choose to hear.

The writer is editor-in-chief, digital and publishing, Network18 Group


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Does secular socialist have any meaning in constitution?

R Jagannathan
Firstpost.com

The� two missing words (secular, socialist) �in the Information and Broadcasting (I&B) ministry's advertisement featuring the Indian constitution's preamble, whether through default or design, have served two useful purposes. One is to underline the pointlessness of having them in the preamble in the first place when no government feels constrained by their presence; the other is the reality that these words were not part of Babasaheb Ambedkar's well-thought-out original constitution adopted by the constituent assembly. We need to acknowledge that they were not intended to be there at all even if we don't now do anything to remove them.

To take the second point first, Minister of State for I&B, Rajyavardhan Rathore, said the "photo of the original preamble was a way of honouring the founding fathers of the constitution". He slipped in the fact that these changes were inserted in 1976. That was the second year of Indira Gandhi's infamous internal emergency, and the preamble was modified purely for political purposes.

It is doubtful if these changes could have been made without sending most of the opposition to prison. Mrs Gandhi packed off all major political leaders - from the right-wing Jana Sangh (today's BJP) to the various Socialists and the Left - to jail and passed these and several other constitutional amendments in a handcuffed and tongue-tied parliament. So, in a sense, the amendments went against the spirit of the constitution as all major freedoms guaranteed by Ambedkar's constitution were brutally suppressed at that time. The courts were running scared and the media was in chains when these words were incorporated. Their presence was thus an immoral, if not illegal, entry in the statute book.

In today's world, it is unlikely that these constitutional amendments would have passed legal muster for the simple reason that they were passed when both houses of parliament had been gagged. Even ordinary bills cannot be passed if the houses are not in order (hence the recent Rajya Sabha logjam); so can major constitutional amendments be passed when key members were sent in jail?

The reason why "secular" and "socialist" were inserted in 1976 is worth retelling. With leaders from all ends of the political and social spectrum in jail – ranging from the right-wing RSS and Jamait-e-Islami, which were banned, to various caste-based Lohia-ite, Socialist and Left factions - the government's actions clearly lacked legitimacy. They would have been opposed both by left and right. The word "secular" was inserted to validate the action of sending "communal" leaders to prison and banning their organisations; and the word "socialist" was intended to similarly justify the incarceration of the left. Indira Gandhi bunged in these two words to justify her undemocratic actions against leaders from right to left.

Take the word "secular". What extra idea does the insertion of this word convey when Ambedkar's preamble already guaranteed Indian citizens "Liberty of thought, expression, belief, faith and worship..." among other things. Does the word secularism add one iota of extra freedom to the basic idea of liberty of belief and faith as enunciated in the pre-1976 preamble, and additionally expanded on by article 25 of the constitution, which guarantees "Freedom of conscience and free profession, practice and propagation of religion"?

Of course, with the BJP in power today, it suits the party's political opponents, many of them descendents and proteges of some of the leaders jailed by Indira Gandhi, to pretend that they want "secular" and "socialist" to remain in the constitution. In fact, some constitutional experts now claim that these words can�never�be removed since they form part of the "basic structure" of the constitution that has been upheld by the Supreme Court. Arvind Datar is quoted in� The Economic Times �as saying that "not even a government which wins 543 out of 543 Lok Sabha seats can change this."

This view is probably wrong, for it is fanciful to pretend that elements that were never there in the original constitution can suddenly become part of the "basic structure". It beggars reason why a "basic feature" force-fitted into the preamble 26 years after the country adopted Ambedkar's constitution cannot tinker with it 39 years later.

However, it is not important to change what does not make a difference to how the state conducts social and economic policy. The insertion of the word "secular" did not prevent Rajiv Gandhi from overturning the Shah Bano judgment or offering Haj subsidies and quotas on the basis of religion. Nor did the insertion of the word "socialist" prevent Narasimha Rao from moving away from socialism in 1991 or the Vajpayee government from privatising public sector companies.

The words "secular" and "socialist" have been robbed of all meaning in the Indian context. They are two nonsensical terms inserted by the whims of an autocratic PM, and they remain there on the whims of an intellectually-bankrupt political class.

We need expend no further energy on words that mean nothing.

The writer is editor-in-chief, digital and publishing, Network18 Group


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Indian rupee snaps its 4-week winning spree

The rupee ended at 61.86 per dollar as against the last weekend's level of 61.42, showing a gain of 44 paise or 0.73 percent. It moved in a range of 61.29 and 62.0350 per dollar during the week. The domestic currency had gained by 215 paise or 3.38 percent in the previous four weeks.

The Indian rupee snapped its 4-week winning spree against the American currency, slipping 44 paise to 61.86 per dollar on month-end dollar demand from importers and banks. The rupee resumed slightly lower at 61.49 per dollar as against the last weekend's level of 61.42 and fell further to 62.03 on good dollar demand from importers and some banks.

However, it recovered afterwards to 61.29 on selling of dollars by exporters in view of strong foreign capital inflows into equity market as foreign portfolio investors (FPIs) infused a net USD 779.85 USD million during the week as per SEBI's record.

The rupee ended at 61.86 per dollar as against the last weekend's level of 61.42, showing a gain of 44 paise or 0.73 percent. It moved in a range of 61.29 and 62.0350 per dollar during the week. The domestic currency had gained by 215 paise or 3.38 percent in the previous four weeks.

Meanwhile, the Indian benchmark sensex dropped by 95.89 points or 0.33 percent to 29,182.95 after hitting an all-time high of 29,844.16. Pramit Brahmbhatt, Veracity Group CEO said," After appreciating for four weeks last week Rupee lost its way and depreciated by one percent during the week. The month end dollar demand from oil importers and corporates forced Rupee to trade weak and close at 61.86".

Also the local equities lost its ground last week and posted first weekly loss in three weeks which further dented the movement of Rupee.


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Prabhu pitches for greater investments in Railways

Suresh Prabhu said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railway Minister Suresh Prabhu pitched for greater investments in railways and said development in the sector will help the country grow. The minister was here to flag off two new trains - Ahmedabad-Chennai bi-weekly express and Ahmedabad-Darbhanga Jansadharan express. He also launched Wi-fi facility at the city railway station.

"It is a matter of pleasure for the country that our economy is on the path of improvement and progress. With this, responsibility of Railways has also increased. We need to work on many levels," said Prabhu.

He said that Railways' financial health is not good and there is an urgent need of increased investments in the areas of modernisation, safety and security of passengers. "We have decided to increase investment in Railways... We have also decided to connect with various states for this (investment).

Railways will fulfil the needs for Gujarat's development as well. I will discuss with the Chief Minister on how to work on larger scale for improvement," he said. Prabhu later met with Chief Minister Anandiben Patel.

The minister also claimed that Railways was priority of the Prime Minister Narendra Modi-led government and the sector can contribute to his mantra of 'Sabka Sath, Sabka Vikas' (participation of all for development of all).

"Development of Railways is on the priority list of our Prime Minister. If railways develop, economy will also be strengthened... and GDP (of the country) will also rise by 2-3 per cent. Though our GDP is growing today, with much efficient railways system it will grow rapidly," he said. The minister said further development in the sector will also create jobs for youths.

Prabhu appealed to people to join Modi's flagship 'Swachh Bharat Abhiyan' and said the mission is associated with country's identity.


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Watch ads that are making headlines before 49th SuperBowl

Written By Unknown on Sabtu, 31 Januari 2015 | 18.00

The 49th SuperBowl will take place on 2nd February and as usual the ads that will air during America's most watched televised event are making the headlines. Storyboard has put together a few that it liked. take a look at the ads from BMW, Nissan and Toyota.

The 49th SuperBowl will take place on 2nd February and as usual the ads that will air during America's most watched televised event are making the headlines. Storyboard has put together a few that it liked. It is going to begin with the best from one of the biggest categories that advertises on Superbowl - auto. take a look at the ads from BMW, Nissan and Toyota.

Watch video for more...


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Exclusive Preview of HDCF Life's new TVC

This week on Noticeboard, Storyboard is showcasing the latest TVC from HDFC Life. It is another instance of an insurance company indulging in long duration ads.

This week on Noticeboard, Storyboard is showcasing the latest TVC from HDFC Life. It is another instance of an insurance company indulging in long duration ads.

Watch video for an exclusive preview...


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