Monday, 10 October 2016

How much do you need for retirement?

So you are 40.

And your monthly expense is (exlcuding EMIs) close to Rs 80,000 per month.
You wish to maintain the same lifestyle when you are 60.

Considering inflation of 7.2%, your outgoing would be close to Rs 3,20,000/month when you are 60!



Does this number offer a reality check?

It must and it should!

Unless inflation rate is kinder or you are comfortable asking your children to pay you a monthly amount or you cut down on your expenses be prepared to be spending this kind of money.

And it is only going to go up.


Wish to know how to predict how much you need to live a comfortable life?

Introducing the rule of 72!

The rule of 72 helps you to calculate the approximate number of years which are required to double your money if the interest rate is known.



Example: Suppose you have invested 1 lakh in a financial instrument which grows year on year by 18%. Then the value of the same will be Rs 2 lakhs in 4 years.

This principle can also be applied to understand how inflation will impact your finances.

Example: If your monthly expenses are Rs 80,000 and inflation is 8% per year, then you will find yourself spending Rs 1,60,000 after 9 years. (72/8 = 9)

Sounds simple enough?


Become a millionaire by 31

Are you 21?
Receiving your first salary?
Rs 18,000 per month?

Wish to become a rupee millionaire by 31?

Care to invest 20% of it?
Rs 3,600 per month through SIPs

According to the calculator you would make 10.03 lakhs!
Taking inflation into account (around 7.2%), it would be worth 5 lakhs as on today.

Now if you don't touch this corpus and let it continue, you would have ....




..a mind boggling Rs 11.3 crores by the time you are 61.
(However taking inflation into account (around 7.2%) , it would be worth Rs 1.5 crore as on today)

Saturday, 8 October 2016

Awesome Perks of Being Single




Are you still single? Are you worried that you're left behind while you're batchmates are ahead  of you? The sayings "staying single is a blessing" might be so gasgas na! All you can think of might be life is so unfair!

There are two types of single people in the world today; the happy ones and the bitter. If you are the latter, join our league... I raise my case! Being single is the most awesome thing that can happen in your life. If you could hardly believe it, I will tell you why...


You can get rich while you are younger.

I'm not sure how many but most of my friends became financially stable first, before they got married.  Dont be worried that your age is depreciating, my successful friends married on their 30's and their partners are worth waiting for. There are lot to cheer on and dont mind your relatives and friends reminding you that you are almost on your dead-end. Learn to build one of the most important foundations in your life and that is your financial life. According to studies in the U.S., the most common reason of divorce, is not third party, but finances. I would rather pay the price now and play later.

Being single is very much an advantage for me because I'm able to save 30%-40% from all my income even my salary is only on an average. I was able to maximize and concentrate it on investing without thinking of something else. All I know is  If I fail, the damage is lesser. All I can blame is myself and nobody else will suffer. As a result, I'm reaching my first Million through my assets in stocks early quarter next year, should my portfolio gets an annual return of 5% (which is the least). It has gotten an exciting effect on me and I see it as a good riddance for all the sacrifice of starting up.




You can be a good relationship Adviser.

Yes, I'm already a guru if you'll call it that way (just kidding). I already spoke to multiple singles and married alike. I'm always the haven of my married friends when they have trouble with their partner asking for things on what to do and what not. Common things they said to me; "Bro, wag ka munang mag asawa. mag-ipon ka muna". Good thing about it is that I can learn from their mistakes and get wiser on what to expect.



You can explore the world before getting married.

Being single means independence. You can craft your map without much worrying on budget. Once you get married, you could tell your kids of the exploits you have with many places you visited and your husband will admire you even more. Most of the travel bloggers I knew were singles and this could probably explains why...

You can write a list of "50 places to visit before becoming a mom" or "100 things to do before I die". I wrote about that 15 years ago when I read it on reader's digest. Being single is not forever, so pack up your traveling bag!



It adds value to yourself.

It doesn't automatically mean that if you are single, you are choosy. Being single is being careful on your choice and decision.  I've seen many people who are trigger-happy and can't sleep without having a girlfriend. So they jump from one relationship to another and that's very devastating. If you can't agree then create your own blog (duh!).

According to the book " Real Men are Pogi" by Ardy Roberto; you have to  develop yourself from the inside out. Once you have fully developed yourself and your character, to be engaged in a long-term relationship is a lot better and mature. I would suggest that you have to challenge yourself and get out from your comfort zone while you are single. You have much time to prepare for the bigger things and to have yourself appreciate in value.  What I do today were not what I expected... All I dreamed was after graduation, I will work in the government as a teacher. 15 years ago, I never dreamed to be a Stocks Trader or a Blogger. We will attract great opportunities once we are on the process of doing extraordinary things and going the extra mile!



You can make a difference and save the World!

If you have a dream to change the world, staying single is the wisest thing to do. That's the reason why Batman, Tony Starks, and Captain America remained single until now. It does not mean that girls messed up and are destroyers of dreams but sometimes staying away from them are the best thing to do. So if you are building the next facebook, crafting a Filipino spacecraft to Saturn, or if you're doing something incredible, sometimes working alone can save the day.  You can avoid hurting somebody's feeling telling you "You're too busy with what you're doing", "Sinong mas importante sayo ako or yang ginagawa mo" or "Break na tayo kasi wala ka ng time". Sometimes you can be misunderstood. Being single means you have all the time in the world to fail and learn it yourself.








 
       




Wednesday, 5 October 2016

Bottom of Pyramid

Today I hosted a delivery boy at my place

He had come to collect few documents.

This was his first job.

All of 19 years old.

Has completed S.S.C.

Earns Rs 9,000 per month in Mumbai

Supports a family of 5 including himself.

AND HE WAS KEEN TO INVEST IN MUTUAL FUNDS!


Isn't this a huge opportunity?

Agreed that he may begin with a miniscule amount.

But there are so many like him.

We need a Financial Planner who can reach out to him and his ilk.

India's next big investment story

Who is going to script India's next big investment story?

The flamboyant Rocky:

Image result for rakesh jhunjhunwala

The elusive Professor?:

Image result for professor mankekar

The confident Porinju?:

Image result for porinju

Well it is going to be:

The common man (and family of course!)

Image result for common man household mumbai


Investments in equities and debentures has gone up by 72% Year on Year according to the RBI.
In absolute terms it has increased by more than 38,000 crores.

However one needs to wait and watch to see whether this is a temporary phenomenon driven by the buoyant performance of the stock markets or have the Indian households starting understanding the value of investing in equity.



Tuesday, 4 October 2016

Useful Apps for those visiting India

Planning a trip to India?



The following apps will make life easy for you:


OLA/UBER:

Download either Ola or Uber (in case you don't already have it) once you reach India.
Ola is an Indian version of Uber.
Don't know what Uber is?
Well...
The international airport has Wi-Fi
But I would recommend you to download both.
It would be a breeze to travel from the airport to your hotel or Air BnB accomodation.
You also don't need to argue about the fares with local taxi drivers.

Flipkart/Amazon

Both sell almost everything
Right from underwear to mobile phone.
Oh wait...
Flipkart doesn't sell Kindle :P

Myntra/ABOF

In the mood to buy fashionable clothes?
Here are two websites which will help you out

Pepperfry/Urbanladder/Furlenco

Staying in India for longer?
Rented a house?
Buy furniture from Pepperfry or Urbanladder
Or better still, rent it from Furlenco!

Bigbasket

You can order groceries and other household essentials

OLX/Quikr

Indian version of Craiglist.
Online classifieds websites.
Better still, they can even offer you free courier service

Makemytrip/Cleartrip

Will help you book hotels and airline tickets

99acres/Magicbricks

Feel free to either rent or buy a house.
Apart from these two websites which will be helpful to buy a house, you can also check out Housing.com.

Monday, 3 October 2016

The power of Rs 500

Spending Rs 500 (About $8) per month isn't a big deal for most people reading this post.



Once a month, you can do the following with it:

a) Eat at a fast food place
b) Shop for a book or a tshirt on Amazon
c) Go for a couple of movies
d) Get about 4 pints of Heineken

Yeah sure, all of them make you happy.
Satiate your craving.

Over ten years, you may have end up spending 500x12x10 = Rs 60,000 (Not counting inflation)
At the end of the day, will you take all this money to your grave?

Now let us see what happens when you invest this amount through SIP in a mutual fund:

a) At 12% over ten years, your corpus would be worth - Rs 1.16 lakhs
b) At 15% over ten years, your corpus would be worth Rs 1.39 lakhs
c) At 20% over ten years, your corpus would be worth Rs 1.9 lakhs
d) At 25% over ten years, your corpus would be worth Rs 2.66 lakhs

At the end of the day, will you take all this money to your grave?

So would you trade that moment of happiness to sacrifice for the future?