“Deepa’s Money tips : The reason Behind “

 

 

Today , I would like to share the secret behind me writing these articles and sharing with all. There was a time when people would misinterpret my role . A few months back when anybody would call me for a discussion  ,  I would ask “ What is top of your mind ,when you called me ?”

people had some specific questions in mind :

“What is the best return you can get me ? “

“ What products do you sell?’

“Ohh ,you don’t sell products , you only advice “?

( even after last 10 years history has evidences how people burnt fingers by investing without  proper advice and by purchasing products without guidance)

It used to take a while to explain and put my point across that personal finance is not all about investments .  Not anybody’s mistake , since the environment itself is like that these days .

I therefore decided to write and  dissipate the knowledge I have as daily experiences . This relentless writing for past few months , brought in new experiences for me . Today I see people giving a serious thought to every decision they take .  Even  when they call me for a discussion , specially in the last 2 months , I see a sea change in the thought process . My question even today is the same :

“ What is top of your mind ,when you called me ?”

But the responses have changed .Would like to share a few .

1.“I am earning , I am spending and I am saving  but I don’t know if the direction I have taken is right. Can you help me analyze it ?”

2. “Is my saving pattern sufficient to fulfill all my requirements and aspirations in future. What additional income should I create to fulfill all of them? “

3.”I have a surplus but I am not sure if I am deploying this in the right proportion across different saving instruments . Can you guide ?”

4. “Are my choices tax effective , what is the tax implication on each ?”

“I have understood Deepa , that these are questions can’t be answered by my insurance or investment advisor . It’s a financial planner who can take a holistic view of my financial life and guide me the way forward .So I have come to you . What is the best advice you can give me ?”

I am glad with this change in perspective that I have seen , and I thank all my readers for taking my messages in the right spirit.I have never written much in my life except essays in school and official correspondence at work, but its all your encouragement and queries ,that showed me the way forward to write more and more .

A big thankyou , and my best wishes for a great financial future . Lets take these right decisions , let’s think before we act , let’s act immediately and lay the foundation , to start with a great year 2014 ahead.

Good luck and have a great day !!

Thanks

Best regards

Deepa Nittala

 

 

 

 

 

 

Most Common Financial Mistakes we make -3

 

Hi , 

Day in Day out ,in newspapers and news channels ,we read and hear about inflation and its impact on economy . Time to sit back and analyze impact of inflation on us.

As part of my daily interaction with clients ,I come across varied dreams and aspirations that each individual has for his/her family. I have realized that people may be in same age group ,same income bracket but still every individual is unique in his/her financial situation,life stage and aspirations. How does inflation impact our aspirations?

Lets take an example of two 38 year old individuals.

Mr X ,has a 3 year old kid  on the other side  Mr Y has a 10yr old kid . 

Mr X  dreams of a good education for his 3yr old and believes 15 lakhs is sufficient for graduation and post graduation put together .He assumes this 15 lakhs may become 30 lakhs in the coming 15 years due to inflation . 

In reality ,inflation also is compounding in nature like our investments.With an 8% inflation the 15 lakhs actually translates to 48 lakhs .

Mr Y also wants a good education for his 10yr old ,and feels 15 lakhs is required. He feels 8 yrs down it may become 20 lakhs. In reality , it turns out to be Rs 27 lakhs.A time period of 7 years in both the kids can create a difference of 20 lakhs to the education corpus itself.

This is only one goal. The income we earn has to achieve many goals for us , like a home, car , children’s schooling ,higher education ,marriages ,vacations and last but not the least ,an independent and peaceful retired life after all of these goals are effectively taken care of.

Assuming Mr X wants to retire at 55,he has 17 yrs to save for most of the remaining necessity goals while taking care of daily living expenses without a compromise on standard of living.

If we have to earn and save so much in 17 years time or whatever be our income earning years,all I have to ask is “Is it possible to achieve without an active plan , a long term strategy or a regular supervision ? “.

Think about it !!

Regards

Deepa

(source of image : economictimes)