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Category: Money

  • What Parents Know About Money!

    Parents and we might have a different view on certain apsects of money. However, not everything they believe is wrong. Some ideas and insghts are classical and stand the test of time.

    Rediff Archives has a note named What Mom Thought About Money which discusses the above fact. It says:
    1. More Money Is Not Solution – Managing money is. Setting priorities for expenses and planning it means better money management.
    2. The 80:20 Principle – Eighty percent of the things we buy, we use 20% of the time. And 20% of the things we buy, we use 80% of the time. (See my previous post Less Is More!)
    3. Always Tie Loose Ends – Do not postpone credit card debt. What needs to be done, must be done.
    4. Budget for emergencies!
    5. Bargain – Will be amazed to see how much it actually works!

  • What Parents Do Not Know About Money!

    One of the areas where I have a different opinion from my parents, is money! It is due to various reasons:
    1. Economic Situation of India Is Different Today
    2. Earning – Spending – Saving Habits Are Different Today
    3. Overall Philosophy  Is Different Today – Ideas, Quality of Life, Self Actualization etc Are More Important Now. Earlier Money Was A Guarantee To Good Life.

    My parents frown when I spend good bucks on restaurant food or movie or see my credit card bills. I see this expenses as rewarding self or enjoying some money for today rather than wait for tomorrow. I am sure many of my friends also face this unique situation.

    Recently, I came across a wonderful Rediff archive which revolved around the same idea : What Parents Did Not Teach About Money!

    Here is the gist and my comments:

    1. Debt is good – Depends on how you use it. If for education, go ahead.
    2. Stock market is not only for gamblers – Think long term!
    3. Credit card can work for you – If you pay within credit free period. Offer convenience of not carrying cash.
    4. Jewellery is an lousy investment
    5. The bank is not the best place to park your money – Obvious! Interest here is peanuts and you actually lose money, if you factor in the inflation.

  • Hot Investment Destinations

    Investment Bankers regularly come up with their new themes, ideas and destinations to justify their salaries.

    BRIC (Brazil – Russia – India – China) is now the popular flavor. Though I admire the BRIC Report Author for walking the talk. She has joined Future Group, Kishore Biyani’s flagship venture.

    The new exotic and hot Flavors are :

    1. VISTA – Vietnam, Indonesia, South Africa, Turkey, Argentina

    2. Chindia – China & India

    3. N11 – Next 11 – Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Phillipines, Turkey, Vietnam

    How many of these HOT sectors / geographies actually perform as expected over the long run? God knows!





  • Ginger Hotel : Great Value Proposition

    TATA Group‘s Indian Hotels’ Ginger Hotel is a very great concept. It provides smart accommodation at reasonable price. The charges for single room are Rs 999 and double room are Rs 1199. And we get a discount of Rs 50, if we book it online.

    So need to spend a bomb while on your accommodation when you are on a business trip. This helps business travelers like me whose main focus is business. Our entire day is usually packed with meetings and we have our food outside only. What we actually need is a clean and comfortable place to stay. Ginger exactly serves this purpose. It scores better by providing facilities like WiFi, Multi-Cuisine Restaurant, Gym, Meeting Room etc. to the guests. Thus it lives up to its USP of Smart Basics! Time to check it out!

  • Less Is More!

    I read this article named The Relationship Between Clutter and Debt at The Family CEO Blog. It speaks about the relationship between clutter and how we manage our finances.

    Yes, there is a relationship between clutter and money. If we are not systematic and particular in organizing ourselves, we would tend to be laid-back about managing our finances. And lack of financial mismanagement have saddened many a life.

    Some excerpts from the post:

    First there’s the obvious: most clutter consists of items purchased. And that costs money. While some things come into our lives for free, many are things that at one time we wanted or thought we needed and so we purchased them. More purchases eventually equal more clutter.

    I also believe that there’s another less obvious relationship. By choosing to have less (de-cluttering) I tend to value it more. Letting go of things creates a feeling of contentment and satisfaction rather than a desire to have more. Don’t believe it? Help your child clean up his or her room or playroom and watch as they re-discover toys, books, and games they had forgotten they had.

    That’s because clutter represents stuff that isn’t valued. How much can I really care about items that have found their way to the bottom of my closet or a box in the basement? My goal is to have less but to really care for and value what I have.

  • iPodnomics!

    Apple had a great launch for iPhone at MacWorld 2007 where it met the expectations of its cult fan following. Now iPod is back in news for its impact on Forex economics. iPod has been accepted as a global standard for measuring purchasing power parity (PPP) across the globe.

    CNN Money says:

    Along the lines of the Big Mac index launched 20 years ago by The Economist magazine, the survey prices the 2GB Nano in U.S. dollars and found Brazilians pay the most for an iPod, shelling out $327.71, well above above second-placed India at $222.27. Canada was the cheapest place to buy a Nano at $144.20, while Australia ranked 19th at $172.36, cheaper than Germany ($192.46), France ($205.80), South Korea ($176.17) and China where the machine is manufactured. The U.S. was fourth cheapest at $149.
    The Big Mac Index is an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. As stated in the Economist, it “seeks to make exchange-rate theory more digestible”. It is quite a popular index. Check the latest The Big Mac Index.

    The Big Mac Index speaks about McDonald’s global power as well as acceptance as a common evaluation tool. With iPod gaining the same popularity, iPod has indeed gained currency!