Become a Champion in Finance irrespective of your profession!!!!

Hi,

A lot of you missed the orientation on the 24th of July and hence are not aware of what the classes will be on.

My focus in the classes would be to impart in the most simple manner how easy it is to be in charge of your finances and not be burdened by debt which a lot of people are under thanks to the many financial institutions. It would focus on the different asset classes and how by keeping things simple you can work wonders for yourself. This is probably the only financial course which will not focus on too much Mathematics and people who have the phobia of Maths need not worry. The toughest calculation would be something like 70 divided by 210 multiplied by 100. The course has been designed for all streams (commerce, science, arts, engineering, mass communication etc ). Utmost care has been taken to make it very easy to grasp and remember and it is for any person who knows how to read and write.

My aim is to ensure that all of us acquire assets in life. Most people in life acquire a lot of liabilities and think it is an asset. Robert Kiyosaki states that an asset is something which puts money into your pocket and a liability is something which takes out money from your pocket.

A lot of financial products are available in the market and the lay man is bound to get confused. You can avail of a credit card just by clicking your mouse. Home loans, car loans sound very cool. We purchase a car and a house because it enhances the quality of our life. But does it actually improve the quality of our life if the EMI monster knocks at the door every month?

There are only 2 asset classes that create wealth in the actual sense of the word. a) Stocks b) Real Estate. The other asset classes are for safety of capital (Fixed Deposits, Recurring Deposits etc) and risk cover (Insurance).

Consider this.... Why does the Government of any country offer tax breaks on home loans or repayment of interest on home loan? This is because the interest on such loans is an income to the financial institution which has given the loan. Banks and financial institutions spend a lot of money on political campaigns. In return the Government  It is for this reason that you hardly get tax benefits on savings account, fixed and recurring deposits since that is an expense for the bank.

Most people do an MBA thinking only about placements. I always thought that MBA means Master of Business Administration. Why keep on slogging for 25-30 years of your life for a company and worry about the next recession that is about to happen or the next layoff that would happen? We are living in the Information Age where it is possible to become a multi millionaire by working smartly rather than working very hard.

Think about this.... People say that you get life just once.Live it king size. How many people who are working under a boss enjoy life 24*7 and have great financial freedom. As per one of the statistics in a magazine, 90% of the employees just enjoy one day of the week "Saturday". It means that 6/7th of your life is spent cribbing. I always thought that school was enough for that kind of a mundane lifestyle and fear psychosis. Business teaches you to be fearless in life and enjoy every second of your life.

Please refer to the poster that I have attached below to get a brief idea of what will be covered in the classes.  I shall try my level best to incorporate all the concepts that can help you to achieve the dreams that we had nurtured during childhood and which most of us have forgotten because we have got involved in the rat race.

My aim is not to focus on theory. Schools and universities have taken care of that. If you can sacrifice one economy class ticket (assuming it to be Rs 4500) for the course, I can ensure a lot of business class flights for you in the future.

Your friend,

Vivek

Reasons why most people lose money in the stock markets

Hi friends,

The world is full of people who will discourage you from doing what they themselves could not do in life. Stock market investing is one of these fields where a majority of the people have burnt their fingers. As a result of this they discourage people who want to take it up as a career.

Since the time I have started my career, I have been jotting down the points as to why people are so scared of the stock markets. Everyone talks about diversifying the portfolio into a mix of debt and equity. But then they forget the last word that they mentioned - "Equity"

For this reason I have made a small list as to why most people lose money in the stock markets:-

a) Greed and Panic- These 2 emotions have ruined the lives of many people. Please understand that the market is not a casino or a place where you can multiply money overnight. At worst, you should expect a return of GDP rate + Inflation rate over a long term (at least 10 years). So in case of India it would be around 15%.

b) Choosing a broker just on the basis of brokerage-  A lot of people run after different brokers just because they offer the lowest brokerages. But the only criteria should be whether he is generating profits for you or not. If he cannot manage your portfolio properly and does not understand your financial goals, he is not worth his salt.

c) Herd Mentality- There is a saying " When the masses are asses there is a majority." Only wolves hunt in packs, tigers prowl on their own. It is high time to invest in the biggest gift that God has given to each of  us i.e. "Brain" Most of the people do not use their creative faculties and as Boman Irani said in 3 Idiots " Unused brains fetch the highest price", that is why most people do not bother to use it.

d) Multibagger and Penny stocks - Multibaggers and penny stocks are like trying your luck in a horse race. Its better to go to Macau and try your luck. Chances are the same and even if you lose, the experience would be better.

e) Following stock reports updated in magazines and newspapers blindly- The great companies will never be multibaggers. A Sun Pharma or a Colgate would never be recommended as a multibagger because you will make money. There is a joke in stock market parlance multibagger is a company which ensures Multiple Beggars.


Looking forward to your comments and criticism. Its an open forum. If you feel something is incorrect do point out. Feedback is welcome.

Your friend,
Vivek

Financial Freedom in 10 days from the 18th of August....

Hi Friends,

I am proud to announce the 1st of its kind course on Financial Freedom from the 1st of August. All those who are interested can register themselves at the above mentioned venue before 17th of August.
Kindly carry 3 documents:-
a)2 pp size photos
b) One ID proof
c) Fees to be paid either in cash or cheque. If cheque it would be in the name of "iLead Foundation."

Your friend,
Vivek

Classes on Personal Finance

Hi Friends,

Due to the overwhelming response, I am conducting classes on Personal Finance at iLead from 1st August 2012. The details of the course are given on:
https://www.facebook.com/?ref=tn_tnmn#!/events/417652844937768/

I can assure you that this is going to be a life changing course at a nominal fee of Rs 4500 for the course. Hope to see you there.

Your friend forever,
Vivek 

Financial simplicity leads to Magic!!!!

There is an oft repeated saying "Prevention is better than cure." Yet we find that whenever it comes to personal finance people have this habit of first burning their fingers and then trying to heal it after it is too late. In my daily life I hear people saying things like "This friend of mine suggested me to buy shares of XYZ company. He said he knows the management of the company. It should double in 3 months. It is a future multibagger." I often wonder had this been true, people would have stopped going to the Casinos and tried their luck at the bourses instead.

There are a lot of such stories which I get to hear everyday. It is for this reason that I have designed a  set of points for each and every individual:-

1) Say bye-bye to Instant Gratification-  The world will know you for the assets that you have created and not for whether you have IPad 2 or the latest version of the Blackberry phone that you have purchased. Instead that money could be used to invest in a great company as a long term investment which will provide dividends and will offer you the advantage of capital appreciation. Buy Now, Pay Later is a virus that is attacking the youth of the country like never before.

2) Realistic Expectations - The best thing about India which people often forget is that this country offers one of the best risk free returns in the world. However no one wants to settle for anything less than 30-35% year on year. 10% risk free is nothing short of an abuse. Safety of capital is as essential as capital appreciation. An imbalanced asset allocation is one of the primary causes of unhappiness among the people. Hence it is important to understand that the portfolio should be a healthy mix of debt and equity. There are only 3 objectives behind investing and all 3 objectives should be fulfilled at all times:- a) Safety of capital b) Capital Appreciation c) Life and health cover. It has to be a healthy combination of Equity, Real Estate, Fixed Deposits, Recurring Deposits, Insurance and PPF.

3) Buying products from close ones - There are a lot of people who just do not know how to say a NO. A lot of times I hear some say "Mere Bhaiya is field mein bahut din se hai. Woh galat nahi ho sakte." On further investigation, it is found that he is a 3rd cousin with whom  this guy has probably just met once. Please note that "The business of business is to do business."

4) Do not buy Liabilities thinking that they are assets- The biggest reason for stress is not because the boss makes an employee work overtime, it is the dreaded four letter word DEBT. Many people have sleepless nights not because of the work pressure, but due to the credit card bills and the EMI's that are due next month (car, gizmos, gadgets, bigger house than required). What is the point of earning 1 lakh a month if the real income turns to be 20000 a month.

5) Herd Mentality- God has given us a brilliant brain but some people keep it absolutely intact and fragile. They handle it with so much care that they forget to use it. Instead they rely on rumours, get-rich-quick schemes and imaginary rags to riches stories of non-existent people (so called cousin chacha of an acquaintance). Henry Ford had once said "Thinking is the hardest work there is, which is the probable reason why so few engage in it."

These are the basic points which people should keep in mind if they want to make their financial journey happy and smooth.

Hope you find this article useful.

Your Friend,
Vivek

The B-I Triangle that every business should follow to flourish.