Showing posts with label Personal Finance. Show all posts
Showing posts with label Personal Finance. Show all posts

Wednesday 10 August 2016

Life decisions with long term perspectives

If we look at any great organization’s history, they had many struggles to deliver consistent results, but still they are existing today and making an impact is due to their decision making in crucial times based on long-term perspective. Similarly, if we observe  any successful married  couples, they could be your parents, they might have faced many struggles in their lifetime, but still they made a difference as role models, it could be due to  their decision making in important stages of life  was based on  long term perspective.

One of the profound management principles of Toyota, which says, “Base your management decisions on long term philosophy, even at the cost of short term benefits.”

Sometimes, we are tempted for short-term benefits in career switch or job switch decision making which cost our potential to make an impact on long term.

Most of the relationship issues arise when one of them takes a call considering short-term pain or gain foregoing the long-term happiness.

In fact, in the stock market, those who stay long term make more money than short-term traders do, even though there is so much of hype and temptation about short term trading.

Look around any achievements, impacts, inventions; it could be made possible due to long-term perspective of the person involved, even at the cost of short-term temptations or benefits.

Just be aware of your life decisions whether they are for short-term gains or avoiding short-term pains or they are for long-term impact and happiness. 

Wednesday 2 September 2015

Managing Emotions

“The sign of an intelligent people is their ability to control their emotions by the application of reason.”—Marya Mannes

      One of the toughest  management is managing the emotion of self. The internal  emotion will manifest as behavior to the external world and makes us  either great or break. It can be in relationship, day to day decisions and even in managing personal finance. Those who can able to master their emotions  through self awareness becomes successful in all aspects of life.

        For instance, as most of  us aware of the fact that  stock market is one of the investment avenues of our period and if we manage well, we can create wealth. But how many of us really have made money in stock market consistently? One of the reasons  that most of us  are operating in stock market mostly with  emotions like anxiety, greed, fear  and then take decisions which most of the time goes wrong.

        Likewise, in a relationship with our family members or even with fellow workers, we are predominantly run by emotions like fear, jealousy, anger and then proved  by words or natural process which moves the relationship character.


         Managing emotions  well is mastery of all skills. For some people, it is a natural process  and for others, it is possible with awareness and practice. If one masters managing emotions, he starts attracting all good things in life!

Tuesday 14 July 2015

Revenue conscious or Expense conscious?

“The key to success is to focus our conscious mind on things we desire not things we fear.”—Brain Tracy

     Who does not like to be rich in his lifetime? Every one wishes.But it  depends on the focus and right action personal finance management. The focus is required on both revenue as well as expense management for long-term wealth creation. Most of us are giving more focus on expense control than revenue maximization. Let us understand the implications of both.
   
Revenue maximization:

     When  you are more conscious about revenue maximization, the focus would be on generating  more revenue  through business expansion or professional development, etc.. Consequently, the action  and energy would be  on skill development, making yourself competent, looking, for, saving and investment opportunities, etc. In this approach, there is no limit to maximize your  revenue generation possibilities.

Expense control:

     When  you are more  conscious  about expense control, your focus would be  always on reducing the expenses, looking  for cheaper alternatives etc..Your energy  and action would be  cutting down the expenses even if looks required for long term benefits, for example, investing in yourself for future growth etc..But the fact is that beyond a certain point, you cannot control  your expenses as this  seems to be essential.


     The point is  not to be conscious  about expense control, but too much of consciousness  may  not make you  rich, instead  have consciousness  on revenue maximization and moderate control of  expenses may help you  accumulate wealth.Be aware about your control on  wealth creation process and you attract good things in life!

Mastering Personal Finance Management

"Financial freedom is available to those who learn about it and work for it."--Robert Kiyosaki

Everyone wants to be financially secure or free from financial crisis.We may see  that people with higher education and good  positional status in profession struggles with the financial crisis  and it may wipe out their entire life effort. Some of the reasons could be lack of education on personal financial management right from childhood, myths about money and not giving focus on learning and improving the art of financial management. The earlier we start this art of learning in life, better will be our financial freedom.
Most of us think that personal finance is about earning through profession and savings. Actually it consists of four elements viz Earning, Spending, Saving and Investment

Earning:
       It is about earning in line with our potential, skill and knowledge.It is about increasing the competency to earn more through profession.

Spending:
 It is about the expense management, awareness of our lifestyle, spending and accounting. It is about the consciousness of our behavior on spending.

Saving:
  It is excess after spending. It is about awareness on savings consistency.

Investment:
It is about investing the savings or excess in right asset allocation like real estates, deposits, metals and stock markets etc..It is about awareness on right asset allocation, periodic checking of returns, and taking corrective actions on time.

   Planning and consistent execution of all four elements may assure the financial success.Even any one of the element does not give attention much, it may result into financial crisis. As said, it is an art, continuous learning process and can be learned at any age. Hence aware of your financial management behavior and action, you attract good things in life! 

Habits will determine your success

"We are what we repeatedly do.Excellence is not an act,but a habit."--Aristotle



         The habit can be defined as something you do regularly and often, which eventually becomes easy. For example, viewing television while taking food is a habit, attending meeting on time is a habit and for the successful people winning in every obstacle is a habit.

          Now let us understand the quality of habit and its impact on the probability of success or growth. For example, you want to have control of your financial security. If that is your goal, it demands some of the good habits like checking your expenses frequently, saving some percentage of your earnings, frequently looking at your investment portfolio for better returns etc. Those  habits  only lead  you  to financial freedom over a period of time.Similarly, you should not have bad habits like  buying all new gadgets, whether you really need it or not, investing in low productive assets  etc.  With reference to personal finance. Hence, the combination of good and bad habits related to personal finance only will determine your financial security.

          Similarly, each aspect of life like career advancement, business growth, and relationship require a set of good habits to be followed regularly and at the same time avoiding the bad habits. The choosing of good habits and consistently following only leads to achievement of success in any given area.


          Now re look at your habit pattern in any aspects and you attract good things in life!