My Personal Investment-Equity-PPF-SIP-Incometax

Most of us think of ourselves as educated but have anyone wondered if we are financially literate? Is earning money enough or you need to know what to do with the earned money ? How to increase your income or for that matter how to make correct decision about investment which will save some tax for you ?

Here are some of the ideas for personal finance.

SIP:

SIP is nothing but Systematic investment plan. Many of you must be aware of recurring FD schemes of banks. SIP is nothing but recurring MF investment scheme. SIP achives following things

  1. Timing of the market.
  2. Investing in equity market with the help of equity market experts.

Please check SIP investment for further details of it. If you want to know how its returns are calculated, please check SIP retuns calculator.

SIP Investment is profitable only if its done for longer period of time. There are many free online tools which can help you understand SIP, please check SIP Calculator to know about SIP Calculations. Please refer to below email for Sample SIP Calculation.

sip-over-years

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Change in the direction.

 

I have started many blogs and I must have closed equal number of blogs, few of them survived test of the time and this blogs is one of them or may be only one of them. I started this blog as a travel blog but then started putting almost anything here. My random thoughts, book reviews and what not. Frankly, I was’t posting much either. But I think somewhere I lost the track of the blog.

Why blog ?
I am passionate about trekking. travels and visiting new places and my idea behind this blog was to keep log of my travels and share it with others, Friends, strangers who might get help while planning their travel or at least will get inspired for travelling.

Is it burden ?
Yes, sometimes it is. When I travel, I want to travel for the sake of it and not for logging a post on blog. I dont want to miss the view, moment and feel of the cold (or hot) air, in the effort to take pictures or to record it.

Lastly, I hope this blog will keep me on track to visit as many places as I can in my lifetime.

PS: Well I am not giving up reading books or writing any reviews on them. I have already launched my new website(not a blog) www.literating.in for the same. Its still undergoing lots of changes.Please do visit it.

Book Review: Elon Musk by Ashlee Vance

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Elon Musk by Ashlee Vance

When biographer writes about some celebrated personality what is the one thing that could spoil the biography ? Its authors infatuation/reverence of the figure about whom he is writing. Authors intention of writing book shows this intention but it could just indicate interest in subject as well but sometimes authors liking of his subject could ruin a possibly beautiful book. Well this is what has happened with Elon Musk by Ashlee Vance.

The book begins with promising note. but somewhere in the middle it looses the stream. This is not must exhaustic about Musk’s day as technology enterpreneurial days. It just rushes to SpaceX and Tesla. Author has dedicated two separate chapters to these companies (which are by the way very exhaustive to the point of making me think, an I reading a book about SpaceX or Elon Musk. Well, author might argue that entrepreneur and his dream, his company are not different and there is some sense in that as well but still somewhere you start to think this is getting diverted from topic at hand.

Every celebrity has a one biography that readers would read to know about that person. unfortunately for Elon Musk it wont be this book. Maybe someone sometime later would right another book that could achieve this standard.
Author has unnecessarily defended the Elon Musk in the book.As a biographer his task is provide all the facts to reader but not to give his conclusion all the time (Author is also human being with his biases and its fine to give judgement but when it become series of statements to defend his subject it goes to the point irritation. Just to cite an example, Author feels proud of the fact that SpaceX was able to hire best employee from some aeronautical firm but at the same time if Jeff Bezos’s Blue origin does this to Tesla he criticizes blue origin as if he taking something away from author himself !

This book also misses on lots of front such as it has very limited details about Solarcity and Elon Musk’s personal fallacies and his relationships with friends, family and foes.

However I would still recommend this book to someone who is interested in entrepreneurship (primarily because I think there is no alternative source of information).

Book Review: : Anything you want by Derek Severs

 

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Anything You Want: 40 Lessons for a New Kind of Entrepreneur by Derek Sivers is nice book to read not just for budding entrepreneurs but also for someone who is interested in literary point of view.

From the book and what Derek has done, it seems like he is a gem of a human being.

I am also having an idea and was thinking of outsourcing the website development work but somehow I was feeling that I should know this and I should test this idea on smaller scale before launching it big. the fact that Derek taught himself php and mysql before launching his own website has provided a further push to launch website by myself at least the basic version.

Author is not an MBA and he reiterates that it’s not necessary for being successful. I don’t think anyone can argue with that doing an MBA is not necessary for starting the business but at the same time we need to accept doing an MBA can make a company more successful, profitable and sustainable. Author is not critical of MBA’s but he does come close to ridiculing MBA when they ask about ROI and other stuff.  But if you consider the way things turn out at cdbaby.com one don’t need to analyze to recognize that little bit of business knowledge would have helped him enormously.

This is the first book which I listen as audiobook and I liked it. The fact that author himself read out the script made it much better.

Fish! A Remarkable Way to Boost Morale and Improve Results: Review

Fish! A Remarkable Way to Boost Morale and Improve Results is written by Harry Paul, John Christensen, and Stephen C. Lundin. Its a very small book and can be read in single sitting. Its hardly 100 pages that too with wide margins and bigger font. This book tries to teach some simple ideas about effectiveness about the work through a short story.

There is nothing new in this book. Everything that is mentioned here is already being said or mentioned somewhere else.This books make four points as mentioned below:

  1. Choose your Attitude
  2. Play
  3. Make their day
  4. Be present.

I like few statements made by author’s in the books

  • Life is to precious just to be passing through to retirement.
  • Work is reward not just way too reward.
  • There is always a choice about the way you do your work, even if there is not a choice about the work itself.
  • and some more quotes by Yogi barr and others

Although there is nothing special about this book this book could be helpful for some managers in traditional industries if working environment is very bad and they want to use something very simple to understand.  If you are looking for a book which would give you some inputs about improving efficiency and making work exciting, look somewhere else.

Fooled By Randomness By Nassim Nicholas Taleb : Book Review

Fooled By Randomness

Fooled by randomness by Nassim Nicholas Taleb is definitely one of the must read book of all times. Its a must for any MBA graduate or an aspirant (even though Nassim Taleb himself is a MBA, he leave no chance to insult MBAs). It is also a must read if you are working in analytics (You might have doubt about existence of your whole profession as well). Its a good read for others as well but during some chapters one might feel lost because he has tried to take reference from financial market and statistics.

One of the best things about this book is this book is not edited to make it more polished. This book is pretty much in raw format and it has author’s eccentricities as well. One more thing which I like about this book is that author does not hesitate to criticize anyone if he feels they have made some mistake irrespective of their positions, in fact he doesn’t even spare Nobel price winners (Well. Nobel Prize winner are also humans at last).

I don’t know much about George Soros but I always admired his achievements and attitude in general. He is the only person author has spared from his criticism, in fact author commends George Soros several times in his book.

Some of my favorite quotes from this book

  • Mild success can be explained by skill and labor. Wild success is attributed to variance.
  • High yield market resembles a nap on the railway track. One afternoon the surprise train would run over you.
  • A mistake is not something to be determined after the fact, but in the light of the information until that point.
  • Finance academics instead of fitting their action to their brains,  for their brains to their actions.  These people cheat with statistics to justify their actions.

I have only one issue with this book. This book says almost everything depends on randomness. But what we learn as a part of MBA is strategic planning which requires firm belief than if we planned things properly we can control the outcome. So my take on this book is that, this is good read, in fact its a must read but at the same time we must give in to belief that everything is random because almost everyone of us in life has achieve something after deliberate plan and we have seen direct correlation between activities and results as well.

This is a rather small book and it has about 270 pages. I read it in two days. I would definitely recommend to read this book.

Whats with the number 2 ?

I have always thought as number 2 is lucky for me, not that I believe in numerology but still number 2 has played some role in my life. I am second child of my parent and I was borne on 22nd march, but what’s special in that there would be thousands of humans having this coincidence. I was good student during my school days but I always ended up being the second topper in my class. When I was in 10th standard, I studies very hard to beak this second ranking jink but I failed and I stood second in the school. But finally I was able to break this jinx during engineering when I stood first in my branch.

Now let’s talk about house numbers, my home has house number of 502. Couple of year’s back I purchased a flat in as an investment. I was searching for resale flat only I saw many flats but most of them were very old and so I did not like any of those. An agent showed a newly constructed flat which was available for resale. As soon as I entered I liked it, and when I came out and saw flat number as 102. Recently I joined IIM for MBA. For accommodation, I went quite early. I was the third one. First two guys got room number of 201 & 202 and I got 203. I thought that this number 2 is not true then. I took the key and I was on the way to my newly allocated room. As soon as I reached first floor, rector called me and asked me to throw the keys down at him, I thought some tag might needs to be noted, he put that in the drawer and threw another set of keys to me and said “sir, use this one” I caught the key and when I checked the tag, It was 202 !!!