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Chanakya Niti and Financial Success

Chanakya Who was He? Born in 4th century B.C in India, Chanakya was also known as Vishnu Gupta and Kautilya. Throughout the century scholars have described Chanakya as a rare mastermind who became an expert in varied and specialized fields like management, economics, politics, military tactics, law, Leadership, management, governance, accounting system, and several others. The 600 sutras of Kautilya Arthashastra have been classified into 15 books, 150 chapters, and 180 topics by Chanakya himself.

Chanakya documented his lifelong work in his book Kautilya Arthashastra, Chanakya Niti, and Nitishastra which is referred today also by many people across the world. Chanakya Niti book gives various sutras/niti for financial success. So here are Lessons from Chanakya Niti for Financial Success.

chanakya niti financial success

Chanakya Niti for financial Success

#1 Chanakya Niti for Financial Planning

“One should start a work only after adequate planning”

Before starting any work you should carry out planning same is applicable in the field of finance. You will not gain financial success without planning.

“A well-planned work produces good results, even in adverse conditions”

Chanakya Niti says that if your work is well planned it will surely produce a good result. In a bad market condition if your plan is in place you are likely to gain more profit.

“The planning is like the light that shows the path in darkness”

Planning will always help you in adverse conditions. E.g if you have not made any emergency funds you can suffer badly in emergencies.

DIY – Free Financial Planning Tools – Recipe

#2 Chanakya Niti for Risk Assessment

“One should weigh one’s capacity before starting a work”

You should carry out a risk profile assessment before starting any investment. A risk assessment will help you in formulating your investment strategy.

“One should wear ornaments according to one’s financial capacity”

You should spend money according to your income and capacity. Overspending will kill you.

#3 Chanakya Niti for Investment planning

“There is no jewel without some distortion”

This Niti says that as you will not find a jewel without distortion you will not find an investment option without limitation. Try to find out the limitation and make an informed decision before investing.

“When there are many options, one should select the work which has sustainable value”

Today we have many investment options in the market, but you should select investment options that are stable and have sustainable value.

“Goddess Lakshmi abandons them who start a work without examining the opportunities”

Chanakya Niti says that you should always examine opportunities before starting any work. If you start work without examining opportunities wealth will not come to you.

“One, who wishes to get milk, would not buy an elephant”

This niti is applicable for investment selection. You should study and invest only in investment options that are as per your financial goal, don’t invest money without a goal.

“Accumulated wealth is saved by spending well in business or in charity or by investing it profitably, just as a reservoir is kept fresh by letting out the stagnant water”

You should always look for investment opportunities and invest suitability. You should invest extra money rather than parking it in a savings bank account.

Chanakyaniti

All these important financial elements and sutras which we used today were discovered by Chanakya several years back.

This article is a tribute to the great laureate of economics “Kautilya or Chanakya” for providing detailed guidance on finance & management centuries ago which is true even today.

Don’t forget to share this piece of wisdom with your friends and allow them to learn Chanakya Niti.

Walnut – Innovative Expense manager

walnut expense manager

I often search for application which will track my expense automatically. Well today my search is completed I have come across Walnut an Innovative Expense Manager. Let me share with you detail of Walnut with you.

Walnut- Innovative Expense manager

Walnut is free expense manager app that helps you to track your expense automatically. This app works in background it does not even require to open the app or to make data entry. It tracks your expense automatically.

You must be wondering how it is possible to track expense without making data entry.  Well that’s what the innovation is, Walnut analyze the SMS from your inbox and based on keyword tracking makes entry of credit and debit. It is perhaps easiest expense tracker I have ever come across. Walnut is always in auto-mode and deeply understands your SMS Inbox. Walnut does not require access or connection to any bank accounts.

Walnut only looks at incoming message from business like bank, merchants etc. It does not analyse any personal messages. Walnut also gives insight of your financial transactions from single day to years at one place at one click.

Walnut – Features

  • Walnut provides intuitive visualizations and smart insights
  • Month wise summary of cards and bank accounts
  • Walnut will remind you of pending bills
  • It will give Spending Analysis
  • See all your SMS offers together in one place!
  • Search facility to search transactions, bills, events or any business message
  • It consolidates all business messages into a better view – No more LM-, DM-, AM- Now
  • It keeps related message at single place for easy tracking

Currently Walnut support following banks and business –

  1. HDFC bank, debit and credit cards
    2. Axis bank, debit and credit cards
    3. ICICI bank, debit and credit cards
    4. SBI bank, debit and credit cards
    5. Citibank credit cards
    6. Amex credit cards
    7. IndusInd credit cards
    8. Vodafone, Idea, Airtel
    9. BookMyShow, OlaCabs and many more

Walnut works like magic you must download it. This app is supporting only android based smartphone.

To know more about this app you can go through FAQ section.

How much money is enough for retirement in India?

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retirement

Retirement is point where you stop employment or business and rely on accumulated wealth for future. So, how much money is enough for retirement in India?  Everyone wants to get answer of this question. Let’s try to get logical answer of this question.

You need to answer few basic questions to calculate your retirement fund. I am sure if you are able to answer these questions you will get answer about how much money is enough for your retirement. So, Let’s Start.

How much money is enough for retirement in India?

What is your current Household expense?

How much money you spend every month for household expense, utility bill, food bill, home management maintenance etc?  I have calculated my household expense and it is approximately 26,000 Rs/- per month. So yearly I spend about 3.2 Lac on Household expense.

How much money you spend on Vacation?

This is the amount which you spend on your vacation every year. I spend nearly 0.5 Lac every year on vacation with my family.

What amount you spend on Entertainment and Transportation?

We usually spend a certain amount for entertainment and transportation. I spend nearly 0.5 Lac for entertainment and transportation.

What are your current Medical Expenses?

Medical expenses are actually unplanned expenses but if you monitor it closely you can take out rough estimate that how much money you are spending on it. I spend nearly 0.5 Lac per year on medical.

What are your Tax liabilities?

How much money you pay as tax and how much you are expected to pay after retirement? I have estimated that amount and approximately 1 Lac is required for tax.

How much money is required as Emergency Expense?

 It is always advisable to keep good amount of money handy as emergency fund. I usually keep six month of my household expense 2.1 Lac for emergency.

What will be inflation adjustment?

Inflation means reduction in your buying power. Inflation cause increase in value of goods, so that you have to pay more money for same goods. Let me give you example before 10-20 years we use to purchase milk at 5 Rs/- per liter but today milk is sold at 30 Rs/- per liter. So while calculating retirement fund you must consider inflation adjustment. I am considering 1 Lac per annum as inflation adjustment.

At what age you would like to retire and what is your expected survival age?

Let’s consider that I will still work for 20 more years and then take retirement. Let’s also assume that my survival age will be 80 years.

Hope you have answer all question given above. Let’s do sum of your all current requirement.

money required

So, if I retire today I need 8.8 Lac rupees every year to live comfortable life. To generate yearly income of 8.8 Lac I need retirement fund of 1.1 Cr.

1.1 Cr retirement fund Invested in instrument giving 8% return will lead to 8.8 Lac yearly Income. With income of 8.8 Lac, I can run the show for few years but down the line inflation effect may cause increase in my monthly requirement. So what to do?

Best is to calculate retirement fund based on years remaining for retirement. So, If I take 20 years is remaining for my retirement than I need to figure out what will be value of 1.1 Cr after 20 years. If I consider inflation rate of 6%, I need 3.52 Cr for retirement after 20 years.

Conclusion:-

For middle class people like me 3.5 Cr is enough as retirement. Remember Inflation and interest rates plays major role in deciding retirement fund for you.

I request reader to follow procedure given above to know how much money is required for their retirement.

If you find any difficulties in calculating your retirement fund, you can get in touch with me.

 Do share your views on above!

Wake up call – If you are still poor at 35!

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If you are born poor it’s not your mistake, but if you die poor it’s your mistake. This is a famous quote given by Bill Gates. As per him, one should strive to be rich. Many entrepreneurs today pursue this quote to become rich. But still dying poor is a reality today. If you are at age of 35 and still poor it’s time to wake up.

Wakeup call jackma

Jack Ma Story – If you are still poor at 35!

This wake-up call is by the founder of Alibaba Mr.Jack Ma. As per him, you are poor because you have no ambition.

Jack Ma said that before founding Alibaba I invited 24 friends to my house to discuss the business idea of Alibaba. After discussing for two hours they all were confused. 23 out of 24 people told me to drop this idea, for multiple reasons like a job is better, you don’t know anything about the internet, you don’t have the capital for business, etc.

I contemplated this for one night and decided to go ahead although 24 people are opposing this idea.

Once I started my journey I immediately met with strong opposition from friends and family. My biggest driving force was not my confidence on the internet but more of this: “No matter what one does, regardless of failure or success, the experience is a form of success in itself.” Just think about the thousands of roads at night, in the morning can always go on the same route. This means you can keep trying if it does not work you can revert to what you were doing before.

I was a daydreamer and acted on my dream with open eyes. Remember “Dream is not that what you see in your sleep. The dream is the thing which does not allow you to sleep.”

Jack Ma Said: – Many people lose a life because of the following –

  1. Being prejudiced against opportunity
  2. Looking down on opportunities.
  3. Lack of Understanding
  4. Failing to act quickly

Advice to Young People & Entrepreneurs from Jack Ma

You are poor because you have no ambition.

Ambition is key to success. It is a burning desire to achieve something. It is a driving force that can shape your future.

Jack Ma further shared the story of Juliet Wu Shihong famous professional manager in China. Wu gained success through self-education and learning on the job.

Initially, she was working with a big company of a lower rank, her job was to pour some tea, sweep, etc. Once, because she did not bring a daily pass, she was not permitted on the company’s premises by a guard. She requested the guard that she is indeed the company’s employee but the guard was not allowing her.

As she stood at the gate, she observed those of similar age to her, but smartly dressed girls walking through without having to show their passes.

She asked the guard, “Why are these people allowed through without producing a pass?” The guard fired her emotionless.

That was the turning point for Wu – she felt great shame, her self-esteem trampled on.

From that moment, she vowed never to allow herself to be shamed like this again, and to become world-famous.

Since then, she never looked back, she used every opportunity to enrich herself. She worked very hard. She was the first to arrive at work and the last one to leave. She used every second of her life and soon her efforts paid off. She was appointed as a sales representative and quickly progressed to a higher position in her career. She was admired as the ‘Queen of Part-timers’ in China.

Only one incident was enough to change her life. She won this battle because she has a burning desire to be rich & successful.

  • You are poor because you do not have the ambition to become successful.
  • You are poor because you lack foresight.
  • You are poor because you cannot overcome your cowardice.
  • You are poor because you lack the courage and willpower.
  • With ambition, you can overcome all inferiority and extract your potential!
  • With ambition you can persevere, continuously learn new things, and strive for perfection.
  • With ambition, you can defy all odds, and create miracles when others daren’t.

No matter how poor your family is, do not doubt your abilities and lose sight of your ambition.

  • When your family deems you worthless, no one will pity you.
  • When your parents do not have money to pay the medical bills, no one will pity you.
  • When you are beaten by your competitors, no one will pity you.
  • When your loved ones abandon you, no one will pity you.
  • When you’re 30 years old 40 years old has no achievements, no one will pity you!

Jack Ma Advice to Young people 

If you are 20 to 30 years old –

Please find a good boss, not necessarily a good company learn from the boss learn how to do it. 

When you are 30 to 40 years old –

Try to do something yourself, if you really want to try.

When you are 40 to 50 years old –

Do things that you are good at after 20 years of learning you should do something you are good at.

When you are 50 to 60 years old –

Spend time supporting young people.

When you are over 60 years old –

Spend time with your grandchildren.

So when you are a graduate where you are just in the university don’t think about – I want to resign from the school and be another Bill Gates because, Bill Gates left Harvard there’s only one Bill Gates in the world. 

When you graduate find a company most important find a good boss who can train you discipline you and tell you what is good and right is more important than a good company right, of course, a good company good boss even better and then continue your life.

Go big, or go home. Otherwise, you’re wasting your youth.

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