Today everyone is running after money. Everyone wants to build wealth, but very few know how to build wealth. Wealth is not about how much money you earn. Wealth is about how much money you keep. Today we keep on hearing one question I should start business or continue with my job.
To answer this let me share with you interesting story of Building Pipelines or Hauling Bucket. This story I have read in book “Rich Dad Poor Dad” written by Robert Kiosaki.
Startup business
Story of Building Pipeline or Hauling Bucket
The story goes like this – Once upon a time there was a village. It was a very good place for living except for the problem of water. In order to get water villager needs to go to the river. River was a bit far away from the village.
In order to solve this water problem on permanent basis villagers called meetings. In the meeting, it was decided to give the contract to someone for the delivery of water to villagers. Incidentally, they found three contractors for the delivery of water to villagers.
Job Mind Set:-
The first contractor hired a person for hauling bucket and delivering it to villagers. The person who joined him as the worker was from the mentality of doing a Job. That worker started hauling buckets in the early morning. Till evening he was hauling buckets. At the end of the month, the contractor was paid a small amount of money to him as salary and the rest contractor was keeping with him.
This is what is happening today for job-class people. People with the mindset of doing Job are hauling buckets on daily basis to make others wealthy.
Self Employer Mind Set:-
The second Contractor was of the opinion why share money with others. He started hauling buckets on self. Early morning he use to start hauling buckets and was delivering buckets till evening. He used to enjoy the money earned by doing this job.
This is what self employed people do today. They own job as they don’t want anyone else to participate in their job.
Business Mind Set:-
The third contractor was of a business mindset. He came up with the idea to build a pipeline. He invested money to build a pipeline with a water filter facility. On the day of the inauguration, he announced to give of 24×7 clean water facilities at the doorstep at low-cost compared to the first and second contractor.
Soon he got business from the majority of villagers. In order to compete with him first and second contractors had to deliver buckets in a penny.
That penny story continued and both of them worked hard for the rest of their life and had financial problems forever after.
The third contractor with a business mindset replicated this idea in other villages also and lived wealthy life.
Moral from Story
Million dollar question you need to ask yourself is:-
Am I building a pipeline or hauling buckets?
Am I working hard or am I working smart?
If I stop working from tomorrow would it affect my income adversely?
Have you ever wondered how are you going to pay your bills when you stop working today?
Is it possible to earn more money by giving less time?
What am I doing today and what should I do for the future?
“Good days ahead” this was prime slogan and dream given by BJP government before coming in to power. Every Indian believed in this dream and voted BJP.To turn good days hope in reality people were waiting for budget 2014. Finally today Budget 2014-15 is announced by Finance Minister Arun Jaitley of Narendra Modi’s government.
Many of us expecting tax relief, inflation control, infrastructure development and much more from budget 2014.Up to some extent this demand was addressed in budget 2014.
Let’s Review Union Budget 2014-15 & its impact on you in detail.
Union Budget 2014-15 Review
For Tax Payer:-
Majority of people have demanded to increase tax exemption limit from 2 lac to 5 lac but tax limit was enhance only by 50,000 Rs/-.
As per new budget tax exemption limit for individual is raised to 2.5 lac from 2 lac.
Tax Rate (Slab) remains unchanged.
Increase in Investment limit 80 C from 1 lac to 1.5 lac.
Tax exemption limit for senior citizens changed from Rs 2.5 lac to Rs. 3 lac
This is very good tax relief given by government to tax payers. Now one can save 1 lac more from income tax. 50,000 Rs/- direct exemption and 50,000 Rs/- by increase in investment limit of 80 C.
This will not only help people in increasing purchase power but also help them indirectly to save more money.
Another major change from tax point of view is tax exemption limit on interest component on housing loan. This limit is raised to Rs 2 lac from Rs 1.5 Lac.
Home loan borrower will get now additional advantage of this enhance tax limit.
For Individual Buyers:-
Apart from income tax limit change it is proposed to change custom duty, excise duty, service tax on several product and services.
Following thing will become costlier after budget.
Cigarettes, chewing tobacco, Gutkha and Pan masala
Readymade garment, cosmetic items
Internet on Mobile
Air-conditioning maintenance
Taxi Services
Online advertisement
Stainless Steel Pipes
Following thing will become Cheaper after budget.
PC, Mobile
Imported Electronic Item
Footwear
Precious and semi process stone
Processed Food
LCD and LED TV (Size 19 inch)
Solar Energy equipment
Insurance policy less than 50,000 Rs/-
Edible oil
Crude oil
Like every year this year also finance minister has done his work of making budget of 2014-15. Somehow he manage to reduce tax burden in this budget, but yet few worry of common man is kept aside in this budget.
What common man wants today which is not present in budget:-
(1) Ever growing inflation is biggest worry of common man. In this budget provision of 500 Cr is made for price stability fund to reduce inflation but nowhere it is shown that what type of step government will take to reduce inflation and how this fund will be used.
(2) Black money and corruption is killing our actual economy. No provision is made in budget to expose black money or to prevent black money transaction. This budget is actually on same philosophy you save money to earn money.
(3) No provision made to increase tax payers. Not only that statement is made that Income Tax Department is expected to function not only for enforcement but also as a facilitator.
(4) Provision of 200 Cr is made for Sardar Patel statue in Gujarat. 200 Cr can be used for employment generation or for infrastructure development.
(5) 500 Cr provision is made for IIT,IIM but what about employment generation?
Still lot of question are unanswered in budget 2014-15.
Most-liked about Budget 2014:
PPF: Annual ceiling raised to Rs. 1.5 lakh
Income tax exemption limit raised to Rs. 2.5 lakh
Tax exemption on home loans raised from Rs. 1.5 lakh to Rs. 2 lakh
Ups 80C investment cap to Rs. 1,50,000 vs Rs. 1 lakh currently
Rs. 100 cr for Beti Bachao, Beti Padhao Yojna for women’s welfare
Government to add 12 more government medical colleges
Most-disliked about Budget 2014:
Budgetary Allocations: Rs. 200 crore for Sardar Patel statue in Gujarat
No change in tax rate
Service tax proposed on radio taxis
Long term capital gains tax rate on MFs raised to 20% (36 months)
It takes money & knowledge to build wealth. So to become wealthy you must gain money and financial knowledge. You can get a good amount of financial knowledge from finance books. There are lots of books available in the market, hence sometimes it is very difficult to select the correct book.
To help you out we are herewith a collection of the 10 best finance books. The majority of these books are best-selling books. These books will surely inspire you to gain financial success.
10 Best Personal Finance Books
#1 The Intelligent Investor
The Intelligent Investor finance book is written by Benjamin Graham. This is the best book for the investor as per Warren Buffet. This book gives valuable information about investing especially in the stock market. Underline message given in the book is you should carry out deep and thorough research before investing.
#2 The Millionaire Next Door
The Millionaire Next Door is a book written by Thomas J. Stanley & William D. Danko. They studied profiles of millionaires to find common traits among them. As per the book millionaire does not believes in showing off. They spend within their means. They thought their child to be self-sufficient and prudent in spending money.
Rich Dad, Poor Dad is a good finance book written by Robert Kiyosaki. In this book, Robert talks about his rich dad and poor dad’s philosophy and way of looking at money. He uses the cash flow quadrant to explain how rich and poor lives. In this book, the author is using simple yet very effective ways to explain things.
#4 Think and Grow Rich
Think and Grow Rich book is written by Napoleon Hill. Before writing this inspirational book Napoleon hill researched and interviewed thousand of successful people including Henry Ford, Thomas Edison, Alexander Graham Bell, John D. Rockefeller, etc. In this book, he captures details of what makes these people successful.
#5 The Money Book for the Young Fabulous and Broke
This finance book is written by Suze Orman. In this book, Suze explains how to be young and fabulous and not broke. In this book, the author talks about credit cards, student loans, credit scores, insurance facts, buying a first home, and many more. This book is a must for today’s young generation.
#6 Secrets of the Millionaire Mind
Secrets of the millionaire mind is a book written by T.Hary Eker. This wonderful book talks about the mind and the beliefs of wealthy people. This book also includes excellent strategies and plans for you to change your money blueprint and reach financial success.
#7 Common Stocks and Uncommon Profits
Common stocks and Uncommon Profit is a book written by well-known Investor Philip Fisher. This book talks about the stock market. In the first phase, he talks about 15 points to look for in common stock. The second phase talks about other basics including what and when to buy, as well as when to sell stocks.
#8 How to Get Out of Debt, Stay Out of Debt & Live Prosperously
This book is written by Jerrold Mundis. In this book, Jerrold shares simple and effective ways to free yourself from debt. If you are under debt and want to get out of debt to live prosperously this book is for you.
#9 The Automatic Millionaire
The Automatic Millionaire is a book written by David Banch. He is known as a rich series author. In the book The Automatic Millionaire banch share story of an average American couple. The underline fact of this story was you have to make a plan to pay yourself first automatically. This plan will automatically secure your future and present.
This one little book has the power to secure your financial future. Do it once–the rest is automatic!
#10 Financial Life Planning : Solve Your Biggest Puzzle
Financial Life Planning is a book by Indian Author Mr.Hemant Beniwal. This book talks about financial life planning. In this book author also talks about important topics like financial planning, budgeting, debt, insurance, and investment.
Thanks for reading the list of best personal finance books.
Please leave your comment and let us know your views about these books.
Please email us and let us know if we missed any book which you feel to be included in this list.
Did you like this article? Share it with your friends on Facebook.
In India to get good job and higher income is dream of many. Especially if you are starting career you will likely to remain in tight income situation at beginning. In tight income situation it is very difficult run household expense.
What happen when you cannot match your expense with your salary? But natural you need to control your expense and need to find ways to save money. Today we are here with 40 ways to save money in India.
40 Ways to save Money
1.Control your unnecessary expense to save money
First step in controlling expense and saving more money is to make monthly budget. Know your outflow. Once you know your outflow you will be in better position to divide it in to necessary and unnecessary expense. Control your unnecessary expense to save money.
2.Comparison and Bargaining to save money
In India bargaining is your birth right. Remember to compare and bargain to save money. Everyone keeps extra margin when they sell product. You must know how to squeeze this margin to save money.
3. Online Product purchase to save money
Today you will find many website like flipkart,ebay, amazone where products are available at lower rate or with cash back offer. You can opt for online product purchase to save money.
4. Purchasing used product to save money
Usually it is not advisable to purchase used product but in tight income situation one of the option to save money to purchase used product. You can take help of online website like quikr,olx to purchase used product online.
5. Avoid Branded product to save money
Use generic product instead of branded product. Branded product range is more costly than generic product. You can save a lot of money.
6. Avoid impulsive buying to save money
Avoid spontaneous buying think twice and about product need before buying that product.
7. Shop with list
Always go for shopping with list. Stick to shopping list. You will able to save lot of money if you shop with list.
8. Look for sale
Before buying anything look for discount offers and sale. Try to purchase things in sale to avail good discount.
9. Buy in Bulk
Be smart go for wholesale shopping shop and purchase in bulk. For bulk buying you may need some extra money but it is good money-saving idea.
10. Cut your transport expense
In tough money situation you need to control your transport expense. Try to avoid using car/bike while going at shorter distance.
11. Use carpool or Public Transport
To cut transport expense further you can use car pool or public transport system. This will surely save you lot of money.
12. Control Utility usage to save money
Electrical bill and gas bill is major utility expense today. Try to control usage of electrical bill switch off unused electrical appliance and you will see 20% reduction in utility bill.
13. Reduce Mobile Usage to save money
In tight income situation avoid usage of Mobile phone to save money. Where ever require you can give miss call.
14. Select more economic mobile and Internet plan
Another way to save money is to select more economical mobile and Internet plan. If you are not using internet frequently opt for disconnection.
15. Alternative source of Entertainment to save money
Instead of going out for cinema, try alternative source of entertainment, either by playing game or by reading e-book online.
16. Walk and Jog for health
Walking and jogging is best exercise. Avoid joining expensive jym or club try to walk daily to save medical expense.
17. Avoid use of credit card opt for cash payment
Credit card money always cost you extra you should avoid use of credit card and opt for cash purchase.
18. Plan your annual vacation in advance
If you are going for vacation every year in tight income situation you can either postpone it or plan it in advance to save on cost of transportation, hotel stay etc.
19. Check and swap your credit card
It is not advisable to use credit card but if you are using one make sure it is economic in plan if not swap your credit card to save money.
20. Avoid frequent visit at hotels cook at home
Avoid frequent visit to hotels make food at home to save money.
21. Car Maintenance
Always keep your car healthy by doing maintenance and regular check. By this you can increase mileage and save money.
22. Entertainment at home
Find way to entertain yourself at home only. Play indoor games with family or by playing game on mobile.
23. Change electrical appliance to energy-efficient appliance
Energy efficient appliance can lead to power saving. If possible go for energy-efficient (energy star) appliance at home to save utility bill.
24. Cancel unused memberships or subscriptions
To save money cancel membership of gym, club, magazine which you are not using it.
25. Try to repair broken items instead of replacing them
Another very good way to save money is to repair broken item at low-cost instead of replacing with new.
26.Plan most efficient driving route
To save cost of fuel plan most efficient driving route. This route could be shortest route or route with less traffic conditions.
27. Pay your bill on time
Pay your bill on time to avoid late fees and penalty.
28. Laundry at Home
In tight money situation you should count every penny. Avoid giving cloths for laundry outside.
29. Shop at discount grocery stores
Change your shopping location buy at shop where discount is applicable. D-mart, Reliance fresh is place where you can expect more discount.
30. Avoid bad habit
Cigarette and Alcohol is enemy of health and money. In tight money situation you should avoid bad habit to save money.
31. Skip Car Wash
Skip car wash facility to save more money in tight money situation.
32. Check your debt
Check your EMI and debt condition. To save money reduce interest burden, switch to low-interest loan by swapping bank.
33. Go Veggi
Select vegetarian diet in tight income situation. Vegetarian diet is less costly compare to non veg diet.
34. Celebrate with simplicity
In tight income situation you should avoid unnecessary expense by celebrating birthday or anniversary or celebrate it with simplicity.
35. Buy electronic item in off-season
Always buy electronic item in off-season. Instead of buying AC in summer season purchase it in winter.
36. Make your own gift instead of buying from store
To save money make your own gift or give low-cost gift while going for party.
37. News paper expense
In tight money situation cut your news paper expense and read news paper online in free.
38. Cable connection expense
Give disconnection request for cable TV connection to save money.
39. Start saving automatically
Open another saving account or recurring deposit account to save money automatically.
40. Avoid excessive use of credit card
Avoid excessive use of credit card to save money.
Use these 40 ways to save money in India. Do share your experience.
