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How to become wealthy? – 7 Secrets of the wealthy people

Money & Wealth

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August 3, 2015

How to generate a wealth that last forever? How wealthy people become wealthy? How a person like Bill Gates become the richest person in the world in his thirties? Do you know the secret of Warren Buffet and Rakesh Jhunjhunwala about wealth generation? All these people came from middle-class families. Yet they were able to generate apex of wealth in a short span of time. So today let’s try to get an answer of question which everyone is looking for – How to become wealthy?

How to become wealthy? – 7 Secrets of the wealthy people

In order to become wealthy, you need to follow ultra-rich wealthy people.
Wealthy people created an asset that is worth billions of dollars. If you have a potential to do so you can also become wealthy.

Example –

Bill gates become wealthy by doing a business of windows OS.

Jan Koum sold Whatsapp to become wealthy.

Mark Zuckerberg made facebook to become wealthy.

What business are you going to do to become wealthy? Create successful business in which people wants to invest.

Also Read – 40 Small Business Ideas with Low Investment

Wealthy people know how to generate money out of money. They have investment mindset. They have the power to identify a good business for investment. They invest in assets (business) for wealth generation.

Example –

Rakesh Jhunjhunwala became wealthy by doing stock market trading. He generated a wealth of 1.9 Billon dollars with an investment of few thousand rupees.

Warren Buffet investment guru has turned wealth by making a stock market investment.

Wealthy people are innovative. They know how to make a great product. If you want to become wealthy you need to develop out of the box thinking. This reminds me of very good book ‘Stay Hungary Stay Foolish’. Book shares innovative ideas that turn into successful business.

Example –

Steve Job made wonderful product iPad and iPhone which is ruling the market.

Rich people keep multiple sources of income. They build passive income. Keeping a single source of income in today’s world is foolishness. If you want to become rich you need to build a multiple source of income. If possible try to build a passive source of income.
Becoming wealthy means doing smart work, not hard Work. If you want to be rich stop doing a job. Rich people never work under boss. They become the boss. Today, I meet number of people who work hard for building a career, increasing position or building the reputation. These people are generally employee or self- employee people. They work hard for earning more money, but they don’t know success means doing less in order to make more.
Rich people build a team that work for his goal. Rich people believe that key to success is laziness. They find innovative ways to do more with less they empower their teams to be successful for them.

Can you become wealthy? Only you can answer this question. If you have an innovative business idea, great product, right team and right mindset you can also become wealthy.

Your comments and success ideas are welcome!

Why Gold Rate in Indian cities are different?

Gold Silver

Shitanshu Kapadia

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July 31, 2015

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The gold rate in the Indian market is decided by the International market. Ideally, gold rates should remain the same across the country. However, gold rates in Indian cities differ from each other. Gold price in Mumbai is different than in Delhi or Chennai. Some cities offer gold at a lower rate compared to others. Reasons for why the Gold Rate in Indian cities is different is given below.

Reason for Gold Rate Difference –

Transportation Cost –

Transportation cost plays an important role in determining the gold price. Physical movement of gold from one place to another place requires suitable security arrangement. Spending on this will increase a price of gold.

Volume Play –

Big volume players in the big cities can offer a discount on bulk buying. This could lead to price variation. It is sometimes observed that price of gold in Mumbai is lower compared to other cities. This may be due to this.

Gold Associations –

Local gold associations also play a major role in determining a local gold price. In big cities like Mumbai, Delhi, Chennai price of gold is fixed by this gold association. For Mumbai “Bombay Bullion Association Ltd” decided the price of gold. They act as a union and decide a local gold price. Fixing of gold price happens twice a day. This could be the reason of variation in gold price across cities.

Purchase Price –

The jeweler may have purchased gold long time back where a gold price was low and now he is selling gold which is equivalent to international gold rates. However, this price variation will be very small.

How gold price are determined in India?

Ideally, the gold rate depends on the international gold rate. However, it depends on additional factors like import duty, dollar price variation, etc.

The largest producer of gold is outside India and to import gold we need to pay a dollar-rupee conversion price. If rupee falls against the dollar the landing cost of gold increases and gold becomes expensive.

The second important point is import duty. To control the current account deficit, the government increases import duty. This makes gold further costlier.

The pricing of gold in India is primarily influenced by an informal process, as there is no centralized authority in the Indian gold industry. While international prices do have an impact on gold rates in India, they may not align exactly with the global rates. The Indian Bullion Jewellers Association (IBJA) plays a crucial role in determining the day-to-day gold rates in the country. Comprising the largest gold dealers in India, the IBJA collectively contributes to establishing prices. These members represent the majority of legal gold transactions in India and hail from various regions of the country. In India, banks are the primary importers of gold, which they then distribute to bullion dealers across the nation. The banks add their fee to the imported gold, making the rates slightly higher than the initial import price.

The process of determining gold prices is initiated by the IBJA, which engages in conversations with the top ten gold dealers in the nation. These dealers provide their individual ‘buy’ and ‘sell’ quotes, which are influenced by the rate at which they acquired gold. The IBJA then calculates the average of these quotes and establishes the gold rate for a specific day based on this average. This average rate is further adjusted to account for local taxes and a corresponding fixed rate is determined.

Gold Price History

In order to compare gold price with the international market let’s look at the last 70 years’ history of the gold price. This chart is taken from Gold Price history data of RBI.

Gold is a yellow shining metal and is a very good hedge against inflation. The price of gold is increasing every year. Keeping this in mind one should keep investing in gold.

What is your take on Gold? Do share your views!

Bahubali Movie teach us how to get success in business

Business Ideas

Shitanshu Kapadia

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July 29, 2015

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Bahubali Movie teach us how to get success in business

Baahubali movie is one of the most expensive movie running successfully all across. Apart from entertainment baahubali movie teach us several business lessons. It is but obvious that in order to get success in business you should follow various business fundas. It is not necessary to attend classroom sessions to learn these business fundas. Movies like Baahubali is enough to learn it. Let’s explore what Baahubali movie teaches us about success in business.

Success in Business by Baahubali Style

Focus and Goals

In the movie, it is shown that Baahubali tries to climb the mountain multiple times. Even waterfall force and emotion of his mother can’t stop him. His primary goal was to climb the mountain and his focus was to fulfill this goal.

Learning – In order to get success in business you should set an attainable Goal. Once your goal is set you should start working towards fulfilling this goal. You may face several problems, but you should not change your focus. “Focus on Goal like a hungry Lion and run after it without any thought except to get it”.

Proper Planning

In the battle scene of movie baahubali it is shown that the army of the opposite party is four times larger than baahubali’s army. However from the beginning army of baahubali does meticulous planning by dividing themselves into multiple teams. These teams fought this battle for the victory.

Learning – Proper planning is an essential step for getting success in business. Your opponent team may be large enough, but instead of getting panic you should do proper planning strategically for getting success in business. Remember planning helps you to run the business with limited employees and limited resources. Remember “Failing to plan is planning to fail”

Proper Selection of Employee

In the movie, it is shown that when it comes to the selection of King, mother of king organize a fight between her own son and Baahubali. The decision of appointing king is done based on performance in the competition and it is the correct decision for the kingdom.

Learning -Success of your business depends on the selection of correct employees for the correct task. You should keep your employees satisfied and happy. Your employees will be satisfied and happy if you are giving them work as per their expertise, an area of interest and performance.

Another point is you should always take an appraisal of an employee based on performance without any bias. If your employee feel that you are getting biased it will directly impact their work and ultimately on the growth of your business.

Critical thinking ability

In Baahubali when bhaubali’s army is about to run away due to fear of failure, baahubali motivate them by saying it is better to die in the battle field rather than running away. This saying boosts up the army for fighting the battle.

Learning – Ups and Downs in business are about to happen. During the period of slow down employee may get demotivated and lose trust on the company. During this time, it is a task of businessman or entrepreneur to keep employee motivated. Small motivation given on right time sometimes leads to huge success. Remember “Being positive in a negative situation is not naïve. It’s Leadership”.

Hope this valuable business lessons from Baahubali Movie will help you to get success in business.

Do share this valuable business lessons on facebook and twitter.

Pradhan Mantri Suraksha Bandhan Yojana Scheme

Personal Finance

Shitanshu Kapadia

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July 28, 2015

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Pradhan Mantri Suraksha Bandhan Yojana Scheme

Pradhan Mantri Suraksha Bandhan Yojana New Scheme will make your Raksha Bandhan Festival special. The government is planning to use upcoming Rakhi Festival to propose new Fixed Deposit scheme. Proposed name of this scheme is Pradhan Mantri Suraksha Bandhan Yojana.

Prior to this Honorable Prime Minister has announced multiple social security schemes like Atal Pension Yojana, Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). Details of New Pradhan Mantri Suraksha Bandhan Yojana Scheme is given below.

Pradhan Mantri Suraksha Bandhan Yojana

Under this scheme you can buy the gift instrument typically banker’s cheque or Gift Card and give it to your sister as a gift. Your sister needs to represent it in the bank. She can be deposit this gift in existing bank account or bank can open a new zero balance saving bank deposit account.

Pradhan Mantri Suraksha Bandhan Yojana gift cards are available in three denominations 201 Rs, 351 Rs and 5001 Rs.

Pradhan Mantri Suraksha Bandhan Gift Card – 201 Rs/-

The gift card of 201 Rs/- will enable premium payment of Pradhan Mantri Suraksha Bima Yojana for multiple years.
The first premium of 12 Rs/- will be paid immediately and the second year premium of 12 Rs/- will be kept as reserve in saving bank account.
Remaining amount of 117 Rs/- will be converted in the term deposit for ten years and will fetch interest rate of 8% per annum. Annual interest income of 14.16 Rs/- will be sufficient for annual insurance premium YOY.

Pradhan Mantri Suraksha Bandhan Gift Card – 351 Rs/-

You can opt for gift amount of 351 Rs/- on Raksha Bandhan towards funding one-time insurance premium of PMSBY and PMJJBY.
Total premium 342 Rs/- will be deducted and paid to the insurance company as a first year premium.
The remaining amount of 9 Rs/- to be credited to the savings bank account of the insured. In order to continue the insurance for the next year one need to deposit premium amount.

Pradhan Mantri Suraksha Bandhan Gift Card – 5001 Rs/-

You can purchase gift card Rs. 5001/- on Raksha Bandhan towards funding insurance premium of PMSBY and PMJJBY for multiple years.
Out of this amount of 342 Rs/- will be deducted and paid to the insurance company as a first-year premium.
342 Rs/- will be parked separately in a Saving Bank account of the insurer towards payment of second years’ premium.
The remaining amount of 4317 Rs/- will be invested in the term deposit for five or ten years at the interest rate of 8%. Annual interest income of 345.36 Rs/- will be sufficient for annual insurance premiums, at the current rate, up to the date of the Term Deposit.

Important points about Pradhan Mantri Suraksha Bandhan Yojana

This scheme will be launched on 1^st August, 2015 and available throughout the year.
One person can only enroll through one saving bank account for PMSBY and PMJJBY.
No Guideline available if you get multiple Gift card under Pradhan Mantri Suraksha Bandhan Yojana.
Before gifting under this yojana, you need to be careful in case recipient age is less than 18 years or more than 50 years he/she will not be eligible for the scheme.
In case if the receipt is already insured by PMSBY and PMJJBY, the amount received as a gift card can be used to pay the premium of subsequent years.
TDS is applicable for the fixed deposit taken under this scheme.
Maintaining balance for the premium in the account shall be the responsibility of the recipient.

Conclusion –

Pradhan Mantri Suraksha Bandhan Yojana is one more step towards encouraging social security scheme through gifting.

I am not sure that Pradhan Mantri Sneh Bandhan Yojana Gift card will be suitable gift for your sister on this Raksha Bandhan or not. However I recommend to gift fixed deposit or Mutual Funds on the name of your sister this Raksha Bandhan.

Scheme information of Pradhan Mantri Sneh Bandhan Yojana

Circular issued by IBA to Bank about Pradhan Mantri Sneh Bandhan Yojana.

Hope you enjoy reading this post. Do share this information with others.

Happy Raksha Bandhan in Advance 🙂