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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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Black Money Hawala and Jan Dhan Yojana

jan dhan yojana

As per RBI hawala operator and money launderers can misuse Jan Dhan Yojana for Hawala & Black Money. Hawala operators can split big amount and using several bank accounts they can operate Hawala network.  RBI issues caution to banks in this regard.

What is Pradhanmantri Jan Dhan Yojana?

Jan Dhan Yojana was launched by Prime Minister Shri. Narendra Modi on 15th Aug, 2014. Prime Intention behind this yojana was to open bank account for every Indians. Several crores of accounts are already opened under this yojana across country. Target is set by Pradhan Mantri to open 7.5 Crore account by Jan, 2015. To achieve this target RBI eases KYC norms, only photo ID proof sufficient to open account. Banks are also in pressure to complete target of 7.5 Crore account. It is observed that banks are accepting any documents as KYC proof for opening accounts. Bank officials are not even bothered about checking genuineness of this proof. Easiness in rule of KYC and Lethargic behavior of bank official can give boost to Hawala and Black money.

How Jan Dhan Yojana can be used for Black Money Hawala?

Under this yojana anyone can open bank account. Even if you don’t have valid identity document still your account can be opened under this scheme. These types of account will be called as Small Account.

Small account can be opened by anyone by just submitting self attested photograph and a signature or thumb impression in presence of bank official. These types of accounts will have credit limit of 1 lakh per annum and withdrawal up to Rs. 10,000 per month.  These accounts will be valid for 12 months can be extended after submission of valid ID and address proof.

If someone wants to keep black money at safe place can open multiple accounts at multiple banks and park his black money for 12 month without any issue. Even one can get interest on this black money.

Hawala Operator or money launderer can also take advantage of this yojana and can open accounts with multiple banks on multiple names. In absence of information sharing system by bank one can open these types of fake accounts in multiple banks and in multiple cities. Once accounts are opened work will be easy. These illegal bank accounts can be used by money launderer for illegal payment and money transfer.

What can be done to avoid this?

  • Bank should have common information sharing system like Aadhaar card.
  • Bank should have mechanism of triggering alarm for any big transaction under this scheme.
  • Bank official should check genuineness of KYC proof and no account should be open without KYC.
  • Cash Deposit limit could be set on these accounts per month Rs.5000.
  • RBI should strength KYC norms to avoid misuse of this yojana.

It is good that RBI raised cautioned to bank about misuse of Jan Dhan Yojana, but what about possibility of Hawala operater who is already making use of this yojana.

Time will reveal that this yojana will remain Jan Dhan Yojana or turn out to be Black Dhan Yojana.

Let’s hope modi government take appropriate steps to avoid misuse of this Yojana.

Do share if you care!

Money management Inspired by water

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Money management

Money is vital need today. No human being can live without money. Money is power, freedom perhaps everything for us. People are crazy about money & they are ready to do anything for money. Earning money is not enough, it is essential to do money management also.

Today I am going to explain you money management with help of water. Sounds interesting right! Let’s look at money management inspired by water.

Money management inspired by Water

Money management share lot of resemblance with water. For survival water is essential similarly for living good life money is essential. Let’s look at some more similarities like this.

  • You don’t like situation where you are getting limited water, similarly you won’t like limited money situation.
  • Good intake of water is necessary to keep your body healthy, similarly good inflow of money will keep your financial life healthy.
  • Drinking more money sometime may cause problem, similarly spending more money sometime creates a problem.
  • Water of multiple streams makes big river. Similarly multiple source of income makes a large sum of money. You should look for second source of income to live wealthy life.
  • If you drink unhealthy water from unfamiliar place you will face problems, similarly if you invest money at unfamiliar place you may face losses.
  • Unhealthy water will make you ill, similarly unethical or black money can place you in odd situation.
  • Offering drinking water to someone makes that person satisfied, similarly helping needy people by money makes you satisfied.
  • Water kept block for long time lose its value, similarly money kept ideal for long time also lose its value (Inflation). You should never keep money ideal it is better to invest money. You can go through 10 Best Investment to get regular monthly income.
  • Wasting water unnecessary is not good, similarly spending money unnecessary is not good.
  • In scarcity of water you store water in tank or by other means, similarly you should make emergency fund to address emergency situation.
  • You can enjoy taste of water by adding ingredients (E.g Lemon water). Similarly you should spend extra money on entertainment.
  • In scarcity of water sometime we call water tanker. This is similar to taking loan when you don’t have money.
  • To waste water of tanker in shortage situation is wrong. Similarly misusing or wasting loan money is also wrong.

Remember water and money is scarce resource you should use it wisely for better life.

Think of future

Cost to Company or CTC misleading term

CTC or Take Home

CTC or cost to company is often misleading term. Let me share with you recent incident. My friend got job in one very good MNC company. He got offer of 6 Lac as CTC (cost to company).  He was unable to control his happiness. He immediately joined this company. He got surprise after one month as his take home salary was very less compare to his CTC (cost to company).

This happens to many people today as people often get confused with Cost to company and Take home salary.

What is Cost to Company or CTC?

CTC is your cost to your company. Company spend money directly or indirectly on you apart from salary. So CTC is your monthly take home salary plus money spent on you by company.

Cost to Company = Monthly Salary + Additional amount spent by Company

In order to understand this in better way let us discuss what components make your CTC.

Also Read – Gratuity – Important Points to Know About the Gratuity

CTC (Cost to Company) Components

Before discussing your CTC components let us look at your salary components

  • Basic
  • Dearness Allowance
  • HRA
  • Conveyance Allowance
  • Education Allowance
  • Performance pay
  • Bonus
  • Medical Allowance
  • Washing Allowance
  • Telephone or Mobile Allowance
  • Leave Travel Allowance

All above component are part of your take home salary and CTC also. In other words total of all this components will make your salary.

Example

Let’s understand this using one example. Say your basic is Rs. 20,000 per month and DA is Rs. 6000 per month. Conveyance allowance is Rs.1000 per month and you are getting HRA of Rs. 7000 per month. So your overall salary package is 4.08 Lac per year.

Now let’s discuss about CTC components that actually inflate your CTC but may not be actually paid to you!

Bill Reimbursements

Bill reimbursement are part of your CTC package. This includes reimbursement of following:-

  • Telephone Bill
  • Medical Bills
  • Newspaper Bill
  • Magazine Subscription etc

Example

You are entitle to take medical bill reimbursement up to Rs. 20,000 per year. So, this Rs. 20,000 is considered as addition to your CTC.

Contribution to PF

It is mandatory to contribute PF 12% of your basic to provident fund (PF).  Contribution of your employer towards this is considered as addition to your CTC.

 This amount is not given to you every month but as company pay this money for you it is part of your CTC.

Example

12% of your basic is Rs. 2,400 per month.  So Rs. 28,800 per year is shown as additional amount to your CTC.

Gratuity

Gratuity is amount paid by company if you leave job after 5 years. Ideally Gratuity should not be part of your CTC but many company shows gratuity as part of CTC.

Health Insurance and Life Insurance

Some employer provides facility of free health insurance and life insurance to their employees and dependants. Premium amount which is paid by company on your behalf for this insurance can be included in your CTC package.

Transport Facilities

Companies may provide you free transport facility from your residence to work place. Cost of this free transport facility can be added in your CTC.

Canteen Food Facility

Companies may provide free or subsidies food facility to employees. Cost of this subsidy can be included in your CTC.

ESOP

Many company offers Employee Stock Option to employee. In this option company offers share at lower cost to employee. Many company add ESOP cost in CTC package.

Unrealistic or Fake Cost to Company Components

Let’s us look at some unrealistic CTC components. These components are unrealistic component which are not supposed to be added in CTC. But still some company does that.

Training Cost

Few companies offer good training to their employees as a part of joining but cost of this training they include in CTC which is wrong.

Office Phone Bill

Bill of office phone used by you can be included in your CTC.

Office Internet Connection Facility

Bill of Internet facility provided by company at office can be included in your CTC.

Office space rent

This is shocking it is found that many companies are adding office rent space in CTC.

Only Logic Company apply here is to show high CTC. So next time when you hear that someone from IIM got job with very high cost to company don’t be surprised, their large CTC may include many fake CTC component like office rent etc.

Hope I have cleared all your doubts related to HR Jargon Cost to Company.

Have you ever been to situation where company cheated you with fake CTC component?

Do share your experience with us!