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10 Money Mantras – 2013

Shitanshu Kapadia
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1
10 Money Mantras – 2013

money mantra

Money is vital need today for everyone. Anything and everything is purchased by money except love. 2013 is begin and we are herewith 10 Money mantras of 2013. Following these money mantras will help you in achieving financial freedom.

Making more money:-

Very simple and basic rule to follow this year is making more money or try to find out way to make more money. One can make more money by doing additional task (Working extra mile) or can make more money by doing work smartly.

The important thing is to find the best way for you to make more money, and then to build your goals around this. For making more money you can use these simple money making ideas.

Your Money Mantra: ‘I will make Rs.______ extra money every month!’

Protecting your money:-

Once you earn your money, you need to hold onto it. Protecting your money is another mantra this year. Many people earn money and make money but they are poor at protecting money. I am not talking about theft.  I am talking about protecting your money from unwanted expense, taxes, brokerage and additional charges. Remember small charges that adds up to big money.

Your Money Mantra: ‘I will protect my money from unwanted expenses and taxes’

Budgeting your money:-

If you are not budgeting your money these year you must start budgeting your money, Budgeting money will give idea about your spending habit and your limit. If you are facing budget crunch there are two ways to solve it decrease you’re spending or increase your income. Either will erase a budget deficit. In the long run, increasing income is a better solution.

Your Money Mantra: ‘I will budget money for my need’

Leveraging your money:-

Extra money in your pocket should pull extra money or how surplus money you have is generating more money is called as leveraging your money. It is often thought of as doing more with less. If you put your money in a bank deposit, it is very safe but you don’t get a real lot out of that leverage decision. However, if you decided to invest same money in investment class which can give more return like equity or real estate, you have got more leverage out of your money.

Your Money Mantra: ‘I will leverage my surplus money to earn more money’

Improving your financial information:-

Financial information doesn’t just mean knowledge of basic financial concepts — it also means detailed knowledge of the investments you make.

Warren Buffett is the most successful investor of all time, yet he never takes a gamble. He conducts extensive research before buying a company. Obtaining this information allows them to invest with confidence. This year you must try improving financial information about asset class where you invest your money.

Your Money Mantra: ‘I will improve my financial knowledge about product where I invest my money’

Setting Smart Goal:-

Knowledge is Power. Once you ‘know’, you can ‘do’.

If you want to retire, start figuring out when. Say to yourself ‘I want to retire in __ years, I want to live a lifestyle of Rs. _________ per month’ and start working towards it!

Remember to keep in mind inflation.

If something costs Rs. 10,000 today, and we assume 8% inflation per year, then in 10 years it will cost Rs. 21,589. This means that simply to keep pace with inflation your money must earn 8% return, wherever it is invested. And if you want to do more than just keep pace, you must earn more than 8% per annum over the long term.

Your Money Mantra: ‘I will have S.M.A.R.T financial goals!’

Saving more money every month:-

The best way to figure out how much more you can save every month, is to look at your budgets of the past 6 months. But there might be a problem. Most of us don’t keep budgets.

Here’s a little tip: look at your bank statements of the last 6 months – they won’t tell you everything but they will show you broadly what your spending habits have been like, and if you have been using your credit or debit card more than cash, then you will have a clearer picture.

Use very simple categories – groceries, utilities bills, travel & conveyance, medical, house & vehicle maintenance, shopping, insurance premiums (includes life, non-life, vehicle and any other insurance you have, take the per annum premium and divide by 12), eating out & entertainment, and 1 or 2 other categories if you need them.

You might find that you are spending more on medical expenses than you thought, or more on entertainment and eating out. The best way to save money is cut down on unnecessary expenses. Even if you save Rs. 3,000 per month and invest it, over 30 years you can earn Rs. 2.07 crores (assuming 15% return per year).

Your Money Mantra: ‘I will save Rs. ____ more every month!’

Make your Finance Easier:-

The trick to making things easier is just to get organized once. Once is all it takes to get everything set up, and then you can sit back and relax.

So, sit down right now, and make a list of the bills you are paying. From electricity to gas to family cell phone bills, you can have a combined list, and if you have the option of making it an online payment (direct debit), do so. You can still check your bills every month when you receive them, but you save yourself the hassle of remembering to write cheques, standing in queues, and having to take hours off work to do it.

Your Money Mantra: ‘I will get more organized today!’

Maximizing Tax Saving:-

One should find out way to maximize tax saving in alignment with goals. It is imperative that you start with the tax planning activity right from the beginning of the financial year, rather than towards the end. The tax saved can be invested towards achievement of your crucial goals such as children education, their marriage, your retirement and your other financial goals.

Your Money Mantra: ‘This year I will save tax effectively and prudently’

Taking help from Financial Expert:-

Let’s face it. If you want your car serviced, you’re going to go to a service center you trust. If you have a medical concern, you’ll go to the best doctor you can find. Self-service only works sometimes on matters which do not require expert opinion. But in certain matters where you need to obtain expert opinion; you must! You must hire a financial planner to plan your finances. The clarity, the benefits, and the feeling of control over your financial life will make you wonder why you never did this before!

Your Money Mantra: ‘I will hire a financial expert this year’

These 10 money mantras are short, easy and very, powerful.

Don’t wait. Don’t think ‘I’ll do this tomorrow’, because postponement can disrupt the objective of putting your finances right. So you need to do it now – do it today!

To summarize 10 Money Mantras of 2013 are:-

money mantras 2013

7 Financial Fantasies you should avoid

Shitanshu Kapadia
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0
7 Financial Fantasies you should avoid

money fantasy

Someone has rightly said, “Fantasy is a necessary ingredient in living”. However, that does not mean a flight of fancy works in real life. One has to be practical enough to actually implement something in reality to achieve one’s targets. No fantasy will help, until you sweat hard for your goals. We are herewith 7 Financial fantasy you should avoid.

Going through life expecting a large boom is being foolishly optimistic. It gives you false hopes and expectations and can prove to be a silly justification to making bad financial decisions. One should understand that there is nothing FREE in this world, there is no free lunch. Moreover, gaining something at the cost of nothing is fiction which will be revealed some day.

These financial fantasies are followed by people with the hope of discovering shorter and faster ways of getting rich.

  1. I will win big Lottery
  2. I will flip houses and become carorepati
  3. My child will help me in my retirement
  4. Why should I work I will be receiving grand Inheritance
  5. I will become big celebrity in bollywood
  6. I will settle in abroad and earn big money
  7. I will invest in stock and become wealthy

(1) I will win big Lottery

Winning a lottery sounds exciting and easy, but the chance of it happening is very less. It involves a high odds probability of winning. Having a 6-digit or 10-digit lottery number, involves permutations which reduce the probability of winning, still, millions play it every day.

There can be nothing easier than winning millions by just buying a lottery ticket. But there is no short cut to success.

Buying lottery tickets is a waste of money. In fact, the lottery can actually be a burden for the average person. He may waste too much money buying tickets in the first place as the chances of winning are incredibly low.

Even if you do win, you might not be able to embrace it for long as one day that money will get over, but your needs and wants will not.  It might just turn out to be a vicious circle as once you win, you will feel you can do it again and will start the process all over again.

Therefore, one must have the skills to manage money. One needs to understand that playing a lottery is not a profession but a mere stroke of luck. The windfall gain of the lottery must be handled responsibly.

(2) I will flip houses and become carorepati

Flipping items and assets may earn you a lot of money, but it requires tremendous experience in the real estate market to buy and sell the property at a feasible cost. This is entirely based on how much money one is capable of investing and how much cash is reserved for the intense period.

One should be capable of holding a property for an elongated period of time in case it does not get sold for 1-2 years. He must be in a financial position to hold the property and avoid being affected by the crisis. Thus, flipping houses is not a child’s play.

(3) My child will help me in my retirement

I have seen many people who believe that once they are retired their child will be ready to take his/her responsibility in terms of finance/money. I do agree that child will defiantly help financially when you are retired but if they are unable to do so you will be nowhere.  So instead of making fantasy that child will help in retirement one should plan retirement in manner that without help of anyone you can enjoy your retirement independently.

(4) Why should I work I will be receiving grand Inheritance

Many people fantasize about receiving a fat sum in inheritance on the death of their close relative. It is extremely selfish and shameful that a person would wait for someone to die and live off that person’s money rather than work and earn his own money.

In some cases, the one who passes away may also leave behind tons of debt for the next generation. Then, you will have to live your remaining life in misery. Thus, it is always better to depend on one’s own skills rather than waiting to get things easily.

(5) I will become big celebrity in bollywood 

Many people especially in Mumbai fantasize to become super star of bollywood like salman khan, sahrukh khan. Believe me chance of becoming bollywood super star like these are almost nil.

If you have skill & ability to become actor it is ok. But if you are struggling for more than year or so, you should stop fantasizing and start believing in reality.

(6) I will settle in abroad and earn big money

Many people in India still believe that abroad especially USA is place where they can earn big money; I do believe that USA is good place but if you have specific skill and job.

Don’t make fantasy in air that you will settle in abroad and earn big money. Situation at USA and other country in terms of job is not good. Job generation is big issue at USA. It is now Brain Drain time many people are coming back to India from USA.

(7) I will invest in stock and become wealthy

Investing money in stocks is not a bad idea it can make you wealthy too. But to invest in stocks, one must have the money. Picking the right stocks is possible with knowledge, experience and expertise. You can get this exposure if you study portfolio management and become intensely knowledgeable about companies or an industry. You need an eye for detail and some foresight to pick out a stock that may become the next big thing.

I have seen many people invested in stock market to become wealthy in 2008 still they have not come out from loss. Thus, before investing in a particular stock, you must consult an expert if you are not sure of your decision.

It is possible that one believes in himself. In today’s world, there is nothing which one could completely rely on, may it be the rising market or lottery tickets. The best person to rely on to achieve your financial goals is you. Dump your financial fantasies, work hard, spend and invest money wisely, and turn the odds of financial success in your favor.

5 Methods of Checking Purity of Gold

Shitanshu Kapadia
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31
5 Methods of Checking Purity of Gold

Checking the purity of Gold – One of the most sought-after items by Indians is gold. Since ancient times Gold has been considered as a storehouse of value in India. Be it urban India or rural India, rich or poor India, each one tries to buy gold at the first available opportunity. Ladies always eye for this yellow metal. Mostly they prefer to purchase gold in the form of jewelry.

5 sign of checking gold purity

Whenever one plans to purchase Gold or gold jewelry, the very first thing that he should ensure is the purity of Gold i.e. how pure the gold is.

But here comes a question how an individual can check the purity of gold? So to protect the rights of consumers government has made hallmarking of gold jewellery mandatory in India. Hallmarking of gold jewelry will not only help to keep control of quality but also safeguard consumers from corrupt jewelers.

We are herewith guidelines given by BIS which everybody must read to know the basic facts about gold and what to check while purchasing gold jewelry.

Gold Awareness India

How to Check the Purity of Gold? – 5 Important Signs

Under the Bureau of Indian Standards (BIS) Act, hallmarking agency certifies gold on the basis of Indian standards. In other words, gold jewellery will be evaluated and tested at official hallmarking centers and then certified that the metal conforms to the national and international standards of fineness and purity.

What Sign One Should Check Before Purchasing Gold Jewellery?

One must check the hallmark before purchasing gold jewellery. Hallmark consists of five components i.e.

(1)   BIS Standard Mark

BIS hallmark looks likes this:-

BIS Logo

(2)  Purity Grade

Gold purity grade shows how pure the gold is.

  • 999 – 24 carat – Pure Gold
  • 958 – 23 carat
  • 916 – 22 carat
  • 875 – 21 carat
  • 750 – 18 carat
  • 708 – 17 carat
  • 585 – 14 carat
  • 417 – 10 carat
  • 375 – 9 carat
  • 333 – 8 carat

(3) Mark of Hallmarking Centre

One must check for Logo of Hallmarking centre where the jewellery has been hallmarked. A list of hallmarking centers is given here.

Hallmark Center Logo

(4)  Year of Marking

Alphabets represent the year of hallmarking of jewellery and is decided by BIS e.g. letter ‘A’ Donates Year 2000, ‘J’ for 2008, ‘N’ for 2010, ‘M’ for 2011 and ‘N’ for 2012 etc.

(5) Jewelers Identification Mark

Many jewelers keep their own identification mark of BIS Certified Jeweler/ Jewellery Manufacturer.

Important Points To Keep In Mind While Purchasing Gold Jewellery

  • Look For :- Jewellery  Showroom selling BIS Hallmark Jewellery.
  • Buy:- Hallmark Jewellery only. It assures the mark of purity/fitness.
  • Ask For: – Cash Memo /Invoice which will help BIS to resolve complaints (if any).

Remember Hallmarking charge on Gold Jewellery is only Rs. 35 per article & KDM jewellery is not Hallmarked jewellery. So KDM can not ensure purity of Gold. 

Hallmark Rule for Gold

From June 1, 2022, jewellers can only sell hallmarked gold jewellery, irrespective of its purity. This would mean that every gold jewellery item irrespective caratage must be mandatorily hallmarked.

The government had made gold hallmarking mandatory effective from June 16, 2021; this was done for items with cartage of 14KT, 18KT and 22 KT. It was later expanded to six caratages of gold jewellery/artefacts – i.e., 14,18,20,22, 23 and 24, effective from April 4, 2022.

The government has also revised the signs of purity on gold jewellery. From June 1, 2021, hallmarked gold jewellery will have the following three signs:
a) BIS logo
b) Purity/Fineness grade
c) Six-digit Alphanumeric code, also known as HUID
Before that, there were four signs of hallmarking. These were i) BIS logo, ii) Purity/Fineness grade, iii) Assay Centre’s identification mark and iv) Jeweller’s identification number.

The fineness or purity of gold jewelry will be reflected as follows on the hallmarked item –

PuritySign
24KT24KS995
23KT23K958
22KT22K916
20KT20K833
18KT18K750
14KT14K585

Gold Purity in Karats

Understanding Gold Karats. Gold purity is measured in karats (K), with 24K being the purest form of gold. Common Gold Purity Levels in India are given below.

24K Gold (99.9% pure) – Too soft for jewelry, mostly used for investment.

22K Gold (91.6% pure) – Commonly used in jewelry.

18K Gold (75% pure) – Durable and used for designer jewelry.

14K Gold (58.5% pure) – Affordable and sturdy, often used in Western jewelry styles.

Always check the karat marking on gold items before purchasing.

Acid Test for Gold Purity

What is the Acid Test?

The acid test is a simple method used to check gold purity by applying nitric acid.

How is it Done?

A small scratch is made on the gold surface. Nitric acid is applied to the scratch. If the gold remains unchanged, it is pure; if it turns green, it’s fake.

Is the Acid Test Reliable?

While it gives a quick indication, it is not the most precise method. For better accuracy, rely on BIS hallmarking and electronic gold testers.

Magnet Test for Impurities

Why Use a Magnet to Check Gold?

Pure gold is non-magnetic. If your gold jewelry or coin gets attracted to a magnet, it likely contains other metals like iron or nickel.

How to Perform the Magnet Test?

Take a strong magnet. Hold it close to the gold item. If the gold gets pulled, it is impure.

Limitations of the Magnet Test

This test only helps detect metals mixed with gold, but it doesn’t determine the exact purity. It’s best used along with other testing methods.

Professional Gold Testing Machines

What are Gold Testing Machines?

Jewelry stores and gold dealers use advanced machines like XRF (X-ray Fluorescence) testers to check gold purity.

How Do These Machines Work?

The machine scans the gold item. It provides an accurate reading of gold content and alloy composition.

Where Can You Get Your Gold Tested?

You can visit a BIS-certified jeweler or a gold testing lab to get a precise purity test.

Additional Tips to Ensure Gold Purity

  • Check for Weight and Density
  • Pure gold is dense. If a gold piece feels too light, it might be mixed with other metals.
  • Verify with a Trusted Jeweler
  • Always buy gold from reputed jewelers to ensure authenticity and quality.
  • Look for Buyback Policies
  • Jewelers with transparent buyback policies are more likely to sell genuine gold.

Conclusion

Checking the purity of gold in India is essential to ensure you’re getting your money’s worth. Always look for BIS Hallmark, check the karat purity, perform simple tests like acid and magnet tests, and, when in doubt, get it tested professionally. Following these steps will help you make informed decisions and avoid purchasing impure gold.

FAQs

1. How can I check if my gold is BIS hallmarked?

Look for the BIS logo, karat value, a six-digit identification number, and the jeweler’s mark on the gold item.

2. Is 22K gold better than 24K gold?

It depends on the use. 24K is the purest but too soft for jewelry, while 22K is durable and ideal for ornaments.

3. Can I test gold purity at home?

Yes, using methods like the magnet test or acid test, but for accurate results, get it checked by a professional.

4. Why does my gold jewelry turn black?

Gold doesn’t tarnish, but impurities in lower-karat gold can react with sweat, perfume, or chemicals, causing discoloration.

5. Where can I get my gold tested for purity?

Visit a BIS-certified jeweler or a professional gold testing lab for precise results.

Personal Finance lesson from Entrepreneur – Ratan Tata

Shitanshu Kapadia
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0
Personal Finance lesson from Entrepreneur – Ratan Tata

Ratan Tata

Finally Ratan Tata has said Tata to Tata Group.  Yes Ratan Tata is now retired from one of the most trusted Indian corporate group Tata after two decades of service. He is leaving behind “lessons enough for ages”.

Enough is written and known when it comes to the business success of Ratan Tata, the global acquisitions and Ratan Tata’s role in it. Let’s look at Personal Finance lesson from Entrepreneur Ratan Tata.

Increasing Wealth Ethically & Demonstrating Growth:-

Ratan Tata has demonstrated extraordinary growth. He has grown the group from $2 billion to $100 billion or something in a factor of 50 times. All of this, he has done legally and ethically.

He has demonstrated the highest level of integrity and with courtesy, grace and humility.

Ratan Tata is known as one of the growth oriented chairman in Tata group. Growing company with substantiality is not joke.

Biggest lesson to learn is to generate wealth ethically. Today many people generate wealth but mostly likely through unethical way. One should avoid such way for wealth generation.

Also Read – 10 Personal Finance Lessons from Sachin Tendulkar’s Career

Diversification:-

Within 21 years of his tenure Ratan Tata has diversified this company like anything. Tata company is now in business of small tea to big car touching all major requirement of human.

Certain Initiatives of Ratan tata are Tata Indica Car, acquisition of  Tetely tea, Insurance company TATA AIG, Retail chain Star Bazzar, acquisition of corus & Jaguar etc.

Lesson learned is diversification is must for growth and generation of wealth. One should find out different source of earning money rather than relying on single source. Apart from that one should diversify asset allocation by investing in fix return, equity, gold and real estate.

Managing Vast Portfolio:-

Tata Group was founded in 1868 by Jamsedji Tata as a trading company by investment of 21000 Rs/- . It has now operations in more than 80 countries across six continents. Tata Group has over 100 operating companies each of them operates independently out of them 32 are publicly listed

Managing such a large group of company is not joke. As companies become larger you also have more resources & complex function to handle. Ratan Tata has capability to manage such large setup.

Lesson learned is if your portfolio grows to larger extent you must build capacity to manage vast portfolio.

Turning Dream in to Reality:-

Ratan Tata is person who turns dream in to reality. Yes I am talking about his dream project Tata Nano car in 1 lakh Rs/-. It reminds me famous dialog  of movie Guru “Sapnay mat dekho, sapnay kabhi sach nahi hote.. mera baapu kehta tha..

lekin maine sapna dekha.. aur kya hamara sapna sach hua?”

The reality lies between just dreaming and thinking that dreams don’t matter. The reality lies in making your dreams come true through hard work.

Also Read – Warren Buffet’s Top 10 Secrets of Getting Rich

Lesson learned here is one must see dreams and develop capability to turn dreams in to reality.

Ratan Tata Said  “It was a period of learning, a period of frustrations also from time to time…I tried to uphold the values and the ethical standards that there were.  “I feel satisfied that I have done my best to do what I considered to be the right thing and that has been there throughout.”

“Be your own man and be yourself,” is the mantra Tata has passed on to successor. This is the same counsel he told himself when he took over from JRD. Prior to the selection of him as Tata’s successor in November 2011, he held non-executive position on boards of several other Tata companies.

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