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Business or Job – Building Pipeline or Hauling Bucket

Shitanshu Kapadia
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Business or Job – Building Pipeline or Hauling Bucket

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.

Business or Job
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?

Budget 2014 – Key Provision for New Business & Entrepreneur

Shitanshu Kapadia
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Budget 2014 – Key Provision for New Business & Entrepreneur

Budget

Budget 2014 indicates that it is correct time to start new business. If you have correct business plan and risk taking ability then get ready, budget 2014 brings you ample amount of opportunity for new business. Various Key announcements are made in Union Budget 2014 for Startup, SME and Entrepreneurs. We are herewith details and infographic

BUDGET 2014 Key Provision for New Business & Entrepreneur

Ø  Fund of Funds with a corpus of 10,000 Cr for providing equity through venture capital funds, quasi equity, soft loans and other risk capital specially to encourage new startups by youth to be set up.

Ø  Corpus of 200 Cr to be set up to establish Technology Centre Network.

Ø  Pan India programme “Digital India” to with an outlay of 500 Cr to be launched.

Ø  Skill India to be launched to skill the youth with an emphasis on employability and entrepreneur skills.

Ø  Entrepreneur friendly legal bankruptcy framework will be developed for SMEs to enable easy exit.

Ø  A nationwide “District level Incubation and Accelerator Programme” to be taken up for incubation of new ideas and necessary support for accelerating entrepreneurship.

Ø  Initial sum of 100 Cr for “Start Up Village Entrepreneurship Programme” for encouraging rural youth to take up local entrepreneurship programs.

Ø  Committee to examine the financial architecture for MSME Sector, remove bottlenecks and create new rules and structures to be set up and give concrete suggestions in three months.

Ø  Sum of 500 Cr for developing a Textile mega-cluster at Varanasi and six more at Bareilly, Lucknow, Surat, Kutch, Bhagalpur and Mysore.

Ø  Investment allowance at the rate of 15 percent to a manufacturing company that invests more than 25 Cr in any year in new plant and machinery. The benefit to be available for three years i.e. for investments up to 31.03.2017.

Budget 2014 Business

In short Ache Din Ahead for Business. Do share your views on above.

Union Budget 2014-15 – A Review

Shitanshu Kapadia
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budget 2014

“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

tax slab 2014

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:

  1. PPF: Annual ceiling raised to Rs. 1.5 lakh
  2. Income tax exemption limit raised to Rs. 2.5 lakh
  3. Tax exemption on home loans raised from Rs. 1.5 lakh to Rs. 2 lakh
  4. Ups 80C investment cap to Rs. 1,50,000 vs Rs. 1 lakh currently
  5. Rs. 100 cr for Beti Bachao, Beti Padhao Yojna for women’s welfare
  6. Government to add 12 more government medical colleges

Most-disliked about Budget 2014:

  1. Budgetary Allocations: Rs. 200 crore for Sardar Patel statue in Gujarat
  2. No change in tax rate
  3. Service tax proposed on radio taxis
  4. Long term capital gains tax rate on MFs raised to 20% (36 months)
  5. Additional duty on imported computer components
  6. Direct Tax: No changes in surcharge

Do share your views on Union budget 2014-15.

10 Must Read Personal Finance Books

Shitanshu Kapadia
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1
10 Must Read Personal Finance Books

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 must read personal finance books

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.

10 Best Management Books

#3 Rich Dad, Poor Dad

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.

15 Best Books for Stock Market Investors

#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.

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