Archive for June 4, 2013

It Takes Two to Tango

Shared values, co-operation, careful planning and meticulous execution are some of the elements that can help married couples achieve financial success.

Ritu is a dentist with a flourishing private practice while her husband Ajay is an executive with one of India’s top manufacturing conglomerates. With earnings of above Rs 3 lakh per month flowing into their combined kitty, one would imagine that this couple would have no financial worries. Alas, a close look at their finances told a sad tale of overspending, sporadic rather than regular investment, disastrous product choices, and inadequate insurance. Here are tips that could set this couple, and many other affluent ones, on the road to financial prosperity.

Shared financial values and goals.  Money is a touchy subject. Most couples tend to avoid discussing it transparently. This results in sub-optimal outcomes vis-à-vis achievement of financial goals and, in some cases, even becomes an impediment to marital bliss.

A lot of times, two people come into a marriage with different money-related values: one may be a cautious spender while the other may spend as if there is no tomorrow; one may be dedicated to saving and investing to meet financial goals, while the other might live just for the day and believe that the future will somehow take care of itself.

Shortly after marriage, once the couple has got to know each other fairly well, they should have an exchange regarding their money-related values. In due course, they should evolve a common minimum programme, comprising financial goals that they hope to achieve and a roadmap for achieving it. » Read more..

If you were Warren Buffet – Would you Buy this Property?

Warren Buffett

 

 

 

 

 

 

There are two parts to any real estate deal.


The HEADS Side of the Coin

The often over-rated part of the deal is the PROPERTY itself.

When it comes to buying real estate, logic often flies off the window first. Followed by common sense.

As investors, we often focus on the wrong things while short listing properties / projects. The amenities, interiors, etc. are only superficial. It is normal practice for a developer to therefore use these tactics as distractions so that you end up taking your focus off the more important facets.

If you really are an investor (and not a collector) you have to dig deep. Think of benchmarking yourself on Warren Buffet – the most successful investor in the world – though he does only stocks. When investing, Buffet looks beyond the jazz and glitz that a company often projects and lets facts and numbers do the talking.

So put on your dark-rimmed Buffet glasses and deeply introspect about the following core factors: » Read more..