Wikipedia defines Forex Trading as “The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies.”

With the current economic scenario, increasingly more folks see themselves prepared wherever they have to help make additional funds to carry on living to their standards. Additionally , there are individuals who learn how to make very good utilization of present day condition and help to make a continual income. It doesn’t matter the truth, you ought to learn how to trade the Currency trading, considering that this turned out to be to be the most effective way to gain a little extra money, and get a good profit while doing so.


The Forex markets is known for a three trillion US dollars trade every single day, therefore being the biggest tradable market on the globe. Simply because, or even better mentioned thanks, to the belief that most trades are usually speculative, any kind of real movement of foreign exchange is small – this really is these people key to getting a huge profit having a small investment.
Forex market doesn’t trade on the central exchange, the interbank marketplace staying the actual place exactly where deals happen, therefore two entities may trade with out going trough an exchange. In Simple terms, trading in currencies indicates buying one foreign currency while at the same time selling another.
If you would like to learn to trade the forex and try to get a profit, you have to learn how to get the best trades possible, the quickest possible way. For this reason it is recommended to gather all of the knowledge you are able to. There are many available resources on the internet that you need to use and there are also tools which will help you trade 24 hours a day, five days a week – like Forex robots.
More informative info regarding the Forex Market in order to learn how to trade the Forex is available here.

You could soon be able to trade for an additional two-and-a-half hours on stock exchanges with the Securities and Exchange Board of India (Sebi) on Friday allowing trading between 9 a m and 5 p m to align timings to international standards.

At present, trading hours are between 9.55 a m and 3.30 p m.

Sebi, however, raised the caveat that the exchanges would have to ensure that risk management systems and infrastructure commensurate to longer trading hours were in place before investors transact for eight hours a day.

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) welcomed the Sebi move and added that they would soon extend trade timings. They, however, did not clarify whether timings would be extended to 5 p m, though executives indicated that trading would start at 9 a m.

Last year, NSE had first proposed a change in trading hours at a time when foreign institutional investors and hedge funds preferred to trade on the Singapore Stock Exchange (SGX), where NSE Nifty futures were also listed. With longer trading hours because SGX opened for trading at around 6.30 a m India time, the open interest positions on Nifty futures traded on SGX had reached close to the levels seen on NSE.

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Having observed the past major events of volatility, one can realise the root cause as “unanticipated information” breaking out in the market. When this news stabilises, volatility vanishes because the uncertainty related dies out.

Few examples from recent past:

•    Govt announced buying of shares/bonds of Indian companies through participatory notes (PN).
•    CRR and repo rates hike by RBI.
•    Satyam fiasco and Lehman’s bankruptcy news.
•    Stringent IPO regulations.
•    US recession fear. Jan 21, 2008 saw biggest ever fall of 1408 points due to volatility on account of US fears of recession.

Now the question arises how this uncertainty leads to such aftershocks in market.

Firstly, investments by FIIs have a major influence on movement of SENSEX which came into limelight during general elections of 2004. Owing to fear of reforms due to new government there was continued selling pressure by FIIs resulting in sharp decline in the index. Later on when the news regarding these reforms stabilised, FIIs started buying back the shares they sold earlier. Thus aiming at profit booking and balancing the portfolio, FIIs keep relocating their funds from time to time. For example if they find govt policies not in their favour, they would withdraw their investments from Indian markets and invest in some other market leading to sudden crash in index.

Secondly, Indian markets are sensitive to global markets. It has been observed that many times if NASDAQ closes high, SENSEX opens in green. So an unwanted news broke out in US may show its effects in Indian markets leading to intra-day volatility.
Thirdly, company specific news may cause volatile sessions in the market. From recent example of Satyam computers ltd, markets were highly volatile due to investor’s sentiment being in dilemma and anticipations about the future of company and related conglomerates.

Fourthly, Political news and news related to finance tend to affect market sentiment. Like RBI declaring CRR hikes, lowering interest rates prompt investor to relocate their investments accordingly. Likewise, news related to scams and frauds also create panic amongst investors making the markets volatile.

Volatility in acceptable limits is a sign of healthy markets as it leads to correction if there is overvaluation of prices. At the same time there is huge risk associated. The crux is that whatever you have in your portfolio of stocks, wind may start blowing against you anytime. So to play safe keep a margin to bear the volatility risk and don’t put all your eggs in same basket as the basic rule of portfolio management says.

Renuka Kinger

Rightsizing has become very relevant today when the entire world is reeling under an unprecedented Global Financial Crisis.

Rightsizing is more politically correct than downsizing and also sounds somewhat noble and appropriate.

When the Corporate World started facing hue and cry on ‘handing out the pink slips’ or downsizing, the spin-doctors came up with this righteous sounding expression-Aha! So that is all about it-‘Employees Alone’-Well Definitely Not.

While it does mean getting rid of extra flab, but not only from the ‘Manpower’-actually in almost everything in our lives.

Rightsizing is a very apt word (even a complete expression) in today’s word of excesses and naked boundless greed –shown by the financial institutions, corporations, governments and individuals.

We have all heard ‘Bigger or Larger is Better’, ‘Small is Cute and Charming’, ‘ Lean Management’, ‘Higher Goals and Targets’, ‘Thin is In’ etc. and they all sound convincing in their own right.

The fact of the matter is however that the mankind wants: –

Higher Status

More Wealth

Bigger Houses, Cars, TVs and what not

Leaner Physiques

Lesser Costs

Higher Turnover

Highest Profits

Most Beautiful Personality

Least Problems

Maximum Fun

Maximum Happiness

Maximum Peace of Mind

Highest G D P

Lowest Poverty

Highest Living Index Rating

Maximum Influence in the World or the Society

The order has been purposely kept random between individual, corporate and government wants.

The list can be very long indeed! Some of these wants (not needs) are quantifiable, while others are open-ended. In effect it means that ‘How Big is Bigger’ or ‘How much Peace of Mind is Maximum’ etc. is always open to our own interpretation.

So how do we decide about the ‘Right Size’-that is a question we have apparently never bothered to ask ourselves, because of the obsession with ‘SIZE’-generally believing ‘Bigger or Greater’ to be more satisfying.

Do some of the ‘Wants’ in the above list (as a combination) appear to be contradictory?

Do we individually or collectively feel that we are the ‘special chosen ones’ who will get all the ‘Maximums’, while apparently many others will not do so in this zero-sum game of life?

A rational analysis will tell us it is not logically possible-but then we do not want to be logical in such ‘Lofty’ matters of ‘Wants’.

What are we then actually doing?

The answer is very simple-‘Buying Grief for Ourselves’ in unimaginable proportions.

So what should be done? The answer is neither too simple nor too difficult, depending on our own perspective and open mindedness.

Differentiate between ‘Needs’ and ‘Wants’.

Stop ‘Keeping up with the Joneses’.

Moderate ourselves, while keeping the hunger for success alive.

Learn to ‘Draw’ limits (don’t worry, these can be redrawn!)

Try to achieve a ‘Balance’ in most of our aspirations.

Understand that ‘There is no Free Lunch’ For every one-dimensional pursuit or parameter of success, there will be sacrifices or compromises in other areas

Answer the Question—Whom are ‘ We Trying to Impress and Why’ and may be you will get some answers for yourself.

ARUN VEDHERA

INTRODUCTION

The Gross Domestic Product increased by 7.5 per cent, 9.5 per cent, 9.7 percent

and 9 per cent in the first four years from fiscal year 2004-05 to 2007-08 recording

a sustained growth of over 9 per cent for three consecutive years for the first time.

The growth drivers for the period were agriculture, services, manufacturing along

with trade and construction.

Fiscal deficit down from 4.5 per cent in 2003-04 to 2.7 per cent in 2007-08 and

Revenue deficit from 3.6 per cent to 1.1 per cent in 2007-08.

The domestic investment rate as a proportion of GDP increased from 27.6 per cent

in 2003-04 to 39 per cent in 2007-08. Gross Domestic savings rate shot up from

29.8 per cent to 37.7 per cent during this period.

The Gross capital formation in agriculture as a proportion of agriculture GDP

increased from 11.1 per cent in 2003-04 to 14.2 per cent in 2007-08

The tax to GDP ratio increased from 9.2 per cent in 2003-04 to 12.5 per cent in

2007-08.

Annual growth rate of agriculture rose to 3.7 per cent during 2003-04 to 2007-08.

The foodgrain production recorded an increase of 10 million tonnes each year during

this period and touched an all time high of 230 million tonnes in 2007-08.

While manufacturing sector recorded growth of 9.5 per cent per annum in the

period 2004-05 to 2007-08, communication and construction sectors grew at the

rate of 26 per cent and 13.5 per cent per annum respectively.

Exports grew at an annual average growth rate of 26.4 per cent in US dollar terms

in the period 2004-05 to 2007-08. Foreign trade increased from 23.7 per cent of

GDP in 2003-04 to 35.5 per cent in 2007-08.

OUTLOOK FOR THE YEAR 2008-09

Despite the global financial crisis which began in 2007 impacting most emerging

market economies, 7.1 per cent rate of GDP growth in the current year makes India

the second fastest growing economy in the world.

Fallout of global slowdown on Indian economy were countered with fiscal stimulus

packages announced on December 7, 2008 and January 2, 2009 providing tax relief

to boost demand and increasing expenditure on public projects.

Government accorded approval to 37 infrastructure projects worth Rs.70,000 crore

from August, 2008 to January, 2009 alone.

Under PPP mode, 54 Central Sector infrastructure projects with a project cost of

Rs.67,700 crore given in-principal or final approval and 23 projects amounting to

Rs.27,900 crore approved for viability gap funding in 2008-09.

India Infrastructure Finance Company Ltd. (IIFCL) to refinance upto 60 per cent

of commercial bank loans for PPP projects involving total investment of Rs.1,00,000

crore in infrastructure over the next eighteen months.

In addition to RBI taking number of monetary easing and liquidity enhancing

measures such as reduction in cash reserve ratio, statutory liquidity ratio and key

policy rates, Government has taken specific measures which include extension of

export credit for labour intensive exports, improving pre and post shipment credit

availability, additional allocations for refund of Terminal Excise Duty/CST and

export incentive schemes besides removal of export duty and export ban on certain

items. A Committee of Secretaries set up to address procedural problems faced by

exporters.

Record US$ 32.4 billion FDI received in 2007-08 and notwithstanding financial

uncertainty and slowdown, FDI inflows during April-November, 2008 were US$

23.3 billion recording a growth of 45 per cent over the same period in 2007.

FRBM targets for the current year and for fiscal 2009-10 relaxed to provide

much needed demand boost. However, medium term objective is to revert to

fiscal consolidation at the earliest.

INITIATIVES AND ACHIEVEMENT

Agriculture

Plan allocation for agriculture increased by 300 per cent from 2003-04 to 2008-09.

Rashtriya Krishi Vikas Yojna launched in 2007-08 with an outlay of Rs.25,000

crore to increase growth rate of agriculture and allied sector to 4 per cent per annum

during Eleventh Plan period.

Agriculture credit disbursement increased three times from Rs.87,000 crore in

2003-04 to about Rs.2,50,000 crore in 2007-08.

To strengthen short-term cooperative credit structure, revival package in 25 states

involving financial assistance of about Rs.13,500 crore is being implemented.

Interest subvention to be continued in 2009-10 to ensure that farmers get short

term crop loans upto Rs.3 lakh at 7 per cent per annum.

The Agricultural Debt Waiver and Debt Relief Scheme, 2008 was implemented by

June 30, 2008 as scheduled. Debt waiver/debt relief amounting to Rs.65,300 crore

covers 3.6 crore farmers.

Despite higher procurement cost and higher international prices during the last 5

years, the central issue prices under Targeted Public Distribution System (TPDS)

maintained at July, 2000 level in case of Below Poverty Line (BPL) and Antyodaya

Anna Yojana (AAY) categories and at July, 2002 levels for Above Poverty Line

(APL) category.

Minimum Support Price (MSP) for common variety of paddy increased from Rs.550

per quintal in 2003-04 to Rs.900 per quintal for the crop year 2008-09. In case of

wheat, increase was from Rs.630 per quintal in 2003-04 to Rs.1080 per quintal for

the year 2009.

Rural Development

The corpus of Rural Infrastructure Development Fund (RIDF) increased from

Rs.5,500 crore in 2003-04 to Rs.14,000 crore for the year 2008-09. A separate

window for rural roads created with a corpus of Rs.4,000 crore for each of the last

three years.

As against 60 lakh houses to be constructed under Indira Awaas Yojana by

2008-09, 60 lakh twelve thousand houses constructed between 2005-06 to

December, 2008.

Panchayat Empowerment and Accountability Scheme (PEAIS) proposed to be

expanded.

‘Project Arrow’ to provide new technology enabled services through post offices

to common man and support effective implementation of social sector schemes

like NREGS, while promoting financial inclusion.

Education

Major initiatives including a new Centrally Sponsored Scheme launched to

universalize education at secondary stage in the year 2008-09.

Outlay on Higher Education increased 9 fold in the Eleventh Five Year Plan. Ordinance

promulgated for establishing 15 Central Universities. In addition to 6 new Indian

Institutes of Technology (IITs) in Bihar, Andhra Pradesh, Rajasthan, Orissa, Punjab

and Gujrat which started functioning in 2008-09, two more IITs in Madhya Pradesh

and Himachal Pradesh are expected to commence their academic session in

2009-10. 5 Indian Institute of Science Education and Research (IISER) announced

earlier have become functional. 2 new schools of Planning and Architecture at

Vijayawada and Bhopal have started functioning. Teaching is expected to commence

from academic year 2009-10 in four out of six new Indian Institute of Management

proposed for the Eleventh Plan in Haryana, Rajasthan, Jharkhand and Tamil Nadu.

Due to revision in Educational Loan Scheme by the Government number of

beneficiaries increased from 3.19 lakh to 14.09 lakh and amount of loan outstanding

increased from Rs.4,500 crore as on March, 31, 2004 to Rs.24,260 crore as on

September 30, 2008.

500 ITIs upgraded into centers of excellence. National Skill Development

Corporation created in July, 2008 with initial corpus of Rs. 1,000 crore.

Social Sector

Authorised capital of National Safai Karamchari Finance and Development

Corporation (NSKFDC) is being raised from Rs.200 crore to Rs.300 crore.

Scope of the pre-metric scholarship for children of those engaged in unclean

occupations expanded and rates of scholarship doubled in 2008-09. Annual

ad-hoc grant increased by about 50 per cent as compared to earlier rates.

Rashtriya Mahila Kosh to be strengthened by enhancing its authorized capital.

‘Priyadarsini Project’ a rural women’s employment and livelihood programme

will be implemented as pilot in the district of Madhubani and Sitamarhi in Bihar

and Shravasti, Bahraich, Rai Bareli and Sultanpur in Uttar Pradesh.

146 lakh persons benefited under Indira Gandhi National Old Age Pension Scheme

in the current financial year.

Two new schemes – ‘Indira Gandhi National Widow Pension Scheme’ to provide

pension of Rs.200 to widows between age groups of 40-64 years and ‘Indira Gandhi

National Disability Pension Scheme’ to provide pension for severely disabled

persons.

Widows in the age group of 18-40 years to be given priority in admission to ITIs,

Women ITIs and National/Regional ITIs for women. Government to bear cost of

their training and provide stipend of Rs.500 per month.

22 States and Union Territories initiated process to implement Rashtriya Swasthya

Bima Yojana for BPL familities in the unorganised sector and 60 lakh thirty two thousand

persons covered for death and disability under ‘Aam Admni’ Bima Yojana (AABY).

Public Sector Enterprises

Turnover of Central Public Sector Enterprises increased from Rs.5,87,000 crore in

2003-04 to Rs.10,81,000 crore in 2007-08 and profits grew from Rs.53,000 crore

to Rs.91,000 crore. While number of loss making enterprises came down from 73

in 2003-04 to 55 in 2007-08, number of profit making enterprises has gone up

from 143 to 158 during the same period..

Government approved implementation of Guidelines on Corporate Governance in

Central Public Sector Enterprises (CPSEs) in June, 2007.

Corpus of National Investment Fund created out of disinvestment proceeds from

Central PSUs stood at Rs.1,815 crore as on December 31, 2008.

Financial Sector Reforms

NPAs of Public Sector Banks declined from 7.8 per cent on March 31, 2004 to 2.3

per cent on March 31, 2008.

As a result of initiating process of amalgamation and recapitalization of Regional

Rural Banks (RRBs) with negative net worth, 196 RRBs merged into 85 RRBs. The

Government has contributed Rs.652 crore for capitalization of RRBs upto December

31, 2008.

Number of reforms undertaken in the last four years to deepen and widen the

securities markets and strengthen the regulatory mechanisms for these markets.

The Companies Bill, 2008, undertaking comprehensive revision of Companies Act,

1956 to enable adoption of internationally accepted best practices, has been

introduced in the Parliament.

Tax Effort

Comprehensive reforms of tax system both direct and the indirect tax system have

enabled the tax administration to enhance its functional efficiency and provide

better tax payer services leading to increased compliance. Rates of Union Excise

Duties and Service Tax rationalized for eventual shift to the Goods and Service

Tax on 1st April, 2010.

109 marine vessels sanctioned for the Customs Department to prevent movements

of contraband goods across the country’s sea borders.

Administrative Reforms

The enactment of the Right to Information Act at the Centre and in many States

ushering in greater accountability of the public servants.

Recommendations of the Sixth Central Pay Commission approved by the

Government has benefited over 45 lakh Central Government employees including

Defence Forces and Para-Military forces and over 38 lakh pensioners.

REVISED ESTIMATES

The total expenditure at Rs.7,50,884 crore in B.E. 2008-09 revised to Rs.9,00,953

crore in R.E. 2008-09 showing an increase of Rs.1,50,069 crore.

Plan Expenditure gone up from Rs.2,43,386 crore in B.E. 2008-09 to Rs.2,82,957

crore in R.E. 2008-09.

Non-Plan expenditure increased by Rs.1,10,498 crore in R.E. 2008-09 over B.E.

2008-09.

Revised Estimate 2008-09 for Non-Tax Revenues increased from Rs.95,785 crore

in Budget Estimate 2008-09 to Rs.96,203 crore.

Revised Estimates of gross tax collection projected at Rs.6,27,949 crore as against

B.E. 2008-09 of Rs.6,87,715 crore, primarily due to pro-active fiscal measures

initiated to counter the impact of global slowdown on the Indian economy.

Revised Revenue deficit to be at Rs.2,41,273 crore (4.4 per cent of GDP) as against

budgeted figure of Rs.55,184 crore (1 per cent of GDP).

Fiscal deficit to go up from Rs.1,33,287 crore (2.5 per cent of GDP) in B.E.

2008-09 to Rs.3,26,515 crore (6 per cent of GDP).

BUDGET ESTIMATES

Total expenditure for fiscal 2009-10 estimated at Rs.9,53,231 crore. Plan

expenditure estimated at Rs.2,85,149 crore and Non-Plan expenditure at Rs.6,68,082

crore.

Budgetary support in Plan B.E. 2009-10 in comparison to B.E. 2008-09 increased

for Department of Rural Development, Department of Road Transport & Highways,

Railways, Ministry of Power, Department of Industrial Policy and Promotion and

Department of Information Technology to meet the requirements of rural and

infrastructure development along with higher allocation for Ministry of Youth Affairs

& Sports and Ministry of Culture to ensure adequate resources for hosting of the

Commonwealth Games. Allocations to flagship programme which directly impact

‘Aam Aadmi’ fully protected.

Rs.30,100 crore allocated for National Rural Employment Guarantee Scheme for

the year 2009-10. In 2008-09 employment of 138.76 crore person days covering

3.51 crore household already generated.

About 98 per cent habitations covered by primary schools under Sarva Shiksha

Abhiyan. Allocation for this programme increased by 571 per cent between

2003-04 and 2008-09. Allocation of Rs.13,100 crore proposed for 2009-10.

Rs.8,000 crore allocated for Mid-day Meals Scheme for the year 2009-10.

Allocation of Rs.6,705 crore proposed for Integrated Child Development Scheme

(ICDS) for the year 2009-10. New WHO child growth standards adopted for

monitoring growth of children under ICDS.

386 projects amounting to Rs.39,000 crore sanctioned till December 31, 2008 under

Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Allocation of

Rs.11,842 crore proposed for the year 2009-10.

Rs.7,400 crore allocated for Rajiv Gandhi Rural Drinking Water Mission, Rs.1,200

crore for Rural Sanitation Programme, Rs.12,070 crore for National Rural Health

Mission, Rs.40,900 crore allocated for Bharat Nirman for the year 2009-10.

A provision of Rs.100 crore in the Annual Plan 2009-10 made for Unique

Identification Authority of India.

RIDF-XV proposed with a corpus of Rs.14,000 crore. Separate window for rural

roads to continue with a corpus of Rs.4,000 crore.

Interest subvention of 2 per cent on pre and post shipment credit for certain

employment oriented sectors i.e. Textiles (including handlooms & handicrafts),

Carpets, Leather, Gem & Jewellery, Marine products and SMEs extended beyond

March 31, 2009 till September 30, 2009 involving an additional financial outgo of

Rs.500 crore.

Government to recapitalize the public sector banks over the next two years to enable

them to maintain Capital to Risk Weighted Assets Ratio (CRAR) of 12 per cent.

Allocation for Defence increased to Rs.1,41,703 crore which includes Rs.54,824

for Capital Expenditure.

Major subsidies including food, fertilizer and petroleum estimated at Rs.95,579

crore.

For the fiscal 2009-10, with Centre’s net tax revenue estimated at Rs.5,00,096

crore and Revenue expenditure at Rs.8,48,085 crore, revenue deficit is estimated

at 4 per cent of GDP and fiscal deficit at 5.5 per cent of GDP.

Well things need not be in that order and you can have all the THREE together. Sounds incredible! The simple explanations are:

Roadmap

1. Secure your basic needs, food, clothing and shelter, taking into account your own financial status (real and not based on aspirations)

2.  Understand that a ‘truly rich’ person has expenses lesser than income. Someone earning Rupees 1,00,000 monthly, with an expense of Rupees 1,10,000 would be poorer than a person earning, Rupees 25,000 and having an expense of Rupees 20,000 in the same period.

3.  Prepare a budget, with some saving planned and FOLLOW IT.

4.  Understand the difference between Assets and Liabilities clearly. Very simply speaking, an investment bringing in revenue is an Asset and the one requiring an outflow of funds (expense) is a Liability.
(Source for points 2,4 is the book Rich Dad Poor Dad)

5.  Understand simple rules of income and wealth tax planning so that maximum rebates legally allowed can be availed. Save for the above on regular monthly basis and do not wait for the year end (blues)

6.  Save regularly in safe instruments like P.P.F, Life Insurance, Medical  Insurance (very important to cover unforeseen medical expenses besides tax saving), ULIP s through the systematic investment route.

7.  Plan for the retirement and children’s education through appropriate insurance policies taken at an early age.

8.  Understand your own risk and age profile-simple rule is that you can take higher risk when you are younger.

9.  Follow Warren Buffet’s advise for stock market investments ‘when others are greedy, be cautious and when others are cautious, be greedy’. You need to be VERY CAREFUL and never follow a herd mentality.

10. Buy Cheap (economically) to be Rich. Buffet is known to tire the sellers through persistent negotiations and good knowledge till he gets a deal at the rock bottom price. You too can do the same.

11.Listen to all advice, but have a healthy skepticism for the ‘Financial Solution Providers’. Nothing wrong with them, but they have their own agendas as well, besides your interest. (Personal or Corporate)

12. Understand the power of Compounding and start saving as soon as you start earning.

13. Always aim to ‘Get More Bang Out of Your Buck’ and be on the lookout for stretching the buying power of your money. As the saying goes ‘ Marwari businessmen get Five Quarters worth of value out of every Rupee’ as against the normal Four Quarters worth.

14. Do not be shy to learn, the above trait is not hereditary, it can be learnt / acquired.

15. Pay Cash and do not subscribe to a lifestyle based on loans (E.M.I). DO NOT MOTGAGE YOUR FUTURE FOR TODAY.

16. Use Credit Cards where essential, e.g. travel and hotel bookings and not for lifestyle purchases. This will lead to excessive and impulse buying, creating undue pressure.

17. To get  thrill from your acquisitions, work, save and plan for them so that you can look forward to acquiring them one by one. Very affluent societies take many material possessions as granted and hence  are either in the race for more or bigger liabilities (note difference between assets and liabilities) or become disillusioned and start looking for ‘meaning of life’ through other means.

Economic independence should be your aim and you can achieve it by not only increasing your earning power, but by controlling your expenses, providing for the future and being debt free.

CONCLUSION

This roadmap, if followed will help protect and enhance your wealth, keep you Relaxed as you would not be in the race to ‘Keep Up With The Joneses’ and would not be worried about the next call from the bank (EMI).

Enjoy what you have acquired and be at Peace! Amen.

Arun Vedhera

Here are a few tips you may like to follow:

1. Look for positives and learn lessons for the future. Shed a feeling of gloom and move on with head held high. Look at what you have, a good family, food on the table and life in a young democratic Country which is being applauded all over the world for having escaped relatively easily.

2.  Follow solid middle-class values, cautious, conservative and careful. Be humble and well grounded.

3.  Secure your present, provide for the future on an on-going basis and only then be adventurous.

4. Do not mortgage your future for instant pleasure through acquisitions today.

5. Income is variable ( job  permanence, business stability and growth etc. ) but Debt (loans, E. M Is  ) is permanent and the meter runs 24X7.

Two Prominent Investment Bankers of the Country have recently quoted their fathers, advising them never to take personal loans and to be risk averse with personal savings. Both claim to have followed this dictum and are happy.

6.Remember that there is no free lunch or free holiday in  life  . More seemingly enticing a proposition is to make quick or easy money, greater the danger and risk to loose your shirt ( due  to  high risk investments people have also lost their peace of mind, even life )

7.Money is important, never undermine it’s importance. Use it as one of the means and never as an end in itself. Enhance your horizons to increase your earning and wealth creation capacity, but on a sustainable model.

8.Beyond a limit, law of marginal diminishing utility kicks in and the bigger cars, larger  houses , luxury items, size of the business etc. all fail to give the thrill you expected them to provide .Then starts the race for more, which cannot be won, so why fall into that trap.

9. The trick is to stay hungry for success, be competitive, stay focused, stretch your targets (still achievable, though with lots of hard work and effort) but do not get carried away to indulge in big punts and gambles, which seemingly will propel you to a different league.

10.Except very few examples of people who have achieved wealth through huge gambles and betting on very long odds, law of averages does not  favour this model, i.e for every such success, there are countless failures .For staying lucky, be prudent.

11. Economic freedom should be the aim, but it cannot be achieved through borrowed capital. ( for conveniences and high leveraged debt for business)

12. Most of the things and events  which bring continuous happiness are free or inexpensive. The happiness achieved through physical proximity of the family, smile on the face of  the dear ones, creative success of the wife, best performance award to the son for the Quarter’s best sales results in his job have no substitute. Recognize and enjoy these on a regular basis.

13.Prepare a balance-sheet of your life and evaluate all your assets, starting from the kind of  parents , (affection, moral and spiritual values given by them) spouse, children, relatives (much maligned, but we do not hesitate to land up at their door-step un-announced with bag and baggage, so give them some credit), friends, education, money, assets etc.

This will give a holistic assessment of emotional  , spiritual  and physical assets which surely will far outstrip the liabilities.

14.Value what you have and then look at what you aspire to have. Aspirations and Dreams are good and make life worth living, but we must filter the actionables.

15.Spend enough time in soul searching to figure out what do you want in life what are you passionate about, do your own S.W.O.T analysis (Strengths Weaknesses Opportunities and Threats)  and Go for your Calling-patiently, persistently, without major short-cuts (they cut short the life) and chances of success will increase beyond expectations.

CONCLUSION

Life is interesting, take charge, enjoy the process and the journey  ,have faith, surely look at the emotional and spiritual aspects ,be prudent ( and upfront about it-Warren Buffet is known to be prudent and thrifty ) and Celebrate God’s Grace  every day for a Happy, Joyous and Free life. ( ….. to be concluded)

- Arun Vedhera

1.It comprises of people who are survivors, though somewhat diffident, conservative and mostly conformists.

2.They believe in God’s grace and want to hold on to what they have. They are risk averse . More Bank Fixed Deposits than Stocks and Shares.

3.They want secure jobs ( preferably  government jobs ) and have learnt to manage within their means. They have learnt to ‘Cut their Coat according to their Cloth’

4.They are thrifty-Indian saving rate at 28% of GDP is one of the highest in the world.

5.They want to give good education to their children and live their dreams through their progeny .They talk endlessly of their U.S and U.K based children while worrying if their children are eating well and not getting corrupted by the outside influence.

6.While justifiably  proud of their well-to-do children  , they are uncomfortable with girls going out at night and the present lesser clad children.

7. Their daughters-in-law save time by spending money while the mothers-in-law have always saved money by spending more time (cook wholesome food at home rather than order fast- food)

8.They believe in God and are reconciled to their destiny .While they listen to grand plans of their children, yet are always apprehensive.

9.They are getting accustomed to modern technology, but still keep their Fixed Deposit Receipts laminated and safe, trusting the bank and post office pass-books more than internet accounting.

10.They are the products of households where younger children accepted hand- me- downs and always affectionately wanted to get their father’s coat altered to their size on growing up. They believe in save and re-use.
Today’s use and throw culture deeply upsets them.

11.They believe in Value-for-Money.

12.They are best represented by the middle middle-class, who buy branded apparel, but at discount sales ( preferably  winter clothing at the season’s end, at bargain basement prices) , who go to see movies at the multiplex but in the morning shows at discounted rates, who comfortably fit in ( a large family) in a small car ( with a large heart ).

13.They manage to live in rented accommodations (if possible, government or company provided) and construct houses against Provident Fund and life Insurance loans. They DO NOT live on E.M.I s and still pay cash for their shopping.

14.God Forbid, if the bread earner was to lose the job ( which will mean depression and a feeling of disaster )  the homemaker can mange to keep the kitchen fire still burning for a few months by dipping into below -the-mattress-money .In such cases they will profusely offer prayers to the God of their understanding and ultimately leave everything to the Higher Power.

15.They do get snubbed for their middle-class mentality and values by their better-off children and relatives, who want to upgrade their living standards exponentially.

The giant multinational corporations salivating at this large target audience sank in huge amounts in standardized shopping malls, which have attracted foot- falls and eye-balls, but have seen flat sales, in fast-food chains, which struggled till they brought the prices down and customized their food offerings. Ultimately the global consumer goods giants recognized that the middle-age middle-class person still drinks the cola or lemon drink from a bottle, will buy a car based on fuel consumption and will take a cautious and conservative route. Of course the Corporations are lucky in so far as India has the youngest population in the world and hence cold drink cans and flat screen TVs have a chance.

Conclusion

In the global economic meltdown of today, India is relatively safe due to our conservative and cautious policies and the stoic middle class values, with deep faith in the Higher Power.

More power to the Middle-Class. May the economically backward rise to the middle-class level.

Arun Vedhera

P. S. – Do you think differently….Share your feelings