Money Talks Weekly

Money Talks – Next Big Thing, Trap

Hi All,

Money Talks Weekly # 11

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it would benefit your dear ones.

Recently, my friends called up to check about a block chain / ai investment opportunity. He had, prominent Indian Billionaires invested in it ! In the same line, there was a bank manager who called up and asked a trading website. This website got an investment opportunity, we can invest money and receive income daily 1 % or you can reinvest.

Both are highly educated. One person is part of Banking system. Still they are attracted towards this kind of investment. Investment knowledge and greed for money has different characters.

Any investment you are looking should have basic things:

  1. It should be regulated under Indian law
  2. You could raise a complaint to regulators such as RBI, SEBI or IRDI
  3. In their website, you can see regular information clearly
  4. You should invest with proper KYC ( Know your customer) Process and only deal via Banking channel
  5. Stay away from abnormal return or guaranteed return

I was interviewing a senior person from Mutual Fund company. He said, any promised return more than Government FD rates are risky and they don’t have intention to pay back. It may pay back till the time, they want to attract other investors and spread word of mouth. So, if you are at the early stage – you may get return else, you will be in loss completely. You can’t escalate it to anyone. It becomes a scam.

We have interest to look for new big thing. It is really difficult to predict. It is just like winning a lottery. So, if you are interest in these risk assets – Invest only as if buying a lottery. Always invest your serious money into regulated products only.

Better stay away from any fancy investment ! If you are confused to investment money, Consult an investment planner or an experienced person who can help you without any bias.

Stay safe, happy investing.

Money Talks Weekly

Money Talks – Dream to Goal

Hi All,

Money Talks Weekly # 10

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it will benefit your dear ones.

We all have dream of doing something in our life. I have NRE family members who had dreams of going for world tour and confuse that with their Kerala vacation. There are many NREs in our parents generation had only one travel. One to Kerala (home town) and then to back to Gulf (work place). Now we are seeing improvements in travel dream execution !

But there are a lot of dreams stay there as just dreams. Like, wanted to start a part time business or buy some good gadget or solo trip and so on.

We all have many dreams pass by, there are dreams continuously come and go. It is good to write out your dreams, especially the ones comes to your mind often.

All dreams are associated with a cost. when your responsibilities knock the door, you keep post ponding  your dream and that dream stays there as just a dream for ever.

Instead, convert them to a goal, Dream to Goal.

What is that Dream ? Ex – Buy Rado watch

How much it cost ? Ex – 2 Lakhs INR

When you want it ? Ex – 31-Mar-2025

Do I have money to buy that now or some part of money ? Ex – I have 50,000 INR

Can I spare a small amount of money for this goals every month ? I am sure, you can. Do that, improve it every time possible and make your dream possible on the time you fixed ! Ex – I can spare 5000 INR / Month

Sounds like a plan ? Convert all your dream like this into a goal and make it happen for you !

It’s your goal, Let’s make it !

Happy Saving.

Money Talks Weekly

Money Talks – Second Arrow Syndrome

Hi All,

Money Talks Weekly # 9

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it benefits your dear ones.

We do a weekly call time where any one can call our office number, I personally attend to the call. People can any question related to money management. It is a learning experience for me, trust our audience is getting value out of it.

One of the calls was, a trader who was in to trading from quiet sometime. Who was able to generate profit and couple of months back, he has incurred a loss. To cover up that loss, he has traded aggressively and ended up in loss of capital. He want to come back to profitable trade. He is following the market and trade everyday to make it in to profit. I have requested him to stop trade and invest for long time. Also, asked him to learn trading on paper. Start to trade only with small money and with a proper risk management.

Its not about my solution, my solution is not full answer. There is more to it. But his problem is not the knowledge to trade. His issue is emotional hurt of loss from the market. I have read about a Buddhism concept – Second Arrow !

“In life, we can’t always control the first arrow. However, the second arrow is our reaction to the first. The second arrow is optional.”

In life any accident, we cant control. Your reaction post that accident is critical. If you carry the accident in mind all the time and be fearful to drive again means it is the problem. Or any time, you loss in an interview and not applying for job again, it is hurting your carrier. Or your childhood fear of talking to strangers is a dangerous fear for people to go on for socializing.

Loss in a trade is a reality. But recovering loss from next trade or one trade may not be a possible solution. Loss in that trade was first arrow and aggressive trade was second arrow.

Same problem, we are seeing regularly. People invested in market and made loss. They believe for life long that market is risky and don’t want to invest in market again.

There will be a problem on a regular basis, but this won’t happen all the time. If any loss or failure in your life, always see that as an experience and that’s your first arrow. That’s was an event, let’s not carry ! let’s not allow second arrow of suffering with that event to come in. If you are not able to stop second arrow, get in touch with an experienced person or expert in that area.

Keep learning.

Money Talks Weekly

Money Talks – Second Source of Income is it really needed ?

Hi All,

Money Talks Weekly # 8

This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it benefits your dear ones.

Depending on single income has its own risk, Same time looking for multiple income is not everyone’s option. I know, most of our high salaried individual are focused and committed on one income and they are holding senior position in their organization. They are almost like married to their job. They enjoy what they do. When we discuss about their retirement, they are financially good, but what do they do post retirement after retiring from heavy responsible post. It’s a different topic.

But having second income doesn’t mean that – you need another job or side business. Rent from building is an option, royalty from a book is an option, Income from passive investment is another option. When I say, Income from investment. People get confused. I mean, Passive investment. You can have active investment like trading. But it involve time. If you do, then it is a side business. It’s good, if you have time and knowledge to do trading by own. Else, look for passive investments. You may have a question, why should I need a second source of Income ? Simply, to reduce the risk of single income !

Passive investment, Fixed Deposit and Insurance Investment product are commonly known. There are other options where we can earn best income + wealth too. It is good to explore more on this and look for your possible options to secure second source of income; here is few options:

–               Bonds and NCD – Same as FD, but earn better returns from Government and Corporates

–               Stocks and Dividend – When you own equity, you can enjoy a portion of profit. You can explore, good dividend paying stocks and accumulate shares there

–               REITs – Real Estate investment Trust – Here you can earn rent without owning commercial building. You can invest with a small money, just like Mutual Funds

–               Mutual Funds, SWP – Systematic Withdrawal Plan ( Opposite of SIP) from Mutual Fund is a good income plan

–               Rent from Residential and Commercial building

–               FDs / Government Small Savings plan  –  you can earn, interest from FDs from Banks and Government Schemes

–               Peer to Peer Lending – This is a new option to lend over money to a set borrowers and earn better return than FD.

List can go on, these are passive investments, can earn regular income. IF we study well and planned well, we can build a small second income source without much involvement.

Before do any money decision, it’s good to do a planning or consult a 3rd person who is genuinely give an opinion after considering your current financial state.

Hope, it is a good read to inspire your second source of income !

Happy earning !!