Thursday, October 19, 2017

SHOPPING SMART WITH CREDIT CARDS

SMART SHOPPING WITH CREDIT CARDS : 

It has become inevitable to use Plastic and Virtual money especially after Demonetisation.


And it is a given that more and more people are using Credit Cards simply because they are NOT PAYING RIGHT NOW!
Using Credit Cards is a Double Edged Sword. It can cut both ways

Using Credit Card the wrong way is a CURSE indeed but Dr.Kent (Srikanth Matrubai) will here show you the way to how turn this into a Blessing!! Read on...


I have noted down some points using which you can ensure that Credit Cards does not HURT you but actually became a friend to you.


1. Plan your Purchase
Whether  you are buying with a Debit Card or a Credit Card always PLAN your buying.
Never ever buy on an impulse. Plan your Purchases beforehand.
If some Mind-Blowing discount does come up, pause for a minute and think whether you really do that product (mobile, Watch, TV, whatever)
If yes... only then go ahead & swipe that card.
SMART TIP : 
Pause before buying. Even better have a Purchase Plan in place. 


2.  Use that card which gives you the Max Benefit
Now, that you have decided to go ahead...you need to check which Credit Card will give you maximum benefit for that purchase.
For example :
With an ICICI BANK Credit Card, you would get 6% EXTRA discount in Big Bazaar
With an HDFC Bank Credit Card, you would get an additional Cash Back of 5% to 10% in Amazon/Flipkart
this will help you maximise the discount.
SMART TIP : 
Go for one which gives Maximum Discount NOW rather than giving you Points later. 


3. Pay off ON TIME & PAY FULL
Saves huge interest and gives peace of mind
The toughest thing is to part with money. You postponed paying by using credit card but when the credit card bill comes, you cant postpone.
Never make the mistake of paying MINIMUM and carrying balance to next month.
The charges are huge and steep.
Pay off on Time.
Pay off Full. Never make the mistake of paying MINIMUM. The interest charged is in the high 30%s and burns a HUGE hole in your pocket.
If you do not have the money to pay, better take a Personal Loan and clear the Credit Card bill as Personal Loans are cheaper than Credit Card Bills.
SMART TIP : The MAXIMUM payment should go towards Credit Card bill rather than any other as its interest charges are sky high



4. IMPROVE YOUR CIBIL RATING !
Not many know this but using your Credit Card regularly and paying off on time improves your Cibil Rating.
This especially helps those who had a bad history while using Personal Loan or Home loan.
SMART TIP : Use Credit Cards regularly and pay off on TIME to improve your Rating.


5. Check Billing Cycle
Different Credit Cards have different billing cycle.
Using them judiciously helps you get MAXIMUM time to pay off the bill.

For Example
lets say Dr.Kent's Billing Cycle starts on 5th of every month and his bill due date is 24th.
Now, if Dr.Kent makes a transaction on 6th of November, then he has time till December 24th to make the payment without paying any interest on his bill. This is what is called INTEREST FREE PERIOD.
Now, if the transaction was done on 4th of November, Dr.Kent would have had to make the payment by 24th of November.
So, keep this mind while swiping your Card.
SMART TIP : 
Buying on the day AFTER the Billing Cycle ensures that you get MAXIMUM period to pay off the bill. 


6. CONVERT INTO EMI
Almost all credit cards allow you to convert your purchases into EMI.
This helps especially if you bought something expecting to pay off by a foreseeable income but the income did not materalise.
Just call up the Credit Card issuer and lo! your Purchase is converted into EMI allowing to stagger your payment.
SMART TIP : Even EMI is not advisable...hence pause before making that purchase


7. GAIN BY USING CREDIT CARD 
Gain?
How can anyone gain by using Credit Card? Yes you can.
Suppose you want to buy a TV for Rs.1 lakh and you DO HAVE THE CASH.
Instead of paying by cash, swipe the Card and pay on the billing date.
This helps you
a) By earning you INTEREST by investing this money for the differencial period
b) Using that particular card which gives you Reward Points/Cash Back, etc
An average 5% cash back is a normal payback on most cards with a cieling of about Rs.5000-.
So, you can easily gain Rs.5000/- for USING CREDIT CARD!!

SMART TIP : Use Liquid Funds to park your money which is not needed for short periods of time. 

8 ) Have limited number of Cards. 
I have come across investors who have even 12 cards. That requires lot of discipline and constant monitoring.
Just like how you cant handle more than 2-3 Mobile phones...likewise it makes sense to have limited cards.


Other points
a) Preferably use for Emergencies
b) Never go Overboard
c) Wherever possible use Debit Card

d) Never withdraw CASH from your Credit Cards. The charges are sky high. It makes better sense to SWIPE  a card than withdraw cash.
The charges start from the DAY you withdraw and you dont have a GRACE PERIOD for this.
Morever, Cash Withdrawals also attract UP-FRONT FEES too.




Finally, if inspite of your best efforts you have fallen in Credit Card, take a Personal Loan and pay off the Credit Card loan

Regards,
Srikanth Shankar Matrubai






Equities is the best option to create Wealth
Mutual funds are the best way to participate in Equities. 

Get views, analysis, news and all about Mutual Fund investments by clicking the following TELEGRAM link 
https://t.me/MutualFundWORLD



Sunday, August 27, 2017

START SMALL...START EARLY.....GET BIG...GET HUGE


 

YOU MAY DELAY  BUT TIME WILL NOT – Benjamin Franklin

How true!
The earlier you put your money to work, the more it earns for you. The earlier you invest, the earlier your money starts working for you.
So, instead of investing more money later in your life, invest small now to achieve the same desired target corpus.

You may feel that few months will not matter much. How wrong you are!!!
Even a small delay will have a huge cascading effect on your returms.

See the accompanying image : 


A dealy of just 6 months will result in a loss of nearly 10 lakhs !!




Also note that if you invest Rs.10,000 per month in MF at expected 15% CAGR.

In 15 years,it will be Rs. 61 lacs.

In 20 years,it will be Rs. 1.32 crore.

In 25 year, it will be Rs 2.65 crore.

In 30 years, it will be Rs 5.63 crore.

In 35 years, it will be Rs 11.41 crore.

You can see, every delay of 5 Years, it will make your corpus half of its value.
Money saved is Money Earned.



I have seen many youngsters say "I will start next week".
Saying to yourself “I will start next week” is nothing less than a disaster. This next week could well next fortnight, next month, next quarter and even next year. Time flies and the amount you need to invest will only increase. The hard truth is you just can’t afford to delay.
The cost of delaying your savings/investment is deadlier than even inflation.

This reminds of two lines in a hindi song of Raj Kapoor film

Jawani neeend bar soya


Buddapa dekh ke roya


Delaying exercising hurts building health.

Delaying investing hurts creating wealth.

"The best time to invest was 30 years ago, second best time is today."
- Warren Buffett

As Nike ad says, 'JUST DO IT.'

Even compensating for the delayed investment will be a herculean task.
So, instead of investing more money later in your life, invest small now to achieve the same desired target corpus.



 



Saturday, August 26, 2017

LORD GANESH & YOUR FINANCIAL PLAN

Lord Ganesh is revered as the Lord of Beginnings and Remover of Obstacles.
Lord Ganesha is one who is loved by young & old alike.
He is worshipped by Shivais, Vaishnavas and even Shakti Aradhakas.
Lord Ganesha is seen as Shrewd, Intelligent, Wise and Full of Knowledge.
His grace is absolutely essential for our Successful LIfe, be it Financial or Otherwise.
Here's how I connect Lord Ganesha with a Successful Financial Plan


THE BIG HEAD 
Lord Ganesha's BIG Head indicates us to Aim BIG and achieve BIG.
Our Financial Plan should be such that we achieve something BIG in life.
Obviously this means that our focus should be on LONG TERM GOALS


SMALL EYES :
Our Financial Plan should take into all the small Nitty Gritty Minute Details which could create obstacles in achieving our Long Term Goals.
The Small eyes shows that we need to CONCENTRATE on minute things which look small but not actually be so.
Remember : A Small Leak can sink a HUGE SHIP!


LARGE EARS :
A saying goes "A Good Listener is a Good Leader".
Likewise keep your Ears Wide open to absorb knowledge from all corners and listen to Experts whenever & wherever possible especially when it is from a person like SRIKANTH MATRUBAI!!!

SMALL MOUTH : 
The Small Mouth of Lord Ganesh is a indication to us to Talk Less, Talk Sense and Work More.  Also dont be loud mouthed with your Finances, discuss your investment plans only with trusted persons like SRIKANTH MATRUBAI!!


SHARP SINGLE TUSK : 
The Single Pointed Tusk of Lord Ganesh indicates us to discard Duality from our minds. Have a Clear Cut Definite Goal and Focus on 1 Goal at a time and then move on to another. Dont jump from one target to another in between without reason.


LARGE TRUNK : 
Your Financial Plan should have the flexilbility and adaptibility to recognise and weed out the Rotting Apples and retain performers. Very important in an ever changing circumstances. Remember a Trunk has the Capacity to uproot a Tree and at the same time, even pick a Needle!
Your Plan should be that Flexible!!

LARGE STOMACH : 
The Large Stomach shows us that our Plan should have the wherewithal to withstand and digest the Volatility. It should have an ideal mix of Debt, Balanced and Equity Funds.
Develop to Digest all the volatility. Have patientce.  The BIG Stomach shows Acceptance.

While some funds/Stocks could look hugely attractive with all indications of being the next multibagger, stay calm,  let the news flow filter out and the dust settle and take required action once the Air is cleared.


MOUSE : 
Lord Ganesha's vehicle is the small MOUSE.
Mouse cuts Ropes that Bind. Cut desires that make you spend more and prevent from Investing.
Keep Desire of Devil under Control.
Ride it rather than making it scare you.
Control the desires (mouse) or the Desires  will destroy your wealth
Even tough the Modak is next to it, the Mouse dare not eat the same without permission of Lord Ganesh.
Likewise, no profit booking without your Advisors' consent.

ANOTHER POINT REGARDING MOUSE : 
Mouse has the ability to see even in Dark.
Know how to see the light even in Dark times. Follow your the path shown by your Advisor and stick and you will reach the LIGHT.
Control the Mouse (Desires) and you will see LIGHT!!

MOUSE also indiciates that even the Mightest depend on the smallest.
So, a small SIP could easily make you the CROREPATI.


ONE FOOT ABOVE ANOTHER FOOT : 
Ganeshaji is usually seen sitting with 1 leg folded and other on the Ground.
Meaning aim for the Sky but be rooted to the Ground.
Aim for a  BILLION even a ZILLION but know your capacity and aim for achievable Goals!!
Having a Goal too high could lead to disappointment.
Accept your limitations and work towards realistically achievable goals.


FINALLY, THE MODAK : 
the Delicious Modak/Kadabu is awaiting for you at the end for your patientce, sharp focus as a Reward.
Modak is digestive aid and full of Proteins. And this Prasad is given at the End of the Pooja and you too will get your DESERVING REWARD when you stick to your Financial Plan and follow the advise of your FINANCIAL ADVISOR.

Post Script : 

Many images of Lord Ganesha has a Snake wrapped on HIS Stomach. 
This indicated PROTECTION OF CAPITAL (Profit).
It also indicates controlling of things which cause us unrest.
For a Successful Financial Plan, it is necessary to do constant review, monitoring and need to book profit/protect Capital in case of extraordinary events.


Best of luck,
May Lord Ganesha bless you with Health, Wealth and Happiness.
Srikanth Shankar Matrubai

Sunday, August 20, 2017

REST IS IMPORTANT..... RECHARGE YOURSELF

MATRUBAI'S MUSINGS!!!!

Akshay Kumar is living proof that you don't need to work 365 days in a year to be rich, successful and respected! 

For 5 years in a row, Akki holds 2 records:

1. HIGHEST ADVANCE TAX PAYER FROM THE HINDI FILM INDUSTRY.
2. HIGHEST HOLIDAY TAKER FROM THE HINDI FILM INDUSTRY.

Rest is good. 
Rest is imperative. 
Rest helps you give your best. 

Just don't always focus on Working.
Don't always focus on Earnings

Take Adequate Rest
Spend time with your family
Spend time with your friends
Spend time doing Social Service

RECHARGE YOURSELF

As for earning even while you take Rest.....there is MUTUAL FUNDS!!!

There is SRIKANTH MATRUBAI to ensure your LACS escalate to CRORES to BILLIONS to ZILLIONS!!

Regards, Srikanth Shankar Matrubai

Happy Ganesh Chaturthi

Thursday, August 17, 2017

LEARNINGS FROM THE SUDDEN FALL IN MARKETS LAST WEEK

Greetings,
Last week, the Stock markets took a sharp sudden fall and left many investors shell shocked.
It was an unexpected fall for many as Markets were going on smoothly with everything looking honky dory

Two things led to sudden sharp fall.
1. The Rise in Doklam Border Tension with China
2. The Shell Companies issue raised by SEBI.
Now, look at these two images...



This Client started investing just about a month back. She had done a single investment last Nov and then restarted only last week. 

Last week's sudden brutal fall hit the portfolio valuation hard and showed a loss of Rs.7500/- and a negative CARG of -4%. 

Its obvious that the client would get upset on seeing a RED portfolio especially wherein one Fund is showing a CAGR of 33% and still the overall portfolio is showing a negative 4.1%!!
And as expected, I got a message from the client that there are rumours of war with China and whether I should be moving ALL the funds to debt
I just said "WAIT"!!!!!!!!!!!!!!









Now, watch this image. 
Just 1 single day later. 
The Portfolio has moved from a loss of Rs.7500 to a Profit of Rs.13700 and a negative CAGR to a positive CAGR of 7.3%. 
All in a matter of one single day!! 



Point is...

1. Negatives are inevitable (its a part and parcel of any business including Equities)

2. Equities is NOT for Short Term. Never was. Never will be. 

3. Positive Growth is a given. Equities have outperformed all other asset classes by a reasonable margin but the problem is VOLATILITY. 
You have to bear with it. 

4. When the Investment is LONG TERM, why should you even bother to look at your portfolio??
You will only be increasing your BP. 
So, bear with the volalitility. Enjoy the Ride. \

5. Stick to Asset Allocation. Stick to Good Quality Funds. Invest in Funds which are aliging to your Goal. 





Learnings : 
1. Dont watch your NAV/Portfolio Daily
2. Dont listen to CNBC/ETNOW experts. They find pleasure in making you nervous. 
3. Take the Advise of a Good MFD/Advisor who will guide you after looking at your Goals.
4. If the Horizon is Long term, treat the Falls as an Opportunity to buy Quality Funds at lower rates and reduce your overall Cost of Purchase.  

Relax. Enjoy the ride but be warned the ride could be bumpy.


And, of course, DO NOT TRY TO TIME THE MARKET

Image result for goodfundsadvisor fall

And let the MAGIC OF COMPOUNDING WORK to your advantage. 
BEST OF LUCK!!!!!!!!!!!!!!!!!!!!!!!!!



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