Why do people struggle managing their Personal Finance?



 What is your FQ, Financial Quotient?

John received his paycheck today. Though the figure is same as last paycheck he has ambitious plans. He is buying a new apartment in the suburb. The house is for 300,000$ and he is paying upfront 30,000$. The rest is funded by the bank. John is drawing a monthly salary of 6000$. The loan of 2.70k$ is going to add an EMI of 2800$. His monthly expense is 2000$ and he also holds a personal loan that he pays 1000$ every month. His net outflow is going to be 5800$. Good news he saves 200$.J. This may sound a bit dramatic. Our personal finance situation may not be as grave as John’s yet some of us are close to this situation.

 John will be moving in this new house in another month. He is getting furniture done. John is happy that he has made the right decision of investing in house asset. The price of this house will grow over years and his investment will multiply.

 The story of John takes a turn when his friend who is a finance adviser asks John to re-consider his decision of buying a house. This one decision will vaporize his cash flow. With just a few points change in interest rates or inflation he will have serious issue meeting his daily expenses.

 This is unfortunately a situation of many people. Many people choose to be ignorant about their financial requirements and trust the advisers who rip them off their hard earned money. It just takes a few steps to educate self of financial IQ or FQ.

 John was lucky to have a friend who would tell him what’s good for him. He helped John understand that what he is considering an asset that is his house is actually a liability. Since he is going to live in this house the rise in house price he cannot realize until he sells it. For John to sell his house 5 years from now, assuming its price has increased, he will have to move to another house. He may probably have to go for a bigger house as he would like to maintain his lifestyle and that house would also have price which would be multiple times of what it is now. So, the net is that what he earns selling in a house goes towards buying new house and additional loan. Another fact that John missed was that he will be paying interest on house mortgage. This interest almost doubles the cost of house every 5-7 years. This house shows as asset in the bank’s asset column while for John it is still a liability. It does not mean he can’t buy a house. Since it is his first house he would be emotionally attached to it. So instead of considering it as financial asset, it is his emotional asset. He has to create some real assets that would pay for the house loan. It could be generating some passive income through part time work or when he receives perks he can invest them wisely so that they grow and pay off the loan.

 What are the avenues available for John to create passive income?

 If his source of income is only through salary, he will have limited options of creating assets in above equation, however if he receives some perks he can invest them in instruments that generate wealth. There are 3 buckets that he needs to bucket his investment. The first bucket is the safety bucket. In this bucket he puts 25% of his perk amount in safety investment options like bonds, fixed deposits etc. The other bucket is growth bucket. Here he puts another quarter. This growth bucket is invested in mutual funds, gold, SIP’s. The 3rd bucket is aspirations bucket. In this bucket the remaining 50% of the investment is made. It is high risk investment. Without the high risk one cannot expect quantum returns. The high risk investment could be buying directly the stocks of valuable companies, buying small portion of land, private lending, commodities and derivatives. If one doesn’t know about derivatives he shouldn’t be investing in it.

 The miracle of this investment is that the second and third bucket investments will give quantum returns while the risk will be offset by the first bucket. This is a simple hedging tool to grow and yet be safe………………


Read often than Write!




In this article we look at the importance of spending more time on reading than on writing. Why is it so important to spend time on reading?

 The energy of writing comes from knowledge, information and interest. The information and knowledge come from reading books, articles and listening to people. Reading helps to deepen our understanding. If our goal is to write a fabulous article or a book, it is important to expand our information. This is done by reading at least 2 books on same subject. There may be some videos that one may consider watching to get more information. Some people would have already written on same subject that you are considering writing, read what they feel about the subject. Don’t quit writing on the subject because someone else has already written about it. You can always add value. The secret of writing is there is always someone who has written earlier on our topic and there will be someone who will write after we publish our writing. All efforts by people are working in congruence. It means that they add up and expand our vision.

 Reading gives the edge of discovering that part of information that one wasn’t aware of. It is also a chance to validate understanding. Sometime our information may not be a 100% accurate, reading would either validate it or give it a new dimension.

 Reading also gives a feeling of satisfaction, the satisfaction of enriching our mind’s information store. The wisdom of the world packed in few pages, lines and words serve our hunger or quest of learning. It also triggers abstract thinking. What is abstract thinking? One may discover creating a new identity that may not be in real world but there is still a possibility of creating it. It has to be put to practice to make it real. Many authors have put abstract ideas and then they were experimented by people. They were then transformed in to doable ideas.

 Other benefit of reading is it helps a person to take a balanced position on a particular issue. For instance, if one reads about impact of rising industrialization on the Ozone depletion. One may not get radical of getting rid of all the industries, cars, refrigerators. He may consider ways to reduce the impact or work on ways to strengthen the Ozone layer through growing trees or using the green technology.

Reading also helps reducing time required to write and complete an article or a book. Once the information is loaded in mind, the words surface quickly on paper and subject gets written down in short time.

What % of time one must spread in reading and writing?

Each person may have different comfortable % breakup, I usually spend 70% on reading and 30% on writing. I optimize my writing during morning hours when my productivity is the highest. What could take me hours to write gets done in 1-2 hours.

Watching video on the subject one is considering to write is also an effective tool. Visual representation of an idea or fact is the most effective way of learning. The reason being we use our eyes to record facts 90% of the time. Hearing is the next used tool. People with photographic memory remember events in exact details and in sequence.

With that said, now it could be easier to decide how much time one needs to invest on reading and writing. Wish you Good Luck and success…..

Secret of Successful People



Each person in this Universe has two energies, Physical and Emotional. These energies decide person’s ability to prosper, stay healthy, live longer, maintain great relationship, and lead a deeply fulfilling life. Excess use of one energy over other, often leads to imbalance. This imbalance blocks people’s potential to reach to the ideal state of abundance.

Physical energy is that energy that is required for a person to perform his work, travel, or communicate. This energy is developed through daily exercise, eating balanced food, good nutrition & rehydrating self. Daily exercise could be brisk walk followed by stretching, weights, swimming, Yoga, sprint, outdoor sports.

Emotional energy is one that is required to effectively communicate with people, express. It is also required while handling difficult situations like responding to accusation, fear, anger, panic, negativity, stress, anxiety. Most of the times, it is the Emotional energy that is drained out easily even though the person may have physical energy to manage a situation.

How does one release these energies?

Each day the physical energy is spent on travelling to the job, doing work, labor, talking to many people, looking at the computer screen for long time, playing sport, physical fight, driving, shopping, eating (hogging).

The Emotional energy is spent in emotionally (energy in motion) responding to a situation through stress, fear, anxiety, laughter. Anything happening recurring will result in Worry. It could also be spent in an argument, trying to prove ones point, studying, reading, writing (this is both physical and emotional). How studying & reading expend emotional energy? Reading or studying requires focus of mind and storage of information. Both these activities require energy expense.

How does one develop Good stores of these energies?

The physical energy is developed by setting a daily ritual. The ritual to get up early in the morning, exercise, eat balanced food, nutrition, avoiding doing too many things in a day, scheduling, right sleep (7-8 hours quality sleep), avoiding watching TV at least 1 hour before going to bed, avoiding reading newspaper in the morning, hydrating through water and fruit juices. While running or swimming builds physical stamina, Yoga builds flexible body, kick boxing or lifting weights strengthens muscles, Each day morning ritual of at least ½ hour to 1 hour will help build this energy (if done daily).

Emotional energy is conserved based on setting good calendar or to do list. Mind cannot handle too many action items in a day with equal power. Hence right prioritization is required to get to may be 3-4 things to be done in a day. Most people confuse with what is Important and Urgent. The other major drain happens due to the response that one’s mind gives to a situation. To handle this meditation, spiritual connect is required. Spiritual connect helps person understand what is his sole purpose on this planet and how his current actions are taking him in direction or away from it. There are various mediation techniques yet the meditation that raises the conscience of mind to the highest state is the most desired meditation. There is serene peace in this mediation. In this state a person accepts everything as truth. Each outcome he treats as an event. There is significant drain of emotional energy when amygdala, that small portion of brain is triggered in response to an aggression or fear. This is usually with aggression, fear or panic. The response of an emotionally trained person to a situation is that of peaceful acceptance, rational thinker, solution provider, win-win settler. All the people in history who achieved phenomenal success used this secret to gain an edge. They attracted success by practicing emotional energy conversation. They also had immense power of Focus and this power is also developed through meditation. Knowing where & when the energy drain occurs is crucial. This requires healing, the amygdala healing. Many people when they feel they are getting angry they count reverse or defocus, this is one way of releasing the anger. However it is reactive. By the time one realizes, the anger has done much of damage and once the flight has taken off the runway it has to be landed. Ideally one would be in a better position if he knew when the anger is entering his mind or state of conscience. While it is impossible to know, the best technique to handle this situation is through attitude training. The attitude is a natural response a person gives to an event. It is formed over a period of time. The attitude training can be done using gratitude and forgiveness. Sense of gratitude makes a person humble and forgiveness makes a person noble. It isn’t easy to implement this behavioral change as it requires confronting the ego and victim mindset. Yet it is possible to reach to this state through constant meditation and guidance. The guidance comes from someone who has crossed the bridge, a guru.

Once both these energies are conserved will it led to leading fulfilling life?

No! There is one more step before a person attains fulfilling life. It is a state of balance. Balance of physical and emotional energy is needed. What is energy balance and how does one get it?

To explain energy balance let us take an example of Tony and Johnny. Tony and Johnny both exercise well in the morning, eat nutritious food, hydrate themselves and go to work. Tony takes things personally and often in an argument he tries to show other person down. Johnny on other hand is receptive. He is calm when there is difference of opinion and usually acknowledges other persons opinion and makes suggestions. Johnny does not think about the event after it has got over while Tony goes home and still tries to figure out how to outsmart other person or how he has been a victim of a situation. Johnny goes home and usually plays with his kids or goes with his wife on a leisure walk.

Though both Johnny and Tony had same physical energies, Johnny ends the day well as he conserved his emotional energy well.

 Rachel and Kathy are friends. Rachel is 20 pounds overweight while Kathy has just right weighed. Rachel stays late at night watching news and TV soaps, wakes up at 9 in the morning and then rushes to work. Kathy goes to bed at 10 and wakes up at 6 in the morning. She then goes for a jog, comes home spends ½ hour on Yoga, then reads a book and goes to office. Rachel usually gets tired by 5p.m. and heads for home. Sometimes she feels tired after mid-day. At home, she has snacks. Then she prepares food, goes to watch Television with her kids. They have dinner at 10 and sleep by 11.

Kathy is energetic; she has her to do list and completes her work on time. She goes for playing tennis after office, and then she picks up grocery and heads for home. Kathy cooks food, spends time with her kids and has dinner by 8 p.m. She reads out stories to her daughter before going to bed.

On weekend Kathy goes for a short trip to country side while Rachel has doctor’s appointment.

Now, life may not be as dramatic as this one, yet many people lead the life of Rachel, Overweight, obese, low energy levels, lethargic, under productive.

In the story of Johnny and Tony there was emotional energy imbalance while with Rachel and Kathy there was physical energy imbalance.

To lead a deeply fulfilling life both these vital energies have to be conserved and developed. The sooner one decides to change; he would see his life change.

“Take care of your body for that is the only place we live in. Take care of mind for weeds would soon grow in it” – Jim Rohn.

What does JK Rowling has that other Book writers do not?


“You might never fail on the scale I did, but some failure inlife is inevitable. It is impossible to live without failing at somethingunless you live so cautiously you might have well not as lived at all, in whichcase you fail by default.”
:::: -J. K. Rowling

J K Rowling has been the world’s richest book writers. She has been so successful that everyone wants to write about her. Many people wish to know about her success secrets. For them she shares her life story, about her passion, about the pain, about the joy, the failure all of it. Many people would like to know what exactly made the wheel of fortune spin for her.

 J K Rowling went through most miserable time when she wasn’t popular. Her parents had divorced and her mother was diagnosed with multiple sclerosis. She later died of this disease. The pain of losing her mother was deep. Harry Potter’s character is shaped up from this feeling of grief and joy. Harry too had to lose his parents. In one of the scenes of Harry Potter where he is looking at the mirror and in it he sees his parents. He sees his mother cajoling him; this feeling can only be truly understood by those kids who lose their parents at an early age. The void in their life can only be felt by them. This void leaves a sense of emptiness and every time the kid meets success or failure, pain or joy, he turns to his lost parents for shelter. From this pain J K Rowling shaped up Harry, his experiences.

Joanne Rowling or J K Rowling said that the Harry Potter story came to her mind when she was travelling in a delayed train from Manchester to London. She was so shy that when she got this story in her mind, she couldn’t write it for she feared of asking for pen from someone. How someone who is that shy could possibly become the most famous author? How would she possibly market her book to millions of people when she couldn’t ask for a pen?

The secret is that she had a great idea. The idea was to make people dream. The idea to combine 2 worlds, one is real and other is fantasy.  Harry lost his parents and often saw them in mirror. He couldn’t get them back in his life but he could feel them to be around him.

Many of us live this dual life and the paradox of life is what J K Rowling projects through the character of Harry.

J K Rowling never biased this character. He never lived a perfect life. What he lived through are the experience of scuttle happiness and grief, reality and magic.

J K Rowling states that at the time when she wrote the Philosophers stone, she was working at the Amnesty international. She read the letters written by desperate families, friends of people who went missing. They were either imprisoned or executed for resisting the regimes of their country. The pain felt by J K Rowling, she transmuted it in her writings of the characters. The evil within humanity is casted in some of the characters of the Harry Potter story.  

J K Rowling at one point in her life was living on government grant, her marriage had failed and she didn’t know where the life is taking her to. By all standards she seemed to have failed in her life except one. She never gave up her dream. She never gave up writing story that she knew would change her future. She had an old type-writer and big idea.

When she took her book to the publishers, they rejected it. She gave the book to the little girl of the owner of Bloomsbury publisher. The girl liked it and wanted to read further. This was the turning point in JK’s life. The book was published and it caught the attention of people, the kids, the old, the young. It caught up like fire. Suddenly there was a huge demand for her books. To make long story short, she sold in total 400 million Harry Potter books.  

What makes J K Rowling so successful author?

J K Rowling lived the life of the character “Harry”. She felt the pain and the joy of his life.

J K Rowling at the background lived an obscure life. She wrote and re-wrote the story until the characters came out vividly real.

She had deep faith in her passion. When the whole world turned against it, she never reacted to it. She kept going. She took up ordinary job, yet she never stopped writing.

Failure did not deter her ambition, the ambition to rise above the obvious.

She was immensely focussed on writing story that will impact people’s lives.

It took her over 10 years from the day she started writing and the day her book was published. How did she survive during this period and still kept the flame of her desire burning?

The gift of imagination, was she gifted with it? No, she chose to imagine, she chose her environment. She lived next to cemetery. She liked to wander around the jungle. She truly believes that the jungle is full of wild wisdom; the jungle is a place where one feels vulnerable and supported at the same time.

Disclaimer: The author of the blog has compiled the information available from the net. It may not be the most accurate information, yet the intent is to provide best possible insight to writers about how to be successful from this story. The author of this blog does not intentionally or unintentionally wish to harm, impact of affect the feelings, values of people and of J K Rowling.

Mind without body….


Quite often people face this dilemma, is mind more important than body or healthy body is important to have a pleasant mind. The puzzle can be solved by understanding the organization of our Universe. Life on earth is possible by the presence of sun and moon. The sun gives energy to the plants, animals , humans and every living object on earth. The moon shields sun from earth. Life on earth is protected from burning. As the earth spins around sun and moon spins around the earth, this cosmic movement creates and nurtures life bound by TIME. Similarly a healthy body nurtures mind. Pleasant mind creates innumerable opportunities, peace to sustain happiness. Mind also directs the body to act to create fortune. Fortune is transformed in to good food, clothing, shelter and service for the body. It is a closely bounded relationship and no one is superior over other, although mind most of the time like the moon shields body from aging. When one gets opportunity to create money, build peace, choose that option that leads to harnessing mind and body. Neglecting one will make that choice the reason for failure. For instance if you like to eat everytime at the restaurant because you feel good, enjoy great taste but it causes harm to your body by building fats in it. If you like to earn quick bucks to have great lifestyle and you don’t enjoy your work, your mind is going to pull you off.

From Cloud9 to Pitfall.

Why does success takes people to cloud 9 and failure to a pitfall? Success empowers people while failure  makes them doubtful. What is this universal law? The law we now understand and the secret unfolds.
Our behaviors are shaped in the teens somewhere around the age of 12 to 16. Beliefs, attitude are formed around this age span. These beliefs stay with the person until he exits this world. It doesn’t mean these beliefs will dominate his life, however in a given situation he will tend to lean in towards these beliefs. He can tailor his response though. During this teen age when we live with our parents there is a unique response given by family, our parents, our friends, our relatives, our teachers to success and to failures. Success for instance is rewarded with hug, a pat, making that person feel special, reward while failures are responded with ignoring the person, taunts, making person feel embarrassed, sarcasm, insecure, deprivation. Mind picks up these response especially the negative ones and stores a natural response to such judgemental outcomes. These responses then get repeated with each such instance. The brain wires response. Hencelater when the person grows young, middle aged and old and faces judgemental circumstances his response comes instantly. Hence a person who feels great on getting high scores or solving complex problem or meeting sales target is also likely to feel humiliated, doubtful, low, self critical. Hence the good feeling or bad feeling never stay Permanent.
The good news is that a person can exit this viscous cycle. How? By being in a state of awareness. It isn’t simple though to attain. Only rigorous practice will put the mind in this state and rewire brain. How to achieve this state of balance?
1. Be aware that each outcome is just another event.
2. Truly believe that it is the contribution that matters, not the outcome.
3. Always focus on what can be learnt during the event or from the event.
4. Life is a string of events, our role is to participate.
5. If the outcome of an event is good consider that god wants us to move on from here to do something different or new.
6. If the outcome isn’t so good, thank the universe for giving an opportunity to learn. It only means one is on the right track, he just needs to expand his awareness. People immediately link the outcome to their goals. No outcome is permanent, such that it impacts goals. Failure is one step closer to success. Do not lose focus on goal.
7. Ccontinue working on the goal. Never abandon goal. Just before monsoon many clouds try to pour but the wind drives them off, their perseverance one day brings rain . Keep doing work in faith, rainy showers will arrive.