Swayam's blog
Hi all ,
Starting an online program on orals, for Students appearing for NCV,2nd Mates,Mates,Masters by renowned faculty from the industry.
For details send a mail giving your details to
Swayam
Books on
1 ) Chartwok & Navigation (Mates Phase-1)
2) Ship Stabilty (Mates Phase-2)
3) Cargohandling and Stowage (For All Levels )
Written By Capt. T. K Panda
How Much Money does one require……
by
Swayamprava
Many times I wonder how much really one want. If you ask me I have got very little requirements but at times I really want something very big. In fact I always like to have that purchasing power according to my whims. Again those whims shouldn’t exceed to a certain level and that should not really left you with a big hole in your pocket……Then what is my real requirement? Intrigued by my own thoughts I proceed to ask this to my friends. There are people who are doing govt. jobs, corporate, banking jobs and business. But there are special category i.e merchant navy group, pilots, people in show business and writers….In India writing can never be a career option that was proved again and again. In western countries they pay for the article published per word. Even bloggers/writers are getting so much money that they can afford a Caribbean holiday for family for four (Sources HT) But here the publishers, the agents, the shop owners, blogging sites, all earn money except the writer…that is pathetic….
Those who are in show business and creative fields, their earning depends on their demand in the industry. In case of Pilots and Merchant Navy officers, even though they can earn through out life but still to be with their family is a big requirement than to earn money. If family will not exist then what is the point of earning so much money? So I thought how to decide then how much one require to earn to secure one’s future, for rainy days, to afford to give your child a seat in management, engineering or medical college. One needs to plan. But how can somebody plan a future that to an unforeseen future! If I see to my age group people, they are too much after money. Even they don’t bother to cut from vegetable vendor, housemaid, too much bargaining in the shops. But is it really ensures that they are saving something and does these 50-100 rupee saving matters much in enhancing their bank balance…I wonder, in fact I hate that bargaining thing it takes away the charm of shopping….. Then I came across the next age group where they are too much bothered about the study of their children. The children require lots of money to get a seat for the child in a technical college which I felt is genuine. In Mumbai except around first hundred seats the rest are sponsored seats or pay seats. And the money they require at time of admission varies from 4 lakhs to 12 lakhs and sometimes more. On top the yearly fees are about 4 lakhs or something. This is a huge amount. So many talented students couldn’t get a seat where as those who have money they could…no matter at the end of the session they got failed or something…..So how one can plan this .If your kid is in primary class you can’t plan for his secondary class as it depends on so many factors like, Rupee/dollar conversion rate, market value of rupee, inflation, bank interest rates so on and so forth. When bank interest rates suddenly fell they offered only 4$ per 100$. In rupee it’s only 8-9rs per 100rs…with this how much one can earn and how much one can gain? In Mumbai people invest in real estates, stock markets, mutual funds etc. and it does earn them a good amount. But two years back it was a lull period. People were bound to sale 25 lakhs flats in only 10-11 lakhs…..But now those flats are going in 40-45 lakhs.
In certain area the real estate is picked up so much that it s about ten times hike….So this one too is just unpredictable. And this fluctuating market may take away all your life long earning within no time and make you a real king in no time too….But one thing which always bothers me is if at all your flats or bungalows value got hiked lets say about ten times and you are basking on the fact that you are the maximum gainer. But basic question is who will buy your 10-15 years old house or flat or whatever for so much money. Will you buy …If you ask me I will never go for an old flat…So is there any meaning TO THAT ESTATE ANYMORE. So it depends on the buyer’s instinct. Your estate is valued by the consumer’s offer that is the ground reality and that is quite unpredictable…. So considering all these factors my pea size brain made some plans. As I am very poor in managing money and I have no control over the money we spend with our instinct and I hardly keep a months earning and expenditure list, I apply a very simple plan to manage. I have kept a limit….I am not going to tell you what is my limit but still as per our earning we can set it to certain amount …lets say Rs 10000. I should manage in such a way that my expenditure will not cross that Rs 10000 limit. But how one will decide this amount? How I decide is if your early earning is something lets say 4 lakhs after paying the income tax and professional tax, then as per my planning I will divide it to half. So my quota of expenditure is 2 lakhs per month. The rest I will save for future. Now out of this 2 lakhs I will spend 1.5 lakhs and again keep that 50,000 for emergency, shopping or something in this regard. So in a month I can only spend to a maximum 10,000 to 12,000. But in Mumbai like cities your expenditure is much higher than this amount. So then I will look for some extra earnings. If I can’t then I will look where I can cut down my expenditure….. But this management never applies to people who are in business or having contractual jobs. There at times they earn a huge amount and at times there is no earnings at all. In that case I have applied one simple formula like, If my expenditure is lets say Rs.20000 per month then I should keep so much that I will gain this much as interest. So taking the interest rates these banks offer, I need to keep at least 20 lakhs in my emergency fund. Which can be easily put in fixed deposited in banks, post office MIS,KVP schemes etc. which is absolutely risk free. This amount should be untouched, whatever may be the requirement. And if at all I spend this amount then immediately I need to fill it up. This amount should no be mortgaged or used for anything. That is my mental peace. like If I every run short of money I can still live a decent life…..After keeping this amount you can spend whatever way you like. Like this I can create one fund for my kid’s education.
One needs to carry out a small risk assessment i.e. identify the hazard, risk of the deposits and then decide the best option. Some may say real estate investment or stock market or mutual fund investment is very safe. Fair enough, that varies form individual to individual and the risks identified by them. But still I found it is not full proof as I have not seen that unforeseen future. So in this regard I would like to know your view and your way of spending and keeping money and your method of money management you can say. I will be very grateful if you people share your views here….
***************************************************
It is copy protected. Don't copy...
