Expense Budgeting

Expenses budgeting is an important step in taking control on your money.

Most of the people find it difficult to understand what is happening with their moneys. It clearly shows that they do not have control on their finances.

To take control on finances following things may help you :

1. Make a target expenses for each item per month and track the actual expenses track the deviations and find out the reason for deviation.

You may try this also which is called as envelop budgeting.

Apart fro the normal points which you can find everywhere, keep following in mind as well 


2. While spending be a "Informed spender ". Know the value of every rupee you spend ! 
After spending every rupee just think weather that is worth spending ? Try to figure out what is the benefit of that spending to you, weather it is Constructive or Destructive for you, This will help you take a right decision when you again think of spending on same type of thing.

3. There are few people who are facing a problem to cope up with the your child's high value demand. Are you one of them who are ?
Then you can try this ......
Give a specific budget to your child every year and ask them to fix their expense with in the budget.
Give them free hand to use the budget as per their requirement in a year. But stick to the budget and any savings from the last year should be allocated for the next year.
This will help in two ways.
A. Your burden of unexpected demand from children will go down as they know their budget for the year.
B. They will acquire some buying skills to use the allocated fund diligently.

4. While budgeting your expenses don't miss to allocate budget for self. This money you will allocate to your self to invest in your self.
How many of us really do that ?
It is very important to understand that the investment done in self yields highest returns, No investment in the world can match this return.
This amount which is allocated for you, Should be used in developing your skill set as well understanding of life. I would like to guarantee you that the value what you will get from this investment would be great and you would be more satisfied with your life.


About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at arbfinancials@gmail.com or Cell : +91-8862079292

Fastest Ways to Lose your Money… Part II

Welcome back this is the final installment of my earlier blog where we discussed some excellent ways to lose hard earned money. Further we will look to some out of box ideas to become miserable financially.

Dream House Syndrome: “Keeping all eggs in one basket” is the worst kind of planning anyone can do. But now a day’s 80% are doing the same. If you asked somebody where should I invest my money 90% would suggest you to invest in Property and remaining mostly would suggest Gold! The reason they feel these are safe as well as high return tool! But purchasing house property is as important as pilgrimage nowadays. They try to squeeze every available resource till the last drop to purchase house property. And create unnecessary burden of personal loans, home loan, and loan from relatives. And reality sector marketing is fanning the emotion like scarcity of land, price rise Blah..Blah etc. If this is the scenario then I don’t understand Why U.S. economy faced subprime issue? What about financial emergencies? Taking loan in early stage of career can hamper the future growth. My question why a person underestimate his own capability of earning? So if you want to suffer greatly then it is my recommendation to buy property on loan in early stage of your career.

Prepayment of Housing Loan: Housing loan today is the cheapest loan available in market. Most people   fail to encash the opportunity available to them. Now majority of people question my intention as this heading is contradictory to my previous one. Let me clarify, at first people die to take home loan, once taken they try to prepay it. That means first start digging a tunnel in wet land and then closing it from behind. Friends either way you are creating trouble. If home loan is taken then retain it as it does create opportunity in longer run. Just think if you are paying EMI of 45000 today than you will pay EMI of 45000 after 10 years also. But value of that 45000 at that time would be different if you consider inflation. If inflation remain at 8% than value of 45000 would become 97000/- (approx.). But bank will still ask you to pay same EMI. So if you really want to become poorer then take two step First take home loan beyond capacity then prepay it within 5-7 years after taking it.

Yellow Fever Syndrome: From past three weeks Indian hit by some different kind of epidemic. Yellow fever alias purchase as much as gold as possible reason being gold rates is declining. Even we get atleast 4-6 query daily from our client whether we should buy some gold! One hilarious incident I like to share here to better understand this phenomenon, one of my friend expecting baby next month. I got his call at 11.30 pm night after exchanging pleasantries he shoot straight question to me, Should I buy Gold? Before I can answer (He knows I always opposed the idea in gold/jewelry as investment) he give me reason , according to him as he is expecting baby next month there may be chances God will bless him with baby girl!!!!... “So” I asked after small pause…and his answer is, in this case he required saving for her marriage! Baffled with his imagination I can’t say a word. The reason why I shared this as just a month before he don’t have money for purchasing term Insurance which is just costing him 12000/-. So my friends you are right invest in gold, purchase as much jewelry you want.

No disciplined Financial Plan:  Disciplined financial planning not only helps you in long run, it can also help to solve 80% of your life’s problem.  For most of the people financial planning is ‘to seek free advices from so called experts and follow it religiously’. When we are not alike in taste, size, color, in thinking, in dreaming, then how our financial decisions should? Many people don’t know why actually they are investing in particular fund? They just do because their friend already booked handsome profit in it. Or some of them just doubled their investment within no time! Most people want enormous returns without capital loss. My question to these people is that possible? If answer is still yes then congratulation my friends you are the victim of big scam. For above kind of people I recommend, purchase a 1 cr. lottery ticket monthly, fortune will shine upon you some day(Because indirectly you are doing same).

Inclination towards freebees:   Everybody knows that nothing is free in this world still our inclination towards freebees is well known. Recently one of my friend break an investment (created for Child education) for purchasing a car as he got an advise that this is the best time to purchase because every company provide large amount of goodies with every purchase. Shocking!!! But ironically true that we are ready to loose long term fortune for short term peanuts. Footfall tripled whenever there is a “SALE” in any mall. And they also aggressively captioned like “Once in a lifetime opportunity” or “Now or Never” etc. etc. As per my interpretation of such caption is either seller is going to bankrupt or buyer will going to die after this sale. In any case both are not true.  Everybody toiled hard to earn better in this world but most of the cases earned money loses its value after earned. Expenses without planning are not only hampering the correct saving equation but also making you poorer day by day.

                    Dear friends here I am concluding my blog. This is the just a small effort to bring you all nearer to harsh reality in your financial journey. I hope you all take better use of the information.

     Again Thank you, see you all in some time……

About the author : Hitesh Paliwal, is a Financial risk management consultant with ARB financial consultants , PUNE.  info.arbfin@gmail.com or Cell : 08551905999

Our client will out of debt trap in next 8 years

One of our client ( Family ) when visited us was in Debt trap, the problems comes in their life in row and resulted in big financial requirement.

There was no any way and they had opted for all possible loans, result was totally mis-managed finance and lot of stress in life.

He met an accident while driving 2 wheeler with spouse and child, all three were injured badly was hospitalized. 

Hospital bills get settled but one partner who was equal earner has to leave the job of some medical problems.

This family was having housing loan and car loan, this incident made them to use maximum limit on credit card which is a worst type of loan in the Market ( The rate is almost 3-3.5% compounded monthly which builds to 40-45% per year.). On top of this there was some medical requirement from parents which make them to take a Personal loan also.

Now they caught in big trouble and visited us with expectation to help them to come out of this problem.

We created a financial plan with debt management plan for them, this plan will help them to come out of all debts with making some good investments in coming 8 years.Financial problems are like asymptomatic disease which attacks once that particular organ gets damaged up to 80%. 

Better plan in advance.Now they are having peace of mind and sure that they can build assets to complete financial goals.Financial planning is not only numbers but it is life planning.

About the author : Ashish Ramesh Bhave is a CERTIFIED FINANCIAL PLANNER, focused and specialized in financial planing for individuals and families. Can be reached at arbfinancials@gmail.com or Cell : 08793107044

Fastest way to loose your Money !

Most of the people in their life always wonder where really their hard earned money was gone. Why their savings not come to their rescue when most needed? Actually answers lies in their problems itself. Today we try to find out answers on above questions.

In today’s time every individual wants that their investment should give highest returns. Ironically whenever asked what they mean the highest returns their response is either pure blank face or some unimaginable figures, which they also don’t know from where these figures arise.  I have met so many people who curse their advisors, insurance agents. The reason they feel their investments not giving desired yield but when asked, why they invest without doing proper analysis. Answer is prolonged silence. As my colleague Mr. Ashish Bhave (Chief Financial Planner, ARB Financial Consultant) often says “If you sign without acknowledge for what you are signing then you deserve to be cheated.”

                                               Today I will share some brilliant ideas to become poorer in your life. And this also gives satisfaction that most of us are working very sincerely in that direction.

Investment in Insurance:  In today’s time insurance has become sure shot remedy for every financial need. Whether it’s Child education or retirement, daughter’s marriage or pension, wealth creation or market investment one plan is always ready to satisfy ones need. Expert always recommend that insurance is not for investing. But still people happily chose to invest in insurance. I also recommend if you want to fell short in your financials goals then keep taking insurance plans for every financial goal.

Investing without Financial Goals: “Without goals, and plans to reach them, you are like a ship that has set sail with no destination”. - Fitzhugh Dodson .Most people don’t know why they are working so hard? What exactly they want from their life? As we all know without goal life has no meaning, then why we can’t apply same rule with our finances? Most of the people invest like dogs chasing cars without knowing what is the purpose of such investment? Investing in any instrument without proper backing of financial goals can lead it to catastrophic consequence. Objective should be clear while investing. Have we ever seen any archer training without target boards/decoys or football match without goal post? Then whenever investment is concern we always intend to chase wild goose. So if you are seriously looking for losing your money than it’s really recommended to invest without prioritizing your financial goals.

Underestimating Financial Risks:  “Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you.” – Theodore Roosevelt. This is very common habit we come across that people always think they don’t required Life/Medical cover or undervaluation of financial risk. The reason I am healthy as a young horse! It’s really wastage of money and time! I really can’t see the requirement in near future etc. etc.  I think Lord almighty ask their permission or prior approval before creating problem/difficulties in their Life. 90% of financial problem in life arises due to such unconcerned deeds. Also many people purchase Life/Medical insurance without understanding the basic concept of insurance; the need means purchasing insurance without Need based analysis. Proper protection plan is like foundation of the house and house future is depending on the fact that how much stronger the foundation is. Under insurance is more dangerous than no insurance. So if you like to see your family’s future in deep financial turbulence/complications then keep following above idea.

Inappropriate habit of Credit/Loans: 

“Debt, An ingenious substitute for the chain and whip of the slavedriver.” -Ambrose Bierce. In today’s world nothing is out of one’s hand. Every bank or NBFC have something to offer one’s credit need. Now a day using Credit card has transformed to need then luxury. Most of people do not hesitate to use such facility beyond their capacity of Payment. Then start the infinite cycle of repayment. But ignoring the fact that credit card interest is highest in all lending instrument and fall anywhere between 32% to 38% apart from late payment charges. Some people feel there is no big deal in defaulting the payments and settle in later years when lenders offer them settlement in lesser amount then outstanding. Such blunder work against their personal credit score or CIBIL score. Such acts sometime cost dearer when they required loan for medical emergencies or at the time of purchasing home. As good CIBIL score help to get loans easily and probability to get lower interest rate.  So the person who really want to relish future financial suffering and lose mental peace then my recommendation to preserve  above sprit and start spending like you are not going to see next day of your life.

No/Unplanned Retirement Planning:  “Retirement planning in India means having 3 kids and praying one of them supports u after 60.”Recently I came across above excellent quote by known financial planner. This will give crystal clear picture of current opinion on retirement planning. Some people think Retirement planning should be done after completing 45 yrs. of age. Above opinion will lead them to horrifying path of poverty.  As I feel Retirement age is real age when you live for yourself. Very recently I came across update on Facebook where a 65-70 year old man selling face shape puppet gloves and ironically peoples like this update and praising the spirit of that man. But nobody bothered to understand why he has to work on that age? Who want to sacrifice enjoyment and peace of mind of their golden days, to earn more money? Such situations arise due to ill/no planning of retirement. This fact is also drawing our attention on the other most important matter that one cannot trust or fully dependent on coming generation. As quoted by George Foreman “The question isn't at what age I want to retire, it's at what income.”

  So those who are working and still feel that there is much time for retirement planning then my recommendation keep up the good work and pray every day religiously that your coming generation will take care of you.

 This is the first part of my blog I will come up with some more Ideas /concept to become poorer in your life in next blog. Till then stay tune……

About the author : Hitesh Paliwal is a Financial Risk management consultant with ARB financial consultants, Helps corporate and individuals to access and mitigate the financial risks. Can be reached at info.arbfin@gmail.com or Cell : 08551905999