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