Richness

" Richness is not earning more,spending more or Saving more"
" The real RICHNESS is ; When you need no more"

Every one, out there in the world chasing after money and making all our attempts to gain so much money!! Thinking that one day we will have all richness and enjoy life..That one day is never going to come.
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The intention of making money is to enjoy or celebrate life.But we are so much pre-occupied with the money. only the obsession of making money remaining with us and that make us to do, so many works to achieve the richness.We jump from one to another company for better salary...however you jump and how much ever one may get more salary is not enough.As the inflow raises the outflow of money also subsequently raises.Slowly, slowly we become nothing but money making machines and there is no enjoyment in life.

Just remember one thing, there are so many kings came and gone..They had all richness,Still they were unable to conquer life with their richness.Making money and becoming rich is just one part of life..So, don't over do that...Because, you are going to attain nothing but miss the life here&now which is very short and so precious.

The Billgates,Infosys- Narayanmurthy etc they all made all the richness they wanted..in fact beyond their wants...Finally they gave up many of their wealth to charity.It means they want something else than money...!!Just assume that how much effort they made to attain that richness and simply give up that to a charity? Think about it. That is Life.The quality of living is more important than only accumulating wealth.

Richness or Wealth has meaning when you are there to enjoy and celebrate your life.There is a point in everyone's life comes, when you want no more; Then life happens.One will find meaning of richness...' Richness is not just the material wealth but it is more of the 'INNER RICHNESS'.That comes to one when one want no more.

TIPS FOR PERSONAL FINANCE

Five lessons in personal finance you must never forget.

1. Don’t be lured into shady investmentsOne of the biggest reasons for the repeated success of swindlers has been Human Greed. As long as we have a get-rich-quick mentality, we have a good chance of becoming a victim to some kind of a financial fraud. There is no short-cut to becoming rich.
No one can give you returns which are not in line with the market reality. If for some reason such an opportunity does exist, why would someone tell you about it? Won’t he himself beg, borrow or steal to invest in the so-called ‘golden’ opportunity? Why should someone hand over to you the formula to becoming rich, while he himself is happy with measly commission? Think!!
2. Don’t believe in verbal promisesAlways remember - ‘If it’s not written, it’s not true’. This mantra will save you a lot of trouble not only in your investments but also in many other things in life.
If a person or a company is unwilling to put any of its’ promises on paper, there is high probability that it has no intention to honour it. Of course this doesn’t mean that the opposite is true – that a person/company will not go back on his written word. But the chances are lower as he can then be legally held responsible and face punishment in the court of law.
3. Budgets are not meant to ‘tie’ you down. Having a budget is something like kite flying. The purpose of the thread is not to prevent the kite from flying, but to make the kite to fly with some direction and within some limits. In fact, without the thread the kite cannot fly far or fly high or fly for too long.
Budgets give you a defined economic freedom; it is not a financial restriction.
4. Avoid getting debt-trappedThe dress you bought on credit card is probably already worn out and discarded, while you are still paying the debt. Your foreign junket is history, but the debt remains with you to haunt you for years to come. Think about it! Is it worth it?
Therefore, make a commitment today to work towards becoming debt-free. It’s going to be tough ride. But it is a short-term pain to long term peace and prosperity. We owe it to our family and children. The earlier we start the better it is.
Instead of keeping up with the Jones’ in your neighbourhood, why not become an example for those Jones’ to keep up with your debt-free status. Believe me it will more fun.
5. Always keep some cash handyThese are highly uncertain times. Job loss, accident, natural disaster, medical emergency, car/computer breakdown and many such events can happen to anyone, anytime. And such unfortunate incidents, which may require a fairly large amount of money, can upset our financial balance.
Having adequate money handy for meeting such unforeseen, irregular and unexpected expenses- spares us the mental agony of arranging money at a very short notice- protects our long-term investment corpus from such shocks and- gives us time to realign the long-term finances in line with the new financial realities, if need be.

Source:-http://www.wealtharchitects.in/

TIPS FOR THE SUUCCESSFUL LONG-TERM INVESTMENT

Eight Principles For The Successful

Long-Term Investor

1) Sell the losers and let the winners ride!

Time and time again, investors take profits by selling their appreciated investments, but they hold onto stocks that have declined in hopes of a rebound. If an investor doesn't know when it's time to let go of hopeless stocks, he or she can, in the worst-case scenario, see the stock sink to the point where it is almost worthless. Of course, the idea of holding onto high-quality investments while selling the poor ones is great in theory, but hard to put into practice. Recognizing your losers is hard because it's also an acknowledgment of your mistake. But it's important to be honest when you realize that a stock is not performing as well as you expected it to. Don't be afraid to swallow your pride and move on before your losses become even greater. In both cases, the point is to judge companies on their merits according to your research. In each situation, you still have to decide whether a price justifies future potential. Just remember not to let your fears limit your returns or inflate your losses.

2) Don't chase the "hot tip"

Whether the tip comes from your brother, cousin, neighbor or even broker, no one can ever guarantee what a stock will do. When you make an investment, it's important you know the reasons for doing so: do your own research and analysis of any company before you even consider investing your hard earned money. Relying on a tidbit of information from someone else is not only an attempt at taking the easy way out, it is as good as gambling away your money. Sure, with some luck, tips may sometimes pan out. But they will never make you an informed investor, which is what you need to be to be successful in the long run.

3) Don't sweat the small stuff

As a long-term investor, you shouldn't panic when your investments experience short-term movements. When tracking the activities of your investments, you should look at the big picture. Remember to be confident in the quality of your investments rather than nervous about the inevitable volatility of the short term. Also, don't overemphasize the few cents difference you might save from using a limit versus market order.

4) Resist the lure of penny stocks

5) Pick a strategy and stick with it

Different people use different methods to pick stocks and fulfill investing goals. There are many ways to be successful and no one strategy is inherently better than any other. However, once you find your style, stick with it, the key to sucess is discipline. An investor who flounders between different stock-picking strategies will probably experience the worst, rather than the best, of each. Constantly switching strategies effectively makes you a market timer, and this is definitely territory most investors should avoid. Take Warren Buffett's actions during the dotcom boom of the late '90s as an example. Buffett's value-oriented strategy had worked for him for decades, and - despite criticism from the media - it prevented him from getting sucked into tech start ups that had no earnings and eventually crashed.

6) Focus on the future

The tough part about investing is that we are trying to make informed decisions based on things that are yet to happen. It's important to keep in mind that even though we use past data as an indication of things to come, it's what happens in the future that matters most. The point is to base a decision on future potential rather than on what has already happened in the past.

7) Investors adopt a long-term perspective

Large short-term profits can often entice those who are new to the market. But adopting a long-term horizon and dismissing the "get in, get out and make a killing" mentality is a must for any investor. This doesn't mean that it's impossible to make money by actively trading in the short term. But, as we already mentioned, investing and trading are very different ways of making gains from the market. Trading involves very different risks that buy-and-hold investors don't experience. As such, active trading requires certain specialized skills. Neither investing style is necessarily better than the other - both have their pros and cons. But active trading can be wrong for someone without the appropriate time, financial resources, education and desire. Most people don't fit into this category.

8) Be open-minded when selecting companies

Many great companies are household names, but many good investments are not household names (and vice versa). Thousands of smaller companies have the potential to turn into the large blue chips of tomorrow. This is not to suggest that you should devote your entire portfolio to small-cap stocks. Rather, understand that there are many great companies beyond those on the main boards and that by neglecting all these lesser-known companies, you could also be neglecting some of the biggest gains.

No one manages money perfectly

In general most of us have made the same mistake several times. If this is the case, there is something important to be learned from this type of mistake and when you learn it, you will no longer need to keep making it.

• Here are some mistakes that we commonly make : Do any one of them strike you ?
• Splashing out on something which turns out to be a dud, such as timeshare holiday apartment you hardly, if ever, use or an expensive outfit you never actually wear.
• Spending more than you earn and having to borrow to make up a difference.
• Investing in something which goes bust or loses value badly like situation right now. Recession era.
• Thinking that spending money will make you feel better. There is lot of way to feel better. Just stick to this blog and I will reveal the secrets.
• Taking on financial responsibilities taht you thing you can handle but then finding that they're just to expensive and you kept worrying about it. Like buying an expensive house. You think that is an in investment but somehow it ate the most out of you.
• Lending money that you know that you'll never get it back
• * Try to avoid using any debt card expecially if it's a revolving card because you risk to be trapped in a never ending vicious circle of indebtment.(*from - Marina comment)
  
  So, how to avoid it?
  
• Think very carefully before you spend a large sum of money.
• Impulse buy with only a little money.
• Before you go out to buy something, think how much you can afford and only take that amount with you in cash.
• When you take on the responsibilities of a mortgage eg : house, work out what you think you could afford, then reduce it by third. It's better to have money to spare than to be trapped with costs you can't handle.
• Never lend money that you can't afford to lose. If your friend needs to borrow some money, just give them 10 or 50 dollars and if your friend ask for more then say politely to them "If something happen and you can't pay me back, i rather loose the money than loosing our friendship"
• If in doubt about any purchase, resist the temptation