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Don't Keep It A Secret

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I wrote this first blog somewhere in June 2019, in the interest of my clients as a learning and a lesson we all should learn from a tragedy that happened with one of my friends. A very dear and old friend of mine left this world in an accident. Survived by a ten-year-old daughter, a three-year-old son and his wife. Yes, the loss to the family was immense and beyond our consolations. There are a few points I want to highlight here as a Financial Advisor which came to light during a discussion with his wife. What we found was a messed up finances, investments and transactions. In last few months, before this mishappening, he had paid around Rs 10 Lakh to some property dealer to buy a flat, but the real problem is his wife is not having any documents of it and even not having any contact number of that person which whom her husband was making the deal. And now Rs 10 Lakh are gone and untraceable as the transaction was in cash. This is a common problem of households in India that the ...
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Income Assets Expenses Liablities and The Liability Trap

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  This is a very basic diagram to bring some points to the light for my clients. There are four quadrants in which we have kept income, assets, expenses and liabilities(loans). Which parameter can you control? If you increase your income, you can increase your assets or expenses. If you increase your expenses, you can increase your liabilities or loans. Income and assets are in positive quadrant which keeps you up. Expenses and liabilities are in the negative quadrant which drags you down. If you can't control your expenses, you will always remain in trouble. If you are in a liability trap, you ignored your income and expenses, that is why you are there. It is very very difficult to create and maintain a SIP of ₹5000 but very easy to start a loan with an EMI of ₹20000 that is why most people are good at loans or liabilities but very poor at assets side.  One of the reasons why we never prepare for a goal before going for it to create a corpus for the downpayment but are all fo...
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