Skip to main content

Why are Indians primarily savers?

Indians are primarily more on the saving side because of the environment surrounding it. They see everyone around them are saving and are doing the same! There is a big difference between Saving and investing and it will be a hard fought truth.

Setting a goal and standing by it is pretty hard. The commitment is easy to come by if you are working and set by your peers and your managers (some of them don't get it even under the supervision of strong managers.. :-) ) and its also the inherent nature of the entrepreneur and he has it in his veins. But, to see through a goal that is set as a part of retirement or getting a house is very hard to come by and its hard to come even for an entrepreneur.

Let us see a simple example. You need a house. First house. Absolute need. Alteration for rent. Everything. Fine. It should be understood that how much you are currently having in hand and how much you need as a loan and it should be a neatly laid out plan. How many of them who have bought the first/second house recently has plan and bought the house recently after this plan. This really hurts the whole economy. Because, without absolute need and plan, some people are ready to buy the real estate at whatever prices the agent is quoting and are happy at the price they bought just because they were saving this long and they are going to INVEST in a property for the long term! This again beats my thinking. You are investing in a highly illiquid asset class, which has a good scope of growth but not excellent but given the nature of the leveraged investment made in the real estate, the returns will be below par to that of the savings account at least till that of 20 years. And, if it was your absolute need, just forget about what we are talking about here and think you have bought something for your child or nice thing for something in your wardrobe for your absolute need and don't even think of getting any return out of this instrument.

So, you ask is SAVING bad?
No.. Not at all.. Saving is the first step towards Investing. As I was describing here, you need to spend less than what you earn and get your saving right on track before you think on your investment track.

After you start saving, make sure to invest in towards your financial goals that are well set and are tracked. If you can't track it properly, its time you hire a financial planner and there are many available in market to do that.

Labels:

Comments

Post a Comment

Popular posts from this blog

What does customer experience mean?

Customer experience is the experience of the customer from the period they came to know about the existence of the product until they finish using the product. For a hotel like Saravana Bhavan, the customer experience is from the point they came to know about its existence (the day they started) until they are associated with that particular customer (probably, forever for Saravana Bhavan but it depends on each of the customer). For a typical brokerage firm, it is all about how easy it is to open the account and the experience until the customer closes the account. For BSNL or Samsung, it is from when the customer gets to know about their products (the point when they want to buy it) until the time they stopped using it. Customer service is also part of it. Its all about the customer service, once the customer has become the owner of the product. Most of the times, I have seen, the Customer Experience is great until one procure the product or service and after that, because of t...
2 comments
Read more

Nokia E51 WLAN Settings

Nokia E51 is a smart phone with almost all the features available in it. It looks really slim and comes in three colors. It has loads of features and highlight of them all is the connection through the Internet through WLAN. You can get a Internet connection from the service provider and ask for the wi-fi router. With the wi-fi router, you can connect to the Internet through various other devices like Laptop, Nokia E51 etc., You will be provided with the password for the WLAN connection and only if you enter the password correctly you will be connected to the Internet through that WLAN. As you may expect, this password will be asked only when you connect to Internet through this WLAN for the very first time. In Laptop/Computer, you have Network settings to identify and modify the settings if wrongly entered. But this is somewhat tricky in case of Nokia E51! In Nokia E51, You have the option of Browse WLAN right at the home page for you. If you have customized for something different, u...
10 comments
Read more

Ant - Class org.apache.tools.ant.taskdefs.ConditionTask doesn't support the "else" attribute.

This post is all about this error and on how to resolve this error. Just to give some background: Apache Ant is a Java-based build tool. For more information on Apache Ant, you can visit Apache Ant . The recent version is Apache Ant is Ant 1.71 and can be downloaded from here. We can add a else attribute in the conditionTask for making a choice. Coming back to the error that you have encountered: Class org.apache.tools.ant.taskdefs.ConditionTask doesn't support the "else" attribute. This can happen if you have Apache ant with a version less than 1.65 So, Make sure to update your ant to a version more than 1.65. Recent version, as I mentioned is, 1.71. Does this fix the problem that you encountered with ant? If yes, Great. No, then continue reading. We have other fix available for Class org.apache.tools.ant.taskdefs.ConditionTask doesn't support the "else" attribute. If you get this error even though you have the ant 1.65 or more, then the following informat...
1 comment
Read more