The Richest King In Babylon P3

Hello Friends

In my blog 'The Richest King of Babylon' I talked about how alkmish became rich and he told his secrets to argadh. So let's move forward with that and let's know that how argadh implemented these secrets in his life. 

Argadh told his friends that I started saving 10% of every earning and Surprisingly, it was not much harder to do this. I adjusted and saved for a year. Then alkmish came back asked, that how are your savings going on? I told him, pretty good. He asked me what have you done with what you saved? I told him that I gave that money to one of my friend who will go to another country and buy expensive jewelry cheaply and we will make more money by selling those ornaments expensively in Babylon. Alkmish said good, but he has any knowledge about jewelry? Does he work as a jeweler? I said,  no, he is a house builder. Alkmish got angry and said, you made a big mistake. How can you expect that a house builder keeps good knowledge about jewelry? If you want to gather information regarding stars definitely you will visit an astrologer not a bakery shopkeeper. So you should have given this work to a jeweller. Anyhow, To err is human. Now again start saving money and he left. Alkmish was right. My friend, whom I sent to buy jewelry in other countries, had become a fool. He bought fake ornaments.

After some years passed, alkmish came again to me to see that what am I doing with my money. I told him, this time I purchased copper and gave it to pots and utensils maker. Who give me profits after every two months. Alkmish told,what do you do with that profit? I said, I buy expensive cloths, rarest of wine and soon I'll buy a horse cart. Alkmish laughed and said, you are cutting your tree even before it grows.

If you will keep on doing this, you will reach at place from where you have started. You are eating the children of your money. You should invest profit again which you gained from your previous savings. You should do this as long as you earn enough money to expend on anything you want to,without reducing your earnings.

Again after two years alkmish came back to me and I told him that now I am not earning much but yes, my investments are making more money even children of my investments are making more money. Alkmish was pleased after listening it and he made me his partner. Now my friends you know at which position I am. I have told you all the secrets and thought behind my success. I hope you will also implement these secrets in your life.

So friends, we have learned 3 keys of success in this story:-
1) Pay to ourselves:- we should pay at least 10% of our earnings to ourselves.
2) Seek advice from experts:- Before investing ask people who are competent to give it rather you ask your relatives or friends who do not have any knowledge regarding investments.
3) Make your gold work for you:- keep reinvesting your investments until you make enough money to spends on anything without reducing your wealth.

So friends, we all should also adopt these laws in our lives. Please tell me in comments that how did you find it? And give your views also.

Thanks
Happy Savings

Basics of Trading

Hi Friends,

People now days are getting interested in Trading. Even people are making career in stock market or in Trading. As it might be the faster way of becoming rich. Guys I am going to tell you very basic things of about Trading. If you wish to invest in Trading or in stocks you can start with these things. But before starting gain some knowledge regarding Trading that where and when we should invest. So lets start guys with very basic things for beginners.

I often listen people saying that we should invest in real estate. But I suggest you stock market. As to invest in real estate you need you always need a big amount. Where as you can start Trading with a minimum amount. Before starting investment in stocks you need to ask three questions to yourself. Those are:-
why? What? When?

Why? Of course for money. Every person likes more and more money.

What?  How much amount to invest and in which scheme to invest?
So you can start with a very little amount i.e 1000/- and there are many schemes,  yes i'll say schemes in which you can start Trading.
There is equity market, Futures, Index Futures, Commodities, options and Forex. So these are the schemes where you can invest. I'll not tell you in detail that how to invest in these, how indexes under schemes are maintained etc. But i'll give you an overview. Remember terms which I use because these would be beneficial in future. I'll tell in detail in my up coming blogs. Because this is for beginners.

In equity if you invest 1 Rs. then you can buy 1 Rs. Stock.
In futures if you invest 1 Rs. then you can buy 5 Rs. Stocks means you get leverage of 4 more Rs. (leverage=investing with borrowed money as a way to amplify potential gains).
In index futures if you invest 1 Rs. then you can get leverage of 10 Rs.
In commodities if you invest 1 Rs. then you get leverage of Rs. 20 means you can buy 20 Rs. Stocks.
In options you get 50 Rs. Leverage on investing 1 Rs.
And in Forex you get 400 Rs. Leverage on investing 1 Rs.

I sounds good to buy 400 Rs. Products on investing 1 Rs. But I suggest you to never start with Forex if you are a naive trader. You are new to Trading. As in Forex there is a high risk of loss, you are not an expert. You will 100% lose.
So always start with equities for at least 4 to 6 years. If you invest for this duration you will definitely gain profit. If you got some knowledge then come to futures then come to index future then on commodities and so on.

When? When to invest? Is there any specific time? Yes. Try to invest in stocks just before when new budget is going to implement.

So start Trading or investing in stock market with a positive thinking. Sone people think it is gambling. This is not a gambling. If you have some knowledge then you can make it your profession as well.

Guys please share your knowledge on Trading in comments. As I am also a learner. I wish to learn from you also. So please share your thoughts, knowledge and views.

Thanks
Happy Trading

The Richest King In Babylon P2

Hello Everyone

Moving forward with 'The Richest King In Babylon'. Argadh said,  i worked for all the night and when alkmish returned next day then I said him that I have completed your work. Now please tell me the secret of becoming rich. Alkmish said, all right I will tell you. He said, you should always keep some part of your income for you only. You pay to the tailor for making your clothes, you pay for your shoes. But have you ever paid yourself?  Alkmish smiled and said, this is the secret which made me from sheepman to money lander. So tell me how much have you paid yourself from last month's income or from last year? you should pay at least small amount your income to yourself. Not much but 10% at least of whatever you earn.

Alkmish said,  remember argadh if you save a coin for you that would be like your slave which will make more coins for you. So which coins you earn with that one coin, these should also make more money. If you want to become rich then your saving should make more earnings.

Alkmish said, you know argadh?  Wealth is like a tree and your first saved coin is like a seed of that tree. This seed will make more wealth for you. So save 10% of your money for you from every income you will earn. It will be like watering the seed and sooner you will start doing it, you can rest under this tree.

So as I always say, whatever you save invest that and make money from that investment. Tell me guys how did you find this story? Please give your views in comments. This is not the end of story. Still many more to come.

Tips to save money

Hello Friends

In this blog I am going to tell you five small tips to save your money. We earn money by working hard, but we never think to spend money that where and how we should spend money.

So lets start.

1) Make a monthly budget:- First of all you should make a monthly budget. Make it a habit that after every month you should make a budget. Write down your domestic expenses, electricity bill, mobile bill etc. Then you will be able to conclude that what exactly are you earning and spending and where do you need to reduce the expenses. There are many apps in play store to plan monthly budget. You can download and install in your phone or use traditional way with a pen and a diary.

2) Setting saving goals:- Now if you have made your monthly budget now it is clear from that how much are your expenses and how much are your savings. Now what you have saved set a saving goal for that money. What you need to do with saved money, ofcourse saved money should be invested. There are many investment schemes in market where you can invest like in mutual funds, stocks, etc. Understand this thing that always people work for money but now change your thinking and let the money work for you. What you have earned from investments again invest and earn. So every month set a goal that at least you save a particular amount.

3) Spend to save money:- Spend to save money. What does it mean?  It means cheaper buyers get bad meat. Yes,  it means if you buy something from market like smart phone, Air conditioner, T.V, fridge etc. that should be a quality thing. Always buy products of good brands. Because these would be durable and you will have not to pay again and again for the same product.

4) Decide your priorities:- Always buy that thing you need. Don't waste your money on things which attracts you but you don't need. Suppose if you are interested in photography and you wish to make your career in that profession then save money and buy a camera. Don't waste your money in things you don't need. If you will keep wasting your money that you will not be able to buy a camera. Moreover photography will become your profession and you will start earning with that. So always decide your priorities.

5)  Ask for discount:- Last but not the least always ask for discount whenever you buy something. If you purchase online then there are many websites which provides you coupons. Just type website  name and type coupons with that. Suppose if you book a room in a hotel from make my trip app or website then type 'make my trip coupons' this will show many links where you might have a free coupon.

So guys these are some simple tips by which you can save your money.

Thanks. 

How to Register For GST: A Step-By-Step Guide

GST or Goods and Services Tax, which the government implemented from July 1, 2017, is likely to benefit the entire country by widening the tax net and by providing seamless credit of input tax. However, for the successful implementation of GST across the country all existing Central Excise and Service Tax assesses need to migrate to GST by doing their enrolment on the GST portal. Those who have a turnover of more than Rs 20 lakh (Rs 10 lakh for North East states) in a financial year need to do their enrolment under GST. Those who do inter-state supply or sell products through e-commerce sites must mandatorily register for GST. No threshold limit is applicable to these tax payers.

Here is a guide on how to register for GST:

1) All eligible assesses have been provided with a provisional ID and password by the Central Board of Excise and Customs, which they need to log on to the GST common Portal where they would be required to fill and submit Form 20 along with necessary supporting documents. Log on to ACES portal using the existing ACES User ID and Password.

2) Either follow the link to obtain the Provisional ID and Password OR navigate using the Menu.

3) Make a note of the Provisional ID and password that is provided. In case a provisional ID is not provided, please refer the Next Step section. In case of further doubt please contact the CBEC Helpdesk at either 1800-1200-232 or email at cbecmitra.helpdesk@icegate.gov.in.

Once you have obtained the Provisional ID and Password, log on to the GST Common Portal using this ID and Password. The GST Common Portal has made available a manual on how to fill the Form-20. It is available on www.gst.gov.in.

Registering under GST will allow the assessee to claim input tax credit. This means, at the time of paying GST collected on sales, assessee can reduce the GST they have paid on inputs used for their business. If you are unregistered, businesses to which you supply will have to do compliance on your behalf, which may discourage them to deal with you, the tax department said.

The Richest King In Babylon

Once there was a king named argadh in an ancient city babylon. He was very rich. He used to donate money and spent so much, but his wealth would have not finished. Even people under his kingdom were very happy.

Once his friends came to meet him and wondered to see and asked that we studied together. We played together. We spent almost 15 years of our life together and you were so dumb that time how did you become able to make this wealth? You spend a lot, you are living luxurious life then why your money doesn't finished? Why God showered his blessings upon you but not upon us. What is the secret behind that please tell us. We also want to become rich.
Argadh said,  I'll definitely tell you the secret. See you didn't learn the laws of making money or you have forgotten those laws.

I started when I was very young. I have seen many good things around me and I learnt that to achieve these things wealth is very important. Wealth gives financial strength. I started with very little things. I started with writing on stones. But this was not giving me profits. All the money was used to buy clothes and for my meal.

Once alkmish who was a money lander came to me and he gave me work of writing 9th law on stone and he said if you will finish this i'll give you 10$. I started working on it. I worked hard but I and after two days When alkmish came back and he saw that I still could complete this task. He became very angry. But still I added courage and said, I'll Complete this task till tomorrow and i'll not charge anything, I promise, but please tell me one thing alkmish you are very rich please tell me the secrets of becoming rich. Alkmish laughed and said, I like your courage and if you complete this task till tomorrow then i'll tell you secrets.

GST(GOODS AND SERVICES TAX)

Hello Everyone

I am back with a trending topic. Which is the major subject of discussion now days. That is 'GST'. Friends I am not a C.A or master in all these terms, so I'll not tell you core terms or technical things about gst. But i'll try to tell you in very simple words so that you will get it and if you know anything regarding this then please share with me also in comments.

Let's start with it. There are two types of taxes Direct Tax and Indirect Tax. Direct which you pay directly to government i.e. Income Tax, House Tax or Property Tax. Indirect Tax which you don't pay directly to government but is hidden in goods and services which you buy. There were many kinds of Indirect Taxes which you paid before GST for example VAT, Service Tax, Custom Duty, Import Duty, Export Duty, Surcharge, Swachh Bharat Tax etc. Which were hidden in goods or services when you bought.

GST will bring in “One nation one tax” to unite indirect taxes under one umbrella and facilitate Indian businesses to be globally competitive. The Indian GST case is structured for efficient tax collection, reduction in corruption, easy inter-state movement of goods etc.

France was the first country to implement GST to reduce tax- evasion. Since then, more than 140 countries have implemented GST with some countries having Dual-GST (e.g. Brazil, Canada etc.) model. India has chosen the Canadian model of dual GST.

To understand it let's take a simple example. Suppose you buy a pant from a shop and get a bill from shopkeeper. In that bill amount of pant, VAT is shown. But you don't know actually how many taxes are hidden behind that. First of all when manufacturer Imported raw material from other state that time he paid import duty. Then he manufactured and sold to retailer that time retailer paid tax and when pant has finally come to shopkeeper again that time tax applied i.e. Tax on Tax. So you actually don't know how many taxes are hidden in it. Which makes cost of products very high and you think that you only paid VAT. These different taxes were divided between center govt and state govt. So govt simplified it. Govt pulled out an average of all taxes and applied only one Tax i.e. GST. Which is centerlised tax and divided between state govt and center govt. With GST prices of many daily needs articles will be reduced but these can be increased little bit in case of luxurious things. This is very transparent tax and govt wants to include every person under tax slabs.

So always ask for bill whenever you purchase something.


Thanks.

Assets and liabilities P2

Hello Everyone

In my previous blog 'assets and liabilities'  I talked about what are assets and what are liabilities and where should we spend more. Moving forward with that blog let's discuss cash flow of money.

Most of the people say that rich people are growing day by day and poor are getting poorer. But nobody thinks about their plannings and strategies Behind that how are managing there cash. To understand it let's discuss cash flow of money that how people spend. On behalf of financial situations people are divided into 3 categories Poor, Middle Class and rich.

When poor people get money or their salary they spend it in there expenditures. In case of middle class they spend it in their expenditures and in liabilities. They think that their home is their asset but it is not so unless they are not earning anything from their home. If they rent their house then it becomes asset for them, and at last rich people they first spend on assets. They make ways of earning first then they expend. So that's why they getting rich day by day. So it doesn't matter that how much you are earning. But how and where to spend it matters.

So you have to adopt investor's thinking instead consumer's thinking. People always complain that their salary is responsible for their poor conditions. But it is not a hurdle.  Actually after increase of income people increase their expenditures. Which forces them to buy cars, expensive cell phones, new home which are again a liability. So this will not let them to become rich.

 So always think before spending.



Thanks