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

Saving, investing and speculating

Hi Friends,

In this article I am going to tell you the difference between saving, investing and speculating of your valuable money. Most of the people think that saving and investing money are almost same. But these are different.

Let's start with saving

1) Saving:- It means to protect your money for shorter period of time maximum 3 years. You are keeping your money in a safe to achieve some goal after a short period of time. This is a traditional way of money management. Here rate of interest is fixed and you will get your money after particular time with that rate of interest. Here growth of money is very slow. We may keep our money in saving accounts, money market accounts, certificates of deposit.

2) Investing:- In this process you keep your money for a long period of time that's for at least 15 years. Here growth of money and gain is high. But you have to wait for a long period and there is not fixed rate of interest. You will receive your money according to market value. Here Risk is high as compare to saving. But benefits are also high. You may keep your money in stocks, Bonds and Real estate.

3) Speculating:- Here you don't keep your money any account. Here you gamble with your money in casinos. Here growth of money is very high. But risk is also very high as in a one day you can become rich or you can lose everything.

To sum up save to protect your money, invest to grow your money and speculate to gamble your money.

So always think before that how you want to manage your valuable money.

Link Adhar with PAN

Apart from money making tips today I am going to tell you very important tip that how we can link our Adhar with PAN card. As government of India made it mandatory

Steps to link Adhar with PAN :-

• Kindly note for linking of Aadhaar card with PAN, the details of both must match. In the case of any discrepancies, you can upload a scan of your PAN card, or register via OTP on your linked mobile number.
• Keep your Aadhaar card and PAN card in hand and check if the details match on both.
• Log on to the income tax e-filing portal at https://incometaxindiaefiling.gov.in/
• Enter your user id and password to access your profile.
• If you are a new user, you need to register on the portal by entering basic registration details such as PAN, name and date of birth.
• On the website, click on Profile Settings> Link Aadhaar.
• A new window will appear. Enter your PAN number and Aadhaar card number, name, DOB, Gender.
• After entering the details, enter the text in the Captcha code.
• Click on Link Aadhaar
• This will link you Aadhaar card with PAN card. A success message will be displayed confirming the linkage of two cards.

The last date for linking Aadhaar card with PAN is June 30th, 2017 and it can be done online on the official website of Income Tax Department or by sending an SMS to UIDAI to link Aadhaar with PAN.

By linking the PAN and Aadhaar card, you will no longer have to submit your Income Tax acknowledgement to the IT department. PAN would become invalid if you don’t link your PAN card with Aadhaar card by June 30, 2017.

Assets and liabilities

Hello friends,
I am very new to blogger so if I make any mistake please ignore.  I came here because I am very fond of writing,  reading and learning as well. I wish to learn from you also. This is my first blog post. Please suggest me something to improve myself and my blogger.

So come to the point as my blog name 'how to make money' tells that this blogger is all about making money and to become rich. Friends I am going to tell you about assets and liabilities. Assets are those entities we earn something from and liabilities are those entities which are expenditures for us. So we should spend on assets not on liabilities.

Let us take  an example Ramesh and suresh are two friends they work for the same company,  for the same position and for the same salary. Whenever they get salary at end of every month Ramesh spend some part of his money on assets say stocks in market, bonds, shares, real estate etc. But on the other hand suresh spends his salary on luxurious things like expensive smart phones, branded cloths, on flats in which he lives, cars etc. But these things are not giving him future gain. These are liabilities because as time passes he has to maintain everything he buy for some cost he would has to spend. But on the other hand Ramesh spends on assets which will give him financial gain after some time. So after some years Ramesh becomes a millionaire and suresh is at that same position where he was.

Assets are those entities which give us gain in future and liabilities are those which do not give us future gain. So always spend on assets not on liabilities until and unless these are not much important.