Friday, 16 January 2015

Your Smart Move

“The lack of MONEY is the root of all evil”. Change your status, the year 2015!

Never do we want to be in a state where we have to face the inadequacy of money. That is the reason why we have business and why young people move out to the city to work. To regain their individuality, to stand up at their own feet and never look upon others when there is a dearth of cash flow. Be it business or a job,the despair associated with it comes with a heavy price. The fear of not being able to pay your bills, the fear of not being appreciated by your own boss in spite of all the hard work that you have put in, the pressure of fulfilling sales target, to keep up with the marketing campaign when there is not enough cash left in the bank, these are woes, fears encompassing us. It’s time to play your move. 
Your Smart Move

Your smart move

Rich Dad Poor Dad is a book written by American businessman, author and investor Robert Kiyosaki.  It advocates financial independence and building wealth through investing, real estate investing, starting and owning businesses, as well as increasing one's financial intelligence to improve one's business and financial aptitude. “Rich Dad Poor Dad” is written in the style of a set of parables, ostensibly based on Kiyosaki's life. Kiyosaki stresses the ownership of high value assets that produce cash flow, rather than being just an employee in the records of the company.

A job is only a short term solution to a long term problem 

Robert Kiyosaki quotes “I find so many people struggling, often working harder, simply because they cling to old ideas. They want things to be the way they were; they resist change. I know people who are losing their jobs or their houses, and they blame technology or the economy or their boss. Sadly they fail to realize that they might be the problem. Old ideas are their biggest liability. It is a liability simply because they fail to realize that while that idea or way of doing something was an asset yesterday, yesterday is gone.”

Isn’t this then the right time to buy A HOUSE? 

A new year 2015gift to borrowers, Reserve Bank of India Governor, Raghuram Rajan cuts key interest rates (repo interest rates) for the first time in almost two years by 25 basis points to 7.75 per cent in a surprise move on Thursday with immediate effect, making its first reduction since May 2013 about a fortnight ahead of the monetary policy review on February 3. The banks are expected to follow suit and could cut the lending rates further.Home and consumer loan rates are expected to fall as is the cost of capital for doing business. 

The biggest pain in a term of five years stock market zoomed with the Sensex surging over 800 points to hit 28,194 at day’s high. The sensex ended 728 points higher to 28,075. The Nifty closed at 8,494, up 216 points. The rupee soared by 69 paise to hit 61.49 against the dollar at day's high. The rupee closed higher at 62.05/dollar against 62.18 on Wednesday.

How does the repo rate cut impact the homebuyers?

Here is an eight point cheat sheet
1.      This move will bring relief to the borrowers and the industry, boosting consumer demand.
2.      With the RBI reducing the benchmark repo rate, the level at which it lends to commercial banks, home and auto loans are expected to get cheaper.
3.      United Bank of India has already announced a reduction in base rate by 0.25 per cent from February 1. The base interest rate of the Bank now stands at 10%. 
4.      India's largest bank, State Bank of India (SBI) has already indicated a rate cut. HDFC Bank, too, has intimated the same. 
5.      Other banks are expected to cut their lending rates by 0.10 per cent to 0.25 per cent.
6.      With more banks expected to follow with their lending rate cuts, your loans, like home- and auto-loans will get cheaper. 
7.      RaghuramRajan has clearly indicated that this repo rate cut is a shift in the policy stance of the RBI and the Bank will continue on this path. 
8.      What this effectively means is that RBI will cut rates further in the due course of this year making loans more affordable. 

Investment means many things to many of us. I am a young girl, not very ambitious but then security for me is a priority. For some it’s stake at shares, for some a recurring deposit, for some security at job. But do they even last? Do they really help us? It’s a smart move that counts. Your move is now! I don’t earn big money but I will definitely apply for a loan and buy a house, because it’s worth the deal now.
“The single most powerful asset we all have is our mind. If it is trained well, it can create enormous wealth in what seems to be an instant.”

It seems I can keep quoting Mr. Kiyosakiwhen I am thinking of economics because it is still very prevalent moreover it’s about the financial intelligence that we are talking about here. This book has held reverence even in MBA Classes. These aspects are discussed in detail. I might not hold intelligence in accountsnor can I be shrewd at business but his words are something I can trust and rely on. It’s not about the gut feeling but the fact that I have done my homework and it’s worth the deal! Using my logic and sensibilities even if I get sacked from a job or my business doesn’t do well, I will always have a strong foundation to back me up, a foundation of my own house for the fact that we don’t want to be taking chances with our hard earned money, after all. 

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