Five lessons from ICC Champions Trophy Final

The much hyped cricket match between India and Pakistan finished with a gloomy impact on Indian Cricket lovers. Lot of analysis and post mortem will be done on the reasons of India’s defeat. But like elsewhere, sports tournaments too leave a trail of events which bestowed us with more experience and wisdom that ultimately enrich our lives. Let us learn some key lessons from the match and see how we can benefit from this to fine tune our personal finance.

Lesson #1

Keep a cap on your discretionary expenses.

Too many ‘extra runs’ given by Jasprit Bumrah helped Pakistani team to set a big target for India. Similarly avoid making unnecessary or ‘extra’ expenses which may set our financial goals too heavy to achieve.

Lesson #2

Avoid impulse buying.

Early wickets of opening Batsman Rohit Sharma and skipper Virat Kohli put Indian team on big trouble and ultimately they could not achieve the target set by Pakistanis. Many times we start for investing for a goal but very soon we have an urge to buy something attractive (like costly mobiles, luxury Cars, jewellery etc.) and we withdraw that amount to pay for our luxury. That makes our goals more difficult to achieve.

Lesson #3

Start early and invest regularly.

India’s target was 339 in 300 balls that are some 1.13 runs per ball. Does it seem to be very challenging task? If singles could be scored from the very first ball with occasional boundaries, the target would have been easily achievable. Just like that, start small investment with your first pay check and continue till the end of your financial goals. Your effort should be to be disciplined and consistent and leave the rest on power of compounding. You will notice how comfortably you are on your financial goals.

Lesson #4

Have a protection for your life and health.

Jadeja is being blamed for Hardik Pandya’s run out. He was so focused on his own running that he couldn’t see Pandya was coming on his way which leads to fall of the wicket of highest scorer from Indian team.

Likewise many a times we are so busy with our profession that we forgot to look at our family and take adequate protection for them. One sudden death of the earning member or a critical health issue of any family member could jeopardise your financial goals completely. Take a life insurance and health insurance cover to guard your family from falling in any financial mess in case you are not around.

Lesson # 5

Build a partnership, with your advisor.

It needs two to tango! One of the big reasons why India failed to achieve the target is that no two batsmen could build a robust partnership. History shows, a winning team mostly represented by marvellous partnership from any two batsmen.

Build a long term mutual relationship with your advisor based on trust and compassion. He can guide you best in the ups and down of financial matter and at the end both of you can come out as a winning team in the lifetime tournament of wealth creation.

  • By unknown, Uploaded as received.

Two Sales Persons

Mukesh and Anil joined a company together a few months after their graduation from university.

After a few years of work, their Manager promoted Mukesh to a position of Senior Sales Manager, but Anil remained in his entry level Junior Sales Officer position.

Anil developed a sense of jealousy and disgruntlement, but continued working anyway.

One day Anil felt that he could not work with Mukesh anymore. He wrote his resignation letter, but before he submitted it to the Manager, he complained that Management did not value hard working staff, but only promoted the favoured one!

The Manager knew that Anil worked very hard for the years he had spent at the company; even harder than Mukesh and therefore he deserved the promotion. So in order to help Anil to realize this, the Manager gave Anil a task.

“Go and find out if anyone is selling water melons in town?”

Anil returned and said, “yes there is someone!”

The Manager asked, “how much per kg?” Anil drove back to town to ask and then returned to inform the Manager; “they are Rs 13.50 per kg!”

The Manager told Anil, “I will give Mukesh the same task that I gave you.”

So the Manager said to Mukesh, in the presence of Anil; “Go and find out if anyone is selling water melons in town?”

Mukesh went to find out and on his return he said:

“Manager, there is only one person selling water melons in the whole town. The cost is Rs 49.00 each water melon and Rs 32.50 for a half melon. He sells them at Rs 13.50 per kg when sliced. He has in his stock 93 melons, each one weighing about 7kg.

He has a farm and can supply us with melons for the next 4 months at a rate of 102 melons per day at Rs 27.00 per melon; this includes delivery.

The melons appear fresh and red with good quality, and they taste better than the ones we sold last year.

He has his own slicing machine and is willing to slice for us free of charge.

We need to strike a deal with him before 10 a.m. tomorrow and we will be sure of beating last year’s profits in melons by Rs 223. This will contribute positively to our overall performance as it will add a minimum of 3.78% to our current overall sales target.

I have put this information down in writing and is available on spreadsheet.

Please let me know if you need it as I can send it to you in fifteen minutes.”

Anil was very impressed and realized the difference between himself and Mukesh. He decided not to resign but to learn from Mukesh.

Let this story help us keep in mind the importance of going an extra mile in all our endeavours.

You won’t be rewarded for doing what you’re meant to do, you only get a salary for that! You’re only rewarded for going an extra mile; performing beyond expectations.

To be successful in life you must be observant, proactive and willing to do more, think more, have a more holistic perspective and go beyond the call of duty…

Would Warren Buffett buy the iPhone 7? Probably not.

Here is why Warren Buffett will not buy iPhone 7

His company Berkshire Hathaway recently bought $1 billion worth of Apple stock. However, as per reports, the decision to invest was made by one of Buffett’s lieutenants, and not by the billionaire investor himself.

Buffett is known for being averse to investing in technology companies but his fund managers are reported to take their own calls.

What is more, Buffett’s last known cell phone is a flip phone, which he displayed in an interview to a TV channel in 2013.

Marked down

Buffett has been quoted as saying: "’Price is what you pay; value is what you get. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down." Clearly value for money is Buffett’s motto and the iPhone 7 is definitely not ‘marked down’.

Further, Buffett does not feel that great businesses should be bought at any price.

‘Great’ phone at a high price

He has been further quoted as saying: "For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favourable business developments."

So should you be buying a ‘great’ phone at a high price?

Comfort for a year

With Rs 60,000, the starting price of iPhone 7, you could do a lot of other things such as running your room and/or car air-conditioner the entire summer without stinging. You could buy comfort for the entire year depending on your usage.

Depreciation

You could invest the amount in a tax saving instrument under Section 80C and get tax relief equal to a maximum of 30 per cent of Rs 60,000 if you are in the 30% tax bracket. This way you would be getting returns on your money plus saving tax.

High-end electronic gadgets depreciate the fastest. In a few years time this model would be half obsolete. So look at buying it only if you just can’t do without the unique features offered by the iPhone 7. Ponder some more of Warren’s wisdom: "If you buy things you do not need, soon you will have to sell things you need."

If you are looking at getting value for money check the market for other phones which offer good features at lower prices.

Finally, if you do decide to go for the iPhone 7 it would be advisable to insure it immediately after purchase and enable anti-theft mechanisms/apps.

Originally at

http://m.economictimes.com/slideshows/investments-markets/would-warren-buffett-buy-the-iphone-7-probably-not/great-phone-at-a-high-price/slideshow/54272110.cms