Why those with enough money don’t spend it

Many rich people are insecure about money. A prudent allocation of assets and a gift of attitude can help them to enjoy their wealth

Registration is easy the most discussed topic in personal finance. It is easy to find research that deals with households and debt-trap spending in the middle class. But there are many households facing the opposite problem. They have enough money, but it does not just happen.

Many rich families suffer from insecurity imposed on money. Especially if it is auto-cattle and if they came from a bottom of the lack of money during their growth.

They can be rich today, but remember that spending out of fear of being forced to go back to being short, if they spend their wealth. The expenses are psychologically painful for many of those who are associated money for well-being in absolute terms.

The problem of mixed priorities is quite common among those who are unable to make spending decisions. How many of us are surprised by looking at the right side of the menu, after choosing to eat at a good restaurant?

How many of us have decided to go back to the museum doors after seeing steep entry fees, even after spending a fortune when traveling abroad? How many of us have collected, checked the label of the garment and returned to the dais, although we liked the color and the fabric?

The systematic denial of what could be a legitimate expenditure, taking into account income levels and wealth, is more common than we recognize. Psychologists point out some factors that may be involved.

People can show their success and it is mainly attributed to certain habits, attitudes and personal preferences. Investors who are deprived of trying to save money, support sacrifices and the deliberate denial of pleasure as virtues.

Passing impulsively, or making decisions spontaneously, is prudent in your evaluation. They do better if they are given the time to evaluate the decision and believe in time.

I have a friend who told me that her husband can not worry about the birthday gift, but he has perfected the art of advancement and persuasion to get him to buy expensive gifts anyway.

smart woman! Those who pride themselves as workers and willing to put the effort to do something, know that it is difficult to pay for help. A friend of mine, a consummate cook, unnecessarily handled work and home for several years, before naming a cook.

She could afford to pay with the house that would have made life a lot easier, but outsourcing a task she did which was tantamount to acknowledging that she did not want to do it.

Sometimes expenses are accompanied by the guilt that we do not know how to handle. Outsource a task, we believe we can do anyway, do not make us feel happy or relieved.

Rather, it led to the guilt that we are no longer the person who enjoyed doing this work or that work, or that we can not give time to what we liked to do before.

Many of us end up wasting time on routine tasks that can be easily outsourced because we see that spending does not add up, but eliminate what we imagine are the simple pleasures of life.

Money Mysteries: Money advice in a nutshell

It’s a Catch-22 situation. People who do not understand the investment, and are still trying to understand things, of course, should take the advice of another person. However, they are not equipped to determine whether the advice they receive is good or bad.

Everyone is willing to offer advice, but the advice that some have actually worked for the person who gave it, could be quite inappropriate for someone else.

Business advisory providers are also problematic. If they work on commission, boards are certainly motivated by business considerations, rather than their interest. So where should you seek advice?

How about the financial advice of a designer, although very experienced? As a reader of this publication, who surely familiar with Scott Adams, the comic strip Dilbert is a very funny but desperate aspect in the reality of the business.

Few people know that Adams also wrote some of the best personal finance tips. He calls it a “book,” and his title is all he needs to know about financial planning. Except this “book” has not been published and only has 87 words.

Here, everything: make a will. Pay your credit cards. Get term life insurance if you have a family to maintain. Finish your 401 (k) to the max. Finish your IRA to the fullest. Buy a home if you want to live in a house and you can afford it.

Put six months of spending on a money market fund. Take the money you have left and invest 70% in equity funds and 30% in a bond fund through a discount broker, and never touch it until retirement.

Adams has a bachelor’s degree in economics. He also has an MBA and worked in a bank for eight years. It is so wonderful that despite these disadvantages, it is still talking about personal finances.

Adams said he started planning to write a book about personal finances. However, when he had thought in detail what the book had been simplified and the whole logical end, it was just these 87 words.

The good news is that these 87 words contain everything you need to know to plan your lifetime savings and investments.

Obviously, in India, 401 (k) and IRAs are replaced by appropriate equivalents such as PF, NPS and annual investments in ELSS funds.

For 70:30 plates, choose good mixed backgrounds and start SIP in each. Profits are tax-free even after one year.

Scott Adams has good comics in what he called the “financial entertainment” industry. In one, evil Dogbert explains his plan to launch an investment fund, “We are entering the game into financial services.

In this way, all our products can be imagined. We will start 10 mutual funds, each with values ​​selected at random. Later, we will build our ads around so does the best by chance. My goal is to be the first provider of imaginary experience. ”

I am sure that some managers of Indian investment funds recognize this strategy from personal experience. Obviously, Scott Adams understands much more than office life.

Govt may give Bhim users cashback bonanza on Independence Day

BENGALURU: On Independence Day, the government will provide higher reimbursements if consumers opt for digital transactions using the Bhima application.

Operated by National Payments Corporation of India (INPC), the Bhima application works on unified interface (UPI) payments.

Prime Minister Bhim released in December, after demonetization, to stimulate digital payments.

President and CEO of NPCI, A P Hota told TOI that the proposed approval of an increase in government reimbursement incentives for the use of Bhima should take effect on August 15.

This also coincides with the planned deployment of a new version of Bhima. “We have informed the government that payment incentives should be increased so more people start using it.

We are waiting for government approval for August 15, “said Hota. Currently, these are cashbacks between Rs 10 and Rs 25.

The Hota push for greater incentives for users to Bhima also occurs after other payment applications in the country that offer reimbursement incentives to cost-effectively acquire customers and repeat transactions.

Companies such as Paytm and PhonePe, supported by global investors relied on these reductions to attract users on their platforms.

Currently, if one person refers to Bhima to another, she will receive Rs 10 bonus and the person who will receive Rs 25 in money back.

TOI had reported last month that banks could reduce UPI rates for traders in a move to support the number of transactions conducted through UPI.

After demonetization, the government has allocated over Rs 450 crore for payment incentives to be used for a period of six months from the April 14 birthday edition of Ambedkar BR.

The payment application has recently reached a user base of 16 million with 4 million active customers in the end of June

“We are also in the final version of Bhima’s 1.4 version, which will make application transactions smoother.

Among other updates, rapid response (QR) Bharat code will be integrated into the application, which should be another amplification factor to increase Bhim transactions ”

Hota said. Bharat QR allows stores to accept electronic payments from UPI cards or with the client scans the QR. Given the demonetization, the government has actively encouraged digital payments.

Government reviews IT imports from China

NEW DELHI: The government has begun examining massive imports of electronics and information technology from China due to concerns over security and data leakage +.

There has been a growing outcry of import restrictions and other restrictions on these products, which are currently a huge amount of shipments across the border.

The review comes at a time when India and China’s Doklam gap has intensified and may signal the occurrence of a strategic trade war as tensions on the border worsen and concerns over trade imbalances and increased security.

The growing share of Chinese companies in the electronics and information technology industry booming in India, a recent study by the CII Industry Chamber, has raised alarm in government, especially in what is believed to be Much of this can be used to gain unlawful access to critical information about individuals, businesses, and government provisions.

“There are more and more concerns about the preparation of the security device, especially in fears that online e-commerce platforms and finished products can be used to gain sensitive information,” industry sources said.

“The communication has been sent to industry stakeholders for their views and to assess their preparedness for the protection of critical data and information.”

India’s move towards the digitization of services and trade and multiple increase in online transactions has also contributed to the security problems that have reached the highest levels of government.

The IT Minister and the law, Ravi Shankar Prasad, recently held a high-level meeting to assess the situation regarding China’s participation in the electronics industry and information technology in India sources.

Prasad is supposed to have ministry officials asked to make an assessment of the vulnerability of India with respect to products from China.

Chinese companies have almost turned into a column to India’s massive needs in the manufacture of electronic products, especially when importing a large part of critical components and finished products.

These include components for products such as mobile phones, medical equipment, telecommunications network equipment and devices and the Internet for things related sensors (IOT).

In addition, leading Chinese companies have large stakes in some of the leading online markets in the country.

“Many devices transmit or store data on Chinese servers, which could be a security risk.

On the other hand, online transactions using several of these devices and platforms can be filled in Chinese servers, which can create security problems for the country at a time of deepening the crisis at the border, “said a source.

India’s significant and worrisome trade imbalance with China is another trigger for the year. It is estimated that the government should focus and emphasize the faster indigenization to address the problem.

India had a trade deficit of nearly 52 billion with China last fiscal year and the country is now looking for better access to markets in the neighboring country for its products and services.

In the electronic map, the government insists on increasing local production by introducing manufacturing benefits into India.