Accounting Education University

Recently Published Finance Contents in Svtuition.com

2022-05-07T16:33:00.006+05:30

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Financial Security vs Financial Freedom

2021-02-19T19:18:00.002+05:30

Here, I am writing what I love to write. Today, I am sharing my knowledge to differentiate the financial security and financial freedom. Both words, we speak and use. I need financial security when you will give the interview to your boss. I need financial freedom when you will fail in your business. So, know both.

1. Meaning

Financial security

Financial security is demanded by employee from employer because he is fearing that he will have to do big work and he will not get big salary or future financial security in the future in the form of guaranteed pension.

Financial freedom

Financial freedom is demanded by business owner and investor from his business or his invested money. It is his challenge, he will free from regular duty with financial free. He has ability to do this and he will do for this.

2. Hard Work

Financial security

Employee did not do the hard work and advance he wants big salary, bonus, leave cash salary, rewards and pension after retirement. Actually, he demands for his financial security but with this action, he wants to show he has focus on reward instead focus to perform on the his project and never develop the ability to compel the boss to increase the pay what he want. By repeating bird voice

I need more financial security,

He makes its habit and spends more time with this words and never develop great skills of high performing person.

It is natural law, who perform great will get big reward which is 1000 times more than financial security

Financial Freedom

Business owner daily learns new books. Daily attends new motivational seminars and then he will focus

I have to perform better

I have to increase sales by making my customer important

I have to love to my customer

I have to increase the quality of my products

With this, I can achieve my financial freedom

3. Feeling

Financial Security

It is employee's feeling. He feels, he has lack of financial security.

Financial Freedom

It is business owner feeling. He deserves for financial freedom

10 Benefits of Financial Freedom

2021-02-08T14:01:00.004+05:30

In previous lecture, I had introduce few benefits of Financial freedom in video. Today, I will explain in the details.

1. More Time for Family

One of great benefit of financial freedom that you can spend more time with your family. It is not possible in your full time day job. Balance between relationship and job is necessary but because you are doing the job of others for money. Money will become your boss. Other will become your boss. They will not free every after competing duty time. You are hungry of money. Even, they free after 8 hrs job, you will do overtime job after 5 pm. Because you are not financial free. You always become helpless and spend more and more time for getting money and did not win inflation during job whether it is govt. job or private job.

I remember, I did my last job 2006 and start to progress my financial freedom journey and today, 2021, at the age of 40, I am totally financially free and have more time for my family and focus to train you how to become financial freedom online.

So, if you did job 5 years or 10 years and quit it and break the cycle of financially slavery and enjoy more time with your family.

2. More Donate for Your Cause

Yes, you can donate more money to your cause. What changes you want to bring in the world, it needs to donated money for this. If you are not financial freedom how can you donate for this.

You want to donate for free education of orphan children. How is possible if you will do full time job and still struggle money. Quit job and become financial freedom and donate for this cause.

3. Bring Jobs

Did you see any govt. employee appoint the 100 employees. He goes to job and come to home and says. But cry only cry. Govt. is decreasing the jobs. New generation will unemployed. Why not quit job and take the responsibility of bringing new generation jobs.

If you do your own business not self -employed business.

You have to buy equipment for doing business for making equipments, people gets jobs.

1. I bought 2 Laptop, 5 Mobiles. Every two years, I change my mobile for my business.

2. I bought 4 cameras for my business

3. I made 2 Offices

4. I gave full time and part time employees for my business

5. I bought vehicles for my business

All my investment is the proof, I generated the new jobs and if I am doing the job. I only live in the fear of my own job and more time to complains and only complains.

4. Have the Money to Care Your Health

It is totally true, if you have the money, you can care your health better way. Financial freedom helps you buying capacity and even production capacity of your own fruits and vegetables. If you have big money, you can buy your big land. You can save your life from market pesticides and chemical fertilizers. Do you want to grow your own fruits. Start to work out first financial freedom.

5. Ability to Travel

A successful business person who is financial freedom can get the ability to travel. Do you want to visit USA, Canada, Europe or Japan or visit your whole country. If you are financial free, you can travel anywhere and got experience instead dead property in your life.

How to Start Financial Freedom

2021-02-07T09:43:00.003+05:30

Live Finance Class Topic : How to Start financial freedom

Language : Hindi

Description in English

In this world biggest foolishness is to hard work all the time for earning money. In this you do full time and part time job. You do all your business work yourself. All rich persons and you have only 24 hrs in a day. You and rich person can only work hard for 24 hrs. This is the limit.

Now, you have to choice where you have to do hard work

Option 1. Hard work for money

Option 2. Hard work for Getting Knowledge and Actions for Getting Hard work From Money and People.

2nd option is best because you will get financial freedom for more time with your family, donate your cause more money, bring jobs, have money to care your health, ability to travel more

Now We are teaching you how to hard work for getting knowledge and actions for getting hard work from money and people

( A. ) Getting Hard work from Money

You money will hard work for you. For this, you have to smart from today. What is money in your pocket is your initial capital for your business. Either you can waste it or grow your capital. It is in your own hand.

1. Control Your Wastage of Money By Budget

Yes, you can control your wastage of money by making your budget. First make the budget of your expenses of your business

Which expenses you can save?
Which expenses you can postpone?
Which expenses you can find cheap and quality alternatives?
What are your fixed and variable expenses?
How can leverage your fixed expenses for grow your sale and production?

You budget must answer of your 5 above question

You have to make daily budget with following with simple 3 steps

1st Step.

Buy a blank notebook from market

2nd Step.

Set morning time for making daily budget notebook because budget is for future not past. So, whole day, your mind will out of control and you will unable to control your useless expenses

3rd Step.

Start to write like me

(A) I will make my food myself in my HOME

1. I will make my food myself in morning and save ( Write the Market Value of Outside Same Food )

2. I will make my food myself in afternoon and save ( Write the Market Value of Outside Same Food )

3. I will make my food myself in Evening and save ( Write the Market Value of Outside Same Food )

4. I will make my food myself in Morning and save Doctor Fees ( Write the Market Value of Doctor consultant fees)

5. I will make my food myself in Afternoon and save Doctor Fees ( Write the Market Value of Doctor consultant fees)

6. I will make my food myself in Evening and save Doctor Fees ( Write the Market Value of Doctor consultant fees)

(B) I will ride today on Cycle or on Foot

1. I will ride on cycle or on foot in afternoon for buying outside or meeting friend or going to office or going any other important work and save petrol and cost of repair of vehicle ( Write the Market Value of Outside petrol and repair spend )

2. I will ride on cycle or on foot in afternoon for buying outside or meeting friend or going to office or going any other important work and save petrol and cost of repair of vehicle ( Write the Market Value of Outside petrol and repair spend )

3. I will ride on cycle or on foot in evening for buying outside or meeting friend or going to office or going any other important work and save petrol and cost of repair of vehicle ( Write the Market Value of Outside petrol and repair spend )

4. I will ride on cycle or on foot in morning for buying outside or meeting friend or going to office or going any other important work and save doctor fees ( Write the Market Value of doctor fees for treatment of diseases comes from not movement daily and with pollution )

5. I will ride on cycle or on foot in afternoon for buying outside or meeting friend or going to office or going any other important work and save doctor fees ( Write the Market Value of doctor fees for treatment of diseases comes from not movement daily and with pollution )

6. I will ride on cycle or on foot in Evening for buying outside or meeting friend or going to office or going any other important work and save doctor fees ( Write the Market Value of doctor fees for treatment of diseases comes from not movement daily and with pollution )

This is personal budget example, Like this, you can add all items of of your budget in notebook and set your why to take action for limiting your today expenses as per your budget.

2. Saving of Money

You can saving money buy stopping useless expenses and save it in RD form govt. bank account. With this, you can increase your money. Before saving, you have to set the goal of your saving of money

Following are the simple steps of your goal of saving

1st Step : Clear Write the Title of Your Major Goal Which will Complete with Big Money

Your goal may be large. I am giving the list and choose from them or write clear your own goal. It must be 1st first person form.

1. I will keep My Own Cow. It is my Goal.
2. I will get my Passive Income from my Fixed Deposit Savings
3. I will buy Swift Car. It is my Goal.
4. I will Buy my Own Shop. It is my Goal.
5. I will buy my Office AC. It is my Goal.
6. I will buy 1 Lakh books for My liabrary.
7. I will do Internal Decoration of My All offices. It is my Goal.
8. I will make My Website Hosting Fund and without Worry, I will pay its bill on the time. It is my Goal.
9. I will make My Website Promotion Fund. It is my Goal
10. I will Use only Solar Energy and For this, I will make its Big Fund. It is my Goal.

2nd Step : Estimate Accurate Cost of Your Goal

For example, if you want to keep a single cow, you need Rs. 4,00,000 for its home, its food, its water management and its care all time

3rd Step : Fix the Target Saving Money for Achieving this Goal

Target means, your action for Saving regular for Acheiving above big goal.

It is of two types.

One is You Fix the Target of End Date of Achieving Your Goal

For this, you have to write start date and end date

If it is one year. In above example, for keeping cow, you need Rs. 4,00,000 but you do not have enough money. So, you have made your target 1 year to achieve this goal. For this, you need to save every month. Rs. 33,000

Second is You Fix the Amount of saving per month

For example, your per month income is less and you can save only Rs. 20,000 for achieving this Goal. Now find how many years to achieve this goal

4,00,000 / 20,000 =20 months or 1 year 8 months.

3rd Step : Fix the Reminder of Saving of Money

Every month, you have to fix the date when you will save. You can save in Govt. bank RD account, in buying per month Gold, Buying Share per month, or Keep in mutual fund per month or simple saving account. Keep its reminder in your notebook and after seeing reminder, you will activate to save same money for achieving your goal.

4th Step : Keep Accounting Record of How Much You Saved and How Much You Need

As per accounting record, you have find that you have saved 70% and need only 30%. With this, you keep more 30% patience and achieve your goal.

From 2nd step to 4th Step is just production of 1st Step. If you have the Goal and set it. It is very easy to make plan to achieve it.

eBook Reference : Saving Money MADE Easy

3. Investment of Money

Before withdrawing money for investment, Ask following question

1. Is your saving of money enough to cover all the goal investment

2. Will return of investment is more than saving of money

3. Will risk of investment less than saving of money

Risk of losing money due to inflation

Risk of decreasing interest rate in govt. account

Risk of not achieving your dreams

Risk Analysis

2020-02-05T09:03:00.001+05:30

Meaning of Risk Analysis

Every project has the risk to fail when we try to buy or make it. So, it is better to evaluate it by identify different risks if we will involve in same project of business. These list and assessments of all risks will be called risk analysis. For example, A project has 5 types of risks. Further in risk analysis, we have checked all the level of 5 types of risks. Now, all these risk analysis will help to take action to control all these risks by taking steps.

Following are the main risks of any type of business

1. Risk of Business Security

Every type big business has the risk of its security. In this security, its physical property security risk and online security risks from hackers.

2. Competition

When a project of business is growing, more people wants to gain from it because its boom become risk for its growth. With this, you will unable to reach goal because competitor may start to play game of cheap prices with decreasing quality of same product. At that time, you have to more careful from competitor.

3. Trade Mark and patents and Copyright Risks

People uses the trade marks and patents and break copyright. With this, business may suffer losses. One of example of latest movie whose pirated copy can come in the market and movie business can face loss from it.

4. Strikes

Strikes are the main business risk. With this, our production will unable to fulfill the consumer demand and we may loss the sale and profit. Main reason of not good relationship between employers and employees. Employees may demand more salary or wages or other demands and if employer will not do same, employees may go to strikes and business has risk to loss.

5. Changing of Trend and Fashion

Time to time, customer's fashion has changed. Now, no people are using hand watch due to mobile and touch phone. With this watch business are suffering losses from this new trend and fashion. If you are doing any business, you may also risk of trend and fashion. Yes, you can manage this risk by flowing in the flow of water not against the water. For example, past my internet providing company was in telephone business. But after changing trend, it started wire broadband. Again trend has changed. People demand more speed. So, it has taken new technology of fibe broadband.

Risk Assessment

Second part of Risk Analysis is risk asssessment. In this part, we will see the negative impact on the future of our asset or business. Also we try to apply risk management strategy to control all these risks.

Reference eBook

Financial Management eBook

Reference Notes

M.com Financial Management Notes

Related

How to Trade in Options

2020-01-26T09:55:00.002+05:30

In your DEMAT account, you can trade in options but if you have basic DEMAT account, you will unable to trade in options. For this, you have to add additional segment and following is the process for showing this option trade in your DEMAT Account normal trade.

1st Step : Download Activation of Additional Segment Form and Income Declaration Form

If you have https://www.sbismart.com/ DEMAT account, you see in this site above menu. Download

In download menu, you see more form. In more form, you will see two form which you have to download.

You can download this direct link also by searching above pages at https://www.sbismart.com/download

2nd Step : Collect Your 3 months Bank Statement from Your Connected Bank of DEMAT

Just go to your bank branch and request for same and Get it

3rd Step : Signature of Bank Manager on 3 Months Statement with and Seal of Bank

Ask to signature of bank manager on these 3 months your bank statements with seal of your bank

4th Step : Fill Downloaded Form and Sign on these Form attach 3 Months Attested Bank Statements

Just fill these two forms and attach 3 months statements and sign on valid place and send the address which is mentioned in these form. After reviewing your form, your Option Trade Account will activated in your DEMAT Account and you will get the ability to trade in option in your DEMAT Account.

What is Stop Order?

2020-01-16T12:08:00.001+05:30

Stop order is finance term which is used share market trading. It means to stop the order of buy or sell. If you have bought the share, you can stop it and order to sell it on your pre-determined price. If you have sold the share, you can buy again at your pre-determined price.

Ok, I explain it in the detail

Stop order is great advance technique which helps investor to safe from future losses in the share market. It is an insurance. For example, you pay small premium to insurance company for your shop for one year. If any day, your shop has caught the fire, you get insurance amount from insurance company, like this, same can apply with the help of stop order technique. There is no cost of this.

You just invest its time to understand the technique and use it in your DEMAT account.

Ok, we are teaching its more detail with example

For example, I bought 1 share of RS. 100 and its trend is decreasing and its price has reached Rs. 90. I have bought its 10,000 quantity. It means, I loss Rs. 1,00,000 due to decrease of the price of share.

Rs. 100,0000 - 9,00,000 = Rs. 1,00,000. Now, Its trend is showing downward and its means, its price may go to Rs. 80 but, I can not tolerate its more loss but I have hope, its price may rise. So, I will stop the order by saying my stock broker to sell this share if it is price will down and reach at 88, I will sell it. I went to picnic and price was went to 80 but my stock broker is smart who sold it at 88 my all shares. Now, with stop order technique, I protected myself loss of Rs. 80,000

9,00,000 - 880,000 = 20,000

8,80,000 - 8,00,000 = 80,000

Now, learn how to Apply this Stop Loss Technique in your DEMAT Account

Steps to Stop Order in DEMAT ACCOUNT

I have SBI DEMAT Account and I am teaching in it.

1st Step : Just login your sbi demat account with password, login id and PAN CARD

2nd Step just go to trade

3rd Step : write the company name whose share you want to sell in future day for protecting the loss. Write its quantity.

4th Step : Now, Go to fix strategy of Stop order by choosing Order type option as SL - L

It means stop loss limit

5th Step : Set price and Trigger price

Normal price must be less than trigger price. If trigger price is Rs. 88, then set normal price is Rs. 860

6th Step : Sell

Now, click on sell and

With this, brokering software has taken your input of stop order. It will valid one day.

Video Tutorial

Watch following video tutorial for better understanding of above.

Reference eBook

Be Pro- Investor of Indian Companies Shares

Management of Financing of Working Capital

2020-01-07T19:00:00.000+05:30

You all know that working capital is the difference between the current asset and current liabilities. For example current asset is Rs. 5,00,000 and current liabilities are Rs. 1,00,000 and working capital will be Rs. 4,00,000. For operating your business, smooth, you need every time Rs. 4,00,000 in your pocket and fastly this money should be in liquid form, so that you can show your strength in the market. If you have cash and liquid assets are less, it will not your financial strength. But yes, you can double your financial strength if you will learn proper management of Financing of working capital.

You need extra 4 Lack working capital if your working capital has blocked in inventory, debtors and dues to creditors which are near to pay and you have to give cash to them.

At this time, you have to use your skill of financing of working capital.

1. Take loan on your Debtor

This is short term loan. You go to bank and give the security of your debtors account and say, please give me loan on it. If you have debtor of Rs. 1,00,000 and you get Rs. 60,000 loan at 10% pa, you have to pay just Rs. 6000 interest. So, value of loan which get Rs. 54000 which you can use at this time as financing of your working capital for business need.

2. Take loan on Your Inventory

You can give the promise to bank that my stock will sell in one year and give me loan on the inventory security. Bank will give loan of your inventory on your inventory Rs. 1,00,000. You get loan Rs. 60,000@ 10% interest and net you will get loan cash Rs. 54000 which can use for business need.

3. Take loan on Your Creditor Account

You say bank, please pay my creditor Rs. 1,00,000 next month, I will pay in the end of this year at rate of interest Rs. 10% pa. Bank is ready and you save your Rs. 90,000 which you can need for your business need.

4. Issue Equity and Finance of Your Working Capital

Your go to share market and say to shareholders. We have good annual net profit as per our financial statements. We have good working capital as per financial statement. For doing business, we need finance on our working capital. Just buy our Rs. 4,00,000 shares and give Rs. 4,00,000 and which we need for business and we give you dividend and business rights. Shareholders are ready and bought his shares.

5. Get More Credit from Other Creditors

Just show debtors data and say, our money has blocked in debtors account. As we came money from debtors, we will pay your money, give us goods on credit. Now, you have more inventory and you got more potentials to sell and cash it and you got trade credit Rs. 1,00,000

Your Total Working capital financing is

Rs. 54000 + Rs. 54000 + 90000 + 400000 +100000 = Rs. 698000

Reference

M.Com Financial Management Notes

How to Control Working Capital

2019-12-20T11:09:00.001+05:30

Control the working capital is very important like control the car when you are driving. You can not break every time when you are driving the car but you know when, where and how to break the car to safe you and other. Like this, you also know when, where and how much working capital need and when you will satisfy same need of working capital for day to day operation of business.

So, if you do not know this knowledge. Come and learn from me.

1st Step : Estimate the Accurate Need of Working Capital

You must know annual and monthly need of working capital for business. This need can be estimated with simple three methods which I have explained already. These are calculated on the basis of sale turnover method, cash budget method and operating cycle method.

2nd Step : To Plan to Acquire the Working Capital if Current Working Capital is Less than Our Need

If our need is Rs. 100 working capital but we have only Rs. 75 working capital for operation., we have to plan to get rest working capital.

For this,

We can plan to boost our sale

We can plan to increase sale quantity

We find new source of earning

We collect fast from debtors

We stop to buy new stock

We decrease to buy on credit

3rd Step : More Control on Inventory and Cash

There is more chance of loss by thief. So, we must record when buy, when sold and rest closing stock for find any cheating in it or natural loss. Like this, we also control cash by accounting its all receipts and payments.

Reference

M.Com Financial Management Notes

Assessment of Working Capital Requirement

2019-12-19T10:33:00.001+05:30

In financial management, Assessment of working capital requirement is very important because with this, we keep on accurate working capital in business and other part of capital, we can use as investment to grow our assets for making plan of buying fixed assets.

Both low working capital or excess working capital is danger and if there is less or excess working capital in your business, it is the sign, you are uncapable finance manager and you must resign your job today.

Ok, if you want to save your job, learn three main methods of assessment of working capital from me.

1. Sales Turnover Method

As per this method, you must have 20% or more working capital of next year estimated Sales. For example if sale is Rs. 100 next year, you must have Rs. 20 as working capital whole next year.

If you want to assess next one month working capital, you have to calculate next month sale estimate and then it is 20% or more of same sale.

2. Cash budget Method

In this method, we make projected cash flow statement. We estimate all our cash inflows in the month and cash outflow in the month. If cash outflow is more than cash inflow, you must need same working capital for operation.

3. Operating Cycle Method

As per this method, following is the formula for calculating working capital requirment

operating expenses / no. of operating cycles in a year

For example, your 30 days are for production

30 days for sale

30 days for receiving money from customer.

Your one operating cycle is of 90 days

no of cycle in a year 4

Annual operating expenses estimated = 40 lakh

then working capital requirement = 40/4 = 10 lakh for one year

Reference

M.Com Financial Management Notes

Why Working Capital Management is Needed

2019-12-18T14:21:00.001+05:30

In Financial Management, Working capital management is needed for all time liquidity of cash for growth of the business. If there is mis-management in it, it means, there will be difficult time to operate the business. Business will not pay its bill on time or buy its inventory and this ability will depend on your problem working capital management.

You know working capital is the excess of current assets over current liabilities. This excess capital must be managed and this excess must be all the time.

1. Efficiency in Business Operation

In working capital management, manager will take the decision how much cash and bank balance will keep to pay the bills on the time. To pay bills on the time is connected to the reputation of business.

If you have the business, you must have employees.

You must have the partners who will get share from your business profit in cash after certain time period.

You must have the creditors

You must buy the stock with cash.

In better working capital management, have to make annual budget of all such payments.

In there is no provision of working capital out of total capital of business, business will fail. For example, you have big material but your 5 trucks need repair for sending material to distributor. Due to failure repair your truck (Lack of cash in business), your customer rejects the order and you will lose your sale opportunity. This shows, you estimate your working capital in less. If it is important for you, you have the reserve fund for all vehicle future payments.

If you have to get high performance in the business, you must keep extra fund in the form of working capital.

2. Better Inventory, debtor and Creditor Management

In working capital management, you learns how to inventory management, how to debtor management and how to creditor management.

You have stock but no sale. Is it better inventory management. No because

you did not have fund to promote your products. In working capital management, you have to keep working capital for advertising expenses and other promotion expenses.

Your debtors are not paying you the money on the time. Did you take action. No because no money for legal spending. So, all legal expenses must have if you are taking working capital management seriously.

3. Help to Make Intelligent Business Person

If you have the knowledge of working capital management, you will become intelligent business person like hi tech computer.

You know working capital cycle and as per this cycle, you will keep good cash fund.

This cycle has divided into three parts

inventory cycle

debtor receiving cycle

creditor paying cycle.

If you will keep good balance on this cycle after learning working capital rules, you can ride your business with profit.

4. It will Save Your Business from Insolvency

Insolvency means no capacity to pay your debt with your all assets. If you will not pay the bills on the time, your goodwill asset will decrease. Yes, your fixed asset are more but if your current asset will always less than current liabilities, soon, you will see the bad name of your business in the world.

Remember all fixed assets have expenses which we pay from new sales. Your new sale will stop with your bad name and your business will reach insolvency level where your whole assets will less than your liabilities and you have to reach to court to pay your all liabilities. So, never under estimate the importance of working capital management. Manage it from beginning of the business.

Reference

M.Com Finance Management Notes

How to Check Deactivated RD Accounts in SBI Net banking

2019-08-17T06:37:00.001+05:30

In my previous content "Bank Cheque", I explained that if you will not pay your Bank's RD payments on the time, Bank has authority as per RD terms and conditions that it can block or deactivate your RD account by passing Auto Closure voucher entry and transfer same fund to BC/IOI-BC to BE. Its simple meaning, bank has transferred same money in its own pocket without giving you any message or physical address notice. But if you have saved the mannually account of your RDs, you can demand your payment of your auto closure RDs and bank will give you bank cheque and pass following voucher entry to transfer to your bank account.

See Image When Bank will Again Transfer to Your Account through Bank Cheque

Following are the its Simple Steps

Just use your laptop or computer and add your id and password. If saved the password in google chrome, just add the identify code and go to the account. No benefit to see it in your yono app, there is no of this information what are you checking

Just click my account and profile and go its last option deposit accounts. In app, you will find only active deposit accounts and you will feel anxiety where is your rd account which had some money. So, again, I telling you try it only in web browser of your computer.

In deposit account, you see second optioni click here to view the matured and closed accounts. Find your auto closure account no. or check mannually

Bank will not pass any specific voucher entry for showing auto closure. But if you see the penalty on your RD account, you may get sign that your money has transferred in bank account through auto closure.

So, just go to bank account and request to give you bank cheque and again fill deposit receipt and add same fund in your saving account and withdraw with ATM

What is Banker Cheque?

2019-08-14T05:50:00.000+05:30

Bank cheque is the cheque which is written by bank for you. It means, bank has to give the money to you. How is it possible. Yes, it is possible

Possibility : When your RD account has deactivated for not paying installment for 3 Months. At that time bank will close your same RD and keep same money in his pocket with the name of deactivated account. Now, it will not show in your bank statement or bank's App. Still this liability of bank but it will not transfer automatically in my saving account because of breaking bank's rules.

My Case Study :

One year ago, I opened my RD account in SBI but due to some reason after 3rd installment, I could not pay Rs. 1500 per month in same RD. After one year, I have checked my RD notebook which I keep physical to record manually of my RD. I see Rs. 4500 in account no. XXXXXXXXXX but when I checked Yono app of SBI, I did not see this amount.So, I went bank and told same amount which is not showing in my RD bank statement. Branch manager has checked and told me that your this RD account has deactivated and kept same money in bank's own pocket. I told, I have earned and I have deposit. This is my asset not bank's asset. So, branch bank manager has given me banker cheque on my name and I deposited it in my bank account like deposit of cash. Within few second it is showing in my bank detail

Benefits of Making Individual Source and Use of Fund Statement

2019-05-12T19:12:00.002+05:30

First of all, tell me did you listen individual source and use of fund statement. It means, each earning's different source and fund statement instead collective source and use of fund statement. This is great statement. If you have listened its benefit. You will start to make it from today and grow your personal finance.

1st Benefit : To Find the Saving and Consumption Ratio

It means, if you earn any income from any resource, it is only for use of your saving and consumption. If you will make the individual source and use of fund statement, you can track the % of saving and % of consumption.

Remember : consumption will never reproduce the income if same source will die.

If you see the consumption is 90% and saving is only 10%. This is normal but it can not say Good. Because you can not grow extra-ordinary. Try to understand the benefits of budget because if you had the budget, you can save easily 50% + of every income.

2nd Benefit : To Track Where You Have the Consumed Money

It is also important. If you have made this, you have to write where did you use this fund. I have earned online $ 100 income and I consumed $ 90 on its expenses. It means, only $ 10 is my real income.

Now, it will help me to track whether will $ 90 benefits long time or short time. If it is same time and it means, source of fund is not good which is just producing low fund and consuming its total fund to survive it. It is best time to stop it because it will kill your productivity. Best source is the source which consume less and earn enough.

Let me explain

You just your kitchen garden and on the time, you have added the plant of your wheat and 6 month, you did not care and give water. Raining is good and you get reward of good source of fund by selling it and its cost is just 10% . So, you have to focus on such action which give big source and low use of fund on it instead use of fund enjoy your own desires of life.

3rd Benefit : Compare Time Invested and Net Balance of Excess of source over Use of Fund

Yes, if you will make this statement, you can find how much time did you give on it and how much get the source and how much spend on it to survive this source.

For example :

I invested my 30 Days full time for getting the source of fund

I got $ 100

I spend $ 95 for survive it for next month.

You are so fool because you net excess is just $ 5

Stop it and go to labour place to do labour instead doing this loss making business.

Search other business model or do what you love if you want to success. For example, I am writing because I love it to write and I am teaching these benefits to myself.

3 Secrets Ideas from Making Personal Income and Expenses Account Daily

2019-02-04T20:13:00.000+05:30

Many out of you are doing job in medical area, civil engineering and even accounting area. They can easily say, what is the need of personal income and expenses account daily.

They will start excuses without logic.

1. We do not pay the tax on personal income. Personal income is only for fun and enjoy.
2. We can spend as our desire, it is our own money which we have earned from hard work.
3. No need of personal income and expenses account daily because we have less income, we are hand to mouth

All are right but Do, you know its secrets 3 ideas of making personal income and expenses account daily. I make, so, I got and I am here to share with you.

1st Secret : You Can make Strategy to Keep Expenses Under Control on the Time

There are large number of community in the world, they are only machine to complain that our expenses are more than our income. We are unable to control our expenses. But all are speaking lie because they do not keep their daily record of income and expenses. If they record, they can see which day, they got less income as per the expectation and now, some expenses on day can be postponed in next day.

Without keeping daily income and expenses account, they will make only bad habit of spending more than earning.

2nd Secret : You Can Change the Selling or Earning Strategy

In any day, if you see that your all necessary and good expenses are more than your income, you can change the strategy of your sale or earning.

For example, in next day, you decrease the price for boost the sale.

Next day, you can start offer something free for more sale.

Next day, you can increase the price with better and advance service with the product.

All will be possible if you will make your daily income and expenses account

3rd Secret : You will More Focus to Pay on the Time to Avoid Penalties

There are many people in the world, who did not maintain their minimum monthly bank balance and bank earns millions of $ just in the form of penalties. Every service providers like electricity department or even Internet department or insurance department, they got also money from lazy people in the form of penalties. I know you love your money. But you love to give penalty and then you always cry of less money and financial stress. If you regular make the personal income and expenses account daily, you can easily aware to pay bills on the time and avoid the penalties if you have shown it in daily expenses.

1. If you got the knowledge from this content and you want to give donation to accounting education, please donate at

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3. Please buy my Tips for Better Management of Money now at here.

4. If you want to get my personal Accounting or Finance Service, please WhatsApp me at +91-8557028918 or contact at my email vinod@svtuition.org

5. If you want to get our Online Accounting Course, please enrol now at here.

6. Related Content : How to Make Habit of Saving Money | Important Tips

Debt Vs Savings

2018-10-26T19:37:00.002+05:30

Following are the Main Difference between Debt and Saving.

1. Meaning

Debt and saving of money are two opposite word in finance area. Debt means, you have not enough money, you take the money from other and pay the interest. On the other hand, you have extra money after consumption and you have saved it and it will be your savings. So, you have the right one more passive income interest on your all past savings.

2. Killer Vs Policeman

Killer kills the person because it is his profession. But he always fears from hanging and try to hide from public and Police. the Debtor or the person who has taken the loan is just a killer. Remember that debtor is not killer of person.

Debtor is killer of Habit of Saving. When a person takes the loan. He makes the habit. His brain thinks what is the benefits of saving. He can take the money on interest for his work and for his personal use. At that time, his saving habit will kill. He will never save the money. He will also always fear from poverty. He will lack of self confidence. He will not grow in life.

A person who saves the money is just a Policeman. When saved the money, it means, he is doing the duty of police. Every new earned money saved means, he kills his fear of poverty. He obeys the law of habits and he became the slave of good habit of saving. So, you can decide what do you take. Debt for becoming the pensioner of life time paying interest. Or take the promise to save money for life time pension in the form of passive income.

3. Buying the Product which Does not Need

A person who takes any personal debt will buy the things which he does not need. So, he will buy many things for showing his ego. Like car loan, do you need it. But it is showing only your status. You are doing private job. You have one wife, parent and 3 kids. Today, company will say to you get out, you will sell car at half price even if you have paid its full installment and be beggar for making the bread for your family

A person who saves the money, never buy the product which he does not need. With this, he save the money and money will grow and grow money will increase his financial independence in future.

4. Side Effect Vs Benefits

If you have taken debt, your mind will be always in tension. This tension will of two types. One is tension of payment of principal amount and second tension of paying installment with interest every month. This will make you anxiety patient.

With Savings of your money, you starts to reserve your fund for emergency and for grow of your business by self disciplined your life. With this, you spend your happy and tension free life.

5. Conversion

Yes, Debt habit can be converted into saving habit and useful tool is budget. Just make the list of your income and expenditures of your next month. Check your earning limit and check your unnecessary expenditure. Stop it immediately. Tight your necessary expenses and save your minimum 10% of your earning. Try to pay off your all debt fast and promise yourself not to take debt in future life.

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Who is Bondholder?

2018-06-06T10:42:00.000+05:30

A bondholder is the person who bought the bond and become its investor getting its profit on sale before maturity or get return plus principal at the time of maturity.

Bondholder has low risk on his investment because his receivable interest has been decided in advance. If bonds are govt., then it may have zero risk but if it is issued by other companies, it may be risk.

In simple words, bondholder is just a loan giver for getting interest in the form of reward of his investment. His risk of loss of investment is less than investment in equity share capital.

Related :

What is Principal in Finance?

2018-06-05T20:39:00.001+05:30

Meaning of Principal

Principal is the amount which is taken in the form of loan for personal use or business use. As per terms of loan, either simple interest or compound interest is paid for keeping same borrowed principle.

Example of Principal

You have taken the loan of $ 1,00,000. It is principal. At the end of year, you have paid simple interest on principal. You paid interest $ 10,000. At the end of same year, you repaid $ 70,000. Now principal is $ 30,000

If you repay the money in installment. At that case, principal repay will include the interest

Principal in RD and Fixed Saving

If you have interested money in per month RD. Per month, you are depositing $ 500. This is principal. At the end of maturity, you will get principal and interest. In FD investment, your invested money is principal and at the time of maturity, you will get principal plus interest.

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Benefits of Earning Rs. 1 Crore

2018-05-30T09:48:00.002+05:30

Whether you set the goal of earning Rs. 1 Crore in one day, one month, one year, 5 years, 10 years or 30 years as per your capacity, it is not matter. Matter is "Why did you choose it as your biggest Goal?" It is the matter. Purpose of setting of a goal is important. Reason behind setting any goal is important because if your mind understand the purpose and believe that you have good reason for this goal, you can achieve same goal very fastly. So, if you set goal of earning Rs. 1 Crore but did not know the benefits of earning Rs. 1 Crore, I can help you. Please note it in your notebook or Paste it on your wall.

1st Benefit : For Getting Passive Income

Everyone wants to earn money without working. There is also end of physical active life and everyone wants to retire fastly. But at the time of retire, expenses will more than active life. So, you need money. If you have earned Rs. 1 crore, you can save it in govt. bank and earn Rs. 54000 per month from MIS scheme at the rate of 6.5% p.a. This amount is enough to survive your life.

2nd Benefit : For Becoming a More Self Disciplined Person

No one can achieve extraordinary goal in life, if he will not live a self-disciplined person. Rs. 1 Crore is big goal and it can be achieved only if you have the purpose of becoming self-discipline. You can not keep Rs. 1 crore more than one year in your pocket, if you are not self-discipline. By good luck, if you have won Rs. 1 crore or you have won from kon banega krorpati. But if you have self-discipline, it will keep in your possession all time. So, one of great benefit of earning Rs. 1, you will become a self disciplined person from it. You will learn self confidence, become pleasing personality and think accurately.

3rd Benefit : For Achieving Your All Buying Goals

One great purpose of earning Rs. 1 Crore, you can buy what are your buying goal in your life. You can buy a luxury car, you can buy a commercial shop. You can buy your own house. You can buy everything what is your desire. That is the benefit of earning Rs. 1 Crore.

4th Benefit : For Achieving Your Vocation Goals

You want to go for world for your vocation. Without money, is it possible. If you want your whole life in travelling for visiting different place in the world. How is it possible? Yes, your vocation purpose will fulfil by achieving the goal of earning of Rs. 1 Crore. You should remember, if you will visit a place which you did not watch before, it will give you happiness. So, you will get all time happiness by earning Rs. 1 Crore.

5th Benefit : For Keeping Your Emergency Fund

Yes, if there is day, then there is night also. There is comfort, then there is sorrow also. Like this, if there is good days, there is also emergency. So, you need money. So, instead begging from other, it is good purpose to earn Rs. 1 Crore and use it at the time of emergency.

6th Benefit : It will Give Money Happiness

You know that envy is negative emotion and one of big cause of your stress. You can overcome it if you have the purpose of money happiness through setting the goal of Rs. 1 Crore. This is the benefit of earning Rs. 1 crore.

If you have money in your hand. Your all fear which happen due to lack of money will remove and it is the purpose of earning Rs. 1 Crore.

7th Benefit : You can Donate it at the End of Your Life

Andrew Carnegie had donated his whole money for promotion of free education in America. He told that earn whole life from world and refund it to world through donation at the end of life. That is the purpose of earning Rs. 1 Crore.

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How to Break the Habit of Spending Money

2018-04-08T03:58:00.001+05:30

If you want to make the habit of saving money, you need to break the habit of spending money because it is big barrier. Every money, when you see the earning, your mind is addicted to spend it fastly instead saving for getting future emergency or future opportunity. It is just like, you want to ban your polyethylene container habit. You buy the cotton bag but you do not use it because you do not take it when you go to market for buying your vegetables or fruits.

So, it is necessary to follow following positive action, if you want to break the habit of spending money.

1. Stop Entertainment expenses

Your mind wants to get pleasure through entertainment by watching youtube video, watching tv, tv serial, watching news and reading newspaper. All will empty your pocket. Stop to see any type of entertainment. It is the wastage of money. Sell your TV in dust. Stop to buy newspaper. Stop to go to theater for watching new movie. Stop to travel useless for entertainment without any biggest goal of your life.

2. Make the Strict Budget of Your All Expenses

When you will receive any income, you need to control it through budget, otherwise, it will die soon in useless expenses. To make budget is very easy. It is good habit. Under this, we estimate our all next month important expenses for operating our business and home. Rest money, we need to save for future benefits.

3. Visualize all Future Opportunities

You should have future investment goal. This goal is visualize about how to catch your future business opportunity by investing your money.

4. Stop the Use of Petrol Useless

If you are wonder on bike or car useless. Stop it, it will increase your bill.

5. Stop Electricity Useless

If you are using electricity without any use, stop it, it will increase your electricity bill.

6. Stop Internet Useless

Stop your Internet if you use it for pleasure of your mind instead achieving your biggest goal. Pleasure of mind will bring biggest expenses because you will be giving the space to advertising in your mind. This consumption will increase your expenses.

7. Stop Use of Mobile Useless

This is great invention but you should not use it without aim. Keep your mobile always on silent. It will help you to focus you on your goal.

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How to Use Saved Money

2017-10-21T10:53:00.001+05:30

Many people save money every month because they have the habit of saving. But many people do not know how to use the saved money. If you have the good habit of saving money every month, you can use it as to promote your passive income. Following are the simple steps to better use of saved money.

1. Don't Use Saved Money for Buying Your Liabilities

Are you buying your own home or new car for living with your all saved money. Please stop this. Both personal house and a new car for personal use are the liabilities. Because it will not inflow of cash in your pocket. For example, you have bought your new house for personal use.

It will outflow your money for

a) For cleaning home everyday.
b) For Repair its all furniture.
c) For its security.

If you have bought new car, it will outflow only your money.

a) For cleaning car everyday.
b) For Service and repair after some time.
c) It has high depreciation rate.

2. Don't Get Personal Loan

If you have taken personal loan, you need to pay its interest. For paying interest, you will have to take money from your saving. So, this will be the wastage of your saving. So, never use saving for this purpose.

3. Don't Keep Saved Money in Cash

If you are enjoyed to see always saved money in cash. After sometime, its value will decrease due to inflation. Inflation is the depreciation of cash money.

4. Invest Your Money in Commercial Properties

This is the best way to use your saved money. A single commercial properties has multiple benefits.

a) You can give its one shop for rent.
b) You can keep some part of it as kitchen garden for organic production.
c) Some part of it, you can give on rent.
d) Some part of it, you can use for store your business material.

5. Invest Your Money in Business Machines

It will be the equipment for business finished products which will give you the profit.

50 Money Saving Tips | Simple and Logical

2017-07-12T15:22:00.002+05:30

Please check the list of our 50 money saving tips which are simple and logical and which we have used in our life.

1. Never Eat Meat, Chicken, Non-Veg and Eggs

Logic : It increases chronic diseases and due to this your medical cost will increase. By leaving these, you can save the money from health expenses.

2. Make Your Food Yourself in Home

Logic : It will save your cost of hotel bill. It is also healthy and you can save doctor fees.

3. Buy Food and Other items in Lumbsum Non-perishable)

Logic : It will give us big discount and it will save our cost.

4. Grow Vegetables and Fruits in Your Kitchen Garden

Logic : Try to grow organic green vegetables and fruits in your kitchen garden. It will save money which you spend for buying vegetables and fruits from market.

5. Use Cooler instead AC

Logic : It will decrease your electricity bill and you can save more money.

6. Read Money Saving Books More and More

Logic : There lots of books which has been written on saving money, you must read. It will give ideas for saving money. With these ideas, you can save more money.

7. Use Normal Water instead Freezer

Logic : It will decrease your electricity bill. It will make you healthy. So, you can also save your doctor's fees and medical bills.

8. Work in Natural Light

Logic : It will save your electricity and it will save your eyes. Both will help to save your money. If electricity will save, you will save money. If your eyes will save, you need not go to you eye specialist and pay money to him or her.

9. Making the Habit of Monthly Saving

Logic : If you make the habit of monthly saving, it will happens automatically because every save money will give you reward to save more money.

10. Use Cheap Way to Repair Your Furniture

Logic : If there is breakage or anything with your furniture, you can repair it yourself at your home. For this, you just buy the book of Carpentry and learn its skill and save your money. I have some carpentry skill, so, I repaired my chair myself and saved my money.

11. Use More Cycle instead Bike or Car

Logic : If you will us more cycle instead bike or car, it will save your petrol cost. So, you can save same money.

12. Do Exercise Daily

If you will do exercise daily, it will help to prevent chronic diseases. So, you can save money from medical bills.

13. Make Tulsi Tea, Thandai, Golab Jal and Pudina Jaljira and Decrease the Budget of Milk

Logic : Milk is costly. If you are unable to buy the milk because you save the money, you can use tulsi tea ( leaves of tulsi and boil in water and drink), thandai, gulab jal and pudina jaljira. All are available very easily and free in your kitchen garden and you can save money from milk.

14. Use Handpump instead Sumbercible Pump

Logic : Submersible pump increases your cost of electricity. So, use handpump and save this money.

15. Use Sun for Making Food

Logic : There is sollar cooker which you can use and it is free fuel for your food. With this, you can save your gas bill.

16. Never Cut Hair and Saved Money

Logic : There is no big need of cutting head hair. Grow it and it will save your money.

17. Shave with Own Shaving Machine

Logic : Buy a shaving machine. Use it and it will save your money.

18. Use Dasi Ghee

Logic : Except Dasi Ghee, all other oil is dangerous for heart. If you will face heart disease, you will have to pay big medical bill. So, you can save this money by using only dasi ghee. If you do not have dasi ghee, no need to buy any other. Just boiled vegetables is better than other.

19. Never Watch TV and Read Newspaper

Logic : Both TV and newspaper brings negativity and increases your life's cost. Negative is harmful for your health. For example, today, you are very motivated but you listened that 200 people died in train accident in other country due to big flow this news. What can you do? Can you stop train accident? No, because it is not in your hand because there may be 100 of reasons including technical defaults. Yes, it will surely decrease your positivity. What is the need to do work when one day, I and you will die in train accident. So, you start your day from hard work to laziness due to this news. So, with laziness, your income will decrease and your expenses will increase. So, you will save less money due to this. Moreover, it is full of ads. Which will motivate you to spend money. Spend money means, you are leaving the habit of saving money which will grow your life. So, no tv and newspaper, means no idiot box and idiot paper in your room which encourage you to spend money in waste products.

20. Quit Bad Habits

Logic : A single bad habit spoil the life whether it is gambling, smoking, drinking or unethical relation with same or opposite partner. All will waste your money. Wasting of money will increase day by day and one day, you will be poor and will become the slave of money. At that time, money will become your master and you will do more hard work but you will get less because you deserve for it due to your bad habits. Saving is good habit which only comes by quitting all bad habits.

21. Be Careful in Construction

Logic : Yes construction will waste your money more. It needs huge money. So, if you will not be careful, you will spend more money and less save. So, following my tips for saving money in construction.

1. Buy the construction material by correct budget of construction usages.
2. Make the stair when you start the construction.
3. Water supply is must. So, invest money for this first.
4. Please increase the level first if you want to construct the building.
5. Base must be with iron rod.

22. Do Work Yourself and Save money from Servants

Logic : If you will leave the laziness and do your work yourself, you can save money which you will give to your servant.

23. Open RD Account

Logic : There are lots of saving benefits of opening RD account. It will encourage to save more money and also make money. So open it as soon as possible.

24. Ban Credit Cards

Logic : If you do not need of credit card, ban it. Because it has lots of charges which will loss your capital and decrease your saving. Keep normal ATM card.

25. Sell Scrap

Logic : If there is useless things in your home or office. Sell it. It will increase your income and same income, you can save.

26. Travel with Foot or Cycle for Holidays Picnic

Logic : Great, you are enjoy the travel or picnic in holidays. Use your foot or cycle for this, it will save your money which can be used for more saving.

27. Laugh One Hour and Save Entertaining Cost

Logic : Laughing is powerful to save money. If you are laughing, you need not take any help of entertainment. So, you can save the entertainment cost. Same money, you can save.

28. Get Warranty Card

Logic : Everytime, you buy, please get warrent card. If same product has damaged, use it and it will save your repair cost. I got benefit regarding phus button. It was damaged and it was under warranty. So, I got free replaced product.

29. Do Exercise in Own Gym

Logic : Everytime, you will go to Gym, you have to pay monthly fees. Open your own personal gym in home. It will save the cost of gym. Same money, you can use for saving money account.

30. Never Take Loan

Logic : There are lots of side-effect of taking loan. Never take it. If you have your own money, do the work. Otherwise stop the work. It will help you save money because you do not pay interest on borrowed money.

31. Try Naturopathy for Curing Your Disease

Logic : Naturopathy is totally free system of treatment of any disease. I treat myself without any medicine. From last 20 years, my budget of medical treatment is zero. You only need to get knowledge of naturopathy. So, you can get same knowledge from my free video tutorials at my Swami Dayanand Naturopathy hospital or by reading of our naturopathy books.

32. Slow Your Vehicle

Logic : If you will slow your vehicle, there will less chance of accident and defects in your vehicle. So, your vehicle repair cost will decrease. Same money, you can save.

33. Make Own Toilet Tank

Logic : Instead giving monthly bill to municipal committee for distribution of your home toilet. You make your own toilet tank in your home. So, it will save your money.

34. Use Neem Ka Datun

Logic : All toothpaste have poison. You have to pay money for buying it. Stop it and start to use neem ka datun. It is free and it will help to save money.

35. Bargain when Buying Anything

Logic : Try to say to less the price if you are buying anything from market. Seller will surely decrease the price. So, you will get discount and you can save this money.

36. Use Free Option of Advertising

Logic : There are lots of free options of advertising. For example, I am writing this content because, I am using it as tool of my free advertising of my ebook 100 steps to success sale. If you will read it, you will encourage to get this ebook because only those person will save who want to get success in life. For selling this ebook, I can use paid option. But, I have invested my time for promoting it. You can also use this tip for saving your money from investing on advertising.

35. Learn Accounting Yourself

Logic : If you will learn accounting yourself through our online accounting course, you can start to provide accounting services and earn money. You can also start to solve your own accounting problems. With this, you can save money.

36. Track Spending

Logic : If you will start to track spending. You can find useless expenses which you can stop. By stopping useless expenses, you can grow your saving money.

37. Challenge Yourself To Live Without Sugar For 30 Days

Logic : If you will write a new challenge not to eat sugar for 30 days and live without sugar, you can save sugar money and diabetes. So, it will help you to save more money.

38. Do not Loss Money in Financial Frauds

Logic : Due to greed, you captured in financial frauds. Financial frauds can consume your 35 years whole saving and give zero return. So, be aware of all financial frauds before investing money in anything. Your awareness of financial knowledge will save your money from financial fraud.

39. Write the Book

Logic : You can write your book on Saving. It will make your mindset as saver of money because for writing the book on saving, you need to read many books on saving in your library. You will gain lots of new knowledge. During writing this content, I gained also lots of new knowledge which will help my money and save more. It is also sure, writing the book will increase your new source of earning plus save your money from bad habit of spending unproductive.

40. Make the Online Course

Logic : Do you know that if you have saved money through compound interest, you will soon richest person of the world. This is power of compound which I will elaborate in next content. Here, I can say only that you can make the online course for telling the benefit of saving money. Your voice is great song for world. So, this creation will increase your earning and save your money.

41. Never Give Loan to Parent, Brothers, Sisters, Friends and Relatives

Logic : Never give loan to Parent, Brothers, Sisters, Friends and Relatives. If you will give the loan, you will lose both relation and money. Same money, you can save if you stop your habit to give loan to Parent, Brothers, Sisters, Friends and Relatives

42. Never Slave of Money

Logic : Money is good slave and bad master. If you will not save the money, you will not have money all time. So, without money, money will not become your slave. It will become automatically your master and it is bad master. If any person's mother is in the hospital, company boss may say no leave. Do work or get out for life time. If he leave the job, he has no money, he can not save the life of your mother. If he will not near your mother, no one save his mother. So, this is dharam sankat. So, never slave of money. Save the money and become the master of money.

43. Work More and Work Hard

Logic : For saving money, you need to do hard work. Do more hard work. It is one of key of your success in money saving.

44. Focus on Saving through Saving Money Meditation

Logic : Focus gives the power to do your work better way. If you have focus on saving through saving money meditation, you will surely save more money. For this, you have to do some preparation. Like preparation of exam., you get up early in the morning and start to learn. In saving, you have to focus and you will get success.

45. Stop to Fear about Losses in Business

Logic : Fearful thoughts are the big barrier of life. It limits your life. Stop this limitation. You have power and you can save the money by stopping fear about losses in the business. 90% your fear are not existence. There will not happening anything what you are thinking about the failure of your business. Your business will grow and you save its earning first to pay yourself by saving.

46. Dream Big and Think Rich

Logic : Only dream big and think rich, you can start to save big. If you have to dream small and think poor. You never save big. For example, you have to go world travelling for one month, for this, you need RS. 50 Lakh. It means, you have to get Rs. 50 Lakh by saving big and this is possible by dreaming big and think rich.

47. Save Your Earned Interest

Logic : If you start to save your earned interest, you will soon become rich due to compounding of interest and reinvesting it in saving.

48. Find the Substitute of Expenses

Logic : Do you know there are millions of substitute of expenses.

For example

1. You can buy food or you can also get free food from Gurudawara and temple.
2. You can use own vehicle or you can get free lift from other vehicle holder.
3. You can work in own internet or you can use free internet wi-fi in railway station.
4. You can live on rented home or you can live free on footpath.
5. You can use paid hosting or you can use free hosting through blogger, wordpress and other blogging plateform.
6. You can buy your own domain name or you can use free domain's subdomain like yourwebsite.wordpress.com or yourwebsite.blogspot.com

49. Never Save Tomorrow What you can Save Today

Logic : Only unhappy people save tomorrow what they can save today because they believe today spending and enjoy by consuming all money and tomorrow, they feel millions of problems due to shortage of money. So, be happy by save today money today instead tomorrow.

50. Search New Ideas of Money Saving Online

Logic : Online is full of new ideas of money saving. You just give your time to search and follow in your life.

How to Make Money in Recurring Deposit

2017-07-04T21:03:00.005+05:30

Yes, it is sure, you can make money in recurring deposit. Recurring deposit is saving money in a account and you deposit every month in it and lock to withdraw money from it from specific period. It may be 1 year, 2 years, 3 years and 5 years. Moreover you can open unlimited RD deposit account in different bank account.

Now, we come to the topic about, how can you make money in recurring deposit. Simple, you make money with compound interest. You get interest on collected interest amount.

Following are simple step, you can make money in Recurring Deposit ( here my meaning is passive income, you will not do any active work and you will earn)

1st Step : Set Goals

Without definite purpose, you can not make money life time from your recurring deposit. You must set the Goals which will you achieve through your recurring deposit accounts.

Remember Important Point : You must not withdraw or close before achieving the Goal

I am giving the Example of Your Goal

1st Goal : Make a Residential Home for Getting Rent Money Life Time

Yes, it is definite Goal. In India for this, you need RS. 8,00,000 and you can make a small home of 2 beds room, one kitchen and one bathroom and you can get the rent money life time Rs. 3000 + value of your property will increase by spending the time.

Now, Estimate How can You Achieve this Goal with your recurring deposit if the interest Rate is 7%.

If you will open RD account with Rs. 20,000 per month deposit @ 7% interest, you will get = Rs. 803260
at the end of 3rd year and In these money, Rs. 83260 has earned by your deposited money. Now, you can ready to achieve your goal.

2nd Goal : Make the Goal of Life Time Pension

For example, these day, survival pension of retired person is Rs. 30000 to 40,000 and if you will be retire after 15 years, it means, you need Rs. 60,00,000 for same standard of living. So, you need to use RD for 15 years for achieving same goal. After this, you can fixed it in Govt. monthly income scheme.

2nd Step : Trust that Recurring Deposit will Make Money for you

In above example, you have seen that within 3 years, your RD account has created Rs. 83260 new money for you. It means, money jobs for you. You just control on your expenses and achieve more and more monthly RD saving goal. Trust that recurring deposit will make more money than your active job will surely make money, otherwise, you will break it and consume it for non-productive expenses like buying of car and entertainment expenses.

3rd Step : Focus on Recurring Deposit

If you will focus on recurring deposit, you can deposit more what you have set goal of deposit in RD. Because when you will get any new earning from your job or business, you consume it by buying new luxury items. Now, you will start to focus on recurring deposit and it may be 10 to 40% of your new earning and it will make more and more money for you as you will increase its amount.

4th Step : Deposit in Recurring Deposit by Creating Your Hard Time

Yes, it was the time, when I was unemployed. Yes, it was the time, when I was no customer. Yes, it was the time, when there is no income from my profession or business. Yes, it was the time when no ebook or online course was sold. That was my hard time. Like me, there may be also your hard time when you were unemployed or you were not business or profession income. But, after job or earning from business, you forget your hard time, so, you have started to waste your earned money by consuming it more and more. But now, you have to start your recurring deposit by creating same hard time for you. If you can live hard time, you can now also leave in hard time. Every hard time brings new opportunities.

You will stop to eat outside, it is creation of hard time. It will save your cost and you can get money for your RD.

5th Step : Stop Recurring Deposit Saving and Hedge it

It is fact, recurring deposit will not give the power of you to make money all time. It can help you to generate required capital for your business. Hedging and investing in different project is your business which will help you to make money. So, try to change habit when you will achieve the goal of your RD and start to invest it where you will get money all time like fruits from tree.

Types of Debt

2017-06-17T16:49:00.002+05:30

In this world, all take the debt. Debt means to take any wealth from other for sometime because without this, it is very difficult to live your life. If you have taken debt, it is also necessary. Sometime, you may not know whether you have taken debt or not due to your ignorance. So, it is necessary to get knowledge of type of debt. ( Read also methods of cost of capital )

There are two types of Debt

1. Voluntarily Debt

(A) Debt which is Given by Our Parent

Our parent give us food, clothes and place for stay. This is the example of voluntarily debt. They spent time for take care. This spending time is also voluntarily debt. Some ignorant people may say that it is the duty of our parent because we are born by them. Ok, you are right. It is your thinking but if parent don't care, orphan home becomes. So, guardian gives us debt. If there will not care, we may die. So, it is debt.

Now, How to Pay Your this Debt

You have accepted that you have taken debt from your parents and it was started from your birth. Following are the way to remove your debt.

Give your Voluntarily Service to Your Parent

You can take following easy steps :

1. Your parent may tired. You can massage to their body. It will help them to get physical relief.
2. You can cook tasty food for them.
3. You can give pocket money to them.
4. You can buy new clothes for them and give them free gift.
5. You can treat their diseases.
6. You can spend their travelling cost.
7. You can clean their home, clothes and utensils.
8. You can add water in their cooler in summer.
9. You can give tasty seasonal fruits to your parents.
10. You can spend your happy moments with them.
11. To marry and bear new kids.

(B) Debt which is Given by Earth Voluntarily to You

As you grow, you get voluntarily debt from earth. You eat food which grows on earth. You make your home and office on the earth. You use wood by cutting the trees. You can say, you have paid for buying space of earth and you have bought wood and construction material. So, it is not debt. But I am saying, you are ignorant because the person who sell you the space of earth, how did he get it. Simply, his older ancestors possessed free of cost. Earth is the part of nature, it is given you on debt for use but you have forgotten it.

Now, start your gratitude for earth mother and start to pay its debt by following action.

1. Plant the trees in your home and office. A single tree gives the stay to other birds. So, by doing this, you are giving debt of earth. I also must plant trees in my home and office because I know this truth that I have taken the debt from earth voluntarily. So, it is my duty to repay it by my action.

2. Give food to helpless animals and helpless people. You are using your home for living and office for business. So, the land is useless for production of food. So, it is your duty to give free food to other children of earth mother.

3. Make the Stay of Helpless people and Animals.

4. Buy the Ticket of Zoo.

5. Donation to Orphan home and Gaushala.

(C) Debt which is Given by Air Voluntarily to You

Day and night, you get pure air and send outside polluted air. Every pure air which you are taking is debt.
Every polluted air by you and your vehicle is sending in environment, is the debt of air. So, it is your duty to remove the debt of air angel by doing act.

1. Plant the trees. It decreases the pollution.
2. Try to reduce air pollution by less use of AC, Freez, Vehicles, car and buses and trucks. If you go near, try to use your cycle.

3. Do yajna. Fire with pure oil and pray of God. It will pure the air. By doing this, you are paying your debt for air.
4. Give free water to thirsty people and animals and birds.

(D) Debt which is Given by Water Voluntarily to You

Every day, you use water for drinking, making food, for construction and for other purposes. So, it is debt which is given by water angel. So, you have to pay this debt by following way.

1. Plant the trees. It helps to bring new pure water and purify earth's polluted water.

2. Do Yajna. It helps to bring rain.

3. Try to reduce the pollution of water and wastage of water.

(E) Debt which is Given by Sun Voluntarily to You

Sun is needed for bringing sweet in fruits. It is needed for health. So, it is the voluntarily debt which is given by sun angel. You must give this debt by following way.

1. Help to Helpless because sun is here for help you because you need its support for making your home and office.

(E) Debt which is Given by God Voluntarily to You

Everything is given by God. So, you are unable to repay his debt. Still, you can do one great work, you can pray of God by following way.

First Pray

Dear God, you are my mother, my father, my brother and my friend.

you are my supporter and without you, no one is for me for support.

Yes, you are only my supporter and without you, no one is for me for support.

You are my ship and you are only my driver for carrying me on my goal.

Dear God, you are my mother, my father, my brother and my friend.

I am the flower which can not grow and I am just dust of your foot.

Dear God, please keep the eye of pity and kindness on me. It will be great support for us.

Dear God, you are my mother, my father, my brother and my friend.

you are my supporter and without you, no one is for me for support.

You are my ship and you are only my driver for carrying me on my goal.

Dear God, you are my mother, my father, my brother and my friend.

Second Pray

Dear God, give me power, so, my self-confidence will not weak.

I must go to the path of goodness, so, I do not do any evil and I will not do evil in my mistake.

Dear God, give me power, so, my self-confidence will not weak.

Please remove the darkness of ignorance. Please give me the light of knowledge.

I must save from bad habits and please give me good habits.

No one should my enemy and I never take revenge from any person of the world

I must go to the path of goodness, so, I do not do any evil and I will not do evil in my mistake.

Dear God, give me power, so, my self-confidence will not weak.

Never think what we have received. We must think what we have sacrificed for others.

We must distribute the flowers of happiness to others and all should feel happy all time from it.

Dear God, please give rain of your kindness on us and we will feel happiness from it.

I must go to the path of goodness, so, I do not do any evil and I will not do evil in my mistake.

Dear God, give me power, so, my self-confidence will not weak.

(F) Debt which is Given by Your Teachers Voluntarily to You

Everyone who gives you knowledge is your teacher. By giving knowledge, he is giving voluntarily debt which you have to repay at any cost.

Following way, you can repay this debt to your teachers.

1. Teach voluntarily to other people. For example, for writing this voluntarily content, I got knowledge from a book Yajna Rehsya. So, with this knowledge, I feel happiness but it is also debt. So, by providing this knowledge to you, I am repaying the debt of my teacher.

2. Support helpless students.

3. Teach free to helpless students. At Accounting Education, everything read free of cost. It is the repayment by me to my teacher's debt.

(G) Debt which is Given by Your Friends Voluntarily to You

Your friend is a person who supports you when you need it really. Your friend may be your brother or any unknown person who support you financially or physically or through his resources. He gives you support and forget. But, you must not forget his debt. You can repay his debt by following way.

1. You also voluntarily support your friend when he needs or he does not need.
2. Give him good gifts.
3. Drink him fruit's juice.
4. Say him, I am really thankful and indebted for your kindness.

2. Debt on Demand

Anyone person gets debt financially or goods on credit. He will responsible to repay same amount and its interest. If he will be late, then, he will pay you the debt, its interest and also late fees.

1. Never take debt from anyone because voluntarily debt is enough. There is no need of any extra debt because you will not any asset for taking any extra.

2. If you have taken any debt, pay it on time with interest.

3. Never make bad habit of taking more debt.

4. If you have given unsecured debt, give and forget. Never take its tension. With this, you can live happy life.

Side Effects of Taking Loan

2017-06-05T07:12:00.000+05:30

I am not against of taking loan for growing your business because if profit margin is highest and interest on loan is lowest, then, this will be the cost of your return. But, all don't know when will taking loan be best for them. So, best policy is not to take loan at any cost. Following are main side effects of taking loan whether it is home loan, personal loan or any other loan.

1. Loss of Money in the Form of Interest

In India, we worship money as Laxmi. It means, it will be live there where anybody will respect it. Loss of money in anything is biggest insult of Laxmi. So, laxmi will get out from your home. In accounting, we can explain it as. When we pay the interest on loan, it is decrease of our capital. With this, our working capital will decrease. Every month, this loss will effect on the routine of our business. So, our business will effected from it. It will decrease our return. Off-season will be worst because we have to pay the interest from own pocket. So, it will become our liability which will we unable to get from customer's pocket even we have the big cash from loan.

2. Tension of Mind

When earning resource will decrease, your mind will feel the tension about how will to repay the loan.

3. Pressure of Repay of Loan

After taking loan, there are two pressure on debtor. One is to repay the principle and second is interest in instalment. If he does not pay the loan instalment, he has to pay also penalty. If he does not repay whole loan, he can lose his property because it will be under the security of creditor. Creditor can sell it for getting his loan.

4. Decrease the Reputation in the Market

Reputation and goodwill is invisible asset of business. If you take the loan and does not repay, it will decrease the reputation in the market. This is side-effect of taking loan. By taking loan, your power has increased but if you have the bad habit of misuse of money, you can not use it effective way. Due to this, you will waste your loan and all know that you are unable to repay the loan. So, no one give you new loan in the form of material on credit.

5. Decrease the Value of Own Assets

My friend has take big loan of Rs. 6,00,000 for home and for gambling. There is low resources of his earning. Now, repayment time of loan was near. He was interested to repay loan through selling of his shop. All know the fact of selling the shop. So, dealer started to decrease the value because he needed the money for repaying loan. With hurry, he sold his shop at less price.

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