Trusting the future

I was looking at some personal finance website in India, like this one and this one. Its appalling to see no worth-while content in the Indian scene vs great tools like Mint and Wiki-Invest on this side of pacific.

Anyways i think that this is a great time to take stock of one’s financial health. The stock market and various other financial instituions around the world are facing a grim crisis. If you are a believer magic free market even in face of un-controlled and bottomless stock markets, then its a really great time to invest. However the big question is where to invest? Which stocks to pick and oh yes do you make up your portfolio in these times. Over the next few weeks i plan to address this very issue.

To make a modest start I’m ruling out any form of option trading, as the markets are really volatile, and i’m also going to rule out any chance of investing more that 40% of my savings in the cheap stocks.

Now once we rule out that. With a modest budget of $800 per month what can one do? The strategy i want to pick is buy stocks which were ridiculously high at one point and are dirt cheap (prefarably $1) now. However i’ll only pick companies how have _real_ assets and a _positive_ revenue in this mix. So what are these companies? F?

What do I do with rest 60% well, the dollar to rupee conversion rates are substantially high these days (possibly highest in last 3 years), so i’m going to try and send that money back home to India. I’m not sure though if i want my father to invest that in stocks. He is stock broken full time and has tendencies to over do it. So i’m going to cap that may to 20% stocks and rest as cash. Lets see though, it has to work THE man.game slots

Personal Finance!

Will we ever make a personal finance application which works seemlessly! I tried Quicken for a while and liked it but for some odd reason i switched to Money and man! its so often misconfigures my accounts, i can no longer reliably keep track of my accounts by using the auto-sync button. I have my old quicken and money files and i’m looking for something which will allow me to import them and yep! something which if i start using will still be usable 5 years down the line. I was looking to use some web 2.0 sites like Wesabe, Expensr which claim to have cool community support and very easy to use interface, but i hate the idea of downloading and uploading my bank account files all the time.

Well it happens that i can probably try Wesabe. It lets you schedule uploads if you use firefox. I should rather concentrate on tools to make up and realized financial goals rather than money accounting. Goals are the most crucial aspect of financial management. Well whats your money worth of, if you cant use it for anything@!

So what would be one’s financial goals?

  • Save 50% of Salary
  • Build Equity of 50K
  • Achieve rate of return of atleast 10% on Savings
  • ??

Microfinance

The Microfinance Revolution: Sustainable Finance for the Poor presents the modern thoery of Microfinance. Typically to answer questions like why to lend out to poor and what is the guarantee that the small money lent will be repaid by the poor. A list of detailed research paper about the same appears here. Scoring to lend!! Why would some poor person give money which was lent. I would say only if the money which he got made him some profit! My idea of economy is something is profitable only if it makes a profit for the consumer.

Currency Finance

Monthly Average Graph (Indian Rupee, American Dollar) 2005of Rupee vs. Dollar shows a constant decline of dollar. Dollar is hitting a huge valley. About a year before it was 46.5 Rs. and now its 43.37!! Man!! day by day seems the amount i’m earning is useless, and my efforts, dreams not as grandeur!!

The other thing which have always confused me is how the banks give exhange rates to customers. Is ICICI Money2India good enough for transacting money to my family in India or I losing like a rupee for each dollar. I dont understand. May be one of these days i’ll read something or meet someone who really is street smart in this……but as of now my money is hitting the sink…zooop!!!