The Beggar- Stranger Theory (A life's learning theory)

 Disclaimer: The blog is not meant to hurt someone’s sentiment and its only for knowledge purpose.

The Beggar- Stranger Theory (A life's learning theory)

Last evening, when I was coming from office to Home in office car, I stopped at near by restaurant which is located at my home. After 3 hours of long drive, My-self and the Driver was very hungry. We need something to feed our self. There was Farsaan Shop who provide variety of snacks. We park the car and went there. We ordered Samosa and waiting for the delivery of the same.

 

When we are waiting for the delivery, I observed that, there was woman and child standing just near to the shop. Woman is forcing child to go and ask for some help (Money or food)- to the strangers. They are begging to the strangers for support. Woman was carrying one plastic box which she holds, so that strange helpers can put the money or food on that.

I saw boy approaching to me and I realized that the woman forced this boy to come this side. Boy approached me and asked for help with both hand open. I told woman to come nearby to the boy. She came with the same plastic box, which is Empty.

My though was, did anyone helped her or not through out the day? Why her box is empty?

I took my purse and kept some change in the plastic box. Now both Woman and Child, going to see the other strangers and asking for help. I observed that, when woman is approaching to the next stranger, she took all the money from the plastic box and kept the same in her shoulder carry bag. I did not realize, what happened. My driver told me she wants to portray the other stranger, that she does not have anything as of day, so that other side have some courtesy and support the Woman and child, its an emotional thing.

Suddenly one phrase comes in my mind, “The Beggar- Stranger Theory”, which given me thought to write this blog.

                                      

           So here is the idea. When someone wants to learn something from somewhere, keep your ego down, have an empty box (Mind) and keep collecting the knowledge from the stranger whenever possible. Do not stop learning and keep bagging for the same throughout your life, as this is the only area where you can have things like,

1)      Meeting multiple strangers

2)      Learning new things

3)      Keeping you Ego and attitude down

4)      Knowledge upgrade

                                 

           When you show your ego and attitude, people and friends tend to leave you and they do not come back with the same mind and thought. Also, when you think your knowledge is more than the other side, they stop discussing the things. Let the other party tell you what they have with open mind, then its your choice to keep it with you and destroy the same.

          Other side is also important, the Stranger side. They also support the individual who require knowledge upgrade and enhance their learning. 

Like her box become empty every time when she reaches to the new stranger, same way, when u want to learn  something from stranger, keep you mind empty which have non productive things, which blocks the learning possibility of individuals. So, let’s have good relation between Beggar and Stranger.

                                  

Noise Thinking- Don't be victim of Noise

Noise Thinking:

I came to this phrase today and though to write something about this. to narrate this will tell u a story, so that one can connect and appreciate the thought.

There was a village and in that no single doctor was there. One family sent his child city, to learn the join doctor program and become the doctor. The child become the doctor and came to the village. Their parents were very happy and fellow friends and villagers were feeling un-comfortable. As he is the only doctor in the village, his earning is good as compared to other people in the village.

Based on this situation, most of the villagers started encouraging and convincing their child to become the Doctor. Even their children are interested to become something else and not doctor. So most of the children went to city and started taking doctor program. They came back to the village and started practicing. As previously there was only one doctor in the village and his earning was good, not the doctor count has been increased and earning has been reduced for all the doctors in the village. There was no diversity in the village people as most of them are doctors and no other professions.

As the number of doctors has been increased in the village, which resulted in reduction of the earning. Villagers has used the NOISE Thinking and did not listen to their children. Now these doctors have to come out of the village and look for new places to do the practice.

Based on the above story I can drive that ”Follow your dream and not the Noise Thinking. People will tell different things and tell you to join this course or that course, that will benefits you, this will benefit you.. Listen to them as they are well wishers of you, but think multiple times before applying Noise thinking on you.”

Now a days we are getting lot of free education and from various resources. One need to find the course and program which suits your personality, thinking, future development etc. Do not directly jump into the course, because your friend has joined the same. Think, Think, Think, apply.

Don’t be victim of the “Noise Thinking”.

Attitude matters: A small story

Attitude matters, at least to me..

During my previous endeavors, there were few employee with whom I was working on daily basis. There was an incident happened which given me a good lesson of life.

The incident was the employee has put down his papers and serving notice period. Suddenly the employee has stopped working and not contributing/ completing his daily provided task.

I went to him and I ask, "What is the reason, you are so reluctant and not working now a days. This Behavior was seen after you put down the papers (Resignation)."

He promptly replied, "I have put down the papers and I do not have my liability towards the company".

I said, "As you are serving the notice period, you do have a liability towards the company and you need to focus on completing the provided task, rather enjoying the notice period. Will you be happy if company stop paying you for the notice period you are serving??".

He did not turn back.

Usually I found such kind of people who think that, after the resignation and serving the notice period, they should stop working and contributing. In this process they lose the professionalism and organization level thinking. They also loose the greater insights, that is they are serving the notice period and organization is paying the salary for that period.

Refusing to work is not the correct steps which he has taken. 

Instead I suggest the followings,

1)   Complete the provided task, as ask for more work or help your colleagues.

2)    Give proper training to your backups.

3)    Prepare the document, which tell your supervisor, what are your workings and deliverable, this help the other member to create proper backups.

4)    Don’t change the attitude and meaning at work place. Do remember, why you wanted this job and you joined the organization.

5)    Maintain good repo and bond with everyone, you may not know, who will help you in future.

6)    Share your knowledge with the team and don’t let team to know, you did not belongs to them, after resignation.

 

While hiring the candidate, I mostly look for the Attitude and less on the knowledge.

Attitude matters most to me when it comes to Personal life and professional life.

Keep and develop good attitude and lead the rat race in the life.

The Book "You can win" by Shiv Khera is great book to change the attitude and focus on productivity.

Who came first: Saver of Borrower (Version 0.2)

Version 0.2:

I was watching one show TMKUC and in that, they were talking about the investment. One statement I discovered during the show was “If you want to do business and want to take risk, use Bank's Money, do not use personal money”. 

I came across such situations where this statement looks true in nature. The FI market have lot of examples which proof the above statement.

If someone is taking money from Bank for his expenses/ investments, Business expansion, working capital loan etc they are using ultimately Investor’s money (Saver’s money). In traditional way, the Saver can save money using the Time deposits (Saving account, Fixed deposits, Recurring deposits etc.). this instrument is very much attractive and considered Safer in nature. As Saver’s believes that keeping money with Financial Institutions like BANK. The banking system have different players like the followings,

1.    Patpedhi (Local FI who provide the Deposit and Lending services)

2.    Co-operative Bank

3.    Public Sector Bank

4.    Private sector Bank

5.    Foreign Bank

6.    Central Bank

All these institutions accept the Deposits and provide Lending services. Some of the FI are regulated and governed by the central bank of the country. These institutions provide interest rates from as low as 4% to as high as 9%. These institutions operated based on the trust they have created in the Minds of the consumers and in the market they belong.

In recent times, it was observed that, Banks are getting failed to their regular business. Means they are unable to give back the Depositor’s money when demanded by the Saver’s. This happens because Bank are not able to recover the money from its borrowers. Also, it was found that the Saver’s are losing his or her corpus due to this as Banks can not able to fulfill the liquidity requirements.

My biggest worry is who’s interest should be first taken into consideration, Saver’s or Borrowers’ by all these FI. Who Comes First.

Can we have mechanism where the Saver’s can be able to identify where is his money and with whom it is going to be.

Can we have mechanism where Saver’s can able to approve or give consent to the FI, whom to loan the money which is deposited by the Saver’s in the FI.

Retail customer can not able to know where his funds/ money is getting utilized. HNI or Big institutions do have such option to choose where to loan money or not using FI platform or system. Maybe they don't know as well sometimes.

Risk is involved in all part of the Investments and borrowings. Only possible way with the investor is to minimize the risk using DIVERSIFICATION.

catch you in next volume..

Who came first: Saver or Borrower (Version 0.1)

Volume 1:

In the financial market, we basically have 2 parties of the transactions. Lender / Savers and Borrowers. Savers do saving for their future where Borrowers needs money to finance their current events. These events can be in terms of short term or long term requirement.

Short term can be,

• Buying food,
• Clothes,
• Home appliances,
• Personal celebrations like Marriage, Honeymoon etc.
• Home improvement

Long term can be,

• Buying a property like House, plot, commercial or residential
• Buying equipment’s like Manufacturing machines etc.

Savers save their money and get some sort of benefits for saving these funds we call it as Interest/ Profit. Whereas when borrower takes the money, he also needs to give the money (Principal) back and with more money which compensate the usage of principal funds for the duration, which we call as Interest. If these Savers and Borrowers deal with each other, before the deal there should be a trust factor that needs to build among them. As during this kind of one to one transaction, problem has started mostly from the Borrower side, where he refused to make re-payment of Principal + Interest on time and the trust has been broken.

Savers/ Lenders postpone their utilization of Money for the future and Borrower will utilize these servies/ products Now, with borrowed money. So in present Lender has Given Up the Money (P) and Borrower has Taken Up the Money (P). In future, Borrower needs to Give Up the Money (P) and Lender should Recover or Take Up the Money (P +I).

  

Event	Lender	Borrower
Present	Given Up the Money (P)	Taken Up the Money (P)
Future	Recover/ Taken Up the Money (P + I)	Give Up the Money (P + I)

Where there is small gap between the Lending the money and taking the money back, Liquidity arises. When there a big gap between the Lending the money and taking the money back, Liquidity problem becomes solvency problem. Liquidity problem are short term in nature and Solvency problems are long term in nature.

To build the trust, new parties has been started getting involved in these transactions. Who fill the gap of Trust between the Savers/ Lenders and Borrowers? These entities are Financial Institutions like Bank or NBFCs. When the new parties are getting involved in such type of transactions, it believed that the market conditions should get improved from both fronts i.e. Savings and Borrowings.

This Financial will set Interest rate from both sides of the transaction and difference of the interest applied from Saving and Borrowing side, profit will be booked for Financial Institutions. These are called SPEAD.

The process was going smoothly for all the 3 parties, Lending, Borrowing and Mediator. Note that, here Savers/Lender did not know to whom their funds are lying. Means whether their funds has been given to borrower or money has been kept in Banking lockers for provisioning. In this case savers/ lenders only need to contact with his or her Financial Institution.

In similar ways, the Borrower when take the money, it is the Financial Institution who lend the money to Borrower. Here in this case borrower did not know who’s money he is using. Borrower needs to repay the Principal + Interest to the FI on scheduled time and frequency.

The problem has not solved yet. The problem of getting Principal + Interest from Borrower. Trust factor has been increased due to availability of huge corpus of the Savers/ Lenders with FI and making this Money available as finance to the forward customers i.e. Borrowers. Borrowers again breaking these trust and not returning the money to FI, which intern the money of the Savers/ Lenders. One point needs to make is that, the Savers/ Lenders can be Inside or Outside customers to FI. Inside could be the Investors who put their money, to run the FI. Outside Savers/ Lenders could be individual customer or corporate customers.

As single individual can be a Saver/Lender or Borrower. For example a salaried employee saves funds in PF and can have home loan. Based on the saving behavior, FI and Government has come up with different types of saving products which give Interest/ profit differently. In similar way, from the borrower side, different product has come up to suite the needs of the parties.

To create money in the system, usually there are collateral which give support to the money created in the system. These collateral can be of the Real or Financial and that can be of the followings,

• Gold
• Silver
• Oil
• Plot or Lands
• Treasury Bills/ Notes / Bonds
• Cash Management Bills
• Currency Reserves (Again backed by world reserve currency like USD, EUR, GBO etc.)

Based on these collateral, new money gets circulated in the system, and FI believe that they will support the Economy.

Five Investments options during COVID19: Personal and Financial level

Five Investments options during COVID19: Personal and Financial level

During this tough time, where earnings has been reduced, job has been lost, government is planning aggressively to fight with pandemic both at Population level and Economic level, one need to change their habits in terms of Personal and Financial level. Based on my personal experience and knowledge, I am bringing the Five investments which an Individual can do in terms of Personal and Financial level.



Personal Level:

1) Develop Mental Health: This is very important in terms of all the options. Mental health will give very good support to individuals to stay Focused, Healthy, Stress-less, etc. in the current pandemic situation. Watch motivational videos/ movies, read Fiction or non-fiction books, do Yoga (focus on breath-in and breath-out) etc.

2) Maintain Physical Health: Adopt a good habit of Gym exercise, Yoga, Dance etc. As this will make your Mind, body in good shape and you will feel relaxed, energetic and focused. Blood circulation will also improve in these cases.

3) Eat Home Made Food: Eat mostly homemade food and include vegetables, fruit, grains, spices etc. in your diet, include milk with turmeric, Garlic, Hing, Cumin etc. Clean the food before serving and preparing.

4) Have some Play: Try to play some indoor games like Chess, Carrom Board, Saap Siddi, Ludo etc. If you have children at home, that will be good, they have some crazy ideas and try to mingle with them and do whatever they say, you will definitely enjoy the togetherness and craziness with children.

5) Maintain good Hygiene: This is for the precautionary measure one need to take. From here on-wards, personal hygiene becomes necessity and important. Government is also encouraging to maintain the hygiene when going outside, specially when going in public places like train platform, Airport, bus stop/ depot, shopping malls, cinema halls, etc. Wash you hands with Soap, take proper bath, clean your home, clean your washrooms, clean your clothes on regular basis. Teach these good habits to your little one as well.



Financial Level:

If one have good finance available during this pandemic situation and can foresee that he can manage his finances in long term, he can choose the following investment options. These options are applicable for individual customer segment who is in Higher Middle class, Higher class level (Exception to this are always available).

1) Invest in Properties: Buying properties can be a good and fruitful bet during this pandemic situation. Interest rates has come down and now home loan is available with 7.8% PA. Choose good bank to bank on. I prefer HDFC, HDFC Bank, SBI, ICICI Bank. One can buy properties like Residential Flat, Plots, Commercial premise, Auctioned properties etc. While selecting the properties, you need to consider the reputed builders, good locality, good amenities etc.

2) Invest in Shares: Currently share market facing downhill situation and major share markets had been crashed due to COVID19 impact. Business are not running their operations, cash flow (In and Out) has been minimized hence economy is going in no growth trajectory. In the Share market, majority of shares are now available at a discount of 30% to 80%, means share which are trading during Jan at peak level say INR 1000, now sharp correct has been seen in these shares and available to say INR 300. Look for the quality shares in the market. Before any investment in these instruments, please discuss with your financial advisors. Investment in such market is risky and one can lose his or her corpus.

3) Alternate Investments: These include investments in precious metals like Diamond, Gold, Silver, Platinum, Palladium etc. One can buy luxury goods such as watch, decorative items etc. as they are available at discounts at this situation. Gold and Silver are the topmost choice as their demands are keep on growing and can also be sold in the market as liquidity in these metals is good. Gold is treated alternate to the Money in the economy.

4) Investment in Startups: During this situation investment in startups is not recommended y most of the analyst, but I prefer one can invest in the same. As an investor, you can ask for good equity in the company. After the lockdown gets over, these startups again be operational and do good business. Personal equity investment is good choice, but one need to do proper analysis on the startup business, before the investment.

5) Investment in Agriculture: In this segment, one can do investments in Cold storage, supply chain management, Distribution, Wholesale business for the agriculture products. These are fundamental business and the requirement for Agri products are keep on growing. Investment in this segment will be good bet and should be linked with long term growth.

Disclaimer: The above inputs are my personal opinion and thoughts.