Personal Finance: The most required Life Skill for everyone

Why Personal Finance is so important?

Many of us might be feeling insecure when the end of the month arrives, as we will be on low of funds and eagerly waiting for the salary to be credited in the month. so lets find out the importance of the personal finance.

Lack of awareness of about how to manage the money leads people to ask a question “why personal finance is important?

The answers to this question are so many but one of the important thing is that to lead a secured and fulfilling life. Personal Finance skills are important because without these skills people usually spend their life slaving for money. They always stay in debt and cannot catch up ahead. This situation gets worse when this habits passed down to their children and even they end up slaving their lives for money and end up in debts.

In simpler words “Personal Finance is important, because without these generations of people most likely continue to live unfulfilling lives as slaves to money“.

one of the example of Celebrities went bankrupt due to lack of Personal Finance skills.


Every football fan has heard of this name. He is a Brazilian former professional footballer and ambassador for Barcelona. He used to have a very extravagant lifestyle. In 2018 he declared bankrupt having 5 pounds in his account. (

Being rich does not mean managing money well. So today I will help you gain some knowledge on Personal Finance.

What is Personal Finance?

Personal Finance is a term that covers managing your money as savings and investing. Personal Finance includes the budgeting, banking, insurance, mortgages, investments and retirement plans.

But why we denote it as “Personal Finance”, because it varies from person to person. It solely based on person (individual).

Personal Finance is all about meeting the financial goals of each individual. It varies from individual to individual. It all depends on your income and expenses. All these financial goals are based and measured in money. So for fulfilling a financial goal we need money to do these 3 things :

  • Earn money
  • Save money
  • Multiply money (Invest)

Basically we learn managing money from parents unconsciously. As we are doing it unconsciously we develop them biased from each individually. So my recommendation to each and everyone of you is do not copy any individual in managing money as each financial goals are different in the world.

The money management is not only for achieving your financial goals but also to help yourself and your dependents in hard times like when there is no income for you ( in times of retirement or any sudden loss of income source)

Using 3 E’s mantra to manage money.

  • Education : Educate yourself how to handle money.
  • Experience: Analyse your finance experiences, to find trends in where you are spending/saving money.
  • Expression: Bring both education and experiences together to make an financial expression to manage (save and invest ) money.

Experiences include all to know which type of investments will help you in long run. So start early to experiment yourself to find your financial goals and what works for you.

For more on Financial Planning click the link and give it a read. It will help you to be one step closer to achieve your financial goals.

stay connected for more updates on Finance.

6 ways to make profits in market

6 way to get consistent profits

Today we will discuss about the 6 ways to make profits from the market. But first lets ask yourself some questions before diving in.

Are you following tips/recommendations from friends or so called guru’s blindly without any proper research by yourself?

Do you know when to exit and book your profits?

If you don’t have answers for the above questions or you are not satisfied with answers, read to the end.

Though there being many people who made it big from trading the equities, but its not that easy. For making that big one should be so patient, self-disciplined. And it also requires good amount of research on the markets.

In the recent months the market is being so volatile and left traders in confusion whether to hold or sell. There is no perfect formula for markets that can give 100% assurance on the market situations. But there are some rules to get profits consistently…

1. Know the type of Trader you are :

There are basically 2 types of traders in the market.

  • Fundamental investors
  • Speculators

The major difference between these 2 types is that how they see the price of stocks. Fundamental investors gives less importance to price, they give priority to business behind the price. Business includes management, product, model they follow. But on the other hand speculators give importance to price. They follow the technical analysis, where they do not do any research related to business behind it. They follow some indicators like head & shoulders, shooting stars, MCAD, EMA 200, DMA 200…etc and these strategies built up on the historical data of the stocks. This can be called as price action trading.

2. Always have Realistic goals

You can expect best from the investments you have made, but if you don’t have realistic goals you may get in to some real trouble. Never expect same results from the markets.

Realistic goals can be short term and specific to a stock like target price. Before investing in a stock calculate ‘how much money you will make’ in this investment. Of course, you need to make a few assumptions to do this calculation. But do calculate. Most often investors tend to ask the share is undervalued or overvalued. let a share be price 100 and set a goal that if i get some 20% returns i will book my profits.

3. Trust your Intuition

Understand what makes up your value system and own it. Live it. Work it. If you don’t start leading from within, taking control to acknowledge your own values and beliefs and the person that you are on the inside, you will never be capable of being the better person on the outside. This system is unique to you and it is your responsibility to take ownership. There are times when it will be challenged or when you will give in to other’s values—and you will look back and wish you had trusted your intuition. That intuition, that gut feeling? Don’t ever mistrust it. It is a key part of you, and you should learn that it is one of your best assets. Ignore at your peril.

Believe in yourself

4. Have a disciplined approach

Study the history of markets, and one would notice that even the best bull runs have given many panic moments to the investors. The people who dont have disciplined approach have struck with these panic moments and lost money even in the best bull runs. But the people with a plan/disciplined approach have made outstanding returns of the market. so make yourself a disciplined approach now. In the next post I will be sharing an approach I follow so stay tuned 🙂

5. Always stay away from “THE HOT STOCKS”.

The hot stocks are those stocks which have some attention catching activity such as severe volatility in share prices, high trading volume or when the stock is in news. Stay away from these hot stocks.

Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can’t buy what is popular and do well.

Warren Buffet

6. Look at quality businesses; not just the stocks.

Do a little research on the Business behind the price. Checkout the balance sheets at least for past 5 years.

When I buy a stock, I think of it in terms of buying a whole company, just as if I were buying a store down the street.

Warren Buffet

If you are buying a shop, you will analyse about the products dealt by the shop, overall sales, consistency of sales, competition for the shop, competition strength of the shop, how the shop will manage the change in customer trends and so on. We need to apply a similar logic before choosing a stock. Don’t think that you are only buying a few shares of that company. Will you buy the whole company if you had enough money?


Greed and FOMO( fear of missing out) are the two main things that cause losses

Never chase a running stocks and book the target profits no matter how much the stock grows. You might not know when it will dip. So book the profits at targeted price.

I am using this beautiful tool for my analysis on Indian market shares. It helped me alot with for doing some quick analysis.

The above mentioned are just a simple tips that can make lot of difference in your trading journey. Happy Trading 🙂

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The Art of Financial Planning

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