A father and his 11 year old son are watching The Discovery Channel. They are watching three trekkers trek their way to some place through a forest. They come to a clearing and have lunch. They have lit a fire and have consumed a rabbit which they caught. Also they ate some tins of meat from the supplies that they had brought along with them. They take a look at their rations and proceed. Several times it happens that the mountaineers come to a clearing of sorts where the leader of the trek elaborately takes a pen knife and a stone and marks the tree. This happens several times which prompts the son to ask his father “Dad! Why are they doing this tree marking?”

His Dad explains: Son, They have to come back on this route two days later when they finish their trek and head back. They are making it so they know their way around.

His witty son asks “Why don’t they use GPS and Google maps?!”

His Dad rolls his eyes and says “Oh God! Maps don’t work in a forest son!”

Sure enough halfway into the show the trekkers do get lost and grope around for any sight of a clearing. Finally they find one and the marking on the tree tells them the way to go next. This way they safely go to the next clearing where they meet two amateur trekkers who are lost. Rescuing them and further tree markings allow them to reach civilization safely!

Your finances are also similar while you are spending. You don’t want to be lost in the forest. You need to have a goal and do small steps for that goal. Some steps may seem really primitive and trivial like marking the tree!

Just mark your goals in your life the same way. The tree marking can be anything like an investment or your planned purchases in the future and so on.

Be alert to the possibility that getting lost is never thrilling be it in a forest or in your financial life!

More later…


Beware of the Bermuda Triangle of Finance!


Hello everyone!

You may come across many threats and dangers in the world of finance. Let’s have a look!

Bermuda!  The place of seas, islands and natural beauty! Also the place of one of the vertices of a geographical triangle where terrible “monsters” have swallowed ships, people, airplanes whole never to be found again!

Finance also has its own Bermuda triangle of three dark vertices:

  1. Unknown Companies.
  2. Lack of common sense.
  3. Too good to be true returns.

 Unknown Companies:

Suddenly find yourself hearing or reading of a scheme from an unknown company? Well, stay cautious and stay alert. Beware! because these might be front companies for frauds and schemes by some meticulous scamster! Such companies might claim to have the “backing” of many well known people.

Remember, that a photo with a great personality does not turn a person’s company as “good” or “very secure” or with a “good credit rating”.

These companies might also claim to be subsidiaries of bigger well known firms. Remember how we treat all China items as cheap and low quality with a “use and throw” attitude towards them. That’s how these companies can turn up in reality!

Lack of commonsense:

Any person willing to invest in any investment opportunity does his research before investing. Its not that you will find information down to the last detail but a general internet assisted search of the company, the investment opportunity and the returns and the amount invested by other people in the scheme, the fund manager and such basic details are always found out. Some more mature investors might also go to the extent of checking SEBI or other regulator websites to be sure of the authenticity of the said company’s services.

While a meticulous check into the most minute details of a company is never needed a basic check should always be done.

“Too Good To Be True” Returns:

Unless you have been living under a rock, you must have heard of schemes offering ultra high returns and sky high promises. More recently the Saradha Scam was one such incident.

Beware of the “Money Double” & the “Money Triple” Schemes offered to you. They will reduce your investment to zero in quick time. It’s a fraud!

Remember your money will double if you invest it judiciously and patiently and wisely and NEVER WILL IT DOUBLE in a jiffy.

Stay safe. Stay alert!

More later…