Economy Turmoil - What it means for you

From the earlier days, the human beings will always learn from the lessons and also they changed themselves to adapt with the environment. That’s how we are brought up our shapes differently from monkeys (whom consider our ancients…), the crisis times always change people mind set and their behavior.


The current financial turmoil also somehow reflects the same thing… Based upon the impact of the crisis the changes will happen. Now this economic crisis makes us get in to changes deeper in terms of savings and investments


In America people say this turmoil really changed the mindset of the whole generation about money, about savings and about financial risks. In India we haven’t suffer as much as that, but here also the current young generation (which means between 25 – 35) suffered a lot than their previous generation, means that ppl whom started earning after 1990s and before 1990s.

We don’t know when this will be over but I am sure the future is not the straight upward line as it was earlier. Instead it will have periodical ups and downs. I am sure that many of you may be already see that all around you or some of your friends…

So here are few tips what we suppose to do and what not suppose to do now…


Buying a Home

• Don’t rush in to buy home now, there are few golden principles are there for buying a home, if you met up them then please go ahead. If you need a home for living then there is no time for buy, Please ensure the below things before you buy that
o The EMI amount shouldn’t exceed 20% of your take home (Generally 40%, but by considering the risk of our profile 20% is good)
o Check out the property price and negotiate 50% reduction in the past peak rate
o If you want to buy for an investment better wait until Dec 2009 (In today’s news I have seen DLF has slashed 32% of rates in its existing ongoing projects…)
o Always consult an professional for a property buying

Investing in Share market


• Be sure that if you don’t have any requirement for the investment money by another 7 years.
• Please invest on any investment after you thoroughly knows about its goods and bad
• Invest systematically and phase wise, don’t put all your money in one turn
• Don’t put all your eggs in one basket
• You are not a TRADER but an investor, so please don’t have a trader aggressiveness in your self
• Investing in too many MF’s is risky and later it’s very difficult to follow up them, so invest systematically and choose a core funds and follow SIP route to invest


I have lot to say, but share my knowledge/lessons with you periodically