Well Spent

 



From my previous blog entries one might have a notion that I am stingy to spend money.But my friends would say otherwise!

Lets say you had a very good vacation for 2 days or you had a nice time with your friends or you had a wonderful road trip, what would you call your time spent ? I think you would say time "well spent"

I have a friend of mine who used to go to big restaurants, he will order a soup or which ever is least cost on the menu. I think it makes him feel rich. Going to big places, the feeling of grandness  etc. And why is is he just having soup ?  well he wants every bit of the worth he has spent :)

People in my native place (a colloquial term used in south India to term their home town) always talk about how much they and their family is worth , What kind of rich relatives the have .. blah blah blab and when we go to their 3000 sq.ft house, you would find only some plastic chairs and tables, which they call as furniture.

More than being critical about spending money, I feel we should not compromise on service we get out of money spent. If the service or the product is bad, get the money back or atleast don't go back to the same service or product.

In the times we are living in, people spent money and buy things to make themselves feel that they are rich or talk about richness to make them feel rich.But the real rich will spend his money wisely. His money is always "WELL SPENT"

Cash is king

This is a well known phrase in the investment world, "cash is king". Well if it is the king what will happen to other investments like gold, Land and Stock markets ? Well they might be ministers and not king :)

My notion of this phrase it that, cash is the most liquid form of asset and at your disposal anytime, so people admire you, respect you when they see rupees in your hands. Their pupil enlarges :)
There must be more to it, hmmmm.....as my American friend will say dollar is better than rupees. Cash is king term relates locally and not globally. In India if you have rupees, its cash to you. If you got dollars in India, its not cash its another form of asset.

When wealth managers talk about asset allocation, they have a pie chart and say certain percentage is for retirement, stocks, blah blah blah. They all talk about the future ignoring the present. Lets say you got 30 lac rupees in cash, with zero debt, how nice will it be for my ego?! I will be more free minded and plan for more things to come. I will be at ease in life and I don't need stress management, well when the money is there stress flies away :)

Some people misunderstand having Rs 50,000 in their bank account is cash, I would call it petty cash. When you say you have bought gold, you don't say I bought 1 gram or if you bought land, you don't say you bought 1 cent .

Well we would be kings if we understood Cash is king.

Back to Basics!

Do you remember PDCA ? If you remember and implement it in your activities, you will be more clear minded and confident.  

 

 

 

 The Plan-Do-Check-Act (PDCA) Cycle provides a simple but effective approach for problem solving and managing change, ensuring that ideas are appropriately tested before committing to full implementation. It can be used in all sorts of environments from new product development through to marketing, or even politics.

It begins with a Planning phase in which the problem is clearly identified and understood. Potential solutions are then generated and tested on a small-scale in the "Do" phase, and the outcome of this testing is evaluated during the Check phase. "Do" and "Check" phases can be iterated as many times as is necessary before the full, polished solution is implemented in the "Act" phase.