Past year(2008) is very bad year for the Financial market worldover.Indian Stock market (SENSEX) had touched 21000 marked than sleeps to 7000 marks.We had seen all the fluctuation in the indian financial merket as well as sharp downfall in the financial markets.Indias inflation rate is touched 13 year higest 11.05%(June 7,2008).But India is not the only nation grappling with rising inflation. The entire world is facing the problem.
Some of the countries with highest inflation rates are:-
The inflation in Zimbabwe for the month of March 2008 rose to 355,000%! Yes, 355,000 per cent! It more than doubled from the February figure of 165,000%.Due to
the sudden rise in money supply that flooded the economy to finance the 2008 elections.The Zimbabwean central bank has introduced $500 million bearer cheques (or currency notes) for the public, and $5 billion, $25 billion, $50 billion agro-cheques for farmers. Just last fortnight the nation had introduced $250 million bearer cheques.
Iraq 53.2% due to Rising oil prices, political instability, terrorism and the other post-conflict dynamics have led to inflation in the nation rise to unmanageable proportions.
Guinea 30.9%,San Tome and Principe,(an African nation) 23.1%,Yemen 20.8%(More than 87% of Yemenis live for less than $2 a day. About 52% of children less than 5 years old suffer from malnutrition) etc.
Now investor are looking for riskless and fixed return income plan or product.Investor are switching over Equity to Debt instrument. Every day,every time we begin with dampened enthusiasm and dented optimism. Ourhappiness is dilutedand our peace is threatened by the financial illnessthat has infected our families, organisations and nations. Everyone isdesperate to find a remedy that will cure their financial illness and helpthem recover their financial health. They expect the financial experts toprovide them with remedies, forgetting the fact that it is these expertswho created this financial mess.
Every day, you adopt a couple of oldand new maxims as beacons to guide yourfuture. This self-prescribedtherapy has ensured that with each passingyear, I grow wiser and not older. This year, I invite you totap into thefinancial wisdom of our elders along with me, and become financially wiser.In this financial crisis period we should be verycautious about taking any financial decision to invesrt their hard and earned money.
I am not a financial analyst or any type of financial advisor or business analyst.These days the people are financial educated,they can make decision very wisely.I am just highliting some point it will help you for financial wiser decision before investment.
Hard work: All hard work brings profit; but mere talk leads only topoverty.
Laziness: A sleeping lobster is carried away by the water current.
Earnings: Never depend on a single source of income.
Spending: If you buy things you don't need, you'll soon sell things youneed.
Savings: Don't save what is left after spending; Spend what isleft aftersaving.
Borrowings: The borrower becomes the lender's slave.
Accounting: It's no use carrying an umbrella, if your shoes are leaking.
Auditing: Beware of little expenses; a small leak can sink a large ship.
Risk-taking: Never test the depth of the river with both feet.
Investment: Don't put all your eggs in one basket.
I'm certain that those who have already been practicing these principlesremain financially healthy. I'm equally confident that those who resolve tostart practicing these principles will quickly regain theirfinancialhealth.
Let us become wiser and lead a happy, healthy, prosperous and peacefullife.