Short Cut

Short Cut:

There are two way of learning one is the short cut way and other is the long cut way. The basic difference is in the way of learning and moving forward. The short cut way you just to follow the expert. The other way is long cut way where the person experiences everything on his own and attain the truth and the facts. Both are good but people still follow the long cut way even though its difficult and long.

Long time ago in Sri lanka lived a Buddhist Monk when he got old almost ninety years of age. He announced to all his disciples that he will die tomorrow and asked them to come. All disciples came. Then the monk asked, who want to know the truth and experience the truth for which you all are here. Everyone answered yes. Then the monk told then who is willing to come with me. No one stood up. One monk raised his hand to ask what if he still do not get the truth. The master told it is certain to get the truth but you need to come with me. This hand also went down.

The master died and no one stood with him. In life we all are used to take long cuts and not follow the master . Its good to experience and know the truth and become an expert. But if there is a provision of knowing the things or consulting the matter with an expert , one must take advise . We all are in a habit of taking long cuts in a way and want to do everything on our own. We want to become a doctor, lawyer, designer, entertainer, advisor and expert of a field which we may not be. If every one only concentrate on what they are good at and become dependent on the expert the world will become a better place and every one will have work and best things will be provided to every one.

Its bad to be self depended. Most of us want to become self depended . But the fact is when you become depended, you only do what you are best at and you take service of the people who are good at something else. This way every one I doing their  best and finally every one gets the best. Imagine everyone is making the cloths they will wear or everyone is making the shoes they need to were. The whole productive time will go in making things for self only. The best in you will never come out.

But in order to make the world and business better one must ensure that is depended on some expert for the faster progress.   So appoint an expert and seek help . When the short cut is available one should avail it. Otherwise to get the desired result one may take many years .

#Yourstruly

Re Invest

Re-Invest

Re investing is the key to financial success. Most of the time people invest and when the goal is achieved or the returns are generated, the extra amount is used or consumed.

Consumption of the returns on investment is good. That is the very purpose of investing.

But research shows that when the returns generated are re-invested or ploughed in the same business, the magic of the power of compounding is experienced.

The Ambani Brothers illustrate this beautifully. One who continuously keeps re-investing into his existing business or on new business, has grown a hundred fold in the last few years. On the other hand, the other has somehow not been able to re-invest. He also is not able to retain his experienced existing manpower.

The worst thing which one can do to his business is not re-investing and not taking care of his existing employees.

In order to achieve financial success re-investing is the key. In the long run re-investment works wonders and generate the ripple effect. The returns can be mind blowing.

Example: Fund A: Dividend payout option vs. Fund B: Dividend Re-investment option Its not about dividend but its about investment. If the dividend is used for the consumption then it’s a reason to take it. If the dividend it taken to book profit then also its fine. But if it is taken out without any reason , then its like spending . this can never grow. In mutual fund if one opts for dividend pay out option one must see how it is reinvested in other asset class. If not then it need to be invested. Long term compounding will only work and be visible only when it is re invested.

I have seen many tea garden owners in Bengal and Assam , they have made lot of money but rarely invest . This become the reason of failure . Many financial advisors also don’t invest in themselves and stop learning. This also is a major reason for the u turn in the life of the financial advisor Learning and reinvesting is a continuous processes .