Droplet Wealth

           Of course, we want to bring some fascinating information and deliver the same to you every weekend. So that you read it, love it, read it again, get inspired and get ready for a hectic working week ahead. But how much ever polite the Doctor might be, if the medicine is bitter then bitter it shall taste! Alright so what is all this about?  Last week was eventful but in un-wish-able way. We wanted to do this blog but not with the way, we are doing. The week that went by bought some news that made me sit and think about it. More so to reflect that as a blog for our readers.  1. Tuesday Morning I had 7 missed calls from the same number. One of my close friends called me to inform demise of Another Friend's mother. 2. Wednesday afternoon I got a message of a certain acquaintance passing away. This gentleman had some influence in my life, he gave me critical advice to me at difficult times in life, they have he...

As we beckon a new year, Droplet recommends 20 things that will help you turn a new page in your financial life. 1.  Have a monthly budget in place. 2.  Earn. Save. Spend. - Start early. Start immediately.  3.  Buy a term insurance covering 20 times of your salary. Helps your dependents largely during your absence. 4.  Have adequate medical insurance in place. You don't have to shell out cash in case of medical emergencies. 5.  Do not mix insurance with investments. 6.  Have atleast six months of your monthly expenses as contingency fund. 7.  Have a plan in place before buying a property. Such as location, accessibility, resources, so on. 8.  Don't buy a property due to peer pressure or societal pressure or for status. Buy only when you are ready and it is absolutely necessary. 9.   Buy real estate only if you have 30% cash for down payment. 10. Buy real estate only if you are confident that you would st...

In our previous blog , we gave an example where the assumed gentlemen had taken an Insurance of 1 crore. It is natural that most of would think why such an H U G E amount of insurance? Because most of us think of Insurance as "sum that will be paid to you by LIC on Maturity" and hence think such huge amount is only for ultra-rich people. Through this blog, we would like to clarify on this erroneous thinking. Also, let our readers know how much they should cover themselves with?  The Maths  -  This is how the average financial scorecard of Middle class looks like  - Part A - Sum of all the loans that we have comes to about 50 lacs.  Part B - If we assume that "with no loans" & "an Own house", Rs 25k monthly is fair enough to maintain and run life on good standard of living. If we want this income for the next 20 Years (time taken for your kid to grow and contribute to expenses.), then we need to make a one-time investment of 60 lacs...

Earlier, we wrote a blog  about investing 30K and earning an income of 50K every month. Most of them might have thought that they need such a huge amount to start investing. Nothing so! At Droplet, our wish is to be all-inclusive and that constant endeavor has resulted in this blog.  I think it is relatively safe to assume that an average middle-class earner can save 5K monthly. Now next we are trying to secure this Middle-class earner's future. In the Financial world, the future is always and always 15 years after . Hence we will plan with 15 years in our mind -  Droplet Team advises that a saver should split his investments into 2 parts one. One for Security and another for Savings.  Part One - Security-   As long as you are alive your family will live in your shade. But, God forbid, Something happens to you? Who would the family lean on? That's why Droplet recommends that the breadwinner's 1t "Investment" should be in " protecting his life...

We have seen 4 of them, A IT Company, A Paint Company, A Electronics company, A Bank.What is next? Droplets said let's get into your kitchens. Kitchen? Is wealth there too? Wealth says I'm there too as long as you want to create me. How magnanimous? Recently, there was a book published about how this company became a 6,500 Crore company. Imagine our selves just holding .1% of this company. How much is that going to be? Well, that will be a cool sum of 6.5 Crores. That is the power of equities and Power of Compounding .  What company is that? As usual, there is a clue in there.  A Small History of the Company -  It was incorporated as a private limited company on October 22, 1955, in Madras  It is known for its innovative marketing strategy, be it distributing pamphlet from a helicopter in the fifties or introducing the exchange scheme Became a deemed public company on June 15th, 1988. (Meaning available for public investment) Announces land...

                           Being an Indian, I wanted to extract the maximum juice out of my Netflix trial account. I had just completed watching Narcos, All the 3 seasons, 30 Episodes, all done within few weeks amidst a hectic work schedule. Having seen blood and gore, I wanted to wind up my Netfilx experience with something nice and that ended me in watching "Arjun Reddy"                 I had heard of the movie but only as Taboo. Well, let me tell you something, Time justifies a lot of taboos, Time - one hell of a thing it is. The 1st kissing scene, the Director had just nailed it. Money's worth returned.  -------Break-------- I wondered who the director was.  I "Wikipedia-d"  Being a Bhaniya, naturally, my eyes caught this  -  Oh my God! In just about 2 months, an investment of about 4 crores turned out to be 51 cr...

                                          In the earlier blog , we saw that share price of a company is the function of the Profits that the company makes and the no of equity shares it has. Lower Equity shares and higher profits would mean a very high share price (MRF, EIcher Motors) and vice versa.  As simple as it can get.  Now we will see why the share price goes up and down putting its holders on a roller coaster, a ride that not many are adept handling.   As said earlier, If a company is earning 10 per share and an investor is ready to pay 10 times its earnings ( i.e.,) then the share price will work out to be 100. But World and life is not so simple and as are markets. Life, world and markets are all built on hopes. Hope that tomorrow will be better than today, hope that one's view of things will be win over other's view of same thing. Lets look at ho...

                       Nothing gives you more joy than doing you what you love to do. The joy increases many-fold when people follow up on you to do the most lovable thing you do! You feel special. Last week, We missed to publish our blog. That's when we realized that "Silence is louder than noise". This time our silence was returned by noise of our beloved readers asking - " Where is this week's blog? Did you forget to it share with me? " When the noise is made by readers that counts upwards of 10,000, the Love is "heart-deafening", we should tell you. Before I move on, thanks to everyone of the 10,000 readers for following us and supporting our "Droplet" like small venture.  More than this, there are couple of friends who ping us to check whether the blog is up for the week and few go an extra mile by providing unbiased view of the blog, You guys are fantastic!  Whats up for this week then -  Sticking...

Most of us give a serious thought to physical fitness only when we cross the 60% of life milestone or when we are forced to be FIT post a medical diagnosis. For instance, I have seen many people who does not care about anything and live a junk lifestyle and one fine day when the unfortunate event occurs such as diagnosis of diabetics or any other, only then their blood, veins, heart and brain starts thinking about having a better and healthy lifestyle. The significance of physical fitness comes first as one grows older, as one cannot ignore it to lead a healthier life. So is the financial fitness. We pay attention only when there is a need, be it health or wealth. A typical Indian life cycle is all-simple. Learn, earn and retire. It all starts from the day you are born, your parents decides what you wanted to become. You get your graduation completed, have a job, get married, and then you want to buy a home as early as possible on EMI. In between, we never ever think whethe...