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Own a Business ..


Some people say, "Give the customers what they want." But that's not my approach.  You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. Our job is to figure out what they're going to want before they do. I think Henry Ford once said, "If I'd asked customers what they wanted, they would have told me, 'A faster horse!'" People don't know what they want until you show it to them. That's why I never rely on market research. Our task is to read things that are not yet on the page - Steve Jobs

Do You Have What It Takes ?

Not everyone is cut out for the challenge of starting their own business. There are several personality traits that are common among successful Business People, including discipline, frugality, self-confidence, good communication skills, humility, honesty and integrity, pretty good record-keeping skills, motivation, good health, optimism and more ..
  1. Planning - Mission & Vision
  2. Execution - Art of getting things done
  3. Marketing & Sales - target markets, pricing, new products
  4. Finance & Accounting
  5. Operations - Purchasing, Inventory control
  6. Supervision - Hiring, Training, Performance
Create A Business Plan :

One of the major reasons new businesses fail is poor planning. If you are planning on starting up a business, you must have a business plan. This will serve as a road map to guide you, and communicate with your bank and/or investors what you're doing and why they should invest in you. It should include a mission statement, executive summary, product or service offerings, target market, marketing plan, industry and competitive analysis, pro-forma financials, resumes for the company's principals, your offering, and an appendix with any other pertinent information.

Build your Support System :

Starting your own business can be an isolating experience. You're working all hours of the day and night, often all on your own. It's all about 'finding the right people to help you with every step of your startup journey'. Finding the right people to surround yourself with can be a challenge. But there are a few way to build a support system. You can check out an incubator or accelerator, or you can find a mentor. You might also consider building a board of advisers, who can bring expertise in a wide variety of areas ..
  1. Create mutually beneficial relationship in your network
  2. Join local social clubs/associations
  3. Create a small group of like minded entrepreneurs and be active
  4. Host a dinner or happy hour each month and invite new people
  5. Participate in conferences and panels
Find a Mentor :

A mentor is a person with more experience in business, or simply in life, who can help an entrepreneur hone her or his abilities and advise him or her on navigating new challenges. A mentor can be a boon to an entrepreneur in a broad range of scenarios, whether they provide pointers on business strategy, bolster your networking efforts or act as confidantes when your work-life balance gets out of whack. Too often, we think we have all the answers and are the only people who can really get things done. The reality is that another set of eyes can work wonders for how you operate both on and in your business. An outsider can also make sure you are getting the numbers you need both on the top line and the bottom 
line to survive.

Don't discount, Add value :

Whenever you discount, you are taking money directly out of your pocket and directly from your bottom-line profit. So don't do it. Instead, create added value propositions all the way up and down your product or service line. Focus on the benefits and quality of your product, not the price. Look for ways you can add value - it's all about 'perceived' value.Offer added value services to encourage customers to buy from you. These could be something like a free first service with each used car sold, or half-price scotch guarding on lounge suits etc. 


A customer is the most important visitor on our premises. He is not dependent on us. We are dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so - Mahatma Gandhi

Sell to the Customer's needs, not yours - Earl G. Graves
ref:
50 Tips for Starting Your Own Company - http://www.entrepreneur.com/article/235903

10 Tips for Strong Start - http://www.entrepreneur.com/article/204982

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Effective Goal Setting ..


Setting goals is a matter of knowing what you want and properly allocating your resources - primarily time and money - to reach your desired ends. Create SMARTPLUS(Specific, Measurable, Attainable, Rewarding, Timely ,Positive, Linked, Unbundled, Shifting) goals ..



Your Goal Statement Template:

1. Goal =>

    I will know I'have met this goal when:
    I will accomplish this goal by/within:
 

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Good Books to Read


Good Books to Read:
  1. The 7 Habits of Highly Effective People - Stephen R Covey
  2. How to Win Friends and Influence People - Dale Carnegie
  3. The Magic of Thinking Big - David J. Schwartz
  4. Think and Grow Rich - Napoleon Hill
  5. The Power of Positive Thinking - Norman Vincent Peale
  6. The Richest Man in Babylon - George S. Clason
  7. Good to Great - Henry Cloud
  8. Built to Last: Successful Habits of Visionary Companies - Jim Collins, Jerry I. Porras
  9. The Millionaire Next Door: The Surprising Secrets of America's Wealthy - Thomas J. Stanley, William D. Danko
  10. The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses - Eric Ries
  11. How Successful People Think: Change Your Thinking, Change Your Life - John C. Maxwell
  12. The Greatest Salesman in the World Mass Market - Og Mandino
  13. Success Through A Positive Mental Attitude - Napoleon Hill
  14. The Law of Success: The Master Wealth-Builder's Complete and Original Lesson Plan for Achieving Your Dreams - Napoleon Hill
  15. How to Stop Worrying and Start Living - Dale Carnegie
  16. Execution: The Discipline of Getting Things Done - Larry Bossidy, Ram Charan, Charles Burck
  17. How to Stop Worrying and Start Living - Dale Carnegie
  18. First Things First - Stephen R. Covey, A. Roger Merrill
  19. The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything - Guy Kawasaki
  20. The One Minute Manager - Kenneth H. Blanchard, Spencer Johnson
  21. Who Moved My Cheese?: An Amazing Way to Deal with Change in Your Work and in Your Life - Spencer Johnson, Kenneth Blanchard
  22. Fish: A Proven Way to Boost Morale and Improve Results - Stephen C. Lundin, Harry Paul, John Christensen
  23. Good to Great: Why Some Companies Make the Leap...And Others Don't - Jim Collins
  24. Start with Why: How Great Leaders Inspire Everyone to Take Action - Simon Sinek
  25. Control Your Destiny or Someone Else Will , Lessons in Mastering Change-From the Principles - Jack Welch
  26. Winning: The Ultimate Business How To - Jack Welch
  27. 29 Leadership Secrets - Jack Welch

ref:

Bill Gates 6 favorite books of 2015 - http://www.businessinsider.com/bill-gates-favorite-books-of-2015-2015-12

9 books that defined 2015 - http://www.businessinsider.com/9-books-that-defined-2015-2015-12

Investment Books - 
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10 Habits of Successful(and Wealthy) People ..


Follow your Passion and Success will Follow; Wealth is only a by-product and always follows Success



10 Habits Successful People have:
  1. Clear Goals & Visualize Success
  2. Learn, Unlearn and Relearn
  3. Focus and Build on Strength
  4. Willingness to fail(Fail Fast, Learn Fast)
  5. Communicate, Communicate, Communicate
  6. Right Attitude(is more important than intelligence)
  7. Confident, Prioritize and Persistent
  8. Network
  9. Successful mentors
  10. Invest in yourself

Best Inpspirational Websites ...

 

Zig Ziglar =>  http://ziglarvault.com/

Dale Carnegie =>  http://www.dalecarnegie.com/blog/

John Maxwell =>  http://intentionalliving.johnmaxwell.com/

Jack Welch =>  http://blog.jackwelch.strayer.edu/

Entrepreneur => http://www.entrepreneur.com/

Financial Management => http://www.subramoney.com/


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'The Ten Roads to Riches' by Ken Fisher


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Success is not about money ..

ref:

Think of happiness as a business best practice and a success fundamental

Career: Ask yourself
  • Am I passionate about the work?
  • Am I one of the world's best at doing this work?
  • Will the market compensate me well enough for it?
Small Business: Much of the potential for success depends upon two things
  • Your ability to effectively function physically, mentally, and emotionally.
  • How well you balance where the business stops and your personal life starts
Money:Truth
  • Wealth only provides options, not a guarantee of happiness.
  • If you can’t be happy without money and stuff, you aren’t likely to be happy with it.

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Entrepreneur's important lessons in 20s ..

ref: 
  1. The difference between success and failure is self-confidence and persistence
  2. Any limitations on personal growth are self-imposed
  3. Networking is the key to success
  4. Be passionate and decisive
  5. Importance of surrounding yourself with people who will push you to be better
  6. Need to hire people who are better than you
  7. Learn to be patient
  8. Learn the importance of asking yourself the hard questions
  9. No matter what you're doing, you should always try your best
  10. Don't let business get personal. It's just business. Shrug it off
  11. Learn not to sell yourself short
  12. There's no replacement for hard work
  13. A fancy degree and natural talent don't entitle you to success
  14. Being a leader can be lonely at times
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Richard Branson's Top Quotes on Opportunity ..

ref: http://www.virgin.com/richard-branson/my-top-10-quotes-on-opportunity

Opportunity favours the bold - If somebody offers you an amazing opportunity but you are not sure you can do it, say yes, then learn how to do it later!


1. “There are no mistakes, only opportunities." - Tina Fey

2. "The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." - Peter Drucker

3. "To dream by night is to escape your life. To dream by day is to make it happen." - Stephen Richards

4. "How much I missed, simply because I was afraid of missing it." - Paulo Coelho

5. "I feel that luck is preparation meeting opportunity." - Oprah Winfrey

6. "Entrepreneurs are simply those who understand that there is little difference between obstacle and opportunity and are able to turn both to their advantage." - Victor Kiam

7. "A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty." - Winston Churchill

8. "Teachers open the doors, but you must enter by yourself.” - Chinese Proverb

9. "You can’t outwit fate by standing on the sidelines placing little side bets about the outcome of life… if you don’t play you can’t win." - Judith McNaught

10. "In the middle of difficulty lies opportunity." - Albert Einstein


Best advice about money ..


“Money, like emotions, is something you must control to keep your life on the right track.” 

1. In a free market economy, anyone can make as much money as they want.
2. Your background, highest level of education, or IQ is irrelevant when it comes to earning money.
3. The fastest way to make money is to solve a problem. The bigger the problem you solve, the more money you make.
4. Don't listen to the naysayers who tell you that life is supposed to be a struggle and that you should settle and be grateful for what you have.
5. Expect to make more money. For this one you have to think big. $100,000, $500,000, or why not $1 million?
6. Lose the fear and scarcity mindset and start seeing money for all the good things: freedom, opportunity, possibility, and abundance.
7. Being rich isn't a privilege. Being rich is a FUNDAMENTAL right. If you create massive value for others, you have the right to be as rich as you want.
8. Don't wait for your ship to come in. You're not going to be discovered, saved, or made rich by an outside force. If you want a lot of money, build your own ship. No one is coming to the rescue.
9. Stop worrying about running out of money and focus on how to make more. Constantly worrying about money is no way to live. Dream about money, instead.
10. Stop telling yourself that getting rich is outside of your control. The truth is that making money is an inside job.

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Things confident people do differently ..

ref: 
Building confidence is a journey, not a destination

1. They Get Their Happiness from Within
Happiness is a critical element of confidence, because in order to be confident in what you do, you have to be happy with who you are. People who brim with confidence derive their sense of pleasure and satisfaction from their own accomplishments, as opposed to what other people think of their accomplishments. They know that no matter what anyone says, you’re never as good or as bad as people say you are.

2. They Connect
People are much more likely to accept what you have to say once they have a sense of what kind of person you are. The person you are speaking with is a person, not an opponent or a target. No matter how compelling your argument, if you fail to connect on a personal level, he or she will doubt everything you say.

3. They Don’t Pass Judgement
Confident people don’t pass judgment on others because they know that everyone has something to offer, and they don’t need to take other people down a notch in order to feel good about themselves. Comparing yourself to other people is limiting. Confident people don’t waste time sizing people up and worrying about whether or not they measure up to everyone they meet.

4. They Listen More than They Speak
People with confidence listen more than they speak because they don’t feel as though they have anything to prove. Confident people know that by actively listening and paying attention to others, they are much more likely to learn and grow. Instead of seeing interactions as opportunities to prove themselves to others, they focus on the interaction itself, because they know that this is a far more enjoyable and productive approach to people.

5. They Acknowledge Your Point of View
Admits that your argument is not perfect. This shows that you are open minded and willing to make adjustments, instead of stubbornly sticking to your cause. Uses statements such as, “I see where you are coming from,” and “That makes a lot of sense.” This shows that you are actively listening to what they are saying, and you won’t just force your ideas upon them. Allow others to be entitled to their opinions and they treat these opinions as valid. They do this because it shows respect, which makes the other person more likely to consider their point of view.

6. They Know When to Step Back
When you try to force people to agree instantly, studies show that they are actually more likely to stand by their original opinion. Your impatience causes them to counter your arguments in favor of their own. If your position is strong, you shouldn’t be afraid to back off and give it time to sink in. Good ideas are often difficult to process instantly, and a bit of time can go a long way.

7. They Speak with Certainty
It’s rare to hear the truly confident utter phrases such as “Um,” “I’m not sure,” and “I think.” Confident people speak assertively because they know that it’s difficult to get people to listen to you if you can’t deliver your ideas with conviction.

8. They Seek Out Small Victories
Confident people like to challenge themselves and compete, even when their efforts yield small victories. Small victories build new androgen receptors in the areas of the brain responsible for reward and motivation. The increase in androgen receptors increases the influence of testosterone, which further increases their confidence and eagerness to tackle future challenges. When you have a series of small victories, the boost in your confidence can last for months.

9. They Aren’t Afraid to Be Wrong
Confident people aren’t afraid to be proven wrong. They like putting their opinions out there to see if they hold up because they learn a lot from the times they are wrong and other people learn from them when they’re right. Self-assured people know what they are capable of and don’t treat being wrong as a personal slight.

10. They Aren’t Afraid to Ask for Help
Confident people know that asking other people for help won’t make them seem weak or unintelligent. They know their strengths and weaknesses, and they look to others to fill the gaps. They also know that learning from someone with more expertise is a great way to improve.



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Global Entrepreneurs Recommend Books ..

ref: 
1. Think and Grow Rich by Napoleon Hill -- recommended by Sandile B. Magwaza
2. Start by Jon Acuff -- recommended by Kimberly Edwards LaComba
3. The Lean Startup by Eric Ries -- recommended by Matt Barber
4. Zero to One by Peter Thiel -- recommended by Franklin McCullough
5. Rich Dad Poor Dad by Robert Kiyosaki -- recommended by Mannan Gupta
6. The 100 Dollar Start Up by Chris Guillebeau -- recommended by Nawaz Dangra
7. Produced by Faith by Devon Franklin -- recommended by Say Smith
8. The Crowd: A Study of the Popular Mind by Gustave LeBon -- recommended by Ingo Behle
9. The Seven Habits of Highly Effective People by Stephen Covey -- recommended by Puna Snamandla Gumede
10. The Pursuit of Happyness by Chris Gardner -- recommended by Vrush SG
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Things that motivate employees more than MONEY

You don’t need to be hot; You just need to be successful and those are two different things. Success often comes from doing a few things extraordinarily well and noticeably better than the competition.

1. Catch People in the act of doing things Right not Wrong: Everyone wants to be recognized and it's the basic instinct of being a human and  good news is that it’s one of the easiest things to give. Appreciate every improvement that you see your team members make.

2. Make your ideas theirs: People hate being told what to do. Instead of telling people what you want done; ask them in a way that will make them feel like they came up with the idea. “I’d like you to do it this way” turns into “Do you think it’s a good idea if we do it this way?”

3. Instantaneous feedback: Instantaneous appreciation/criticism are highly effective because the feedback is immediate, unlike the annual reviews where you are charged for things committed several weeks or months ago.

4. Appreciate in public:  Once you’re comfortable delivering appreciation one-on-one to an employee, try appreciating them in front of others. Highlight your top performers’ strengths and let them know that because of their excellence, you want them to be the example for others. You’ll set the bar high and they’ll be motivated to live up to their reputation as a leader.

5. Never criticize in public: No one, and I mean no one, wants to hear that they did something wrong in public; Take it to the private conversations. Try an indirect approach to get people to improve, learn from their mistakes, and fix them. Ask, “Was that the best way to approach the problem? Why not? Have any ideas on what you could have done differently?” Then you’re having a conversation and talking through solutions, not pointing a finger.

6. Empower people to take decisions and make them accountable:  Encourage Agile(Learn, Unlearn, Relearn - "Fail Fast, Fail Often, Learn Fast"); Foster Open Communication; Reward self-improvement;  Clearly define Roles; Appreciate honest efforts

7. Give recognition and small rewards: These two things come in many forms: Give a shout out to someone in a company meeting for what she has accomplished. Try simple things like lunch, dinner, family vacation, trophies, spa services, and plaques.

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      Traits that will get you promoted .. Jack Welch

      ref: http://www.businessinsider.com/jack-welch-explains-how-to-get-a-promotion-2015-6
      3 traits:
      1. Over-delivering on results within the values criteria
        • Consistently deliver on performance
        • You have the behaviors to go with it, your boss will know that you can always be counted on - you will hit the numbers. 
      2. Big-Picture
        • How our product fit into the larger scheme of things
        • A deeper, broader understanding of where your organization stands in relation to the other players and the playing field
      3. Make your Boss look smarter
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      Plan your Career ..

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      Time Management Tips ..


      "Time is beyond our control - the clock keeps ticking regardless of how we lead our lives. Priority management is the answer to maximizing the time we have." – John C. Maxwell

      ref:

      The time management matrix made popular by the late Stephen R. Covey will help you identify what you really spend your time on. It's a particularly useful tool if you want to know how to prioritize work, personal roles, goals and commitments.



      1. Pickle Jar Theory - The Cost of Small Time Consuming Tasks

      The Pickle Jar Theory illustrates how relatively unimportant tasks or commitments can easily take up much of a person’s time. Filling one’s day with small trivial tasks that are not important prevents one from using that time to complete larger or more important tasks and projects.

      The theory uses a pickle jar and its contents to represent time management. The inside of the pickle jar represents a person’s time, and all the different tasks and commitments that take up that time are represented by rocks, pebbles, sand and water that are placed into the jar.
      • Rocks are the important things that require immediate, significant attention, and produce a huge benefit when they are accomplished.
      • Pebbles produce a benefit, but they are not as important as the tasks represented by the larger rocks.
      • Grains of sand signify small, time-consuming tasks that are relatively easy to do but are of little importance, filling in the leftover space. Things like text messages, constant email checking, and idle chit-chat all take time, but generate little benefit.
      • The final component, water, fills in what little space remains, and represents the tasks and idle moments that fill all the remaining space.
      • The key to using the Pickle Jar Theory is to be aware of which tasks are “rocks,” providing large benefits and requiring immediate attention. Once you know which tasks are “rocks,” you can turn your attention to the “sand,” paring it away to make room for more rocks. Various techniques can be used to diminish the number of grains of sand in the jar.
      2. Pareto’s Principle(80/20 Rule) - Focus on the Tasks with the Greatest Benefit

      Pareto's principle suggests people can work smarter by concentrating on the important things from which they derive the most benefit. The 80/20 rule, in its broader form, says that a small number of causes is responsible for a large percentage of the effect, in a ratio of about 20:80. In time management, 80% of your results come from 20% of the time and effort you invest or that 20% of tasks absorb 80% of available time. By finding the ideal 20% of your tasks to spend 80% of your energy on, you can avoid wasting time or effort.

      3. Parkinson’s Law - Reduce the Time Assigned to Each Task

      Parkinson’s Law is simple and straightforward: the time required to complete a particular task will expand according to the amount of time it is allotted. In simple terms, a task will expand to fill any deadline. Giving yourself less time to do something will lead to faster completion. Slowly reduce the time allotted for any given task, and eventually you’ll find the sweet spot in which it gets completed without feeling rushed. Like the other theories, this changes the way you approach using your time, illustrating that less time can lead to better, more effective work.

      The secret to massive productivity can therefore be drawn out of this principle: give yourself impossibly short deadlines.  If you must finish it in a day, you will.

      4. Newton’s First Law of Motion - What is at rest remains at rest; what is in motion continues in motion

      When you’re procrastinating, you’re at rest and, as a rather pleasant state, it’s hard to start doing things. But it also happens that when you’re doing things, you enter in a state of motion, and it’s equally difficult to stop because, after all, the fact of completing tasks is also satisfactory. So keep this in mind, and get to work soon every day. Learn to take the first step doing whatever task is at hand. Tasks in motion tend to get done. So just start ..

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      5 terms you must know when analysing stocks ..

      ref:
      5 terms you must know when analyzing stocks:

      1) Intrinsic value
      This is the actual value of a stock as opposed to its current market price. The intrinsic value is arrived at taking into account current cash flows, estimated future cash flow, growth potential, and competitive positioning that accounts for variables such as brand, trademarks, patents and copyrights.

      2) Margin of safety
      a margin of safety--paying only Rs 60 for a stock you think is worth Rs 80, for example--you provide for errors in your forecasts and unforeseeable events that may alter the business landscape. By purchasing the stock at Rs 60, it allows you to be wrong by 25% but still achieve a satisfactory result. The Rs 20 difference between estimated fair value and purchase price is what Graham called the margin of safety. Warren Buffett considers this margin-of-safety principle to be the cornerstone of investment success.

      3) Moat
      An economic moat is a structural business characteristic that allows a firm to generate high returns on capital for an extended period. It acts as a barrier that protects a company from competition.

      4) Moat trend
      Economic moats aren’t stagnant over time. Rather, competitive dynamics are constantly shifting as technology develops, regulations change, competitors exit or enter a market, companies gain scale, and so on. This is where our moat trend ratings come in.

      5) Circle of competence
      Investors should stick to what they know, the temptation to step outside one's circle of competence can be strong. Investors who get outside their circle of competence can easily find themselves in big trouble. Within it, a given investor has expertise and knowledge that gives him or her significant advantage over the market in evaluating an investment. 


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      Personal Cashflow Management ..


      You might be in a quandary about how to invest, when to invest, with whom to invest and even question why to invest. You might invest hours of time researching managers, mutual funds, stocks or alternative opportunities, interviewing advisers, and calculating the impact of return on your wealth. These are all worthy endeavors; meaningful and important. These activities absorb a great deal of energy and focus, but the fact is, you might be looking in the wrong direction. What matters is your Cashflow ; As without proper CashFlow management, you are going to face liquidity crisis !

      What is cash flow? It's basically the movement of funds in and out of your business. You should be tracking this either weekly, monthly or quarterly. There are essentially two kinds of cash flows:
      • Positive cash flow: This occurs when the cash funneling into your business from sales, accounts receivable, etc. is more than the amount of the cash leaving your businesses through accounts payable, monthly expenses, salaries, etc.
      • Negative cash flow: This occurs when your outflow of cash is greater than your incoming cash. This generally spells trouble for a business, but there are steps you can take to remedy the situation and generate or collect more cash while maintaining or cutting expenses.
      The flow in cash flow refers to the in and out motion of money. Those who simply earn income and pay bills are not engaged in the process of cash flow management, that’s survival. Real cash flow management involves understanding the components that make up where the money comes from, where it goes, and what choices are appropriate in creating a life of greater satisfaction. It is an active process.

      Some of these components include:
      Components of Income
      Fixed Expenses
      Discretionary Expenses
      Taxes
      Savings

      This is mainly to do with the inflow and the outflow of money. To put simply, inflows refers to the money that’s earned while outflows refer to the expenses. To list a few examples:

      Inflows:
      Salary/Business Income
      Rental income
      Interest/Dividend Income

      Outflows:
      Regular living expenses
      Rental payouts – if any
      Other Discretionary expenses
      Annual tax and insurance payments

      Below are some aspects that need to be kept in mind to manage cashflows:

      Budgeting: It allows estimating the quantum of surplus that gets generated periodically which could be monthly or annually as the case may be. In case of reduced surplus generation, cashflow may be managed by either reducing expenses or increasing income. To reduce expenses, first identify and classify the expenses as fixed or discretionary. Expenses that are typically made by choice are discretionary expenses that include vacationing, weekly outing, etc. These expenses are easier to cut down and do not call for any structural lifestyle changes to see a positive impact. For example, a holiday in India would work out more cost effective than spending on an international holiday. This category of expense has a higher potential of displaying positive impact on cashflows without having to make any major changes in lifestyle as compared to essential expenses.

      Build Corpus: It’s good to maintain an emergency corpus that provides immediate liquidity as required. There is no strict rule on how much the corpus should be but ideally it should be maintained to meet your 4 to 6 months of expenses. If you like to shop and tend to make unplanned purchases, it’s a good idea to either step up your corpus or have a separate fund for that.

      Equated Monthly Installments: While purchasing a property, the first priority is always to accumulate for the lumpsum down payments. While most forget that the regular EMI outflow that gets paid each month has an impact on cashflow either today or in future. It’s very important to treat these committed expenses in a holistic manner to ensure that reduced savings today do not have an impact on other critical goals planned for the future.

      Investment Planning: Once the goals are chalked out and the monthly savings identified; the next important aspect is to identify the right investment avenues. Apart from strategizing the investments based on asset allocations another important aspect that needs to be considered is the required investment duration to ensure the required amount is available as needed. Certain investments define a fixed timeline as in case of a PPF a/c where as there is no such lock in period for equity investments. However to be able to generate most from this class of investment, it is best to consider these from a long term perspective. Investment timeline should ideally be looked at in conjunction with goals to match the liquidity requirements. Some people may not have saved as much as they would have wished. This is not because they did not intent to save but because they did not manage their cashflow well. It is important to set a system keeping the above in mind. A good investment plan is always preceded by good cashflow management.

      ref:

      http://www.investopedia.com/exam-guide/cfp/financial-statements/cfp5.asp

      http://www.inc.com/encyclopedia/cashflow.html

      http://www.accenture.com/Microsites/vaahini/potpourri/moneywise/Pages/your-cash-flow.aspx

      http://www.forbes.com/sites/moneybuilder/2010/12/13/how-to-manage-your-personal-cash-flow
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