2010 Goals Tracking - January End

These are my goals for 2010.
1)Continue learning new dishes to cook. One new dish per week.
2)Continue to be on budget.
3)Start saving for prepayment of mortgage. 2L should be saved for same.
4)Contribute to retirement as per the plan.
5)Be less obsessive on daily tracking of things.
6)Learn to swim.
7)Improve healthy eating.
8)Earning Rs 50250 (2010*25) extra in 2010

It's January end and let's see how am I fairing in these goals.
Goal 1 - Cooking - FAIL. Hardly cooked anything whole month.
Goal 2 - Budget - PASS.
Goal 3 - Save for Mortgage - Don't Know- started to save for this goal.
Goal 4 - Save for Retirement - PASS - I never miss this, touch wood.
Goal 5 - Obsession for tracking - FAIL. No comments please :(
Goal 6 - Swimming - Don't Know - This can only be done in summers.
Goal 7 - Healthy Eating - FAIL - I'll write a post about it someday :)
Goal 8 - Extra Earnings - Don't Know - Will be able to say only after seeing progress in few months.

Is being rich same as being cheapstake?

Reading an article on Time's money named "Guess Who's Cheap? People Who Know Lots About Money" provoked a thought inside.

I always hear lots of people complaining that "more money one have, more miser that person is". I think there are two perspectives of this:

1) As article talks, probably most of the rich people have become rich by saving their hard earned money, so they don't want to waste it. They have learned it by experience that every penny saved is much more valuable then penny earned, so they value savings and detest un-mindful spending.

2) Secondly I think psychology also plays an important role in their behavior. It’s very easy to spend small sums but very difficult to break a big sum to do a small purchase. For example if one has 10 Rs note and want to buy a 5 Rs item, many will not think even twice before buying the item. On the other hand, if one has 500 Rs and someone will tell them to buy a 5 Rs item with it; their mind will resist this purchase simply because it will be same as paying losing Rs 500 for Rs 5 item. I think this psychology plays an important role in why richer people are generally much conserved with their spending.

Happiness vs Money

Recently I was watching one of the episodes of Big Boss. Co-contestants asked Bakhtiyar how much money according to him is sufficient for one month and he answered one crore. Did I heard that correctly? Does he really mean 1 crore per month, that is a one followed by seven zeroes?

Do you really need that much money to be happy? Well that’s what he wants and I of course should not be judging him. But this conversation really made me think about this. How much money do I need to be happy or is it really money that is going to make me happy or is it am I really not happy currently?

Thanks to my God, I have all my answers. No, I don’t need money to be happy or its not money that’s going to make me happy. I am quite content with what I have currently. I work hard for a financially secure future.

I am very clear in my thoughts that money can make one’s life comfortable or miserable. But there are many rich people I know whose life is very miserable and loads of not so rich families exists who are very happy, content and comfortable in their lifestyle.

To be happy, one doesn’t need huge paycheck every month. Rather, one needs a balance life, a good family, a healthy body, peaceful mind, work to do that you love and some basic amenities.

May, all human beings get blessed for these things for rest of their life.

Psychology of Retailers

I read an article recently at “It’s Your Money”, which talked about that restaurateurs are using menu psychology to increase the profit. It’s not only them, I remembered reading many other instances where organizations use such measures to promote sales, to increase their profit and to sell exactly what they want.

1) I remember one of the corporate trainer once narrated this instance: When Close-Up entered in Indian market, Colgate was number one brand in tooth pastes and it was very difficult to beat them. Close-Up came up with a unique advertisement which said that “Only Half the Brush is what it needs to clean your teeth.” Campaign was a huge success and more people started using Close-Up, but profit never showed that success. After more brain storming they realize that because now people are using less toothpaste, its lasting for long, hence more users but still same number sales. They increased the diameter of paste’s tube and profit increased in proportion to sales.

2) In one of the management subjects I studied in graduation, I remember one of the case study where they revealed that keeping women cosmetics close to diapers in a super mart increases its sale as well.

3) Also, one of my friends who worked part time in one of the Indian super mart, Big Baazar, once told me that they keep small items like dusters, chocolates, mints, etc near the counter because they have huge margin. While customers are waiting in line for their turn, they look at those low cost items and decide to buy it without giving much thought even if they don’t need it.

Menu Psychology might be a new concept for restaurateurs, it's not new for retailers in general. As a customer, you have to be responsible for your money. No one cares for your money more than you.

Changes done in life

This is more of personal update kind of blog.

About 17 months ago, I listed things that I always waste my money on. I would like to see whether that listing has helped me to curb any of my bad habits or not. Here is the update

Wallets - I bought only one new wallet since then and yes got two new as gift. I'll count it as a success, because I curbed my urge to spend on this on my own. (Score: 1/8)

Strange Dresses - I took 2 trips since then and have not bought any traditional dress at any place. I also curbed to buy lovely Japanese Frock so many times. (Score: 2/8)

(P.S. I loved something similar to shown in photograph, in red color).

Key chains – Have not bought any new keychain since then but got 2 as a gift. To compensate, I have given away approx 20 key chains from my collection. (Score: 3/8)

Balloons – No more balloons for me. Wow. I am doing well. (Score: 4/8)

Handcrafted Stuff – Very hard to resist and I failed badly. I Bought lots of handcrafted stuff to decorate my home. This is a sure shot failure. :(

Sun Screens – No new sunscreens bought since I listed that I have fetish for them and also got none as a gift. Success. (Score: 5/8)

Gifts – No Comments. All I can say is: "Few Habits Die Hard". ;)

Stationary – Not even a penny spent here. Wow. (Score: 6/8)

Final Score: 6 out of 8 have been controlled. That is the fun of listing things down. If things can be seen in black and white, they can be worked upon.

Happy Republic Day

India became independent on 15 August 1947 and became republic on 26 January 1950. We get a holiday on this day. As a kid my ritual of the day used to be getting up at 8 and switch on TV, and this continues till date.

I love watching India Gate and all the proceedings there. Then that 3 hour long parade where forces, culture all conglomerate to display diversified India. I love it. I can do it 365 days but 26th January is special day to do this.

I am going to take an off from writing today, and just pasting some of my favorite photographs of the day.

Happy Republic Day to everyone :)