Archive for the ‘Education’ Category

Special Interview with guest, Founder of GivingGrinch.com

August 10th, 2008 Vijaianand

Hi folk, this week post is going to be an interview from special guest Shreyas Nanavati (MBA, Vanderbilt), founder of GivingGrinch.com, an on line budget and lifestyle advisory service, and the BudgeFree for Life System. He accepted my request in a short notice to talk about his model for you readers.



I met him a week ago and we had an interesting conversation about money, life and budget and so much more. I was so surprised to meet a person who exactly reflected my thoughts on Budgeting and money management ideas. So I wanted him to do an interview with me to share his ideas and introduce to you all about his model.





Vijai>>Shreyas, Welcome and Thanks for talking time for us.


Shreyas>>It’s my pleasure vijai.



Vijai>>Let me start by asking you, What made you to come with this Balanced Life – Budget model ?!

Shreyas>>I wasn’t a budget guru until I experienced my job loss. After a few days of sleeping in, I became restless. I created a daily routine that included having someplace to be in the morning – as if I had a job – and I made sure two or three objectives were accomplished daily. The other thing I did was keep a journal of this experience: standing in the unemployment line, attending networking events, sending out resumes, working through my finances, making sure I meet my social and emotional obligations, etc.

One morning I was typing in my journal and the dots connected – without a job I choose to organize my life in a manner similar to Maslow’s Hierarchy of Needs. This hierarchy encompassed every facet of life and if broken down into individual expenses it shows us how the money we spend, the money we build and the life we lead impacts our overall well-being. From this experience, I created the BudgetFree for Life system which became the foundation of my website: www.GivingGrinch.com: Budget Advice for a Balanced Life.
 
Vijai>>That is an interesting story.


Can you kindly, explain more about your model for my readers? Sheryas>>Maslow’s Hierarchy categorizes an individual’s needs into five levels: physiological, safety, social, esteem and self actualization.

Physiological are basic needs – food, warmth, water and other necessities critical to our survival. Safety needs represent our desire for a predictable, orderly world secure from injustice and uncertainty. Insurance – auto, home, health are examples of safety needs. So is a professional and financial security.


Social needs emphasize our desire for belonging and acceptance. They can range from participation in organizations (professional clubs, support groups, religious affiliations) to intimate personal relationships (family, friends, partners).


Esteem represents our need to be respected by our self and others; our desire for recognition, to participate in activities – professional or personal – that bring a sense of contribution and self-worth.


With this structure, the BudgetFree for Life system is able to determine how your monetary decisions fit to the hierarchy – what levels those decisions attempt to fulfill. You can read more about it on my website: www.GivingGrinch.com.


Vijai>> It like pyramid system of meeting each levels first to move on to the next level? That means, we never go above the next level if one level is not satsified. Don’t you think thats stops you from moving above the ladder?

Shreyas>>That’s not correct. Life is not this black and white. It’s true, Maslow believed lower level needs had to be met before higher levels could be pursued, but I believe fulfillment should occur in unison. Another point I would like to make, the hierarchy is a foundation for a balanced life. This includes, but is not solely focused on wealth. The definition of wealth will vary on an individual basis.


Vijai>>Tell me how is it different from the usual mantra of budgeting we all hear out there?!
Shreyas>>There’s a saying: you can take off the good ingredients off of a pizza and it’s still a pizza, but nobody will want to eat it. The same is true for life – we advocate a balanced life. The hierarchy is a foundation for balance, a philosophical approach that helps you create a budget and a lifestyle to ensure each level is being enriched.


Our approach was unlike anything else I’ve read. It’s simple yet holistic. The pyramid crystallizes an approach to life in a neat and easy to remember system. You don’t have to clip coupons, crunch numbers or learn how to use a general ledger. You can it you want, but you don’t have to. Believe in the system, practice the system and you’ll find ways to reduce expenses and build security without thinking about it, without negatively impacting your lifestyle. The numbers work themselves out.



Vijai>>Really, I might have to try myself and check it out.

Tell me, how can one start savings even they are struggling to meet their needs?! Gimme some examples which you use this model practically in your life?
Shreyas>>You asked a simple question, but I want your readers to understand short-term answers are easy, long term meaningful change requires an understanding and transformation of behavior and habits. Working through the system helps you understanding what your expenses, savings and actions aim to fulfill.


On my website you can download a laundry list of suggestions broken down by categories within each level in the hierarchy:

http://www.givinggrinch.com/2.html .


Now, let me answer your question. Sometimes we find big expenses that can easily be replaced with an alternative activity and still maintain balance. More often it’s a culmination of minor adjustments – finding bits from multiple areas where you are leaking cash.

For example, building a social life around experiences – entertaining friends, outings to the park, pot lucks instead of socializing a restaurants or bars. A few other examples:
· Physiological: Self auditing your energy and water consumption (see my August newsletter)
· Safety: Evaluating the benefits of add on features in many utilities – cell (ringtones, text plans, internet plans), TV (premium versus basic), internet (high speed DSL versus low speed DSL), home phone (caller ID, call waiting, long distance), alarm (ADT versus NextAlarm or other online services), etc.
· Safety: Modifying your driving habits (see my July newsletter on how to become a hyper miler).
· Social: Developing strategies to fulfill our social needs in a more cost effective manner (visit my website: www.GivingGrinch.com for a list of suggestions).
· Esteem: Participating in altruistic pursuits (volunteering, for example) versus the accumulation of high-end material goods. Another tip, I tell my clients to annualize their expense. For example, a morning coffee at Starbucks is only $3, but annualized it can exceed $1,000/year.



If you visit my BudgetFree for Life page, you’ll see an example at that bottom that can save $1214 from basic utilities without neglecting any of your needs. http://www.givinggrinch.com/8.html


Vijai>> That is some good tips. Do you provide any service to help people get on to this model?!
Shreyas>>Absolutely. I love helping people and I believe a balanced life should NEVER cost arm and a leg. I have a basic package, but each client receives personalized consultations for a very affordable price. You can learn more by visiting my website: www.GivingGrinch.com or email me: contact@givinggrinch.com.


I also write a monthly newsletter. It’s free. No spam. Send me an email I will add you to my list. You can find prior newsletters in two places: www.GivingGrinch.com and www.GivingGrinch.blogspot.com.


Vijai>>Thank you Shreyas for taking time to share and shed some light about your model to our readers.

Shreyas>>Thank you for giving this opportunity to visit with you and your readers.






I hope you had a nice read of this interview and got to know more about this new BudgetFree model. Please go ahead and contact him if you need more information.



I will see you all next week discussing on another new topic.

Posted in Education, General Tags: No Comments »
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Price Profling – A Unknown Business Strategy – Final Part

July 11th, 2008 Vijaianand

Sorry for coming out late on this final part of this blog. Last week was little different and out of schedule. I was busy with my court date for Traffic ticket contesting and my first time blood donation which turned out to be little interesting one. I passed out at my work after the blood donation which seems to be normal for first timers because of the sudden blood loss.
 


I had to literaly say “NO” to many of my extra-curricular activities because of the pleasing request to take rest from my well wisher which I can’t deny.


Alright, let me continue where I left off from the last week post by adding some more interesting story to this topic and also share my real example on how to get around or take advantage of it.

Last week I ended the post saying, “Price Optimization” is the unknown business tactic starting to be used by many industries. As per my research, Airlines started to use it in 1980’s. AA and many airlines successfuly implemented them and turned around their profits during the tough times using this very own strategy. It is so successful other industries like apartment property managers, hotel&car rental companies, Big Retailers, Event Ticket sellers and now the banks, mortgage lenders are attracted towards this business strategy and making very good progress in doing so.



I have a real example to prove the fact that banks are also way deep in implementing this strategy successfully.



Two years back, I was in the market for refinance. Like any 3 out of 5 americans who got trapped into ARM loans during the housing market boom, I was one among them. I had 5/1 ARM with 6.125 APR. I got warnings many times from my mortgage lender CountryWide and I kept hearing about it over the media and financial news. So I decided to take action and didn’t want to take any chance waiting till the end.(If I would waited, I could have got better rates now) I started looking out for better interest deals and refinancing options.


As I mentioned my loan was serviced by Countrywide at that time after Ryland Homes sold my loan to them. I was looking for a rate closer to it so I don’t want to see a big increase in my monthly payment. I also decided to to reduce the number of years to finish the loan quickly. I called Countrywide to check with them whether about my options and see whether they will be willing to refinance my loan for better rate.



After a long telecon, I only recieved an answer for refinancing option of higher rate and bigger closing cost which will be rolled in to my loan. Inspite of my why and what questions, they never want to come down. Being a deal hunter myself, I never settle for anything at first attempt. After a month long hunting, I finally ended up with 20 year fixed with 6.375 APR with GMAC mortgage.



According to De Lotto’s research(courtesy:Smartmoney magazine), more than 55 percent of banks already have adopted some form of price optimization, and more than 75 percent plan to use price optimization in some way by 2012. The report surveyed 34 top banks from across the world; more than half were based in the U.S.



In this bad economy, now its the chance for every industry to turn around and show some profits and this will be the right tool for their effort. As a consumer we should be very careful in making any financial decisions.



How to get around or take advantage ?



We all got options in any situation if you look around. You can either decide to stay away from it or make a oath to ride the wave by taking advantage of this new trend. I would definetly urge you to take this opportunity to ride it as its going to catch to you sometime or other.



1. If you are looking out for loans/mortgage, don’t look in your bank whom you had account for years. It doesn’t matter whether you have good credit score and long term relationship. If they happen to use this strategy, you might be on their books to be get ripped with high rates.



So look out for competitors for banks in your area and also try to go out on the web to search for good deals. But be wary of the cold marketing calls or emails from mortgage brokers with cheap rates, they might be bogus. Be careful in choosing the right one with best closing cost.



2. When you are trying to book hotels and rental cars, look out for deals depending on the market. Try to plan your vacation or trip accordingly taking advantage of weekly rentals or 3 day rentals which cost less than 2 days rentals. Also Hotels charges higher rates for friday and saturday night stays especially booked in short notice. Plan to book them in advance and try to hunt for any discount codes or cheap coupons online or ebay.



3. Do have plans to take your family for a ball game or Football or basketball game? Event ticket sellers charge high on mostly watched games. When there is a demand, the price goes up. Try to settle yourself for games when there are mediocore teams visiting home. Also try to find out tickets from your work or friends network which will turn out free and no money from your pocket.



4. Are you looking out for Renting apartment or Buying car, your credit report and credit scores are more likely to be looked at to determine the rents and rate. A good credit score does matter but other factors also play a roll as per the price optimization strategy.



Try to spend time researching over the internet to see competitors around the area and check them out. Apartment renters put special offers all the time and also try to find a friends to take advantage of referral programs many property companies offer. For car buying, you can bargain since you are the buyer. I know its hard for many to bargin, its your money so don’t just give it up when you spend hours earning them.



5. Got attracted by the nice cashmere sweater in a high priced retail store. Hold on!! Don’t just buy it yet. You might find this cheaper online or in other retailers. You might find coupons which you can use to get some discounts. Just turn off your rushing urge to buy anything fast.



My conclusion, be on the look out for deals on any of your shopping and never settle for less if you deserve the best.

Posted in Economy, Education Tags: , No Comments »
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Money Really Matters – A bite of True facts

January 27th, 2008 Vijaianand

Money truly matters to everybody whether it’ 5 year old who wants to buy his favorite toy or 60 year who likes to retire financial free. There is no doubt about it. There is lot to talk about it but we only talk less.

Like this quote,





“Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.” We deal with money day in and day out but we only talk very less about it. If you look very closely, Money has taken different avatars in different parts of the world. It’s a dollar for ordinary American, YEN for Japenese and a Rupee for a normal Indian. Its stock for trader, Gold for hardcore investor, home for a realtor and lot more avatars. But each one of them has only one sole underlying factor which is to “satisfy our needs”. Thats all about it.





The need for each and every person might vary according to their surroundings but the purpose and perspective towards money doesn’t change. So how one make use of that most commonly wanted MONEY is within each one and the Money itself can’t do anything about it. Don’t you think its a true fact. Just think about it for a second.


Lot of us percieve with a wrong imagination like, if we earn more all our problems should take care of itself and will get solved. Actually I think all the problem just starts there. It is not always about how much you earn, it is about how well you can manage and work with what you make.

Knowledge is Power, we all know that very well. So if we have proper knowledge to efficiently manage our money, we can be the Kingmakers of our own hard earned money. We don’t have to be Warran Buffet(who hailed as the nucleus of Omaha shaking up the stock market) or Donald trump (successful entrepreneur) to be one. If we manage our own money properly, we are Kingmaker on it’s own version.




Money shouldn’t rule us. We should rule the Money and should put to work for us. As Robert Kiyosaki quoted, “Make your money work for you and not the other way around“. Let me give you a simple example. We eat food every day because our body needs it. We have to eat at least 3-4 times a day to get proper calories for our body to keep moving. Eventually, eating has become a habit for us. We are trained to eat 3-4 times(I know some people eat all the time!!) when we are baby and we continue to do it all our life.




What happens, if you didn’t take a night dinner, can you sleep well that night? Your physical state is going to be messed up and many of us can’t sleep except few who can fast for days. But if you train your body to fast every night, it will eventually manage to coup with it. Similarly, anything needs to praticized to make it accustomed to you, that goes to money as well. If you don’t plan well and don’t manage it properly, it is going to haunt your mental state and keep you restless for life.



Money is an enabler of our dreams. It helps you go where you want go in life. In many people case, first one third of the life goes towards earning education and knowledge needed to find money. Next one third of life goes towards finding/making the money you longed for and last one third of life should go towards using the money to its last. Most of us don’t have control over the first one third because we depend our parents but the rest two third it is all upto us to make or break the life.

So money is part and parcel of your life. We all need money to survive one day or other. It does really matter for all of us. I strongly believe, it is all about how much you make, how you manage and make that hard earned money work for you to secure a better future. Lot of us forget to delve into this basic thought.



Keep pondering on this very own thought and share your comments about what do you feel about Money and try to talk more about it. Talk is cheap so don’t need to speed a lot and take the liberty to talk about all money.

Happy Money talk!!


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