Financial Wisdom

With continuous press notes on global economic crisis, I am sure most of us would become completely immune to such news.Till the time when a crisis really hits someone, it is like seeing raod accident of someone on road. When I see mail from my management stressing four main issues viz, Work Force Reductions, Reductions in Discretionary Spending, Freezing of Wages and Hiring and Reductions in Capital Expenditures, it was no surprsie to me. What is most essential is proactive thinking (one of the most essentials of 7 habits).

I know some of you may think my constant emphasis on financial tips but still I do that coz I strongly believe there is a lot to do proactively when it comes to financial planning, especially when there is crisis or possibility of nearing crisis.


The following is apparently hand picked from a letter by Warren Buffett to his shareholders...

"We begin this New Year with dampened enthusiasm and dented optimism. Our happiness is diluted and our peace is threatened by the financial illness that has infected our families, organizations and nations. Everyone is desperate to find a remedy that will cure their financial illness and help them recover their financial health. They expect the financial experts to provide them with remedies, forgetting the fact that it is these experts who created this financial mess. Every new year, I adopt a couple of old maxims as my beacons to guide my future. This self-prescribed therapy has ensured that with each passing year, I grow wiser and not older.


This year, I invite you to tap into the financial wisdom of our elders
along with me, and become financially wiser.


Hard work
All hard work brings profit; but mere talk leads only to poverty.

Laziness
A sleeping lobster is carried away by the water current.

Earnings
Never depend on a single source of income.

Spending
If you buy things you don't need, you'll soon sell things you need.

Savings
Don't save what is left after spending; Spend what is left after saving.

Accounting
It's no use carrying an umbrella, if your shoes are leaking.

Auditing
Beware of little expenses; a small leak can sink a large ship.

Risk-taking
Never test the depth of the river with both feet.

Investment
Don't put all your eggs in one basket.

I'm certain that those who have already been practicing these principles remain financially healthy. I'm equally confident that those who resolve to start practicing these principles will quickly regain their financial health. Let us become wiser and lead a happy, healthy, prosperous and peaceful life.