The distribution of wealth cannot be even among the members of a society/country. This is just not practical. Oxfam International’s global inequality report released this month points to the world in which the gap between the rich and poor is alarmingly getting wider. In this post, I discuss how to make (statistical) sense of this wealth distribution. In later posts, I shall point out how this behaviour is identical to many other situations like stocks prices, coastlines, snowflakes and even the dust collection!
An exposure to equity is not necessary to beat inflation or finance our future if we know how to account for inflation by other means. It is merely a choice. Many of us did not have any equity exposure when we started managing our money. We read about it; thought it might a be a good idea to invest there; started small; got surprised as to how much it can move up and down; then got used to it; started investing more; felt superior to our friends who still sat on insurance policies; thought we could beat the market; pretend that loss is all notional and good, etc. You know how the grind works.
The surge in cashless transactions since Nov. 8th is not a sign of India moving towards a cashless society. It is merely a sign of merchants making do, while situation the gets better. From what I see, the "situation" has gotten worse and is expected to be that way until the new Rs. 500 notes get into wide circulation.
When I make a cashless transaction these days, I avoid the possibility of long queues at ATMs or banks and perhaps some fringe benefits, aka cashback. But I am also shifting my inconvenience to the merchant with whom I am transacting.The merchant, in turn, could shift their inconvenience to their employees.
Here is a comparison of charges, limits and key features of mobile wallets in India. This is a guest post byPranav Date - the guy singularly responsible for making the monthly returns calculation such as this possible: November 2016: Equity Mutual Fund SIP, Lump sum returns & capture ratios.
The yapping below is mine. Pranav supplied the key data and insights which made this post possible. He does not endorse all my opinions about wallets 🙂
Here are few lessons l learnt about ATMs usage in the wake of demonetization of Rs. 1000 and Rs. 500 notes. These are observations based on an evening walking tour of about 15 ATMs around my house for the past three days.
First, a quick note about Kirti's detailed review of my new book with Subra(money.com) You can be rich with Goal-Based Investing at Bemoneyaware
Should you buy the book, You Can Be Rich With Goal-based Investing. We believe You will be the same person in five years as you are today except for the people you meet and the books you read. This book is a simple full of common sense, practical questions and solutions. No mathematics equations, good and appropriate pictures. We have given highlights of the book (see we have read the book :-)) and you can try out the calculators too. There are many books in the market regarding Indian Finance and the money in buying book is well spent.