Be prepared for 2009

With the current economic situation, I want to be prepared. I want to use the slowdown to correct couple of things in the way I think for me and my family.

1. Have a budget for your home expenses and entertainment expenses and start tracking your  monthly expenses.
2. Do not overshoot or plan for large expenses assuming a hike in salaries
3. Increments are likely to have a higher variable component linked to performance to help companies keep a check on their wage bills and incentives for  good performance.
4. Attrition is at low and hence there are more people to perform the job at same salary levels.Pull up your socks and ensure that you do not belong to the bottom quartile of performers
5. Be patient.  Do not crib ,if you cannot contribute. Be truthful and honest with relationships.
6. In your existing organization, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try and be in the good books of your boss without compromising your conscience.

Lessons on investing learnt from Hindu and BusinessLine

Today I read an article in BusinessLine and felt that they were apt for today’s investment horizon. The fifth lesson is somewhere I am lacking, but should focus more.

Lesson 1: Go for a balanced asset allocation. A 100 per cent equity portfolio can suffer vicious swings, but a 100 per cent debt portfolio may not deliver enough returns.
Lesson 2: With mutual fund investments, take higher exposure to open end schemes that give you the flexibility to exit if the performance sours.
Lesson 3: Make stock market investments only from the surplus you can afford to lose, that too after setting aside money in safe options.
Lesson 4: With interest rates sinking and a correction imminent in property prices, a short wait may allow you to obtain better bargains on your property purchases
Lesson 5: rock bottom equity market is the best time to invest; sticking only to safe investments may prevent you from reaping great returns that can help you with your long-term goals

Shyam also has recommends in his article in Hindu today to go and invest in NIFTY BeES.The following facts provided by Shyam wants to my to evaluate this option.I added some of them here for my reference.

• Buying and selling is very easy. You just need to have a demat account.
• There is no entry or exit load for the NIFTY BeES, and the annual expense ratio at 0.5 per cent is among the lowest compared to other mutual funds
• Mutual fund investments can be made only based on the day’s closing NAV. Exchange traded funds can be bought or sold at any point during the day at prevailing Index levels.
• Individual stocks are subject to stock specific risk or sector specific risk. NIFTY BeES is more like diversified mutual fund and comes at lower price
• as an investor it is impossible for you to know what stocks the mutual fund would invest in, pre-facto. Whereas in the NIFTY BeES, the investor knows exactly where his money will be invested — in the 50 stocks that make up the NIFTY Index!

New Year – Visit to Ambedkar Computing Center

Wish You Happy New Year 2009

Yesterday I had visited the Ambedkar Computing Center. it is located in Sudarshan Layout (behind IBM off of Bannerghatta Road), Bangalore. Reach Jayadeva Flyover and go towards Dairy circle. Take the right before IBM campus and you reach Sudarshan Layout. More information is available at this link.

I took a bus and reached there and walked to the center. I met the students yesterday evening. they were having a new year gala, but looked at the infrastructure.  there are three set of people I see here. First set are software professionals who want to help, the second set is Mani, Saraswathi and people similar to them and third group is the children who are the end beneficiaries

I want to talk more about the second group. this group consists of students who are in the first years of college or last years of school.One thing that astonishes me is the confidence these guys have in their cultural activities. They have a time sense and I see pride in their eyes for the work they do. Kudos to you guys. I also see how they have taken Open software to common man.A lot of appreciation to Balaji kutty, Senthil  and others who have helped the center to mature.

Where I can help more with this initiative in the order of priority

• Volunteer your time teaching at the center
• Help in starting up new centers in Bangalore
• Help with improving the curriculum