Warren Buffett Quotes on Investing & Success

• “NEVER INVEST IN A BUSINESS YOU CANNOT UNDERSTAND.”
• “IT’S FAR BETTER TO BUY A WONDERFUL COMPANY AT A FAIR PRICE THAN A FAIR COMPANY AT A WONDERFUL PRICE.”
• “TIME IS THE FRIEND OF THE WONDERFUL BUSINESS, THE ENEMY OF THE MEDIOCRE.”
• “IF YOU AREN’T THINKING ABOUT OWNING A STOCK FOR TEN YEARS, DON’T EVEN THINK ABOUT OWNING IT FOR TEN MINUTES.”
• “OUR FAVORITE HOLDING PERIOD IS FOREVER.” 
• “THE STOCK MARKET IS DESIGNED TO TRANSFER MONEY FROM THE ACTIVE TO THE PATIENT.”
• “OPPORTUNITIES COME INFREQUENTLY. WHEN IT RAINS GOLD, PUT OUT THE BUCK, NOT THE THIMBLE.”
• “DO NOT PUT ALL EGGS IN ONE BASKET.”
• “DIVERSIFICATION IS A PROTECTION AGAINST IGNORANCE. IT MAKES VERY LITTLE SENSE FOR THOSE WHO KNOW WHAT THEY’RE DOING.”
• “REMEMBER THAT THE STOCK MARKET IS A MANIC DEPRESSIVE.”
• “IF YOU BUY THINGS YOU DO NOT NEED, SOON YOU WILL HAVE TO SELL THINGS YOU NEED.”
• “DO NOT SAVE WHAT IS LEFT AFTER SPENDING, BUT SPEND WHAT IS LEFT AFTER SAVING.”
• “NEVER TEST THE DEPTH OF RIVER WITH BOTH FEET.”
• “IF YOU BUY THINGS YOU DO NOT NEED, SOON YOU WILL HAVE TO SELL THINGS YOU NEED.”
• “DO NOT SAVE WHAT IS LEFT AFTER SPENDING, BUT SPEND WHAT IS LEFT AFTER SAVING.”
• “DO NOT PUT ALL EGGS IN ONE BASKET.”
• “HONEST IS A VERY EXPENSIVE GIFT. DO NOT EXPECT IT FROM CHEAP PEOPLE.”
• “NEVER DEPEND ON SINGLE INCOME. MAKE INVESTMENT TO CREATE A SECOND SOURCE.”
• "RISK COMES FROM NOT KNOWING WHAT YOU'RE DOING."
• "NO MATTER HOW GREAT THE TALENT OR EFFORTS, SOME THINGS JUST TAKE TIME. YOU CAN'T PRODUCE A BABY IN ONE MONTH BY GETTING NINE WOMEN PREGNANT."
• “PRICE IS WHAT YOU PAY, VALUE IS WHAT YOU GET”
• "IT TAKES 20 YEARS TO BUILD A REPUTATION AND FIVE MINUTES TO RUIN IT. IF YOU THINK ABOUT THAT, YOU'LL DO THINGS DIFFERENTLY."

Done with appraisal cycle… what to do with increment…..

Friends, I hope your hard work got the recognition and you have done with your appraisal and have earned that well deserved increment and bonus as well. Most of us already have some plan for the additional salary. Some of us feel the need of new gadget and some of us might have plan for an exotic vacation or simply spend on some other stuff. Before we go ahead and spend the additional income we must think that do we actually need these stuff or not? Before you spend your "extra money”, why not use it in a better way?  
So what are the way to use extra money? Please follow..

• Create An Emergency Fund: As a thumb rule, have at least six months’ worth of your monthly income in an emergency fund. So if you got increment it means you should increase the emergency fund by same proportion. If you don’t have an emergency fund, create one immediately.

• Repay your short term Debts: You can also use you extra income to make principal repayments on existing liabilities – personal loans, credit cards which are the most expensive form of debt. This will result in lower interest payment that means saving.

• Review & Buy Insurance: As a thumb rule, we should have a cover equal or more than 10 time of our annual income. So if you got increment it means you should increase the emergency fund by same proportion. If you don’t have an Insurance cover please go and get it immediately.

• Invest in your career or yourself: Investing in yourself may be the most profitable investment you ever make. We should improve our skills. Higher education is one of the way to do this but not the single way. Expand your knowledge and explore the outside world.

• Review Your Financial Portfolio: We need to Revisit our financial goals and make sufficient provisions for them. We must save and invest 30% of our income, so it is the time to plan some more SIP with extra income to our secure future.

Plan your Income Tax early in the financial year

Income Tax should be plan early in the financial year. We are already in second month of FY17-18. We should complete our tax planning and start acting on our plan. If we plan now we can use it for rest of the year. Most of us might receive mail form our employer for tax saving declaration in Form12BB for the current financial year so that they can deduct the tax accordingly from our monthly salary. They are also asking only our plan not the actual supporting documents. We need to submit actual proofs till the end of the financial year. As I said it is the plan we can change it anytime and we can increase or decrease during the year.

Form 12BB applies to all salaried taxpayers. Form 12BB does not have to be submitted to the tax department. It has to be submitted to your employer. Employees have to submit a declaration of deductions and exemptions that they want to claim. The employer will deduct TDS on the employee’s salary on the basis of these declarations. These investments are generally required to be made on the employer’s HR portal.

 Here I will try to help to understand the ways in which we can save our tax. We can claim tax rebate under various section. The main sections everyone should take advantage are 80C, HRA, NPS. We can invest Rs. 1,50,000 under and 80C and additional Rs. 50,000 under NPS.

In the last I just want to say this is the time to plan your investment not in March i.e. last month of the financial year. This is time when you need to think and start acting on below item if not done yet.

• Buying term plan
• Buying health cover
• Starting SIP’s
• Surrender junk policies

I personally use Nithya's tax calculator for my tax liabilities calculations. This Tax Calculator can be used to compute tax liabilities for salaried individuals only.