@Leisure - Vol-15 | srei
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@Leisure - Vol-15


5 ways to improve your personal budget

Wealth is more than just purchasing power. It is an enabler for peace of mind, security, and satisfaction. To maintain a good financial health it is important to keep a track of your personal budget. Here are some pointers that will help you improve your personal budget.

1. Know your current Fiscal Health

The best place to start a journey is from where you are. You should always assess your present financial health before you look at making changes. For that, you need to understand the followings:

  • Your net worth: This is nothing but the difference between what you own and what you owe. If this is a good positive number, you are on a reasonably good track.
  • Your investment: Is it all lying in the savings account or as cash in hand? If so, inflation is slowly eating away your money’s value.
  • Your asset allocation: Your asset allocation depends on factors like risk tolerance, financial situation, age, income, cash inflows and outflows etc.

2. Create your own budget

There are just too many goodies in the market eyeing your wallet. Quite a bit of self-control is needed to stay away from these. So start your spending activity with an effective budget:

  • Begin with taking an inventory of your income and expenditures.
  • If you are spending more than you earn, try to cut down your expenses. Identify your liabilities like – large EMIs, resolving card payments, too many financial commitments and close them on a priority basis.
  • Review your investments from time to time
  • Create an investment plan for the surplus money piling in your bank account every month
  • Try to align your investments to get optimum benefits

3. Differentiate your Needs and Wants

Well, expenses are all not the same. Though we tend to justify all that we spend on, a closer scrutiny will show some are functional expenses while others are emotional. The line between the two may be blurred but you would need to sharpen it if you are serious about improving your financial health. For enhancing your personal budget it is advised that you prioritise your needs and allocate funds accordingly.

4. Start Saving Early

This is one of the simplest and most effective ways of building wealth. The effect of compounding will magnify your investment results over longer time horizons. The investment grows disproportionately toward the latter half of your investment horizon. Even 10% of your income can add up over time to a large corpus for your retirement. Assuming you save Rs 5,000 every month in a high return secured investment option for 35 year and earn a 10% rate of return, it will grow up to Rs 3.2 crore approx.

5. Maintain an Emergency Fund

Life does not always play out as per wish or plan. There are always surprises, both positive and negative.. An emergency health problem, a sudden family expenditure, unforeseen travel etc. are all potent stumbling blocks that can derail planned personal budget. Such funding needs may force you to borrow, sell possessions or liquidate investments that may otherwise bloom well. So you need an emergency fund (say about six months’ expenses) to meet such exigencies. Keep aside some money every month for a dedicated emergency fund. You can either create a separate bank account or invest this amount in highly liquid investment options. Whatever it is, don’t forget to include it in your monthly budget.


SREI – BNP Paribas: A story of growth driven by partnership

SREI Equipment Finance Private Limited (SEFPL) is an RBI registered (Non-deposit taking) NBFC conceived in May 2008. In this short period of existence, SEFPL has emerged as one of the market leaders in the field of ECE financing managing a current AUM of more than 18500 crs as on 30th September, 2014. With a pan Indian distribution network of 83 branches, the company has acquired an enviable customer base of 35000. Thanks to partnerships with over 200 leading domestic and international equipment manufacturers and dealers, SEFPL is well placed to play a pivotal role in India’s infrastructure push.

The partners behind this success

SEFPL is a 50:50 joint venture between SREI Infrastructure Finance Limited (SIFL) and BNP Paribas Lease Group (BPLG). This partnership marked the coming together of global expertise and local insights which has emerged as a success hallmark of the joint venture. The two partners bring sound business practices and diverse domain experiences of the banking and finance industry to the table.


SREI’s quarter century in the field of equipment financing has been an eventful and progressive one. What started off as a construction equipment financing and leasing business in 1989 has made giant strides to morph into a Public Finance Institution as recognized by the RBI in 2011-12.With a massive spread among diverse business interests like project finance, project advisory, equipment finance, venture capital, equipment rental and insurance broking among others, SREI stands tall in the infrastructure sector of India. The robust business performance of SREI has given the confidence to international development institutions like IFC, FMO, DEG etc. to invest equity in the business apart from introducing strong governance and risk management procedures.

BNP Paribas Leasing Group

Promoted by BNP Paribas, the 5th largest European bank by market capitalization, BPLG is a well-established global lending institution with 60 years of experience and footprint in 22 countries worldwide. BPLG’s expertise lies in the fields of equipment and logistics solutions, technology solutions, bank leasing services and run down management which has smartly complimented SREI’s traditional line of business of financing solutions for construction, mining, oil & gas and power sectors. BPLG has been ranked at number one for the third consecutive year in the Leasegroupe’s annual ranking of Top European leasing Companies (2011).

The exciting future

With India’s infrastructure at the cusp of a transformational progress, the SREI-BPLG partnership stands well placed to benefit from the business opportunities in the offing. The robust business model and diverse domain expertise of the partnership should come handy in providing innovative solutions to the transforming infrastructure landscape of India.


Demat Accounts

Using Demat Accounts

There was a time when investors used to be burdened with the task of managing stock certificates, bond certificates, statement of accounts, etc. The more they traded, the larger was the volume of paperwork that they had to handle. But thanks to demat accounts and paperless trading, their lives have become considerably easier.

Opening a Demat Account

Demat account facilities are offered by public sector banks, private sector banks and brokerages. Details of how they can be opened and the charges involved are prominently given on their websites. Investors don’t have to bother visiting the branch office or even call up agents to get information. Representatives who open savings bank accounts visit the customers with opening forms of the demat accounts as well. In case the customers want, they can open a demat account at the same time that they open the savings account.

Operating a Demat Account

Account holders can invest in equites, currencies, derivatives, bonds, mutual funds, and initial public offerings. They can keep track of all their investments online, and the website can be accessed from a desktop or a smart phone. No matter what country or city they are in, they can log in to the website, check the status of their investments and buy and sell financial products.

Online demat account facilities are usually well protected. The customers are given separate login and transaction passwords, which they have to change at regular intervals. Different pages provide different kinds of information to the investors. There are pages that provide current price details and profit/loss status of the portfolio; pages that give the statement of accounts; pages that provide useful tips on trading, and pages that give information on open positions.

Facilities Enjoyed Through a Demat Account

Banks and brokerages provide discount facilities on demat accounts such as nil account opening charges, waiver on the annual maintenance charges for a certain period of time, and transaction linked charges that allow customers to pay less the more they trade.

Money can be credited to the account and withdrawn online as well, which means that when an investor sees an attractive trading opportunity in the market, he can immediately put money in his account and buy and sell financial products.

Demat accounts have been responsible for spreading trading activities throughout the country. No longer do investors have to be physically present at the big exchanges or even live in one of the metro cities. So many successful traders and investors now come from small towns, where having easy access to a computer and the Internet can open doors to a world of financial activity.


Buddy Jokes

1. Money talks... but all mine ever says is good-bye.

2. A man went to his lawyer and told him, ‘My neighbour owes me Rs 5,000 and he won’t pay up.  What should I do?’  ‘Do you have any proof he owes you the money?’ asked the lawyer.  ‘Nope,’ replied the man.  ‘OK, then write him a letter asking him for the Rs10,000 he owes you,’ said the lawyer.  ‘But it’s only Rs 5,000,’ replied the man. ‘Precisely.  That’s what he will reply and then you’ll have your proof!’

3. Quotes & One Liners
"A budget tells us what we can't afford, but it doesn't keep us from buying it." — William Feather