Author: Eduindex News
TECHNOLOGY – A BOON OR BANE
Technology uses techniques to manufacture
or make some products and services. In this modern world, Technology is very
important and ever increasing. Technology changed each of our lives in many way
till these last decade. It has a very high impact on Big industries to normal
Human beings. So, we can extremely say that Technology played a crucial role in
changing each of our lives. Technology has been Revolutionary. It gave us so
many good things. But, a coin should have two sides. It has a good and a bad side
too. Technology changed our lives, but we can’t to say it changed us completely
in a positive way. Technology, of course is a boon as well as a bane!
One of the serious issue of Technology
growth is High usage of Mobile phones, especially , smart phones . Since early
times, smart phones have been revolutionary. Smart phones have had so many
advantages, it helped us in so many ways, but smart phone misuse is a major
drawback. But, it isn’t the fault of its developers as they never develop it in
order to make social issues. It is us, who make it worst. So, Smart phones make
our life easier, thereby, making us lazy. Technology has become an essential
part of our lives. It has transformed luxuries into necessities. I agree with
this statement. In earlier times, affording a computer or even a television was
considered as a luxury but, now-a-days, it has become a necessity. The
generation today wants everything personal T.V., laptop, computer, etc. According
to me, technology has improved the standard of living. Owning new and latest
gadgets is a status symbol now. Earlier, there used to be the postal service.
like, if we wanted to inform anything to somebody, we wrote letters or sent
telegrams. Now, they are outdated; and are replaced by e-mails, SMS, WhatsApp,
etc. undoubtedly, it is very much faster as compared to the older systems.
Development in technology has helped the people of all ages, student, teacher,
doctor, housewife, businessman and many more.
Negative Aspect of Technology
Although technology is a good thing,
everything has two sides. Technology also has two sides one is good and the
other is bad. Here are some negative aspects of technology that we are going to
discuss.
With the help of technology, students
understand what they are taught and can apply it in real life easily. Thanks to
technology, school has become a place where students love to go.
Even outside the classroom, students can
share notes online, research, annotate, collaborate on work, have study groups,
share courses and create virtually creative content online with the help of
apps like google drive. Even social media platforms like facebook and twitter
are places where students can connect with each other to share ideas, articles
and other resources with each other. Internet is the biggest
advantage of technology. We can find anything or order anything while sitting
at home. It is a great boon to us. So, I’ll conclude by saying that, though
technology has provided us with many things but we should be wise enough to use
them.
Top Trending Technologies in 2021
Technology is persistently refreshing at such a quick speed that it may appear to be quicker than light. A technology or a programming language making the rounds this week maybe obsolete in the next few days. As an ever increasing number of assets are put resources into innovative work, computer scientists and experts are ceaselessly tweaking and working on existing advances to take advantage of them. Here are probably the most recent moving advances that make certain to overwhelm the IT business in the forthcoming years.
1. Artificial Intelligence
Artificial intelligence or AI is a technology used to match computer systems with human decision-making capabilities. Being one of the trending technologies, when Al programs are fed to systems, the aim is to mimic human intelligence for performing complex tasks, such as pattern recognition, speech recognition, weather forecast, and medical diagnosis. So, learning Al will help you secure job roles. such as machine learning engineer, data scientist, computer vision engineer, business intelligence developer, data analyst.
2. Data Science
Data science is the technology that helps to make sense of complex data. Everyday tons of data are produced by companies across the globe. This includes Business data, Sales data, Customer Profile Information, Server Data, Financial Figures. The future scope of data science looks promising, in turn creating opportunities for the following career roles, Data scientist, data architect, business intelligence manager, data engineer, data analyst, business analyst.
3. Internet of Things
IoT, is a network of devices that are connected to each other. The devices can interact and share data. These gadgets might be associated by means of Wi-Fi, and they share information about their environment and how they are being utilized. The devices have a computer chip that facilitates this exchange. It is predicted that more than 41 billion devices powered by IoT will be used by 2025. IoT chips embedded on machines help businesses assess those machines performance and assist in their maintenance. Learning this most recent technology will assist you with securing positions, for example, IoT software developer, system design engineer, IoT product manager, IoT research developer, IoT solution architect.
4. Blockchain
Blockchain is the foundational technology that powers electronic currencies such as cryptocurrencies. In simple terms, a blockchain is an electronic ledger that can be shared among different users. This helps in creating a record of transactions that cannot be altered, making the technology verifiable and secure. There is a rise in a career in blockchain. Here are some opportunities that are on the rise. Blockchain developers, blockchain quality engineer, blockchain legal consultant or attorney, blockchain engineer.
5. Robotic Process Automation (RPA)
Robotic process automation, RPA is a technology used to automate daily tasks. Like artificial intelligence, software is used here to automate a series of tasks such as handling and responding to emails, processing transactions and manipulating business data. Companies like Accenture, Deloitte and Capgemini use RPA tools to automate their daily operations. Therefore, the greatest need for skilled professionals in RPA is to follow the various RPA working rules. RPA Developer, RPA Business Analyst, RPA Consultant, RPA Solution Architect, RPA Project Manager.
6. Virtual Reality
VR is simply the technology by which you can submerge yourself in an environment that appears to be amazingly realistic. It is the utilization of computer technology for establishing a simulated environment. It is prominently utilized for playing computer games. Unlike traditional games where you experienced the gaming environment by viewing it on the screen, you are directly placed in the environment. The VR business is relied upon to arrive at near $40 billion by 2021. Here are some VR work positions you can pay special mind to. Content Writer, AR and VR Content Writers, Product Management, Software Engineer, UI and UX Design, Quality Assurance.
7. Edge Computing
Edge computing is the latest technology trend that is gaining popularity day by day. The technology is based on the philosophy of bringing computer power as close to the data source. This helps in reducing bandwidth and latency. Edge computing is used to handle time sensitive data stored in remote locations with limited connectivity to the central location. The technology will make cloud computing and IoT devices faster. By 2022, the Edge computing market is estimated to be $ 7 billion. The technology will be mainstream in sectors like healthcare, retail and manufacturing.
8. Intelligent Apps
Intelligent apps are software applications that use Al components, such as machine learning, deep learning, data analytics, robotics, and natural language processing. They assist you in making decisions based on real-time data or historical data. Examples of intelligent apps are voice assistants, such as Siri, Google assistant, and Alexa. As companies like Google, Apple, and Oracle keep putting investments into these applications, it will undoubtedly make many jobs later on. Intelligent application developers are sure to bring home generous income packages. In this fiercely competitive IT industry, getting a job is becoming challenging. But if you keep up-skilling and continue learning new tools, you will surely grab your dream job.
SUCCESS STORY OF KFC
“It’s never too late to start something
new, to do all those things that you’ve been longing to do.” Dallas Clayton.
This proverb stands true for KFC owner Colonel Harland Sanders. He
started selling fried chicken when he was 69. He shattered entrepreneurial myth
such as you have to start at young age to be a successful entrepreneur.
History of KFC
KFC (Kentucky Fried Chicken) was
established by Colonel Harland Sanders in 1952 in Utah. He worked for many
years in various fields with mixed success before starting fast food chain KFC.
KFC
focused on the fried chicken when there was dominance of hamburger. Sanders
learnt cooking at the early age of 7. He developed what he called his “Original
Recipe” comprising of 11 herbs and spices in July 1940. The same recipe is used
for KFC restaurants chain. KFC headquarter was established in Louisville,
Kentucky in 1959.
Early Years of KFC
In 1952, Sanders franchised his secret
recipe “Kentucky Fried Chicken” for the first time, to Pete Harman of South
Salt Lake, Utah, the operator of one of that city’s largest restaurants. The
franchise concept became successful. After the success of Pete Harman, several
other restaurant owners franchised the concept and paid Sanders $0.04 per
chicken. Sanders visited suitable restaurants in US
looking to offer the franchise, after he sold his south salt lake restaurant
due to new reduced traffic rules. After closing the North Corbin site, Sanders
and his wife Claudia opened a new restaurant and company headquarters in
Shelbyville in 1959. He slept in back of his car quite often, while visiting
the restaurants to offer the franchise if the staff liked his chicken. After
some time the franchise started to visit Colonel Sanders instead. He ran the
company and his wife Claudia mixed and shipped the spices to restaurants.
The franchise approach was the demand of
the town; KFC was one of the first fast food chains to expand internationally,
opening outlets in Canada and later in the UK, Mexico and Jamaica by the
mid-1960s. Overwhelmed by the growth of the company,
aging Colonel Sanders sold the company to John Y. Brown Jr. and Jack C. Massey
in 1964. But Sanders continued his association with the company as a salaried
brand ambassador. Colonel Sanders died at the age of 90 years in December 16,
1980. During this journey, he got a rejection from 1009
restaurants. However, he never gives up as he was confident about his unique
recipe and its taste. And finally, the day came when few restaurants agreed to
sell Sander’s chicken recipe. By the year 1963, nearly 600 restaurants agreed
to sell the recipe and Kentucky chicken making it a brand.
Today KFC has established itself as the
2nd largest food chain spread globally in 136 countries. The lesson we learn
from Sander’s life is that Success is achievable at any age. The only thing
required is your conviction towards fulfilling your dream at any stage of your
life. Always believe in yourself wholeheartedly, the burning desire to succeed
will pave your path towards your dream despite everything even your age! So
Never give up!
Story of a delicious festive dessert Ghevar or Honeycomb
CLEANLINESS IS NEXT TO GODLINESS
Cleanliness
meaning is “to keep clean and to avoid dirt”. The practice to clean everything
is cleanliness. There are different types of cleanliness, the cleaning of
clothes, the cleaning to house; the cleaning of streets, the cleaning of
ourselves etc. the most important is to clean ourselves because if we do not
care for our cleanliness, we do not bother about the cleaning of surroundings.
We feel the importance of cleanliness only when we do practice of cleaning
ourselves. The practice of hand washing and bathing is necessary to keep
ourselves clean. The person who keeps his self-dirty, he also keeps his
environment dirty and filthy. The cleaning of
environment is very important. The environment is may be your home, your
school, or your office. Some people has habit to throw things on road, this is
illegal and a hurdle for cleanliness. The cleaning environment puts healthy
effects on our mind and body, while a dirty environment puts very bad affects on
our health and mind. Almost all the diseases are caused by the infectious
agents in the environment and these infectious agents are very active in dirty
and filthy environments. Many diseases like hepatitis, diarrhea, cholera, flu
etc are caused by the dirty environments. Hepatitis is very dangerous disease
and is usually transferred by the use of unsterilized instruments. A
man of dirty habits is far from culture and civilization. So, with the progress
of civilization, a man cleans himself more and more. He cleans his body. He
cleans his mind and heart. He modifies all his actions and manners. He purifies
his soul. This will lead him to the highest form of civilization. But all other
cleanings depend on the cleanliness of body.
It is truly said that ‘Cleanliness is
Next to Godliness’. Cleanliness is a step which leads us towards godliness.
It is a good habit as it keeps our body, mind and everything clean around us.
We should practice it regularly from the early life. The real meaning of
cleanliness is to keep our body, mind, soul, home, surrounding areas, clothes,
environment, etc clean. It is the habitual act which keeps us away from dirt
and diseases as well as helps us to maintain good health including personal and
environmental hygiene. It is necessary for maintaining
self-respect, getting confidence and getting respect from others. People who
live in dirt never get confidence and self-respect. Cleanliness helps people
get lots of respect and popularity. It helps people living closer to the
divinity and has fear from the God. It indicates the standard and character of
a man. In order to follow cleanliness all across the life, one needs to acquire
clean habits from childhood onwards.
Way to maintain Cleanliness
As we all know, it is not tough to
maintain cleanliness. It is very important to maintain cleanliness for a
healthy life. When we talk about our personal lives, we can maintain
cleanliness by bathing regularly. It is very important to wash our hands before
eating food. This will ensure no bacteria enter your body and prevent
illnesses.
Subsequently, we must always eat healthy
food and consume clean water. Avoid eating out often and drinking water from
unclean sources. Personal hygiene must be taken care of. Remember to trim your
nails timely before they grow long. Long nails are very dirty and that means
you will have dirt under your hands at all times. In addition, maintain the
habit of brushing and flossing twice a day for oral hygiene.
Taliban: From Past to Present
History of Python Programming Language
Python
In this article we’ll see about the most popular and commonly used programming language, Python. So, let’s begin and learn about the development of Python and gain insights about the current IT trends.
Introduction of Python
Python is very famous for its simple programming syntax. code readability and English-like commands that make coding and English-like commands that make coding a lot easier and efficient. Due to this, it is the most popular and preferred language. Python is an interpreted, high-level, general-purpose programming language developed by Guido van Rossum at National Research Institute for Mathematics and Computer Science, Netherlands.
In contrast to popular belief that Python was named after the snake, Python was actually named after the show “Monty Python’s flying circus”. Guido van Rossum formulated Python in the late 1980’s as a successor to the ABC language.
Versions of Python
In 1994, Python version 1.0 was released with features like exception handling, Lambda, Map, Filter and Reduce. Python 2.0, released in 2000, introduced features like list comprehensions and garbage collection system capable of collecting reference cycle. Python 3.0 was released on the 3rd of December 2008. Undoubtedly, Python 2.x and 3.x have proven to be the most used versions. As of today, Python 3.9.5 is the latest stable version released in the summer of May 2021.
Applications of Python
Python is popularly used for development, scripting, and software testing. Top IT companies like Google, Facebook, Instagram, Spotify and Netflix, among others, use Python. Some major applications of Python can be seen in the fields of Machine Learning, Artificial Intelligence, Data Science and IoT.
Python Also Offers Many Libraries like
👉 Numpy
👉Scipy
👉 Keras
👉Tensor Flow
👉Django
👉 Flask
Pep-8 is the official style guide that defines the styling conventions for Python code. A few popular open source Python projects include PipENV, Chatistics, solving the travelling salesman problem using self-organizing maps and Python to BPF converter. Popular websites on the internet, like Reddit and Quora, are built using Python.
Some Popular Games Developed Using Python
👉EVE Online Freedom Force
👉Pirates of the Caribbean Online
👉 Civilization IV, Battlefield 2
👉Sims 4
👉World of Tanks
According to Indeed, the average salary of a Python developer in India is about Rs.5,00,000 per annum and that in the US is around $124,000.
Users and admirers of Python, especially those considered knowledgeable, are referred to as Pythonists, Pythonistas, and Pythoneers. Since its inception, Python has come a long way to become the most popular coding language and continues to revolutionize the IT industry. This is the best course for all beginners who want to learn the new course.
OPTIMISM
A positive attitude is not just about
sporting that smile on your face every time, it is more than that. It is about
maintaining that optimistic mindset and attitude even when things are in utter
chaos. It is often said that what good or bad diet does to your body, positive
and negative thoughts do the same to your mind! Feed your mind with positive
thoughts and you will see amazing changes around you. A good attitude or
positive attitude is the outward explanation of a mind that dwells primarily on
positive matters. It is a mind-set tipped in favor of creative activity rather
than boredom, joy over sadness, hope over futility. A positive attitude is that
state of mind which can be maintained only through conscious effort. When
something jars one’s mental focus into a negative direction, those who are
positive know that in order to bounce back adjustments must be made.
Positive
thinking is reinforced by thoughts such as optimism, hope, and belief that hard
work is never wasted. A positive mind anticipates happiness, health , joy, and
a successful outcome of every situation and action and works wonders like
magic.
How to Apply Positive Thinking?
Use positive words while talking
Make use of words that evoke strength and
success
Redirect your thoughts
Remove all the feelings that are not
positive and focus on positive thoughts
Practice positive affirmations
Start thinking that you will succeed in
meeting the objectives
Forgive yourself and allow yourself to
move on
Analyse what went wrong to avoid future
mistakes and look forward to more positive
Working at your visualisation or
imagination to build more positivity and motivation
Think of failure as an opportunity
Practice gratitude to reduce stress,
improve self-esteem, and foster resilience during difficult times
Practice self-talk and be mindful of the
voice in your head and respond with positive messages
What Negative Thoughts Do to Your Brain
Let’s say that you’re walking through the
forest and suddenly a tiger steps onto the path ahead of you. When this
happens, your brain registers a negative emotion — in this case, fear. Researchers
have long known that negative emotions program your brain to do a specific
action. When that tiger crosses your path, for example, you run. The rest of
the world doesn’t matter. You are focused entirely on the tiger, the fear it
creates, and how you can get away from it. In
other words, negative emotions narrow your mind and focus your thoughts. At
that same moment, you might have the option to climb a tree, pick up a leaf, or
grab a stick — but your brain ignores all of those options because they seem
irrelevant when a tiger is standing in front of you.
What Positive Thoughts Do to Your Brain
In other words, when you are experiencing
positive emotions like joy, contentment, and love, you will see more
possibilities in your life. These findings were among the first that proved
that positive emotions broaden your sense of possibility and open your mind up
to more options.
Contribution of Red Cross Society in the World
Red Cross Society
The ‘Red Cross’ is one of the organizations that helps with a pure sacrificial mind. We will get to know the features of this system clearly through this article.
Introduction to the Red Cross
In 1859 a great war took place between France and Austria. There were huge losses in the war. Most of them have lost various organs in their body and suffered injuries. It was then that Henry Dunant, a Swiss humanitarian, began to feel sorry for them and began to help them.
There is a lot of work to be done because of that charitable spirit. Over time it became a company. It is also known as the ‘Red Cross’. The name was most commonly coined by some on the day.
Dunant’s memoirs on the war were widely acclaimed for his book, “A Memory of Solferino.” At the Geneva Conference on August 22, 1864, 14 nations co-founded the name and fame.
Other countries around the world have joined the 14-nation system. Thus, in 1929, the Red Cross became the largest charity of 126 nations. Today, the organization is active in more than 250 districts in more than 125 states in India alone.
Charities of the Red Cross
Although the association aims to help everyone without feeling hostile during the war, it has been active during times of epidemics such as leprosy, measles, plague, and disasters such as floods, storms, volcanoes, and earthquakes.
Logo of the Red Cross
The name ‘Red Cross’ itself means ‘Red Cross’. Its symbol is the red cross in a white circle. Hospitals still use the logo today.
The Role of Students in Red Cross
Every school and college has this association. In it, students work together to develop humanity, philanthropy, and tolerance.
Conclusion
The highest goal of human nature is to help others. The Red Cross is doing this neatly. Together we will live as human beings and good minds.
Advancement of Women in India
Advancement of Women
Introduction
In India, where women are considered as mothers, women are being enslaved and abused. It is a pity that women seek to destroy women.
The Status of the Woman
In ancient times women were proud. That is why all the rivers of the motherland were called by the name of the woman. From the fact that many female poets lived during the Sangam period and from the heroic life of Lakshmibai, the Rani of Jhansi and Rani Mangammal, we can know that women excelled in all fields.
But over time, that is likely to change. The oppression of women began to grow. Women began to be enslaved.
The custom of having his wife jump into the fire with him if the husband dies came from the name of conspiracy. Reformers like Rajaram Mohan Roy slammed it and removed it.
Women today have the same responsibilities as men in a family. Many families depend on women. But even today, in the name of dowry, women are given and gold is given. It is painful to note that many of these women are abused by the groom’s house. If the wife dies, the widow is denied marriage while the groom remarries.
Femininity in Society
To this day, women are given second place in society. Gandhiji said he would accept that peace prevails in the country if a young woman walks the streets alone in the midnight. But in the daytime, the news about men abusing women is the same.
Female infanticide still exists in many families today. The family does not provide adequate education for women. Similarly, it is painful to portray women as mere objects in movies and advertisements.
Women today are proving that we can achieve in any field. However, violence against women continues today. No one can deny this. But the comforting news is that many women’s organizations are emerging and listening to these atrocities.
Government Programs
It is to be welcomed that the government has come up with several legal schemes and shown interest in the advancement of women. The State Government and the Central Government have enacted laws such as the Dowry Prohibition Act, the Maternity Allowance Act, the Industrial Rules, the Sharda Act and the Equal Pay Act and are making arrangements for data on reservations for women.
The government and the general public must protect women’s rights by providing them with education and equal rights. We must remember that men and women are equal.
Conclusion
We will realize Bharati’s dream that this world will flourish only because men and women are equal. Understand the fact that the two wheels of the cart of society are male and female and everyone should participate in the advancement of women.
Tax Planning
Introduction to Tax Planning:
Tax
Planning is an activity
conducted by the tax payer to reduce the tax liable upon him/her by making
maximum use of all available deductions, allowances, exclusions, etc. feasible
under law.
It is a good thing to give government a part of our earnings
so that various development works can
be carried out. But we should also think of saving the tax that we pay with the help of ways
provided by the government. Various deductions that can be taken under Section
80 can be taken up to a maximum limit of 1.5
Lakhs.
How to create an effective Tax plan ?
Let us try to understand it with an example:
I would like to take deductions as
follows:
1. PPF (Under Section 80C): Invest Rs. 5000, in PPF every month, i.e., Rs.60,000 per annum into PPF. I will save tax also and fulfil my investment plan also.
2.
ELSS
(Under Section 80C): An Equity Linked Savings Scheme,
popularly known as ELSS, is a type of diversified equity scheme which
is close-ended, with a lock-in
period of three years, offered by mutual funds in India. Annual
Investment of 68,500 to be made in ELSS, which will save tax expenses and
generate income also.
3.
Deduction for Term Life Insurance: Deduction of at least Rs. 9492, based on the plan I chose. Premiums paid for it are
deductible u/s 80C.
4.
Deduction for Medical Insurance (Under Section 80D): Take a health
insurance of an annual premium of Rs. 21500 approx.
for the cover of Rs. 75,00,000.
|
NET INCOME WITHOUT TAX PLANNING |
AMOUNT (₹) |
|
Annual Income |
12,50,000 |
|
Income Tax @ 25% |
312500 |
|
NET INCOME |
9,37,500 |
|
NET INCOME AFTER TAX PLANNING |
AMOUNT (₹) |
|
Annual Income |
12,50,000 |
|
Deductions Under Section 80C |
1,50,000 |
|
Net Taxable Income |
11,00,000 |
|
Income Tax @ 20% |
220000 |
|
NET INCOME |
8,80,000 |
Analysis of the above Tax Plan
As we can see above, without any taxation planning, we
have to pay a tax of Rs. 3,12,500 p.a. under 25% slab of Income Tax. But after tax planning
and making proper
allocations of money, Income tax paid is Rs. 2,20,000.
Hence, we save Rs. 92,500 p.a. This amount can further be invested into some
return generating investments.
Conclusion
Thus, we should always try to plan our taxes in such a
way that less of them have to be paid and more return can be made in long run.
“A good head and a good heart are always a formidable combination.” – Nelson Mandela
INTRODUCTION
The leader is a man who comes closest to
realizing the norms of a group that values the highest; this conformity gives
him his high rank, which attracts people and implies the right to assume
control of the group. (Homans, 1950). The underlying need-structure of the
individual is what motivates his behaviour in various leadership situations.
Leadership style thus refers to the consistency of goals or needs at different
situations. (Fiedler, 1967). One of the great leaders who had the above
qualities fulfilled in him is the former South African president, Nelson
Rolihlahla Mandela.
Nelson Rolihlahla Mandela
was born on 18 July 1918 in the Transkei village close Umtata. Nelson Mandela
was sent to Healdtown, a Wesleyan secondary school with some reputation where
he enrolled after getting a primary education at a local mission school.
Early life and work
Nelson Mandela was the son of Chief Henry
Mandela of the Madiba clan of the Xhosa-speaking Tembu people. After his
father’s death, young Nelson was raised by Jongintaba, the regent of the Tembu.
Nelson renounced his claim to the chieftainship to become a lawyer. He attended
South African Native College (later the University of Fort Hare) and studied law
at the University of the Witwatersrand; he later passed the qualification exam
to become a lawyer. In 1944 he joined the African National Congress (ANC), a
Black-liberation group, and became a leader of its Youth League. That same year
he met and married Evelyn Ntoko Mase. Mandela
subsequently held other ANC leadership positions, through which he helped
revitalize the organization and oppose the apartheid policies of the ruling
National Party.
In 1952 in Johannesburg, with fellow ANC
leader Oliver Tambo, Mandela established South Africa’s first Black law
practice, specializing in cases resulting from the post-1948 apartheid
legislation. Also that year, Mandela played an important role in launching a
campaign of defiance against South Africa’s pass laws, which required non-whites
to carry documents (known as passes, pass books, or reference books)
authorizing their presence in areas that the government deemed “restricted”
(i.e., generally reserved for the white population). He
travelled throughout the country as part of the campaign, trying to build
support for nonviolent means of protest against the discriminatory laws. In
1955 he was involved in drafting the Freedom Charter, a document calling for
non-racial social democracy in South Africa.
Mandela played a major role in many political
endeavours, many anti-apartheid movements such as the Program of Action, a
policy based initiative that was founded on the principles of non-violent
“civil disobedience, boycott, strike, and non-co-operation”. In 1962, Mandela
was nominated as the leader of the armed resistance group that was formed the
same year known as the Umkhonto we Sizwe (Spear of the Nation). Mandela
explained his reasoning, he assessed the situation of South African, along with
some of his colleagues, he came to a conclusion that: as long violence was
inevitable in his country; it was considered unrealistic and wrong for African
leaders to preach on peace and non-violence when the government met their
peaceful demands by force. In 1991 eventually he was elected as the President of
the ANC. Later he was elected democratic manner as the President of the State
of South Africa in 1994.
Financial Planning
Introduction to Financial Planning
Financial planning is an important part of
financial management. It is the process of determining the objectives;
policies, procedures, programmes and budgets to deal with the financial
activities of an enterprise.
Let us understand financial planning with an example :
|
ANSHUL’S FINANCIAL |
||
|
1.Savings |
|
|
|
Monthly expenses |
179500 |
|
|
Emergency fund for |
6 |
Months |
|
Emergency funds required in savings account |
1077000 |
|
|
|
|
|
|
2.Loans |
|
|
|
Housing Loans are least expensive |
|
|
|
Repaying all expensive loans like personal |
|
|
|
|
|
|
|
3.Insurance |
|
|
|
a) Life Insurance |
|
|
|
Annual Income (assumption) |
1200000 |
|
|
Life cover |
20 |
times |
|
Life Insurance needed |
24000000 |
|
|
Life insurance should include coverage for |
|
|
|
|
|
|
|
b) Medical Insurance |
|
|
|
Number of family members |
4 |
|
|
Medical family coverage required for each |
200000 |
|
|
Total medical insurance needed |
800000 |
|
|
|
|
|
|
4. Investment plan |
|
|
|
Invest in : |
|
|
|
Mutual funds |
|
|
|
Equity |
|
|
|
Sovereign Gold Bonds |
|
|
|
RBI floating interest rate bonds |
|
|
|
No need to invest in real estate because house |
|
|
|
|
|
|
|
5. Tax plan |
|
|
|
Avail Tax benefits |
|
|
|
Save tax under Section 80 C by investing in |
150000 |
|
|
Section 80 TTA – Deductions from Gross Total |
10000 |
|
|
Section 80 EE – Deduction on Home Loan |
200000 |
|
|
Section 80 D- Premium paid for Medical |
25000 |
|
|
Section 80 CCD ( 1B)- Additional Contribution |
50000 |
|
|
|
|
|
|
6. Retirement Plan |
|
|
|
As per the retirement plan prepared, it is |
Rs 25.4 crores
|
|
Insights from the above Financial Plan
A
good financial plan as mentioned above should cover all the six heads: Savings,
Loans, Insurance, Investments, Tax Planning and Retirement Planning.
Savings
according to me a person needs to create an emergency fund in a savings account
which can be used to meet all the designated expenses even if the income for a
particular month is nil. As a thumb rule an amount equivalent to six times the
monthly expenses should be set aside as emergency funds. In my case as
calculated the monthly expenses are of Rs.179500, so an emergency fund of
approx. Rs.10.77 lacs needs to be created to cover all contingencies.
A
good Financial Plan is one where expensive loans (which bear high interest
rate) like personal loans and car loans are avoided. Home Loans are the
cheapest loans. I case of repayment the focus should be to return the expensive
loans as early as possible.
If
we talk about insurance, I have analyzed that Life cover should be equal to 20
times the annual earnings of an individual. The medical insurance should be
available for all the family members. It is better to have a family cover. I
have opted for a Rs 200000 medical cover for each family member. A medical
family cover means that medical expenses to the extent of the family cover are
taken care of instead of the smaller medical insurances.
The
investment portfolio should be a balance of high risk high return instruments
such as equity and mutual funds, moderate risk moderate return instruments such
as Sovereign Gold Bonds and RBI floating interest bonds and low risk, low
return instruments such as Fixed Deposits and Preference Shares, depending upon
the risk taking capacity of individuals. I chose a combination of high, risk
high return instruments and moderate risk, moderate return instruments
according to my risk taking capacity.
For
tax planning, one should try to save as much tax as possible by investing in
tax saving instruments provided by the Government. This will not only help in
saving tax today but also help in the creation of future Corpus.
Finally,
in the Retirement Planning section, the monthly expenses need to be determined
for the calculation of corpus needed post retirement. Accordingly the financial
planning should be done. One should opt for retirement planning as early in
life as possible because considering the ever increasing inflation rate, the
monthly expenses will keep increasing resulting in an exorbitant increase in
the corpus required post retirement if we begin at a later date.
Conclusion
Financial Planning is best if it is simple. A good financial plan should cover all the six heads : Savings, Loans , Insurance , Investments , Tax Planning and Retirement Planning. The goal should be to maximize returns so that a corpus is created in the shortest duration of time for the retirement and a person is able to comfortably meet the expenses.
Retirement Planning
What is Retirement
Planning?
According to Investopedia , Retirement planning is
the process of determining retirement income goals, and the actions and decisions necessary to
achieve those goals. Retirement planning includes identifying sources of income, sizing up
expenses, implementing a savings program, and managing assets and
risk.
One should have a fixed budget for retirement. One should start
retirement planning a early as possible and they should also track and review
their plan wisely.
How to make an effective Retirement Plan?
(You can get retirement calculator online)
|
ANSHUL’S RETIREMENT |
||
|
Current Age |
25 |
|
|
Monthly expense |
179500 |
|
|
Retirement Age |
50 |
|
|
No of years for |
25 |
|
|
Life expectancy |
75 |
|
|
% expenses after |
100% |
|
|
Inflation Rate |
7% |
|
|
Value of monthly expenses post retirement |
Rs. 9,74,224.16 |
|
|
No of years in |
25 |
|
|
Return on Corpus |
8% |
|
|
Corpus required to |
Rs. 25,87,17,770.81 |
|
|
MONTHLY EXPENSE SHEET |
|
|
Particulars |
Amount |
|
Groceries |
5000 |
|
Fruits and vegetables |
1500 |
|
Clothing |
1000 |
|
Electricity |
1500 |
|
Water supply |
500 |
|
Medical expenses |
1000 |
|
Medical insurance |
2000 |
|
Loans |
100000 |
|
Maintenance expenses |
5000 |
|
Other insurance |
2000 |
|
Education expenses |
20000 |
|
Servant Salaries |
40000 |
|
Total |
Rs.179500 |
Analysis from the preparation of Retirement Plan
In
the above plan, assuming that I will start earning at the age of 25, it can be
seen that monthly expense of Rs.179500 will translate into Rs.9.74 lacs at the
time of retirement which needs a huge corpus or saving of almost Rs. 25.87
crores given the inflation rate of 7%.It also becomes clear that financial
security is much dependent on proper and adequate financial planning. One also comes to know that the value obtainable for money will be far less at a future date.
Conclusion
One can even personally in order to maintain a similar lifestyle to their current
lifestyle, it is necessary to begin saving for retirement as early as possible.
So, when I will start retirement planning, generally 50%, 30%,20% rule is
applied where 50% of the income goes to your needs, 30% for wants and 20% for
savings. One can follow the same rule to make my retirement plan more
effective.












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