Rail Budget 2012-13 "HighLights"

Our Analysis Railway budget with Safety as Priority!

Railway Minister Mr. Trivedi announced Railway Budget for FY12-13 today with a clear focus on Safety and Modernization. Passenger fare prices have been marginally increased across the board for the first time in a decade whereas freight rates were already increased with effect from 5th march. On account of the deteriorating financial health of Railways, we have seen decline in various key investment activities like doubling of line and gauge conversion of line. The increase in Freight rates and Passenger fares are well directed to improve the financial strength of Railways. Overall the railway budget is not encouraging for Railway related companies.

Key Budget Highlights:
1. Marginal increase in passenger fares across the board.
    a) Hike of 10 paise per km for third AC passengers.
    b) Sleeper class 5 paise per km.
    c) First AC hiked by 20 paise per km.
   d) Platform ticket hiked to Rs 5.
   e) 2 paise per km hike for 2nd class suburban passengers.
   f) 2AC passengers to pay 15 paise more per km.

2. The ministry aims to attract 10% of the Rs 20 lakh cr government expects to spend on infrastructure during 12th Plan.

3. 487 approved projects are at various levels of execution.

4. 17 gauge conversion projects will be completed in FY 12-13.

5. Rs 1102 cr for passenger amenities in FY 13 as compared to Rs 762 cr in previous year.

6. Long Term Goals
   a) Plan to upgrade 19,000 kms of tracks in 5 years.
   b) To spend Rs. 63,212 cr on track modernization in next 5 yrs
   c) To create 100 stations through PPP route in 5 years.
   d) Total cost of signaling for five years is Rs 39,110 cr.
   e) To bring down operating ratio from 95% to 84.9% in FY13 and 74% at       the end of 12th Plan.

We PLAN to RETIRE at the AGE of 40 !!!!!!

Zindagi Na Milegi Dobara, had Hrithik Roshan saying, “ 40 KI AGE PE RETIREMENT AUR PHIR ENJOYMENT”. 

But are we Ready for this………??????

With a young population, attractive entry level salaries the likes of which were beyond the imagination of their parents, the segment of young earners has a very high DISPOSABLE INCOME. Even though they are well paid, they are often insecure, debt ridden and confused as the priorities of a young earner are way different from those of someone who has been earning for a few years.

However, the fact remains that almost all their major long term goals can be met if young earners follow a disciplined approach towards financial planning. 

Some common pitfalls which this Generation faces :

1.      Balance between budget and life  -  The easy route that most of the young earners take is to worry about finances and security later, but eventually any overspending or lack of provision will catch up with them.

2.      Payback now and save later  -  Many young earners at the earlier stage of their career are burdened with student loans. And that is the biggest load on their mind.

3.       Savings & Cash Safety Net  -  Many people in their twenties feel they do not have enough money to live on, let alone set aside for a nest egg. At least save enough money to cover three months worth of their monthly costs. This is not an investment but rather a safety net to protect them against unforeseen events and expenses.

4.      Encourage to invest aggressively - Invest as aggressively as you can stomach. For younger people, their biggest asset is their potential income stream and their capacity to bear risk is very high. If they are in their 20s they could easily be 100 per cent in stocks or equity and afford to lose 40 per cent and still make it up in their lifetime.

5.      Plan for Retirement – This Generation starts planning for Retirement, the Day one gets the OFFER LETTER. Planning is good but EXECUTION of which is lacking in most of the cases.

Remember, the days, when we used to get POCKET MONEY from our Parents, this helped us to manage that money in the best possible manner for a certain duration, not that one was denied further allowance but this helped us MANAGING FINANCES better.

Similarly, if  WE issues are addressed by devoting proper time and research, then definitely retirement at an early age is possible, and more importantly then we can vouch for Hrithik’s opinion in the film saying “ AGAR BANK MEIN Rs. 40,000 Crore ho, to ENTERTAINMENT ke liye BIWI ki kya ZAROORAT HAI”

So don’t just start PLANNING today, EXECUTION is more important........

The Article is a contrast to the one published in Economic Times dated 08^th September, 2011

Are you ready to DIE tomorrow !!!!!!!

No one wants to die but are we not leaving our Dreams to Fate....

Birla Sun Life launched the One-Two One-Two Advertisement...Once again another Insurance Company showing just how in a matter of seconds the inevitable might happen...

The ET Wealth of 07th November, 2011 also had a Detailed Analysis of how Indians are Under-Insured. The Economic times also recently published a report about how Net-savvy Indians are lapping up Online Term insurance Plans.

Are you adequately Insured ?????

The Welfare of your family and dependents is undoubtedly your responsibility and you have been earning to ensure that your absence from the scene does not adversely affect their future. So, sooner than later, you will need to insure not only yourself, but also you need to keep them in the loop.

Once you decide to buy life insurance to protect your family and dependents, you’ll need to figure out how much to insure and how much you can afford to. The idea is for your beneficiaries to be able to maintain their standard of living, without having to dip into the principal.

Some say it is best to buy about 8 - 10 times your current annual salary, but the best way to determine how much, what you will really need to do is some calculation. Basically determine your yearly household expenses, assets, income from all sources and debts if any. Most of the time people take assistance from the professionals in decision making. So figuring out how much insurance you require is more important than the type of policy you purchase. It means you have to make more efforts to gather the information you need and calculate the following:

Annual income 

It is the amount your dependent will need to maintain their standard of living as of today. This should be enough to cover your rent or mortgage, home maintenance and repairs, home improvements, household items, and real estate taxes and insurance. It should also include health and auto insurance, utilities, clothing, food, transportation and auto maintenance costs, plus child and dependent care, recreation and entertainment, and any other expenses they might have.

Income your dependents will have when you are gone 

This will include your spouse’s salary if working outside the home and investment income from all of the accounts you currently have. Do not include the insurance proceeds as income here.

Deduct annual income from dependents income and you will have determined how much more they will need to live comfortably. That gives you the amount of insurance you need for them to live when you are gone, without compromising on the quality of their lives.

More importantly dont treat Insurance as a tax-Saving instrument or an Investment tool......the kind of Inflation which we are experiencing ....We have Mutual Funds for it.....Insurance is not for you, it is for your family in case INEVITABLE happens.....

So are YOU ADEQUATELY INSURED such that your family is financially safe even when you are not there......

THINK AGAIN .......