Demonetization – takeaways from this experience which initially seemed absolute mayhem!

There is more to life than money- a phrase which facsimiles our situation today. Standing in the ATM and bank queues has become our leisure pursuit. In a good sense though what may have been perceived as turmoil at the outset has cleared our idea of our capabilities in many ways. We are now aware that human mind backed by technology is a high-handed blend that can handle any challenges that come their way. This move that was no less than the feeling of being hijacked as we were cut from our foremost basic resource ‘money’ has actually proved to be a learning experience— in more ways than one. Let’s browse through details.

Demonetization: What life taught us

Knowing and Coping up: We all got perturbed at first when demonetization was announced but we also need to understand that it was a severe blow to the hoarders of black money and all was wiped at one go. Our awareness here can make things easier for us. As a race we are known to adapt to any and every situation. This precarious one was a test to take and we realized that challenges will come and go but with a little bit of sagacity from our end, possibilities are copious.

Rule #1 – Budget: The current crisis call and limited cash inflow put the focus back on budgeting. Budget was

priority and with whatever cash available we had to pay heed to essential expenses and investments only. We had forgotten that best things in life are free and this reminded us of the days when weekends at home with home cooked food and family was far too charming than to simply reserve a table at the luxurious eatery and doing away with money.

Mediclaim not just an asset a life saver! Medical emergency can come without any prior notice and the need to get hospitalized in no money time can be harrowing. Cashless medical benefit cards can be of great help for effortless hospitalization alongside being a tax-saving outlay.

Learning again to feel for others: A fast paced world does not leave you with much time to appreciate others’ sentiments. However, limited availability of “cash” meant we were helping each other out with “chillar” whenever possible. The bankers were working late hours and overtime to make ends meet, people standing in the elongated queue were leaving their place for the elderly. We turned more human in this world where currency dictates the way of life. And then there was news of a Samaritan depositing INR 2 lakh in 100-rupee notes so that banks have it easy meeting the cash demands of customers. Read report at

A Ranchi hospital even treated patients for free. (Read report at

Perceive the world with digital eyes: Technology advancements have opened up digital doors for us. Ranging from online banking to buying anything that we need through the internet, PayTm for cashless cabs to go places, stores that accept pay via cards. All you need is to have adequate knowledge of the same and you can ‘rule the world’.

Invest, invest, and invest: We can never envisage what future has in store so it is always better to be equipped ahead of time. Resource planning and investments are the best way to secure our future and is always better than to have the money in our home owned safes.

In conclusion life is endowed with so much more that we discover everyday and overcoming this challenge which is actually for long time gains is one another of life’s chessboard matches. However, it was irksome for ones who have never seen the face of the bank and have lived a menial life till date – but any kind of change cannot happen overnight and time will mend all that has gone out of line. Fending off the downsides— this well-thoughtout move is indubitably a blessing in disguise.

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Scrapped Currency Notes Hit Indian Economy – Will it have any impact on the common man?

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The midnight of 9th November ’16 will witness scrapping of Indian currency notes of 1000 INR and 500 INR following an announcement made by Mr. Narendra Modi, the Indian PM. According to his recent declaration, this move is aimed at eradicating corruption and black money.

A decision has been takento continue with currency notes of Rs. 50 and Rs. 100 as legal tender till further notice. Abolishing the old notes of 500 and 1000 INR has been a cause of concern for a large section of our population. The decision has caused all ATMs and banks to be closed for a day.

The immediate solution

An individual has the option of submitting all Rs. 1000 and Rs. 500 notes with his post office or bank accounts during the period of Nov 10th – Dec 30th. You’ll need to produce a government identity card for exchanging any amount up to Rs. 4000 till Nov 24th.

The old notes have to be accepted by airline booking counters, railways, bus ticket counters, and government hospitals for a period of 72 hours. You may even visit State government authorized crematoriums or milk booths, Central or state government affiliated co-operative stores, gas and diesel stations belonging to the public sector and petrol pumps within Nov 11th, if you want to use your old notes.

The permanent solution

The RBI is likely to issue fresh Rs. 2000 and Rs. 500 notes beginning from Nov 10th. The picture of our Mangalyaan will be featured on the new Rs. 2000 notes and the Red Fort will be featured on the Rs. 500 notes. The general public will get the new notes since Nov 10th.

For every debit card the withdrawal limit has been set to Rs 2000, which will eventually be increased by Rs 2000. You’ll be able to withdraw money the sooner our ATMs become functional again. However, all banks will see a daily withdrawal over-limit worth Rs. 10,000 per day and a weekly withdrawal over-limit worth Rs. 20,000.

In his speech, Mr. Modi has even stated that no restrictions have been laid upon transactions involving electronic funds transfer, debit cards, demand drafts, checks, and credit cards. The end objective of this move is to restrict money laundering and other activities. The government doesn’t want our citizens to suffer in any way and that’s why certain measures have already been taken to keep us from hassles.

The surprise Element

It was necessary to shake things up with an element of surprise. It prevented drug cartels from making necessary adjustments. Experts have described it as a surgical move.

Curbing inflation will certainly become easier as it brings down visible consumption. Methods that have already been tried and tested once are of no good use for us. It’s high time that the government tries some new methods to eradicate corruption and we must help them device corrective measures and put them into action.

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Why Brexit is in news again!


According latest reports, Britain’s financial industry is well headed for a major setback – thanks to Brexit. A new report, from TheCityUK claims that the country can even end up losing around 38 billion pounds in the wake of “hard Brexit”and this loss would mean that the country will now be left with limited access to European Union’s single market. However, the report itself has drawn flak as well. Richard Tice, property investor, opined that the report lacks balance and that the other European capitals don’t have the infrastructural facilities or acumen to avail financial business services from Britain.

Here are details of what the report has claimed

The report has, very clearly, come up with two possible scenarios for Britain. If the worst happens then there is every possibility of international banks losing entire access to the single market branded as “Hard Brexit”. This, in turn, would result in a loss of 32 to 38 billion pounds, putting up to 75,000 jobs at risk.

In another scenario, if the country chooses to retain its access to the European Economic Area under similar terms that exist now, then around 4,000 jobs and 2 billion pounds will be at risk.

Notably, the country’s financial sector generates around 190 to 205 billion pounds of revenue every year by employing just a tad more than 1 million people, according to the report. The banks in Britain are all for the attainment of a transitional industrial period if it becomes difficult to strike a favorable deal for the industry. London remains the bone of contention in Brexit talks between Britain and EU since it is the largest source of export and tax revenues.

Hector Sants, (Oliver Wyman’s Vice President) has opined that a positive outcome of talks will be in the best interest of everyone (here Britain and EU) so as to avert possibilities of disruptions in the industry or customer benefits.

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Restaurant Recession: Is it unavoidable?

Restaurant Recession: Is it unavoidable?

Restaurant recession seems to be the most discussed topics (ask the finance gurus if you want to!) as of now. If the recent “research notes” are to be believed then the restaurant industry is well headed for recession. The news might as well come as a surprise for those who know for a fact that the restaurants have experienced the most notable fiscal growth since 2013. However, let us tell you that the most prominent trends along with the historical cycles are pointing towards a possible recession in the restaurant industry.


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Keeping a bearish outlook in view, the concurrent 1.5% – 2% restaurant industry comps declaration in the second quarter of this year (2016), it can well be gauged that the US is gearing up for the start of recession as far as its restaurant industry is concerned. Paul Westra, Stifel analyst has also predicted that the start of the Restaurant recession will be followed by economic recession in 2017.

Excess supply remains one of the biggest reasons why a near-imminent recession is predicted at present. The years between 2010 and 2016 experienced high capital influx. Thanks to the surge of investments, the restaurant industry is actually on its way to attain trajectory likened to the kind of growth it experienced in the year 2007. However, 2007 was obviously different. As against now, the restaurant sector was not really competing with independent or chef driven ideas to attract customer attention then. So, supply, basically is at an all time high today. Plus, there are the higher labor costs to be kept in view as well. Wage inflation definitely remains another factor which quickly eats into the profit margins of restaurants.

Casual dining space: What to look forward to

According to Andy Barish (Jefferies), the earnings growth expectations have come down by nearly half across casual dining coverage. And, this (casual dining space), is the area where the restaurants are most expected to feel the heat as far as slow commodity tailwinds and rising labor costs are concerned.

Recession: Good for the restaurants?

Last but not the least, it must not be forgotten that it has been pointed out many a times that economic recession, in many ways, turns out to be beneficial for the restaurants and that’s because of the fact that the over inflated commercial rentals are renegotiated as leases during recession. Restaurants that experience major revenue reduction can easily settle for renegotiation – obviously aimed at rent reduction. Plus, there is a marked sense of immediacy noticed among most of the successful entrepreneurs out there. It is quite true that when the pain of recession subsides, smarter restaurateurs concentrate on renovation.

Olympics 2016: The biggest financial news you should be aware of

Olympics 2016: The biggest financial news you should be aware of


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Taking off from our previous post on Olympics- “Can Olympics Bolster the Financial Future of the hosting nation?” (Check it out at, today we bring to you a few more important highlights associated with Olympics finances.

Brazil has already gone overboard with the Olympics budget

Brazil, notably, is reportedly running 51 percent over budget with an estimated cost blowout worth $1.6 billion! The study conducted by the Oxford University came in the wake of reports of the country reeling under its second consecutive year of Recession. The report even went on to claim that even with the country’s massive budget expansion, its Olympics outlay, can, at its best, be called modest as far as that of Spain (Barcelona) and England (London) are concerned.

It would, however, be unfair to brand Brazil as unwise, in this respect. Professor Bent Flyvbjerg, who led the Oxford University study has mentioned (in the study) that when Rio actually decided to bid for Olympics, Brazil’s economy was doing quite well.

The chance to host the Olympics has turned out to be a double-edged sword for the country. While it hopes to secure unparalleled recognition in global frontiers with this event, it is actually hosting it (the event) at a time when its economic stability itself is questionable.

Have you heard about the tickets scam?

To make matters worse, another major piece of news doing the rounds is that of the Olympics ticket scam. As per reports, fraudsters have actually pulled off a scam worth £300,000 in relation to Olympics ticketing and lottery promises. According to the City of London police, scammers are trying to bluff customers with fake promises of lottery and false tickets. As such, according to them, customers should be conscious about buying lottery tickets and last-minute tickets- and that they should have an authorized sellers list to steer clear of any chances of entrapment. Be on your guard against e-mails promising unexpected gains as the ones mentioned above as well. Action Fraud, the national fraud and cyber crime unit of London police has reportedly received 47 reports in association with Olympics fraud.

Amidst all the reports of a dismal financial scenario in Brazil, we can only hope that Rio has only brighter days to look forward to.

Galveston Wealth Has a History of success


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The brokers at Galveston Wealth like to say that you are only as good as your last trade. But they also know that no single trade will make or break a client’s account.

There’s no guarantee of successful stock selection in the markets at home or abroad. Brokers who claim they only pick winners are disingenuous at best.

Research and study of market trends over the last half century have repeatedly shown that it is extremely rare for brokers to accurately predict with regularity the future performance of any given stock or fund.

But investors need not despair. There is a solid strategy that’s been proven over and over to build wealth.

Galveston Wealth has been in business since 2007. Over the last decade, despite market fluctuations and global uncertainty, Galveston brokers have demonstrated capacity to build wealth over the long term.

Every winning strategy is based on a diverse portfolio that employs a range of tools. Diversified portfolios that balance risk with caution and maximize returns over the long term are based on a winning formula that for the last 10 years has been driven by a global economic recovery.

But even a slowing recovery doesn’t dampen the prospects for investors willing to plan for the long term. Galveston has developed a suite of mitigation protocols to reduce outflows when growth slows.

As a result, client expenses contract and assets stabilize during downturns so Galveston’s customers can weather the storm. It also means that investors won’t need to sell when the market bottoms out.

With commodity prices in a tailspin and China’s overheated economy finally cooling down, investors must brace themselves for changes. That’s why it’s imperative that investors incorporate expense reduction strategies into their investment plans.

Galveston isn’t just focused on growth. It’s also focused on shoring up what assets its customers already maintain.

Just as Galveston’s clients entrust their assets with its brokers, the company is invested in its clients. It’s a mutually beneficial arrangement that only works for both parties when they stay invested in the market for the long term.


Bracing up for Another Economic Crisis: What the IMF has to Say

The International Monetary Fund has rung the warning bells once again. It has clearly declared that the political leaders hailing from different parts of the globe should brace themselves for an economic slump as World Economy is heading for big time stagnancy in the days to come. So, what exactly has led IMF to think on these lines? Let us explore.

Are we staring at another financial crisis?

To start off with, let us tell you that the IMF has actually gone on to bring a number of reasons to the fore – contributing to the impending financial crisis we are presently talking about here.

Firstly, the IMF has held the pessimistic growth projection of the UK from 2.2 percent to 1.9 percent responsible for such predictions at the present moment.  There is major uncertainty clouding the EU referendum. imagesSCAESFWEThe decision to cut down on growth projection from 2.2 to 1.9 percent is even more pessimistic than Office for Budget Responsibility’s forecast of 2 percent at the budget. Surprisingly enough, the forecast came in the midst of hopes that UK is poised to grow faster than almost all the countries, excluding Spain and the US. Not to forget, the poor growth forecast has clearly been attributed to a wide number of reasons including China’s financial crisis and the exposure of the world economy to terrorism and migrant crisis.

Maurice Obstfeld, who is the economic counselor of the IMF opined that it has been too long since the global economy has been too slow. As such, it has very easily become vulnerable to negative risks. According to him if the economic growth is below stalling speed with insufficient demand to escape low growth then it only leads to deflationary equilibrium.

Saddening Projections and what we should do

Much to our plight, the institution’s evaluation made for the bleakest projection since 2009. Policy makers as such are required to devise strategies keeping the possible adverse outcomes in view. Maurice Obstfeld, however, didn’t have words of hope to offer in this respect as well. He said that the policy makers don’t have much time in their hands to prepare contingency plans to deal with possible risks in the future.

The need of the hour is to beef up reform efforts. Countries with scope for better finances should cash in on the record reduction of rates of interest and invest in infrastructural ventures and offer tax relief to the private sector research and development.

US Elections and Global Economy

The United States is gearing up for one of the biggest democratic showdowns in the month of November 2016. The nation is all set to elect its next President, as Barack Obama’s second term is nearing its end. The system is one of the indirect voting types, where voters cast their votes to choose electors. The presidential electors then through the Electoral College elect the new President and Vice President. Being counted as one of the largest national economy and accounting for 22% of the global nominal GDP and 17% of global GDP, the US elections are bound to have an impact on the nation’s as well as on global economy.

The Currency

Majority of the international transactions is done through the US Dollar and it is also counted as one of the top reserve currencies. The US follows mixed economy and the major developed economies as Canada, China, United Kingdom, Japan, South Korea and others are its largest trading partners. All these factors indicate the importance of the US economy and as a result the Presidential candidates signify the impact of the US Presidential elections may have on the global economy. For the democratic nomination, Hillary Clinton remains the topmost choice followed by Senator Bernie Sanders. While the leading possibilities among the Republicans is the billionaire Donald Trump, closely followed by Ted Cruz, Senator of Texas, Marco Rubio, Senator from Florida, John Kasich, and Ben Carson.


images (4)It would be interesting to see how the nominated candidates approach several issues cornering the American voters- including unemployment, immigration, national security and last but not the least economic growth which would in turn have a huge impact on the global economy. Clinton and Trump’s approach on several economic policies differs a lot which maybe a sign of worry for the American voters. Donald Trump doesn’t endorse much trade liberalization and there are possibilities that huge tariff may be imposed on foreign imports from Mexico and China- while Clinton has more or less varying approach on the issue which lead to the possibilities of trade war. Regarding financial system, the Republicans and Democrats both oppose bail outs but the Republicans differ on offering too much loose monetary policy. The Republicans are also are not in much favor of excessive discretion for the US Federal Reserve. All these factors may count while appointing a new Fed chief and as a result the new President may have an indirect impact on the policy making, exchange rates, interest rates and global financial markets.

Income Tax

Another factor approached differently by the Republicans and the Democrats is the income tax and the spending plans. $18 trillion of investment is being proposed by the Democrats which include free of cost tuition in public colleges, a new health care system covered by a single payer, infrastructure investment and others. While the Republicans are in favor of reducing personal income tax rates with focus on cutting America’s corporate tax rates there are many who are proposing imposing a flat tax on consumption while replacing personal and corporate income taxes.

Overall the Democrats and the Republicans differ starkly on various economic issues, which makes it tougher for the common American voter to exercise his voting rights.

Negotiating Startup Capital Financing

business_capitalIf you have ever required capital for your start-up company, you may have an idea of the value of your company when going to the deal table. It is highly likely that there is a deviation between what your valuation is and what the investor’s valuation is at the onset. In order to close this gap, you should be familiar with how to negotiate a lower cost of capital and higher valuation for your company. In many cases, companies are fearful that appearing greedy will push investors away and they will be without any money whatsoever. However, this is rarely the case and the valuation is negotiable like many other things that are for sale.

Therefore, this article provides insight on how to effectively negotiate startup capital financing in a way that is effective and will not draw back investors from the deal table. In some cases, you can potentially risk the overall investment if you fail to follow a structured procedure and remain calculated in your responses and proposal. Therefore, we encourage you to analyze and adopt the following techniques:

Build a Logical Argument

You may be astonished to learn how frequently capital discussions turn emotion or are based on illogical arguments that have nothing to do with value. For instance, arguing how much money you have invested or time spent building the technology really means very little. Instead, focusing on the brand recognition in your early stage or competitive advantage strength can boost the value. In fact, getting emotional or personal about the effort can draw investors away from the investment opportunity. Being emotional may come across as being attached and lacking the ability to think in an unbiased manner about the company’s exit strategy, which is a purely financial decision for investors.

Show the Value Quantitatively

The most effective method of building a strong investment case is to demonstrate the value of the company through the financial model. If the revenue projections are reasonable and conservative, they are more likely to be taken seriously by investors. This means using accurate market research as the basis of the assumptions and being able to adequately explain all of the drivers that went into forming them. For instance, your pricing strategy having been demonstrated in the market through tangible sales or validated in a focus group.

Receive More than One Offer

Nobody likes to feel like they are the only one interested in something. The simple law of supply and demand will always work in your favor if you can get more than one investor interested in your company. This will not only increase your negotiation power, but also build a stronger safety net that grants you more power at the deal table by increasing your leverage. As you receive more offers, investors may also be interested in a co-investment relationship. Under such an arrangement, multiple investors will enter a deal together and reduce one another’s risk. This not only means a potentially higher valuation, but doubles the resources that you have access to from investment acquisition.

Understand the Screening Process

Understanding how investors analyze your company can be advantageous when you are soliciting for these offers. Investors will analyze both the quantitative factors and qualitative factors that will influence your company’s risk and impact your bottom-line. One of the most important points for any investor is what your competitive advantage is and what market problem that you are addressing.

Even if your company does manage to solve a problem in the market, the question then becomes how you are able to sustain your competitive edge in the market. It is extremely likely that investors will compete against you for market share and you must be able to effectively outperform them in a manner that they cannot easily replicate.

We hope that this article has provided you with quality information about how investors analyze your business and the method of leveraging that knowledge to arrive at a higher valuation. We have seen many companies agree to a lower valuation due to the inability of companies to negotiate their valuation.

What is a Bank Signing Bonus?

When looking around for a bank you may have heard talk, that if you sign with one bank, they will give you $200 in your account. This is what is known as a bank-signing bonus. However, getting the money that was promised does come with some fine print. Therefore, today we will be discussing bank-signing bonuses in more detail.

Why Banks Use Signing Bonuses

Banks use signing bonuses so they can stay on top of their competitors. They know individuals love money and feel like when they offer potential customers money in return for their business they will keep their institutions running smoothly.

Getting the Signing Bonus

We all have seen the $50 signing bonus for getting a Capital One 360 checking account. However, just opening up an account is not going to get you the $50. Instead, you have to make a specific amount of purchases within a set amount of days to get the signing bonus.

Each company has different stipulations behind their signing bonus. Usually, the higher the signing bonus the more that they require from you. Some of these bonus may be taxable so it’s important to research this ahead of time.

Therefore, you should not let the first or largest offer persuade you to join. Instead, you have to read the terms and conditions behind the bonus to make sure you can comply with them to receive the bonus.

Research the Different Offerwidget-9668-picts

With so many banks offering signing bonuses, right now it can be hard to know which one to give your business too. The main thing to analyze is the reputation of the financial institution and their bonus guidelines. You have to make sure that the company is trustworthy and will actually pay the bonus. You also want to make sure that you will not have to spend more than the bonus amount with the company to receive the bonus. Lastly, it is ideal to shop around to see which financial institution has the highest bonus, with the most reasonable amount of tasks to obtain it, and provides you with the features that you want from your bank.

Bottom Line

Finding a bank is already hard enough. However, things get harder when you have to select a bank while also factoring in the signing bonus. Making a smart decision will take you a lot of time. However, it is something that must be done since you will trust the company with your hard-earned money and possibly require other financial services from them down the line.

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