Big IDEAS START SMALL

To many, the economic outlook may seem gloomy but start-ups are thriving, backed by good ideas and growing support for new enterprise Neelam Raaj | TNN At 14, Irfan Alam was managing a stock portfolio worth Rs 40 lakh for his father’s friends. By the time he was 17, the boy from Bihar was itching to start his own business. The idea came to him during a rickshaw ride home from college in Begusarai. “I was hot and thirsty but there wasn’t a drink to be found. Then it struck me that the rickshaw-puller could easily become a mobile vendor stocking things like mineral water and juice,” says Irfan. He fine-tuned his business plan at IIMAhmedabad. The enterprise, Samman, was born in 2007, transforming the humble rickshaw into a marketing engine. Alam’s customized rickshaws not only offered smoother rides; they became vehicles for outdoor advertising. The rickshaw-pullers, who were given uniforms, identity cards and vehicles for free, could earn extra by selling everything from newspapers to mobile-recharge coupons. The start-up now boasts a fleet of 2,500 across Bihar, UP and Jharkhand. It has also pedalled its way into an ongoing national competition to identify India’s hottest start-up. Run by the National Entrepreneurship Network (NEN) and the Tata group, the contest has shortlisted 30 Indian enterprises, including Samman — from the nearly 600 entries. The five winners will be announced at the end of February. For NEN, a not-for-profit initiative that nurtures budding entrepreneurs, the contest is part of the broader role it wants to play in building an entrepreneurial ecosystem in India. There is a reason for this. In riskaverse India, where job security is prized, the entrepreneurial spirit has been restricted to a few communities. But that may be changing. The NEN contest shows how: 65% of the nominated entries are first-time entrepreneurs; 76% belong to families sans a business background. Four of the 30 finalists belong to tier-2 cities such as Patna, Kota, Belgaum and Patiala. But Bangalore still emerges as the country’s start-up capital. Here, many feed their start-up dreams even as they work in the swanky local offices of global companies. These entrepreneurs are like Siva Prasad Cotipalli. He quit a plum marketing job with Oracle to found a start-up. “Instead of wondering how my business would fare, my mother worried about whether I would ever get married,” says Cotipalli, whose company, Dhanax, started as a two-man, internet-based microlending outfit. But the downturn and subsequent layoffs by big companies have improved his prospects in the marriage market. “Quite a few of my entrepreneur friends have found matches recently so I, too, have hope,” he jokes. Not only are would-be in-laws softening towards grooms who don’t have Infosys or IBM on their business card, Siva says the downturn has many benefits for new ventures. “Though some start-ups will find it difficult to find funding, there are other advantages such as the availability of good talent at good rates and reduced rental costs.” At Dhanax, several of the newest employees have joined straight from college. Another sign of the growing cachet enjoyed by entrepreneurship is to be found on IIT and IIM campuses. “Internships with start-ups were always an option for students at IIT-Bombay but this year, they are part of the placement process,” says Ankit Agarwal, MD of IITB’s entrepreneurship cell. As many as 20 start-ups have taken part in the placement process, which is still in progress. “The pay isn’t as good as the McKinseys but students realize that the experience will prove very useful if they want to strike out on their own later,” he says. IIT-Bombay is also hosting Eureka!,India’s biggest business plan competition, which gives the winner a chance to pitch his idea to venture capitalists. These are the people who generally bankroll newish firms. Mohanjit Jolly is a venture capitalist who moved from Silicon Valley to Bangalore in search of that needle-in-thehaystack idea that the trade calls the “home run”, i.e. a company that is “game changing”. He is still looking. “The brilliance and passion are here. What is needed is an ecosystem like Silicon Valley, which has a combination of investors, academia and support-businesses. That didn’t happen in the Valley overnight and it won’t happen here in a hurry.” But the journey has begun, says Jolly, executive director of Draper Fisher Jurvetson. Might it hit a roadblock because of the global downturn? Venture capitalist firms clocked a little more than 125 deals worth $740 million during 2008, down 15.53% compared to 2007, according to data from Venture Intelligence, a firm that tracks such activity. “The number of deals will surely go down but those who are truly driven will get the backing they need,” says Jolly, adding that he has seen more business plans in the last three to four months than he did in early 2008. His advice to start-ups: Think big. “For most, Rs 20 crore is a meaningful trajectory but why not aim for a Rs 300-crore business over the next three to five years?” It’s the success stories that will make Indians dream big. “We need more heroes — the guys who have shown that it is achievable,” says Rajesh Srivathsa, managing partner of Ojas Ventures, which invests in early-stage tech start-ups. Start-ups also require angel investment, a rare resource in the Indian market. Deal sizes at this stage are usually in the Rs 20-30 lakh range. “In Silicon Valley, angels take on the role of identifying and funding new start-ups. India needs more of them,” says Sridhar Mitta of The Indus Entrepreneurs (TiE), a global network that fosters entrepreneurship. Lack of funds, however, didn’t deter Hiten Turakhia and his three friends from founding Librarywala.com, India’s first completely online book library, which also figures in the Tata-NEN shortlist of hottest start-ups. The self-funded enterprise, launched in Mumbai, started off slowly; today it has more than 5,000 members. “We have already expanded to Bangalore and Pune and are looking at other cities,” says Turakhia, who is managing director of the venture. From a booming domestic market to a growing entrepreneur ecosystem, Indian start-ups have plenty going for them. Now, all they need is a business culture that views failure as a badge of honour. sunday.times@timesgroup.com STARTING LINE: Hiten Turakhia (right) and Hiten Dedhia, co-founders of librarywala.com, India’s first completely online library. (Left ) The humble rickshaw, transformed into a marketing engine, by entrepreneur Irfan Alam. It enables the rickshaw-puller to earn extra by selling everything from newspapers to mobile charge coupons

Have We Been Sold A Bunch Of Lies About Money?

Here lately I find myself often reflecting on the current status of our economy, and wondering when and how things will shake out.  My 401(k) has been demolished.  Family member’s 401(k)s have been demolished, even those in target retirement funds that should have been comprised of more conservative options based on their upcoming target retirement date.

The value of our home has decreased, as it has for our neighbors, and for most around the country.  After countless scandals and bailouts, banks are no longer the trusted institutions they once were.  Inflationary fears drive investors to the market in an effort to stay ahead of the curve, but are those fears oversold.  Can we beat inflation (which is really currency deflation) by refusing to inflate our lifestyles and living frugally?  And so I wonder, has everything we’ve been taught to believe about finances just a big lie?

Markets Always Go Up, Given Enough Time

My grandfather is a product of the Depression Era.  He lived the ultimate market meltdown, and to this day believes investing in the market is only marginally better than gambling.  After all, most of us pick stocks, or a basket of stocks, from companies we know little about.  We know nothing of their day-to-day operations, their leadership team, etc.  Warren Buffet has made a mint buying what he knows, but what about the rest of us.

Last week I received a revised and updated copy of my all-time favorite personal finance book, Your Money or Your Life.  The timing could not have been better.  While much of the information is the same, co-author Vicki Robin has gone to great lengths to provide updated statistics, relevant figures for today’s market conditions, and updated stories throughout the book.  I am thoroughly enjoying reading the book through again, with more of an open mind than I did the first couple times.

The first time I read through Your Money or Your Life, and hit the section on savings as working capital, I thought it was a preposterous idea to invest in things like U.S. Treasure Bonds and CDs. After all, I was young, and had been taught since I was old enough to spell “stock” that those were the path to building great wealth.  Maybe; maybe not.

When the authors of Your Money or Your Life “retired” the yield on 30-year U.S. Treasury Bonds were hovering around 6%. Today they hover around 3%, but are trending up.  Still, that is the difference in $1,250 per month and $2,500 per month in interest on a $500,000 portfolio of bonds.  That’s pretty significant, and proof that any investment has environmental risks.  If I had half a million dollars, and rates were back up to 6%, I could live on $2,500 a month assuming I had no debt (including a mortgage).  It’s getting that $500,000 saved that is the hard part.

So, by diligently socking away money in my 401(k) and Roth IRA, only to watch most of my contributions melt away in a matter of months, have I been going about this all wrong?  Instead, should we be simply putting money in high-yield savings accounts, bonds, and CDs, and prepare to live off the interest?

I suppose that answer depends on a variety of factors, including our risk tolerance, age, and other individual situations.  There are a lot of people sitting on some huge losses, and if we sold now we would realize them, and miss out on a market rebound.  I can’t help but wonder how many will get out when and if that rebound occurs and they are made whole again.  That type of selling will probably work to stymie a future bull market.

After watching these wild market swings I’m starting to wonder if I really have the stomach for it.  Maybe I’ll join those described in Your Money or Your Life, and my grandfather, and devise a very simple plan for financial independence.

29 Steps I Took to Leave the Workforce at Age 29

Today is my last day at work! No more corporate rat race for me. I’ve been planning an early retirement for as long as I can remember. Those close to me have been hearing about it for years.

At age 29 I left the corporate world behind and I’m embarking on a new chapter in my life: spending more time with my kids (ages 1 and 2), following my passion (teaching others about personal finance), and an overall life of freedom not tied to a JOB! Here’s how I did it (and how you can too!)

Leaving the Rat Race at Age 29

1. Save Early. I started my first IRA at age 16 based on advice from my mom. Proof that teaching your kids about money is very powerful.
2. Save aggressively. I saved like crazy after I graduated from college, often more than 50% of our salary. Once our money was compounding really well we began decreasing our contribution percentage without much effect on the portfolio.
3. Use low cost, indexed investments. We used a total market asset allocation with low-cost index funds instead of hot tips, speculation, or ultra risky investments. Our current portfolio holdings have an overall 0.148% expense ratio.
4. Work the tax system. Volunteering to do other’s taxes helped me learn the ins and outs of the tax code. Knowing the rules helps to be able to work them in your favor and streamline your tax preparation time.
5. Organize yourself. Staying on top of our accounts, whether it’s calling on a mistake, organizing 181 accounts or monitoring a credit report helped to maximize rewards and minimize penalties.
6. Align your financing with your goals. When we were busy working with stable careers, we financed with an adjustable rate mortgage to get the best rates. Now that we’re ready to settle down, we refinanced with a somewhat more stable product.
7. Prepare for retirement withdrawals. In addition to refinancing, I prepared for my lifestyle by creating CD ladders for short term money needs, developing a plan to handle irregular paychecks, and planning for my new retirement lifestyle cash flow.
8. Maximize tax deferred and tax free options. We maximized the use of tax advantaged accounts including the public employee’s option to double-dip on retirement. Whenever a new plan was a available (like the Roth 401k) we took advantage of it.
9. Learn from the best. I’ve spent a lot of time reading about others who retired early. The Early Retirement Forums, Retire Early Home Page, and the Motley Fool Retire Early forum were my main hangouts. I’ve probably read almost every thread in each one!
10. Read the best. In addition to the online resources, my favorite early retirement books are Your Money or Your Life by Joe Dominguez and Vicki Robin and Cashing in on the American Dream by the Paul Terhorst. The latter is currently out of print, but you can find it at the library or get a used copy.
11. Get paid what you are worth. Research and negotiation is a big factor in how much you are paid. In addition, you need to take advantage of the money saving opportunities on the job.
12. Enjoy life. We traveled, had fun, and didn’t live like penny pinchers. In addition, I always tried to maintain a healthy life mix pie chart.
13. Don’t underestimate a college education. Getting a marketable well paying degree was a key part of my success. In addition, going to grad school almost doubled my salary. I can’t put enough emphasis on a solid education. If you are a new grad here are 10 financial tips and 29 more financial tips to get you headed in the right direction.
14. Set goals. The 4% withdrawal rate gave me an idea early on about how much I would need to save. I set yearly goals to meet this number.
15. Measure your goals. Each year we compared our portfolio to our goals and made sure we were on track for our dollar plan. We also did some end of year tax planning and made a finance checklist.
16. Be frugal, but not too frugal. We try to save money when it comes to some things, like eating out for less. But I also know where to draw the line as there are some frugal tips I can’t (or won’t) do.
17. Shop around. Comparing prices on insurance premiums and cell phone service saved us each month.
18. Talk about it. People around me knew that I wanted to retire early. It wasn’t a secret. If it wasn’t for my support system of family and friends, I probably wouldn’t have done it so soon.
19. Save for kids before they are born. We took advantage of financial strategies for infants and young children for our kids. One of those, was opening and funding 529 plans before they were born, freeing up money in our budget now.
20. Miss your target. I was $7,000 short of my goal in October, but decided to jump anyways. The key is to know when you are close enough. With diversified income, it makes it a little easier to slide with the number.
21. Stick it out. Two times this year alone, I almost didn’t make it to my goal. After my maternity leave I questioned whether or not I should stay home or go back to work. I went back. Then just two months later I was given the opportunity for an early exit when our pension plan was reduced. I stayed.
22. Follow your passion. Early semi-retirement is ok. That’s what I’m doing. But now, my side income will come from what I love: personal finance. Semi-retirement can open the opportunity to leave the corporate world much sooner.
23. Make a plan with your spouse. My husband and I decided to leave the workforce at different times to allow us to maintain health care for the time being. Because we want more children in the future, it makes sense for us to stay on a group policy.
24. Frame it. I always believed that I could retire early. Nothing anybody said changed that. Not even all the nay-sayers…. I’d love to say that I proved them wrong, but actually I wish they would have embraced the idea for themselves. Instead they are still at work.
25. Explore outside-the-box financial ideas. Bank IPOs, credit card arbitrage (using 0% balance transfer credit cards), and free money were my hobbies. While they didn’t contribute huge amounts to our savings, every little bit adds up, and over time it was probably an additional $50,000 at least.
26. Learn from your mistakes. We built a big house that sucks money, including our our dumbest purchase ever: our sauna.
27. Adjust for the unexpected. Just like everyone else, we had our share of unexpected expenses. However, it’s all about how you handle them that defines success.
28. Plan your exit. Once you make your decision, get everything in place. Here are 43 tasks to get you ready!
29. Don’t look back. Once you make your decision, enjoy your new life. There will be a transition period, but give it some time. I’ll be reminding myself of this in the next few weeks as I settle into my new routine.

Top 25 Free & Worthwhile Personal Finance e-Books

Few things are more inspiring than the day you decide to get your finances in order. You start planning and plotting on how you will save more money and spend more wisely. You begin to set short and long-term goals and take visible steps toward reaching them. Before long, you’ve squeezed all the advice you can from newspaper columns and free web articles. You’re ready to advance your personal finance education to the next level. But where do you turn? Bookstore shelves groan beneath the weight of untold dozens of personal finance books, each promising to be the only one you need to achieve financial freedom. It’s no wonder you can’t decide which one(s) to buy!

Luckily, you don’t have to; at least, not yet. The Internet is bursting with personal finance e-books which you can read right on your computer screen – for free. We took the liberty of tracking down the top 25 free personal finance e-books that are actually worth your time. Read the descriptions below and investigate any books that pique your interest!

Personal Finance 101 (The Basics)

The following books are aimed at educating you on the basics of personal finance. The mentality of saving money, learning to prioritize your spending decisions, and other foundational concepts are covered here. If you are just starting to get your finances in order, consider these books an excellent place to start!

1) Money Matters: Your Guide for Financial Security. This free guide serves as a primer on such personal finance basics as coming up with good financial goals, devising plans to reach them, getting organized, selecting the right financial advisor or accountant, and the basics of stock and bond investing. The book also touches upon debt and how to borrow money intelligently (as opposed to the unintelligent borrowing engaged in by many people.)

2) Taking Control of Your Finances. Ask any personal finance expert when the best time to begin saving and planning for the future is and they will reply “the younger, the better.” And while it is never too late to start taking control of your money, this is absolutely correct advice. With that inn mind, the FDIC whipped up this helpful report aimed at young people who want to get a head start on financial freedom. Read it and you’ll learn some of the most common money management mistakes to avoid, as well as several tips on how to start saving and managing the money you already make.

3) Banking Basics. No personal finance education would be complete without learning the ins and outs of the banking system, and who better to educate you than he Federal Reserve? While this e-book is somewhat broad and conceptual (explaining what banks are and how they operate), this knowledge is invaluable. You need to understand the nature of the institutions you are entrusting your money to and how you fit into their plans. Consider this required reading before learning about more advanced topics in personal finance.

4) Pathways to Getting Ahead. One thing that separates financially successful people from everyone else is how they prioritize asset-building. Rather than allowing money to flow in and out of their lives with no discretion or priorities, they spend on assets (savings accounts, investments, homes, even businesses) that will grow and put money in their pocket day after day, month after month, year after year, like clockwork. This excellent guide will introduce you to this thought process and get you thinking about assets you might build for yourself.

5) Simple Strategies for Managing Your Money We realize the information in these e-books are somewhat abstract and hard to wrap your head around at first. This FDIC report reduces all of the concepts and principles you just learned to quick checklists that you can run down to ensure you’re doing the most important things right. Everything from avoiding scams to saving money to dealing effectively with banks is covered. We advise reading some of the above 4 books first and “washing it all down” with this one.

Asset Building 101 (Saving & Investing)

Once you know the basics of personal finance, you are ready to begin building assets – savings and investments – that will compound and build your wealth over time. This is the cornerstone of financial freedom, because a healthy savings account and a diverse portfolio of well-performing investments eliminates worries about sudden financial disaster. The following 5 e-books will introduce you to asset building by offering various practical tips, strategies, and suggestions.

1) How SIPC Protects You. The old adage “safety first” applies to savings and investing as much as anything else. Accordingly, this e-book educates you on what to do if your stock brokerage firm closes or goes under and how the Securities Investor Protection Corporation (SIPC) tries to recover the money you invested with the broker. You will also learn the critical distinctions between that the SIPC does and does not protect against. Read this before investing any amount of money in anything!

2) 66 Ways to Save Money. The most common rationalization for not saving money is “I don’t make enough to save any of it.” The answer offered by the authors of this e-book is “bull!” In it, you’ll learn 66 practical ways to cut your expenses, get better deals on everything from financial services to transportation to grocery shopping, and re-direct all or most of the saved money to your savings or investments. If you’ve ever found yourself saying that you don’t make enough to save, or are just interested in new ways to save more money than you currently do, check this e-book out!

3) All About The Foreign Exchange Market in the US. A somewhat more advanced topic, which is discussed in this NewYorkFed.org e-book, is the U.S. segment of the global foreign exchange market. If you are already set up with a savings account and US investments and want to learn more about getting into foreign investing, this e-book is a terrific place to start.

4) Get The Facts on Saving and Investing. If you have been wanting to start saving and investing but didn’t know where to begin, this report is here to help. In addition to getting a broad overview of saving and investing in general, you will learn several specific tips and receive worksheets you can use to quickly calculate your expenses, net worth, and income. These will come in handy time and time again as ways of checking on the progress you are making toward your goals.

5) Tools of the Trade: A Basic Guide to Financial Derivatives. Another advanced but worthwhile savings and investment topic is the nature and advantages of financial derivatives. Here, you will learn how various derivatives can be employed as tools for managing your financial risks (such as inflation or unemployment.) You will also learn important questions to ask anyone trying to get you to invest in derivatives, allowing you to know, for sure, whether doing so will truly advance your goals.

Debt 101 (Credit Cards)

Credit cards allow you to spend money you don’t have. This is the area of personal finance where many people start to have trouble, taking on more debt than they can afford and digging an ever-deeper hole that becomes nearly impossible to get out of. The 5 e-books below will educate you on how to get out of that hole (if you are currently in it) and then proceed to establishing good credit and sound debt practices.

1) Credit Repair Guide. Many people need to clean up their existing credit report before they can work on improving it. If you’re one of those people, this free Credit Repair Guide will be immensely helpful. You’ll learn the essentials of how credit scores are determined (including yours), and how the e-book author improved his own credit score from 616 to a pristine 742! You can’t afford not to know the tips and principles discussed in this free guide.

2) Building a Better Credit Report. This e-book clues you in on credit-related scams, how to quickly pay down your debts, and legal vs. illegal ways to improve your credit report. If you’ve already read the Credit Repair Guide and want to learn some additional tips not discussed there, check out the Building a Better Credit Report guide!

3) A Consumer’s Guide to Credit Cards. If you’re like most people, you arrive home each day to find your mailbox stuffed with “pre-approved” credit card offers and solicitations. Maybe you’ve wondered “how do I cut through all this clutter and find the one, right credit card for me?” This free e-book will help you answer that question, as well as avoid being ripped off by credit card companies who have their own best interests at heart. Don’t even think about applying for a credit card before you read this guide. In fact, you should probably read it even if you do have a credit card already, to see if it’s the best one for you!

4) SHOP: The Credit Card You Pick Can Save You Money Every credit card offer you receive tells you it’s the right one for you. The gleaming headlines and testimonials from happy customers make it seem like you’d be a fool to look anywhere else. But the exact opposite is true: only a fool would apply for a credit card without looking anywhere else. To that end, this e-book offers helpful guidelines and criteria for choosing the right card for you, based on an assessment of your spending habits. You will also learn the importance (or unimportance) of APR, cash advance fees, grace periods for interest-free repayment, annual fees, and more.

5) Healthy Credit. If all of this seems overwhelming and you are thinking about skipping it, this e-book will motivate you not to do that by explaining how profoundly your credit report and score affects your financial life as a whole. Your credit score could literally be the difference between getting a loan or not getting it (and, if you get it, how high your interest rate is.) You will also learn how to stay financially secure once you are.

Financial Security 101 (Privacy & ID Theft)

No matter how financially intelligent you are, how much money you save, or how high your credit score is, it can all vanish in the blink of an eye – if you don’t know how to protect yourself from security risks. Identity theft is on the rise, e-mail hoaxes abound, and you can never be too safe from threats to your private financial records. Following are 5 free e-books that will educate you on the most prevalent risks and how to protect yourself from them.

1) Identity Theft. If all you know about identity theft is that there are an awful lot of newspaper stories and TV news reports about it, this e-book is required reading. It will tell you exactly what identity theft is, the many ways in which ID theives can impersonate you out in the world, how to stop them from doing so, and what to do if you are indeed the victim of identity theft. Think of this guide as “Identity Theft Prevention 101.”

2) Identity Theft and Your Social Security Number. As you will learn from the e-book above, many identity theft plots center around a person’s Social Security number. This e-book delves deeper into that topic by explaining why and how someone who has your Social Security number can completely destroy your finances, doing everything from opening credit cards in your name to making huge purchases on your dime. Fortunately, the tips in this e-book also explain how to prevent this from happening and how to report it if you think you have been victimized by it already.

3) ID Theft: What It’s All About. This e-book offers another eye-opening overview of identity theft, straight from the Federal Trade Commission. Since the FTC deals with and responds to thousands of identity theft cases every day, it stands to reason that they are an excellent source of information for how to spot and avoid such scams yourself. This 36 page pamphlet is one you wont want to miss!

4) Phishing and Pharming: Helping Consumers Avoid Internet Fraud. Never heard of phishing? Okay – ever hear of those bogus e-mails from Nigerian “royalty” begging to transfer a multi-million dollar fortune into your bank account? Now you’ve heard of phishing. Unfortunately, phishing scams can be much more complex and convincing than the Nigerian royalty ones most of us know to avoid. This guide will help educate you on how to spot a phishing scam before it’s too late, saving you precious time and money each time you successfully spot one.

5) Privacy Choices for Your Personal Financial Information. This e-book explains, in a tidy 6 pages, how you can opt out of sharing personal information with the companies you do business with, as well as which information banks and financial companies are entitled to share about you. Tragically few people know this information, and so they are left guessing. Don’t be one of them! This could be the best 30 minutes of reading you embark upon in this entire article.

Wise Consumerism 101 (Consumer Awareness)

Do you know someone who always seems to somehow, miraculously, get good deals on everything they buy? Have you ever wished you could do the same? You can! With practice and reading, you can become a wise consumer, one who carefully researches and plans every major purchase in order to ensure getting the best possible deal. While this will take time, the following 5 resources will get you a nice running start.

1) The Consumer Handbook. The Consumer Handbook is bar none the best place to start learning how to be a wise consumer. By the time you’re done, you’ll know how to get the best deals on everything from cars to credit cards to insurance to vacations, as well as how and whom to complain to when something goes wrong. Don’t be scared off by the hefty (for an e-book) 178 pagecount! There’s valuable information on every page and you’ll be glad you invested (there’s that word again!) the time in sucking it all up.

2) # Ten Questions to Ask When Choosing a Financial Planner. Picking a financial planner isn’t always easy. Between worries about conflicts of interest (many planners get paid a percentage of anything they sell you) and fears of overpaying, it’s easy to let analysis-paralysis prevent you from making a decision. That’s why this super-helpful guide from the Certified Financial Planners offers 10 essential questions to ask anyone trying to sell you financial advice. Armed with these questions, you’ll feel confident about whomever you choose to put in charge of your long-term finances and know with a reasonable degree of certainty that they are competent to do the job.

3) Consumer’s Almanac. The Consumer’s Almanac offers a number of “cheat sheets” and checklists for tying together all the concepts and principles you’ve learned, such as monthly calendars and worksheets for tracking your expenses and progress toward your savings/investment goals. Use them often for the best results!

4) What You Should Know About Buying Life Insurance. Many people assume you cannot get a good deal on life insurance. They assume that a policy from one company is essentially the same as any other. Wrong! Insurance policies are not commodities, but sophisticated risk management tools that can be tailored to your exact needs, net worth, and risk preference. This e-book explains how to get the best deal on life insurance by ensuring you research multiple companies and different types of policies based on your own needs, rather than accepting the first cookie-cutter policy you are offered.

5) Know Before You Go… To Get a Mortgage. Part of being a wise consumer is knowing what risks are out there and how to intelligently manage or avoid them. This e-book helps educate you on that with regard to getting a mortgage. Like insurance policies, mortgages can and should be tailored to your exact needs and resources. You will learn how to do that, as well as which types of mortgages may and may not be suited for someone of your financial standing. Don’t apply for a mortgage without consulting this trim 16 page booklet!

We realize that you probably don’t have the time to read all 25 of these e-books. That’s okay – what is important is that you read the ones most relevant to your decision making, especially those aimed at alerting you to risks and mistakes that are commonly made. With enough reading and dedication to applying what you’ve read. you will no doubt reach financial success sooner than most. Good luck!

How to win Arguments – Dos, Don’ts and Sneaky Tactics

There is not much point in having brilliant ideas if we cannot persuade people of their value. Persuasive debaters can win arguments using the force of their reason and by the skillful deployment of many handy techniques. Here are some general dos and don’ts to help you win arguments together with some sneaky tactics to be aware of.

Do:

1. Stay calm. Even if you get passionate about your point you must stay cool and in command of your emotions. If you lose your temper – you lose.
2. Use facts as evidence for your position. Facts are hard to refute so gather some pertinent data before the argument starts. Surveys, statistics, quotes from relevant people and results are useful arguments to deploy in support of your case.
3. Ask questions. If you can ask the right questions you can stay in control of the discussion and make your opponent scramble for answers. You can ask questions that challenge his point, ‘What evidence do you have for that claim?’ You can ask hypothetical questions that extrapolate a trend and give your opponent a difficulty, ‘What would happen if every nation did that?’ Another useful type of question is one that calmly provokes your foe, ‘What is about this that makes you so angry?’
4. Use logic. Show how one idea follows another. Build your case and use logic to undermine your opponent.
5. Appeal to higher values. As well as logic you can use a little emotion by appealing to worthy motives that are hard to disagree with, ‘Shouldn’t we all be working to make the world better and safer for our children?’
6. Listen carefully. Many people are so focused on what they are going to say that they ignore their opponent and assume his arguments. It is better to listen carefully. You will observe weaknesses and flaws in his position and sometimes you will hear something new and informative!
7. Be prepared to concede a good point. Don’t argue every point for the sake of it. If your adversary makes a valid point then agree but outweigh it with a different argument. This makes you looked reasonable. ‘I agree with you that prison does not reform prisoners. That is generally true but prison still acts effectively as a deterrent and a punishment.’
8. Study your opponent. Know their strengths, weaknesses, beliefs and values. You can appeal to their higher values. You can exploit their weaknesses by turning their arguments back on them.
9. Look for a win-win. Be open-minded to a compromise position that accommodates your main points and some of your opponent’s. You cannot both win in a boxing match but you can both win in a negotiation.

Don’t:

1. Get personal. Direct attacks on your opponent’s lifestyle, integrity or honesty should be avoided. Attack the issue not the person. If the other party attacks you then you can take the high ground e.g.’ I am surprised at you making personal attacks like that. I think it would be better if we stuck to the main issue here rather than maligning people.’
2. Get distracted. Your opponent may try to throw you off the scent by introducing new and extraneous themes. You must be firm. ‘That is an entirely different issue which I am happy to discuss later. For the moment let’s deal with the major issue at hand.’
3. Water down your strong arguments with weak ones. If you have three strong points and two weaker ones then it is probably best to just focus on the strong. Make your points convincingly and ask for agreement. If you carry on and use the weaker arguments then your opponent can rebut them and make your overall case look weaker.

Low, sneaky ways that some people use to win arguments:

1. Use punchy one-liners. You can sometimes throw your opponent out of his stride by interjecting a confident, concise cliché. Here are some good ones:
   • That begs the question.
   • That is beside the point.
   • You’re being defensive.
   • Don’t compare apples and oranges.
   • What are your parameters?
2. Ridicule and humiliate your opponent. This can be very effective in front of an audience but will never win over the opponent himself.
3. Deliberately provoke your adversary. Find something that makes them angry and keep wheedling away on this point until they lose their temper and so the argument.
4. Distract. Throw in diversions which deflect the other person from their main point.
5. Exaggerate your opponent’s position. Take it way beyond its intended level and then show how ridiculous and unreasonable the exaggerated position is.
6. Contradict confidently. Vigorously denounce each of your opponent’s arguments as fallacious but just select one or two that you can defeat to prove the point. Then assume that you have won.

Remember that an argument between two people is very different from a debate in front of an audience. In the first you are trying to win over the other person so look for ways of building consensus and do not be belligerent in making your points. In front of an audience you can use all sorts of theatrical and rhetorical devices to bolster your case and belittle your adversary. In these circumstances humour is a highly effective tool so prepare some clever lines in advance.

7 Little Tricks To Speak In Public With No Fear

There was once a time when I had no fear. I was 11 years old and I entered a story telling competition. I was confidently telling the story and captured everyone’s attention until suddenly I heard a voice from just in front of the stage commenting about my nose. It’s totally disastrous from that moment on. I lost focus and forgot the script altogether. That’s the exact time that I began to have a certain fear of public speaking.

Over the years, I finally overcome my fear of public speaking. I can now speak at any function unprepared and even though the nervousness is still there, I am able to control it. It was not easy but I made it with some help from books and a few techniques I develop myself.

Hopefully these tricks will be able to help you as they had helped me in overcoming fear of public speaking.

1) Admit nervousness

All you have to do is admit that you are a bit nervous speaking to your audience. When you do this, the audience will be more forgiving if your nervousness shows up later on. More importantly you will feel more relaxed now that they are not expecting a world-class presentation. Imagine their surprise when you gave them the best presentation ever despite your nervousness.

The best way to do this is by joking about it. Here’s an example of a good one. “On the way here, only God and I knew what I will be presenting. (looking a bit nervous) Now, only God knows.”

2) Redefine your audience

Redefine your audience generally means changing how you see your audience. Instead of seeing them as lecturers who are evaluating you, maybe you can convince yourself that they are all fellow students who are in queue to present after you. They are all equally nervous so there is no reason why you should be too.

Or perceive them as long lost friends that you haven’t seen for 10 years. This way you can maintain eye contact trying to figure out where you have seen him before. To the audiences, they will see a very friendly and personal presentation.

Do not try to convince yourself that they are babies in diapers or that nobody is around as suggested by some books. It is very hard to convince yourself that no one is around when you are actually speaking to them.

3) Invest in visual aids

Imagine a presentation with beautiful PowerPoint slides and even more impressive notes given to each of your audience members. Half of the time, their eyes will not be on you. They will read through the notes and your fancy slides. This will help a lot as you can then speak to the people who are not looking at you. When they look at you, you just change your focus to other people who are not looking. Giving a speech to people who are not looking at you is always easier.

4) Make mistakes intentionally

This is another trick I encourage you to try. Once I “accidentally” dropped my notes on the floor, and while picking them up, I warned the audiences that the presentation will be more confusing after this. I heard some laughter from the floor.

The idea is to gain control of your audience. If you can make them laugh and be more interactive with you, your presentation will have that casual feel to it which will make it more memorable than others. Ultimately you will find it easier to do.

5) Speak to one person at a time

One of the most terrifying things about public speaking is the crowd. Just by looking at the crowd, all in silence just to hear you speak, will send shivers down your spine. To overcome this, you just need to speak to one person at a time.

Choose one member of your audience and dedicate your whole presentation to him or her. Just assume that everyone else is not paying attention. When someone asks you a question, change your focus to that person and answer the question as if the two of you are in a coffee shop chatting away. Isn’t that the most relaxing way to handle a crowd?

6) Be impressive with personal opinion

Just like blogging, everyone can copy an article and paste it onto their blog. However, people read blogs not only to know about things happening but to know what that particular blogger’s opinion is on the matter.

When you speak or give a presentation, try to squeeze in a few of your personal thoughts on the matter. Of course these should be prepared early on. However, you should make it as if the ideas are “just in” while you are presenting. That will differentiate your presentation from the rest, and when you see the interested look on the faces of your audience, it will elevate your presentation to another new level, a level where you start having fun.

7) Have fun experimenting

This is the most important tips of all. Have fun with the crowd. Try new ways to give the best presentation to your audience. Maybe experiment with a new funny approach, or walk around the hall instead of being static on the stage. Have fun with experimenting on human behavior and you will see that public speaking is not that bad after all.

Remember that there are no failures, only different results.

Have fun!

10 Tips to Use Giveaways Effectively

Walk around any trade or consumer show and you will be able to collect a bag full of advertising specialties or giveaway items all designed to promote. But look a little more closely.

How many really do an effective job? How clearly do they get a message across? Is the message sufficiently visible? Is the giveaway useful or unique enough that you would want to keep and use it? All these questions, and more, need to be considered before jumping into the giveaway game.

Everyone enjoys receiving a gift, even if it is “just a little something.” Gift-giving creates a favorable impression. It can build goodwill, be an incentive, communicate a message and create awareness.

When thinking about advertising specialties for your next show, consider the following ten questions:

1. What do you want to achieve by giving away a premium item?
Your giveaway items should be designed to increase your memorability, communicate, motivate, promote or increase recognition. It is important not only that the message have an impact, but also the premium itself.

2. How will you select your premium item?
There is a multitude of different items you could consider as a premium. However, which one will best suit your purpose?

To select the right item, you need to decide your objective. Do you want it to enhance a theme; convey a specific message or educate your target audience?

A clear purpose should help make your selection process easier. A promotional specialist can also help you make an effective selection. Remember that your company image is reflected in whatever you choose to give away.

3. Whom do you want to receive your premium?
Having a clear objective for your premium item will also help you decide who should receive it. You may consider having different gifts for different types of visitors. You might have different quality gifts for your key customers, prospects and general passersby.

4. How does your giveaway tie into your marketing theme?
Is there an item that naturally complements your marketing message? Have the message imprinted on the item and make sure that your company name, logo and phone number appear clearly. An important aspect of any gift is to remember who it was from long after the fact.

5. What is your budget?
The price range for premium items is enormous. Quality, quantity and special orders all impact the price. Establish a budget as part of your exhibit marketing plan.

Consider ordering the same item for several different shows. The greater the quantity of your order, the lower the individual unit price.

6. What must visitors do to qualify for a gift item?
There are several ways to use your premium effectively. For example, as a reward for visitors participating in a demonstration, presentation or contest; as a token of your appreciation when visitors have given you qualifying information about their specific needs; as a thank you for stopping at the booth.

Avoid leaving items out for anyone to take. This diminishes value and has little or no memorability factor.

7. Will your giveaway directly help your future sales?
Consider handing out a discount coupon or a gift certificate that requires future contact with your company for redemption. Consider premiums that will help generate frequent visits to customers and prospects, such as calling you for free refills.

8. How does your premium item complement your exhibiting goals?
Premiums can be used to prequalify your prospects. One company uses playing cards. Prior to the show, they send “kings” to their key customers, “queens” to suppliers, “jacks” to new or hot prospects. They request that the cards are brought to the booth in exchange for a special gift. When the cards are presented, the booth staff already know certain information about the visitor. They can then act on their previous knowledge and use time with the visitor more productively.

9. How will you inform your target audience about you giveaway item?
A sufficiently novel or useful giveaway can actively help to draw prospects to your booth. So make sure your prospects know about it. Send a “tickler” invitation with details of the giveaway, or create a two-piece premium, sending one part out to key prospects prior to the show and telling them to collect the other half at your booth.

10. How will you measure the effectiveness of your premium?
Establish a tracking mechanism to measure the success of your giveaway. If it is a redemption item, code it so that you know it resulted from the show.

Post-show follow-up could include a question about the premium – did visitors remember receiving it and how useful was the item. After the show, critique your giveaway with your exhibit team:

Did it draw specific prospects to the booth? Was it eye-catching enough to persuade passersby to stop? Did your customers find it useful? Did it project the right corporate image?

There are plenty of exciting premiums for you to choose from so that you can avoid the usual pens, pencils and keychains. Make your premium work for you and it will be money well invested.

Written by Susan A. Friedmann, CSP, The Trade Show Coach, Lake Placid, NY, author: “Meeting & Event Planning for Dummies,” working with companies to improve their meeting and event success through coaching, consulting and training. Visit The Trade Show Coach for a free copy of ExhibitSmart Tips of the Week.