Wednesday, December 28, 2011

Owned vs rented car

People generally assume that car rental is very expensive and owning a car is cheaper. Here is a sample analysis for the same,

Assuming Car Value = 5 lacs

Expense Per month
Interest = 4000
Depreciation = 6000 (for first yr)
Insurance = 1000
Maintenance =1000
Driver = 8000

Lets assume 1000 km a month and average of 15
Petrol = 4500

Total expense for 1000 Km for a month = 24500. i.e. 24.5 Rs/Km

Most radio cabs charge from 15-20 Rs per KM. So it isn't really a bad deal.

However your own car offers a huge convenience of using it anytime at a moments notice and personalization. 

The baggage problem

It takes time to understand that its best practice to NOT keep a baggage on you when you have a fight or altercation with someone. Such baggage only increase with time and the burden is always increasing. One also then tends to make a perception which then influences any further interactions. We need to think if it is worth it? Isn't it much easier to try and get off the load and move much faster ahead happily? When you start keeping baggage's, people also start to keep theirs, and  then others interact with one another, collating their bad experiences making a harder perception against you and you end up more and more isolated.

Instead of carrying bad memories it is always better to carry the good ones. It helps to take the lesson from bad ones so as to prevent it later. Also we have a fixed memory bank, why should we then spend on things we don't like? Why can't we make life simpler?

Tuesday, December 27, 2011

India without Gandhi

We were taught in school that India got independence because of Mahatma Gandhi. Is it really true? What would India have been without Gandhi? I am not trying to say he was not a great leader, but his leadership and politics of congress split India and Pakistan, and the effect of that is for the generations to follow.

Most of the british colonies started to gain independence after the second world war ended in 1945. There was great devastation after the second world war and ruling over the colonies had become very tough. With congress we had an elitist class coming to rule over India. So from the Queen in England we had the local Kings now. And now we have the Nehru family rule over India from one generation to another. Will this change for India? I don't think so. There are two things that need to be done for India to progress, greater education and stronger judiciary. In all our 60 yrs of independence we have greatly failed in both. It has actually gone worst as education has become privatized with very low quality, and people have become smarter in exploiting the judiciary.

I am presently shocked by how the graduate engineers don't know the engineering basics but still manage to score 70%+. And how the MBA's of today cannot answer basic practical management questions. Education has become a business with very low standards.

Our media which used to be very powerful before and even after independence has increasingly also become a business. Media has stopped asking hard questions. People like Kapil Sibbal can publicly say that 2g was no loss to India and still get away with it and even continue as the telecom minister.

Lokpal and corruption has become a big news of the day, however lets stop for a moment and think how much are we all also to blame for corruption. How many times did we bribe to make our life easy. Even those who take bribe are our near and dear ones, but do we question them? I have seen people defending corruption and also proud about how much money they are making by it. They justify themselves by pointing to a bigger thief and saying they just make a little. Humans have an excellent knack to justify anything.

There are some fundamental problems in the Indian system, and people need to focus on them to fix the things for good. However most people think that it not their problem and they cannot do anything about it. But its only when we all will change and do something the change will come......

Credit score

I decided to get my credit report from CIBIL to see my details and the score. I was expecting it to be very good, but was surprised on getting it. There was lot of old information with CIBIL. lot of contact information was incorrect, the problem, when the agents just make you fill the form and fill your form with wrong spellings. I will try and get it corrected so that in future when i try to get some credit i do not face a problem.

American Express bank reported a delayed payment when there was none, now have raised a dispute for that. We need to have a system where the banks are penalized for giving wrong information to CIBIL.

Also now need to think if i should close some of the credit cards which i do not use, it should improve the credit score.