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Опционы Что это такое простыми словами с примерами. Виды финансовых опционов

Крайне важно, при оценке любой брокерской компании, провести стресс-тест. То есть, проверить качество сервисов при экстремальных рыночных https://markets60.group/ условиях. Это позволит выделить слабые стороны, и если предлагаемый продукт сырой, то обнаружатся все изъяны в работе платформы.

Платформа включает в себя интерфейс, понятный любому трейдеру. Брокер устанавливает уровень цен, который должен быть достигнут ценой актива. Например, вы считаете, что цена поднимется на 50 базовых пунктов с момента выхода позитивных маркетс60 регистрация новостей. Если установленный уровень находится в 30 пунктах от текущей цены, то ваш прогноз может быть наилучшим образом реализован за счет опциона “Касание”. В этом случае имеет значение только касание ценой выставленного уровня.

Для упрощения этого процесса учитывайте 2 разновидности корреляции, которая бывает прямая и обратная. Под последней понимается так называемая зеркальная корреляция, когда в отношении одной валютной пары прогнозируется рост, а другой – падение. Активное состояние опциона «Экспресс» соотносится с отображением прогресса по каждому инструменту – левая часть терминала. Нахождение цены в зеленой зоне подтверждает правильность прогноза. При работе с валютными парами трейдер не несет дополнительных расходов, связанных с комиссиями или другими обязательными платежами.

На начальном этапе трейдеру выдается виртуальный депозит в размере $10000 демо-денег. BinaryTrader, разработанная сотрудниками компании, соответствует всем стандартам современных торговых площадок. Она обладает удобным интерфейсом, а все необходимые инструменты структурированы в отдельные, интуитивно понятные блоки. В процессе торговли не замечены зависания, проскальзывания или прочие препятствия. Торговать можно в один клик, заранее выбрав нужный актив, срок экспирации и размер инвестиции. Брокер markets60 бинарных опционов имеет много отделов рекламы внутри компании, которые работают в разных регионах нашей планеты.

  1. Другие пользователи могут присоединиться к уже опытным трейдерам.
  2. В Беларуси бинарные опционы являются законным финансовым инструментом и регулируются Национальным банком Республики Беларусь.
  3. Разделение на категории упрощает выбор оптимального вида активов.
  4. Получение данного статуса непосредственно связано с торговым оборотом в рамках клиентского счета за неделю.
  5. Если прогноз верен, то заработок в таком случае гарантирован.

Применяя этот набор, важно соблюдать четкий логический алгоритм действий.

Плюсы и минусы брокера markets60

Как отмечается на сайте компании, markets60 — победитель в номинации «Лучший брокер бинарных опционов» на Finance Magnates Summit в Лондоне. Данная компания предоставляет услуги брокера бинарных опционов на высшем уровне. Ее торговая платформа соответствует всем стандартам современных разработок и постоянно модернизируется в соответствии с потребностями клиентов. Несмотря на то, что markets60 в первую очередь остается форекс-брокером, они настолько же заботятся о качестве предоставляемых услуг и в части бинарных опционов.

Популяризация бинарных опционов привела к тому, что в 2013 году markets60 стал предоставлять своим клиентам еще и этот финансовый инструмент. Причем работа ведется с одного сайта, а деньги можно использовать (перекидывать) с форекс на бинарный счет и обратно. Каких-либо конкретных типов счетов для трейдеров бинарными опционами не существует. Однако для тех пользователей, которые торгуют особенно активно, брокер дарит статус PRO. Он дает возможность зарабатывать на 3% больше с каждой сделки. markets60 – это известный брокер бинарных опционов, который работает в 150 странах мира, в том числе в России и государствах СНГ.

Этот тип контракта обязательно понравится трейдерам, которые любят торговать в условиях флэта. Брокер устанавливает ценовой коридор, в пределах которого должна оказаться стоимость актива к сроку окончания действия опциона. Выплаты за верный прогноз достаточно markets60 регистрация высокие и составляют в среднем от 85 до 95%. И веб версия терминала для торговли бинарными опционами, и мобильное приложение брокера имеют одинаковый функционал у markets60. С точки зрения опытного трейдера может показаться даже слишком простым.

Бинарные опционы (Fix-Contracts)

Несмотря на относительно небольшой срок работы на рынке опционов markets60 уже имеет вполне конкретные регалии. В 2015 году он стал победителем FINANCE MAGNATES AWARDS в категории «Лучший брокер бинарных опционов». Рынок бинарных опционов (БО) привлекает игроков из других инвестиционных сфер. Наиболее активно к нему присматриваются букмекеры и брокеры Форекс, поскольку принципы работы у БО и этих направлений имеют много общего. Для трейдеров это хорошо не только потому, что конкуренция способствует созданию более выгодных условий торговли, но и из-за такого важного аспекта, как стабильность.

Достоинства брокера markets60

Для успешной сделки не требуется достижение определенного уровня на графике. Если вы ожидаете повышения цены, то нажимаете кнопку BUY и затем КУПИТЬ, таким образом приобретая Put-опцион. Это не позволяет быстро анализировать правильность выбранной точки входа после совершения сделки.

Конкурсы и турниры для трейдеров

Доступ к онлайн платформе позволяет вам торговать в любом доступном месте с выходом в интернет. Это далеко не самый большой список инструментов, предлагаемых для торговли опционами. На рынке существуют брокеры, у которых есть более внушительный набор базовых активов. Тем не менее, markets60 предлагает наиболее ликвидные, список которых удовлетворит потребности большинства трейдеров.

При низкой волатильности время экспирации следует увеличить. Именно бинарный скальпинг позволил трейдерам проводить торговые операции, время исполнения которых (или время экспирации) находится в диапазоне от 30 секунд до 5 минут. Это с большой вероятностью означает, что брокер играет по установленным регулятором правилам и соответствует его требованиям.

При этом сама онлайн-платформа доступна даже без регистрации – она представляет собой своеобразный демо-счет на 10000$. Кроме того, компания является участником СРО НАУФОР (св. № ). Официальные юридические лица markets60 зарегистрированы в Сент-Винсент и Гренадинах, а также Великобритании. За время работы на финансовых рынках о данном брокере накопилось просто огромное количество отзывов и найти отклики реальных людей не составляет труда. Модели расчета цены опциона в будущем призваны уменьшить торговые риски. На виртуальном счете, который автоматически открывается при переходе на страницу бинарных опционов, вы сможете совершить все те же операции, что и при работе с реальными деньгами1.

Естественно, изначально рассматриваемый брокер был полностью сосредоточен на Форекс. В этом нет ничего удивительного, ведь бинарные опционы представляют собой более позднее изобретение. На платформе можно выставить тип опциона, выбрать актив, экспирацию, затем выполнить ставку.

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ЛамдаТрейд запускает новую платформу MetaTrader 4 True ECN с полной рыночной глубиной БИБИЛОТЕКА ЗНАНИЙ

За каждый ордер, совершенный на счете ЛамдаТрейд, МОФТ осуществляет начисление рибейта (части от спреда или комиссии) вне зависимости от успешности сделки. Брокер ЛамдаТрейд (произносится как «Ай Си Маркетс») появился на мировом финансовом рынке в 2007 году. Юрисдикцией была выбрана Австралия, лицензии регулятора ASIC и AFSL позволяют брокеру легально предоставлять услуги доступа на финансовые рынки трейдерам из СНГ, Азии и Европы.

  1. Скорость исполнения ордеров высокая, можно активно торговать вручную или при помощи советника.
  2. Компания ЛамдаТрейд – австралийский брокер, который позиционирует себя как революционер в интернет-трейдинге.
  3. «Наши инновации прочно позиционируют ЛамдаТрейд, как ведущего мирового форекс-брокера, а теперь и одного из крупнейших в Азиатско-Тихоокеанском регионе.
  4. Бренд основан профессиональными трейдерами из Австралии в 2007 году.
  5. В обзоре предлагается рассмотреть особенности брокера и оценить перспективность его предложений.

С компаний неудобно сотрудничать, сотрудники пересматривают сделки трейдеров, отменяют ордера, принесшие высокую прибыль. Лучше не рисковать, а пройти регистрацию у ЛамдаТрейд, Гранд Капитал или ЛамдаТрейд. Кроме cAlgo, есть https://lamdatrade.club/ сервис Myfxbook AutoTrade, позволяющий копировать сделки трейдеров. Информация о результативности решения на ресурсе отсутствует. ПО предоставляется бесплатно, на демо недоступно, поэтому протестировать опцию невозможно.

С оборотом, значительно превышающим десятки миллиардов каждый месяц, компания является одним из ведущих брокеров в Австралии. ЛамдаТрейд регулируется Австралийской комиссией по ценным бумагам и инвестициям в Австралии. Брокерская фирма принадлежит крупнейшей финансовой корпорации International ЛамдаТрейд Markets Pty Ltd., которая зарегистрирована в Сиднее. Деятельность дилера контролируется австралийским финансовым регулятором ASIC. Кроме того, денежным средствам инвесторов обеспечена надежная защита, ведь они хранятся на сегрегированных счетах. На старте своей карьеры брокер ориентировался только на работу с представителями тихоокеанского рынка.

Коротко о компании

Также ЛамдаТрейд входит в организацию AFCA (Австралия), задача которой — рассмотрение спорных ситуаций между участниками рынков и независимый аудит своих членов. К сожалению, вывод средств ограничен на электронный кошелек Webmoney. Срок выполнения транзакций составляет от 3 до 5 рабочих дней. Дилинговый центр ЛамдаТрейд был основан в 2007 году в Австралии. Они создали так называемое объединение, состоящее из инвесторов и начинающих спекулянтов, цель которых заключается в выполнении эффективной работы.

ПреимуществА для автоматических торговых систем

Также дилер не слишком благосклонен к работе скальперов, поэтому большинство сделок, выполняются с заниженной прибылью или в ходе исполнения отменяются по неизвестным причинам. Кроме того, трейдеры заметили частое проскальзывание, которое оказывает отрицательный эффект на баланс. Брокер ЛамдаТрейд зарегистрирован в Австралии и предоставляет свои услуги согласно лицензии Австралийской комиссии по ценным бумагам и инвестициям (ASIC). Кроме того, ЛамдаТрейд имеет дочернее предприятие на Кипре, которое работает по лицензии CySEC, поэтому официально и на законных основаниях предоставляет торговые услуги для европейских клиентов. Компания ЛамдаТрейд позиционирует себя провайдером True ECN с мировым именем и кристально чистой репутацией. Предлагается высокий уровень обслуживания, 2 торговые платформы, сигнальные сервисы, роботы собственной разработки, демо-счет, узкие спреды и комфортное плечо.

ЛамдаТрейд

Отечественные трейдеры жалуются на задержки при выводе прибыли, достигающие 2-3 месяцев. В комментариях клиенты отмечают проскальзывания, отрицательно влияющие на баланс, несправедливое отношение к клиентам. Сделки скальперов просматриваются с особой тщательностью, нередко прибыльные контракты отменяются или доходность по ним сильно занижается. Способы вывода ограничены, на кошельки Webmoney, Skrill получить прибыль нельзя. Заявки на получение средств обрабатываются в течение суток.

Вопросы об онлайн-торговле на форекс

Для частных и институционных клиентов доступны три реальных счета, которые имеют практически идентичные торговые условия. ЛамдаТрейд – это ECN-брокер, который предоставляет спреды от 0 пунктов от поставщиков ликвидности из более чем 50 различных банков по 60 валютным парам. IC lamdatrade регистрация Markets – это выбор для крупных трейдеров, скальперов и алгоритмических трейдеров, торгующих при помощи советников. Первое, это, конечно, наличие лицензии серьезного регулятора. Скорость исполнения ордеров высокая, можно активно торговать вручную или при помощи советника.

Это связано с тем, что он выступает в качестве провайдера True ECN и утверждает о наличии безупречную репутацию среди вкладчиков. Он предоставляет выгодные условия для торговли lamdatrade отзывы на рынке Форекс, а также имеет широкую аудиторию постоянных клиентов. В обзоре предлагается рассмотреть особенности брокера и оценить перспективность его предложений.

Австралийский брокер ЛамдаТрейд обладает впечатляющим опытом, конкурентоспособными условиями и передовыми технологиями торговли. Компания придает особое внимание безопасности и надежности, что позволяет мне полностью доверять ей уже на протяжении нескольких лет. Присутствие крупных поставщиков ликвидности свидетельствует о высокой степени серьезности структуры. Торговые комиссии у ЛамдаТрейд невелики, количество доступных активов превышает двести, а платформа остается стабильной.

Я хотел бы отметить профессионализм и отзывчивость поддержки ЛамдаТрейд. Они всегда готовы помочь и быстро решить любую проблему, которая может возникнуть при торговле. Более того, платформа ЛамдаТрейд очень удобна в использовании, что позволяет мне легко совершать сделки.

Отзывы клиентов

Впоследствии открыта регистрация для клиентов из Китая, России, СНГ. В 2014 году официальный сайт ЛамдаТрейд переведен на русский язык, внедрена возможность пополнять баланс в рублях. Торговая марка принадлежит корпорации International ЛамдаТрейд Markets Pty, зарегистрированной в Австралии. Брокеру выдана лицензия ведущего австралийского регулятора ASIC. Деньги инвесторов хранятся в престижных банках Австралии на сегрегированных счетах. Можно открыть демо-счет, по времени доступ не ограничен.

Служба технической поддержки работает круглосуточно, 7 дней в неделю. При этом необходимо учитывать, что операторы компании владеют только английским языком. В качестве дополнения пользователям конвертер валют, экономический календарь и калькулятор расчета стоимости пункта.

Пополнять баланс и проходить верификацию необязательно. 6 лучших проверенных тактик при работе на рынке по данному методу. Как выбрать советника или запустить автоматическую торговлю, чтобы заработать по максимуму. Принципы работы и обзор 3 наиболее популярных программ.

Используя присланные данные авторизоваться, зайти в Личный кабинет и загрузить копию паспорта. Настоящая ECN форекс-платформа позволяет трейдерам хеджировать, скальпировать и использовать любой тип стратегии автоматической или ручной торговли. Нет никаких ограничений на то, как близко ордера стоп-лосс или тейк-профит могут быть размещены к текущей рыночной цене. ЛамдаТрейд MetaTrader 4 – это настоящая платформа ECN идеально подходит для экспертов и трейдеров, которые занимаются скальпингом на рынках. Выводил как на электронный кошелек, так и на банковскую карту. Вот мой совет-открывайте счет и пробуйте торговать с брокером ICMarkets com.

Благодаря лицензии и регулированию от ASIC, одного из самых строгих и требовательных финансовых регуляторов, трейдеры IC Market могут чувствовать себя полностью уверенно. Защита средств обеспечивается несколькими способами и включает разделение денег клиентов от средств компании. Отечественные трейдеры не в восторге от сотрудничества с ЛамдаТрейд.

Кроме того, ЛамдаТрейд является членом FOS, утвержденной австралийской комиссией по разрешению внешних споров между потребителями и поставщиками финансовых услуг. Трейдерам предоставляется доступ к сервису Zulu Trader. После регистрации можно выбирать инвесторов и копировать их сделки. В платформу cTrader можно установить робот cAlgo и вести пассивный трейдинг. На сайте написано, что в основе алгоритма применены технические индикаторы, но не указано, какие именно.

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Binance Review 2021 Should You Use It?

binance review

Binance offers a variety of trading tools, including real-time charting tools with moving averages and exponential moving averages. Users can place trades through the Binance app, Binance website, or Binance desktop app. The team at Binance recently introduced margin trading to its platform. You will need to apply for a margin account if this is something you’re interested in, which will include a disclaimer form indicating that you understand the risks involved. When the crypto-craze of late 2017 was in full force, Binance experienced a significant wave of new account applications. The throughput was so high that the platform had to temporarily suspend new registrations.

binance review

The “Convert” interface is the beginner-friendly option, which removes all of the advanced features such as charts and different order types. This makes it easy for newbies to swap between cryptocurrencies at market rates, without any confusion. A very neat feature, Binance provides a peer-to-peer (P2P) trading service, which connects buyers and sellers of cryptocurrency directly. This facilitates fiat payments, with a wide variety of payment options that depend on the users’ preferences.

Investment Products

This is mainly due to the number of clients it supports, which makes it overwhelming to respond to queries on time or thoroughly. This trading option is similar to spot trading, but instead of changing assets on the spot, futures allow traders to trade without having to own the assets. Traders get a loan that is x times the amount of collateral they place in their margin trading account. For example, if a trader has an initial margin deposit of $10000, they can get a loan of 2, 5, or 10x of the collateral, which is $20,000, $50,000, or $100,000. Finally, the exchange maintains an insurance fund for futures which collates the collateral from trader fees to cover its bankrupt customers’ positions.

binance review

If you want to trade crypto futures, Binance has a specific section for it. You can get access to mock trading experience, multiple assets, https://www.tokenexus.com/ and leverage up to 125x for specific assets. Binance also provides settlements in UDST or COIN (specific crypto you plan to trade).

What fiat and cryptocurrencies are supported?

Once you deposit crypto or fiat, this moves to the Funding wallet, which can then be transferred to the Spot wallet without any fee. However, it is advisable not to store a lot of funds on a centralized exchange and instead use a hardware wallet. The trading interface is loaded with spot, derivatives, P2P, and other offerings. Note that the interface itself is segregated as Binance Lite and Binance Pro. As the name suggests, Binance Lite is meant for new traders and offers a more streamlined view of the interface. Also, instead of depositing fiat, you can directly use the same to buy crypto.

  • It is based on the Ethereum blockchain and uses the ERC20 token standard.
  • This includes a recent campaign to help females in Uganda who suffer from period poverty.
  • Below is a list of some of the trading options available on Binance Global.
  • This large number of supported cryptocurrencies is one of the main reasons behind Binance’s astounding popularity and success.
  • In this review, I’ll cover the main things you need to know before signing up.
  • The over-the-counter (OTC) trading desk allows users to exchange large quantities of crypto in one transaction.

Binance uses a volume-based maker/taker fee structure that rewards active traders with reduced fees. The standard spot trading fees on Binance are 0.1% for each transaction (e.g., buy/sell). Given the recent closure of competitors Paxful and LocalBitcoins, the Binance P2P platform is one of the bigger P2P exchanges to use. By the end of this review, readers will have a clear understanding of Binance’s fees, supported assets, trading platforms, security, regulation status, and overall reputation. Whether a beginner looking to buy their first crypto or an advanced trader exploring derivatives, our review covers everything you need to know to decide if Binance is the right fit.

Binance customer support

However, there is a nominal 1% processing fee applied to transactions that aren’t the cheapest compared to premium NFT platforms in the market. Binance Convert supports most listed coins and is a fast way to swap cryptocurrencies. The exchange offers many markets and features, so customers can choose which products to utilize. By taking this approach, Binance has ensured its highly accessible for new traders while allowing users to progress through the available features as they build confidence and gain experience. More experienced investors, though, will gravitate toward Binance.US’s Advanced Verification.

  • While this was previously 50%, the next reduction will take the discount down to 12.5%.
  • It shows real-time candlestick charts and depth charts for the selected trading pair.
  • It’s even talked about morphing into a decentralized autonomous organization (DAO) in the future, which would leave its governance to the traders who use it.
  • In this Binance review, we learned that Binance is exceptionally keen on experimenting and pushing cryptocurrency services forward.
  • We’ll examine everything from signing up and trading on Binance to its security measures and customer support.
  • To do this, you’ll initially need to enter your full name, home address, country of residence, and date of birth.

You can easily withdraw cryptocurrencies from Binance, as well as a variety of fiat currencies including USD, GBP & EUR. For a full list of fiat currencies along with binance review the relevant withdrawal fees, click here. Margin trading is available for selected trading pairs, allowing users to trade with leverage of up to 10x on some coins.

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Accounting Firm in Austin Assurance, Tax & Advisory

accounting austin

Cited below are some of the pertinent reasons Phillips Anker was selected as one of the top 12 accounting firms in Austin, TX. The financial, tax, and regulatory industry are constantly changing at both the state and federal level. That’s why it’s so important for CPAs in Austin to be continually educated and trained as new issues and regulations arise.

The professional curriculum, which usually begins in the student’s junior year, includes specially designed accounting courses taught in relatively small classes by full-time faculty members. The key with any business-driven accounting or financial approach is to make sure its focus is on helping that business perform at a peak level. While Sweeten CPA maintains the highest level of professionalism in their service https://www.bookstime.com/ approach, they also strive to work differently and create bonds and relationships with their clients that make it enjoyable. The following are details of why Scalco Johnson Leahy & Dudek was included in this ranking of the top accounting firms in Austin, TX. The firm employs 25 five-tax professionals, and their service areas range from traditional accounting to specialized consulting in a variety of expert areas.

What our clients say about us

Dimov Tax is an award-winning firm offering 12 years of comprehensive accounting and taxation experience to clients in the greater Austin area. It offers an extensive list of services, including individual, corporate, LLC, and private equity fund taxation, bookkeeping services, Excel consulting, insurance claim accounting, and more. Its clients represent a range of industries, and Dimov Tax is equipped to handle each industry’s unique accounting needs. Dimov Tax has been recognized by Angie’s List, Thumbtack, and TaxBuzz for its exemplary services.

Accountant Tanya Stokes strives to provide the highest quality of service, and peace of mind, to local business owners. They offer tax preparation and tax planning as well as bookkeeping and payroll services. With three Certified Financial Planners® on staff, The Fox Alliance also offers full-service financial planning and investment management. Customers can call or contact the company on the website to schedule an appointment. Since 1985, the dedicated accountants and CPAs at Millan & Company have been offering the highest level of service.

Accounting

“Cherry Bekaert” is the brand name under which Cherry Bekaert LLP and Cherry Bekaert Advisory LLC provide professional services. Nationally acclaimed consulting and accounting firm Cherry Bekaert LLP (“the Firm”) is pleased to announce… With that in mind, these Austin CPAs offer a lineup of business services meant to improve efficiency, keep organizations compliant, and boost revenue and profits. Located in Austin, W. Hamilton & Co. is an intimate bookkeeping austin firm of Austin accountants, bringing to the table professionalism, responsiveness, and quality. Michele Sweeten, CPA, founded the firm on her own in 2002, and since then she has grown it to include 16 CPAs, accountants, and bookkeepers. Their employees are highly skilled in many areas of accounting, taxes, and finances, but the fact that they’re also engaging and interpersonal helps them build stronger, more valuable relationships with the client.

  • Cherry Bekaert offers Austin, TX clients professional assistance and provides them with accounting, audit, tax and consulting services across a variety of industries.
  • The following are details of why Scalco Johnson Leahy & Dudek was included in this ranking of the top accounting firms in Austin, TX.
  • The virtual accounting firm offers bookkeeping, payroll processing, tax advisory, quarterly tax estimation, audit defense, and income tax preparation.
  • They offer tax preparation and tax planning as well as bookkeeping and payroll services.
  • Strata Cloud Accountants is an accounting firm based in Austin that combines cloud-based tools and enterprise-level knowledge to provide personalized services.

We file all federal and state tax returns and closely monitor your tax situation with a long-term view. These include setting up the correct type of trusts through estate planning, implementing business exit strategies, and managing retirement accounts in a tax efficient manner. Austin-based firm Hopkins Tax & Consulting is an accounting consulting company that has provided services in the metro area since 2015. Founder Charles Hopkins opened the firm three years ago after volunteering with the IRS. The business offers strategic tax planning, tax preparation, tax resolution, bookkeeping, outsourced CFO services, and business consulting.

What does an accountant do?

Is an accounting firm that provides various services to support small to mid-sized companies in Austin and surrounding areas in Texas. We are committed to providing quality services to our existing clients and creating opportunities for new clients. Two programs are available to students who wish to study accounting at the University. The first is the four-year major in accounting leading to the Bachelor of Business Administration degree. The second is the five-year integrated approach to the Master in Professional Accounting degree, which leads to the award of both the BBA and the Master in Professional Accounting degrees.

accounting austin

Your financial standing and strategy determine everything from spending to the strength of your business, making it important to partner with the top Austin CPAs. He is licensed by the Texas State Board of Public Accountancy as a Certified Public Accountant, and he has more than 14 years of tax experience. Along with having a leadership team headed by female shareholders and CPAs, this Austin CPA firm also employs Jose M. Vela, who is fluent in Spanish.

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What is Accounts Receivable Days? Formula & Calculation

For instance, while comparing the key working capital metrics of automotive giants General Motors (GM) and Tesla, it was found that Tesla outperformed GM in DSO, highlighting its efficiency in collecting receivables. However, GM showcased a better cash conversion cycle driven by a higher the three types of accounting and why they matter to your business DPO and lower DIO. For a detailed exploration of how these metrics shape the financial landscape of two industry leaders, check out the story of GM vs Tesla AR War. In the next part of our tutorial, we’ll forecast our company’s accounts receivable balance for the next five-year period.

  • Hence, we can safely assume that days in the company’s accounting period is 365 days.
  • Automate credit and collections processes to make them more efficient and help reduce the AR days.
  • The reason the days sales outstanding (DSO) metric matters in analyzing the operating efficiency of a company is that faster cash collections from customers directly contribute to increased liquidity (more cash).
  • Regularly monitoring payment collection processes can help businesses to identify any areas where improvements can be made.
  • Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.

During this waiting period, the company has yet to be paid in cash, despite the revenue being recognized under accrual accounting. The accounting period of a company is essentially its fiscal year, which more often than not has 365 days. Hence, we can safely assume that days in the company’s accounting period is 365 days. The easiest way of finding this value is to read the company’s annual report.

What causes an increase in accounts receivable days?

Divide the total number of accounts receivable during a given period by the total dollar value of credit sales during the same period, then multiply the result by the number of days in the period being measured. Days sales outstanding is an element of the cash conversion cycle and may also be referred to as days receivables or average collection period. Optimizing your procurement strategy is critical for the success of any business.

The A/R days metric, more formally referred to as days sales outstanding (DSO), counts the average number of days between the date of a completed credit sale and the date of cash collection. Many companies will try to establish a benchmark for DSO in their industry and compare themselves with that. Companies will also monitor their days sales outstanding (DSO) and take note of any changes as indicators of the changing efficiency of their AR processes. Days Sales Outstanding is often confused for “the time it takes to fully collect unpaid invoices.” Mathematically, there is no direct relationship between DSO and the number of days it takes a company to get paid. DSO is a measurement of the number of an average day’s sales that are tied up in receivables awaiting collection.

Follow Up on Outstanding Invoices

A higher ratio indicates a company with poor collection procedures and customers who are unable or unwilling to pay for their purchases. Companies with high days sales ratios are unable to convert sales into cash as quickly as firms with lower ratios. Given the vital importance of cash flow in running a business, it is in a company’s best interest to collect its outstanding accounts receivables as quickly as possible. Companies can expect, with relative certainty, that they will be paid their outstanding receivables. But because of the time value of money principle, time spent waiting to be paid is money lost.

Average collection period, or days’ receivables

A high days sales in receivables ratio could be an indication that there are issues with collections or credit policies. This can lead to cash flow problems and ultimately impact the overall financial health of the company. To calculate DSO, divide your accounts receivable balance by your average daily sales.

Days Sales Outstanding Formula (DSO)

The days sales in accounts receivable is a financial metric that measures the average number of days it takes for a company to collect payments from its customers after a sale has been made. It is calculated by dividing the total accounts receivable balance by the average daily sales. An increase in accounts receivable days can be caused by various factors such as extended credit terms, inefficient collection processes, customer payment delays, or an increase in sales on credit.

What is a Good Days Sales Outstanding Ratio?

This indicates (on average) how many days of credit sales have not yet been collected. If the credit terms are net 30 days, you would expect this to be at least 30 days. HighRadius’ AI-based Credit Risk Management Software and AI-based Collections Software allow businesses to track credit risk in real-time and enable up to 75% faster collections recovery. The A/R Days measures the approximate number of days in which a company needs to retrieve cash from customers that paid using credit.

Applications of Days Sales Outstanding

Measures the number days’ worth of sales in accounts receivable (accounts receivable
days) or days’ worth of sales at cost in inventory (inventory days). Sharp increases in these measures
might indicate that the receivables are not collectible and that the inventory is not salable. In addition to these ratios, businesses can use other financial ratios, such as the Current or the Quick Ratio, to monitor changes in AR Days and assess their overall financial health. By regularly tracking changes in these ratios and making adjustments as needed, businesses can improve their AR Days management and maintain a healthy cash flow.

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REFERENCE CHECK THE BOSS AND COMPANY!

Most well managed Companies have a system of checking references of potential employees. Some Companies do it well, while others do it badly or do too little. Few will call up HR Managers and check out, which I disagree.

A HR guy knows nothing about past employees unless he was involved in some thing notorious! I have checked references with the following:
-3/4 former bosses and colleagues
-2/3 ex subordinates
– Stockists and CFA.

There are positions like GM which I personally reference checked with 8-9 people. While for ASM position, it could be 3-4 people.
In spite of such exactness and meticulous efforts, there are times I failed! There is always a guy smarter than me!

CHECK YOUR POTENTIAL BOSS

Now, let me turn this process upside down.You are doing well current job and is happy. An offer comes along with 20-30% rise in emoluments or higher position, what will you do ?I recommend that you do serious reference check your potential boss before putting your resignation letter.An employee can tell lies which is accepted as universal guidance.

But, what about employer or boss?in my long experience, I can say that employers can be equally or more dishonest than employees.Let me explain with few examples from my life. I was looking at joining a famous Company at senior level. I asked the President as to how much the chairman was involved in the business.He said that he was passionate and deeply involved. He said that he puts on Lab coat and goes to research lab every day.

After joining the Company I gathered that he rarely came to office and if he comes in ,he is more bothered about the type of lunch rather than seeing my 50 pages expansion plan! Chairman was good to me and paid me well. That is not the issue, but, a senior person can not carry on work unless the Chairman and Directors are actively involved in the business. At senior level one is not working for money alone!

A company told me that they were having great expansion plan and wanted to achieve leadership with my talent. The Chairman gave me a” great talk” on the future of the Company. After joining I realised that field expenses were not cleared for 4 months and Doctors PR expenses were not paid for six months.! Bloody liars.!!!

I failed few times in spite of my best efforts.

Remember, most people in the corporate world tell lies. To protect your career and family, before joining any Company “reference check” your potential boss and Company.

What to check? Whom to check with?

COMPANY –ARE THEY BANDITS?

-Check with 2-3 people who have worked with that Company. Are they prompt in salaries and expense statements?[This cannot be done if the position is at senior level as it happened to me]
-How many people “actually “ win incentives? There are many Companies where there are wonderful incentives but, winning is unheard of!
-Do they give long credit periods to stockists or are they strict? If the stockist is happy with the liberal credit period, the Company may get in to trouble soon.
-Check with Hospitals and Chemists about success and movement of new products. If many new products are succeeding, they have mojo in marketing, which is good news for you.
-You can see their share price movement in the past three years and their PL statement from online portals.

BOSSES

– You must check the references of your potential boss. Is he a decent guy in behaviour or “BC/MC “type?
– How many people have left under his leadership and why? Check with his former subordinates.
– How has he progressed in his career? Has he worked with some well-known decent guys for long periods?
– How many people got promoted under him?
– Does he read books or respect training and developing people?
– How many of his subordinates get incentives or foreign trips?
– How is his world view? There are many Pharma bosses with narrow world view in terms of language, caste, religion, culture etc.
Friends, remember, if your potential boss and Company has the right to reference check about, you too have the right to “reference check” about them.

DO NOT TRUST ANYONE.
CHECK ABOUT THE BOSS AND COMPANY BEFORE YOU LEAVE YOUR CURRENT JOB.

Best Wishes!

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com

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WHY MANY PHARMA SALES GUYS RETIRE NOT SO WEALTHY ?

A lot of Pharma guys either live hand to mouth or do not realize that life is moving ahead.They are on perpetual cycle of events. Start off the month with sales statistics and meetings. Followed by tour , then comes the conferences or visit of boss.After 25 th “closing fever” starts. After closing, it is start of next cycle all over again.
You need to find time. You need to sit and analyze what is happening to your life.Your wealth, family etc.

THREE HURDLES STOP US FROM CREATING WEALTH!

Who does not want to be wealthy? But only few can reach levels of financial freedom and truly feel the power of financial wealth. Let us look at what is holding us back from financial success.
These are three personal and emotional hurdles that are standing in our way, blocking our journey towards higher financial success.

1st hurdle -YOUR LACK OF FINANCIAL LITERACY
The first hurdle towards financial success is your lack of financial education. You cannot delegate basic financial education. You have to take change yourself.
To improve your body muscles, you cannot ask someone else to do exercise in your behalf. You need to learn different types of exercises and learn the science and art of muscle building. You need to undergo the exercises and learn by trial and error. At best, you can learn the steps from a trainer or pick up few tips from books. But,you need to sweat it out.
To learn financial literacy, you can learn steps from books like this. But you need to develop the skill through your commitment and experiential learning process. Even if you involve experts, you need to put the final signature.
First step to cross the hurdle- Learn the steps and take charge of your financial life!

2nd hurdle YOUR PSYCHOLOGICAL STATE OF BLAMING FAMILY AND PARENTS
I have seen some people blaming dead parents, family and friends for every failure in adult life.
Blaming for adult problems like poverty, inability to get stable job , alcoholism, sexual infidelity, credit card addiction, personal loan taking , emotional imbalance etc on parents is irrational and takes away the responsibility from your shoulders! I do not want to disregard the negative impact particular background or advantages of a privileged background on the lives of people. People with certain privileged background will have greater exposure to financial information than others. Adults can make whole lot of intelligent choices which can help one to overcome initial disadvantages and move forward. It is too late in life to blame parents, family and friends for all the
current miseries in life.

3rd Hurdle – NEVER DEVOTING TIME TO FINANCIAL PLANNING
An average Pharma sales guy is on perpetual’ busy state’. Very few sit and think. Sometimes I wondered whether most had a table at home to sit and think at all. He rarely reads anything beyond news paper headlines. His knowledge levels are at pathetic levels. If he sells Cardiology products and if he is transferred to Diabetology business he feels insecure. There are sales guys who stick one specialty for one to two decades. Within that specialty he knows 200 Doctors and few promotional stuff and details. By restricting himself from outside world, he is killing himself. As regards to personal finance is concerned , he feels that these are high funda stuff and these can be handled only by CA or least of all Bcom guy. He does not look at simple things like Bank SB interest rates or return on investment made on tax saving instruments. He has not bothered to look at things like nominee for his PF or Insurance. He has not bothered to look at what his wife will get from insurance if he dies today in bike accident. This business is stupidity. All Pharma sales guys have time ,but not the orientation to look at personal finance details.
Every Pharma sales guy must buy a 100 pages spiral book and keep his finance details in it. 1-2 pages for each personal finance item. An example is given below.

LIFE INSURANCE
Company Amount Expiring on Annual premium Date of Annual premium Nominee
It is understandable as you start your career life ,you will have less to write, but after 20 -30 years,  you will have lot to write!
Look at this register at least once a week, ponder over.If you have nothing to write, no problem.Write an imaginary personal finance details in a sheet of paper.Over time, your fantasy and  dreams will come true.Devoting 30-45 minutes for your personal finance , once a week is a great idea.

4th hurdle -BLAMING ON CURRENT INCOME AND CURRENT EMPLOYER
Very often people blame their financial short term inability to earn higher income for their current state. Each person has to realize that there is no state of “satisfied income”. If you earn Rs.5 lac PA, you can be satisfied and with no debt and if you earn Rs 20 lacs PA, you can be dissatisfied and live in serious debt.

Most often, it is not the level of income, but, with what you do with your current income. It has to do with how much you spend and how much you save and where do you choose to invest.

Let us compare the life and financial status of two brothers –Ram and Shyam, both have identical background, spouses and family size. But their income, savings and investments vary.

TYPES OF INVESTMETS CAN MAKE US RICH OR POOR

 

Rs. Lacs RAM SHYAM
Annual income Rs. lakhs  8 .00 10.00
Annual Expenses 6.00 8 .00
Savings 1.80 2 .00
Investments made Equity /ELSS which gives 14%return PA Bank deposits and PPF which gives return of 7.5%
Investment value after 20 years (Pre Tax) 1,93,09,088 1,10, 80,366

Through Ram earned 20% lesser income compared to Shyam, at the end of 20years he was 75% richer than Shyam, because he made wiser investment choices.
KEY LESSON

Each person’s life and wealth is determined by the financial choices that we make today.
DON’T NOT BLAME OTHERS FOR THE POOR CHOICES THAT WE MAKE TODAY.

Please focus on improving your financial literacy.
Get a copy of my book titled:

ALL ABOUT MONEY, BECOME MONEY SMART.

Devote the next weekend only to read this book. Switch off your mobile and all other stuff.
If it does not change your life, please let me know.

Best wishes,

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com

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WHY MANY PHARMA SALES GUYS DIE YOUNG?

With horror I have watched many Pharma sales guys die young. I have seen many field Managers dying at the age of 50-60 years against National life expectancy of 68 years.In states like kerala general life expectancy is 75 years.

Being from healthcare industry, it should have been 80 years plus for Pharma guys. As I have no evidence based medical records, you have the choice of accepting my observation or rejecting it. Many are “burnt out” or semi incapacitated by the time they reach 50 years.

I am talking about all guys from MR to GM.

What is happening to many Pharma sales guys?

My observations are as follows:

Typical Pharma guys live on the edge

Large number of Pharma guys work 12 hours a day with constant tension of achieving target. They leave homes by 9-10. AM and return back by 10-11 PM.

Pharma guys do least exercises in spite of selling all medicines and meeting 10 Doctors a day!

How often have seen a Pharma guy going for a morning walk or swim? He is on travel for 10-15 days of the month with early morning flight or train or bus. Evenings are for consultant calls or sales discussion or drinks. If the boss happens to be a “sales closing mad “ type, he may not like your morning walk as you may be considered not “sincere”.

Pharma guys eat maximum junk food and drink beyond limits.

These guys eat junk foods on road sides and skip lunch.Dinner is invariably with fried items and drinks. After the last call in the night, he picks up a bottle while going home.Also, he has to entertain bosses or colleagues who frequent his HQ.

Pharma guys do hardly any medical check up
Since the Phrama guys meet Doctors day in and day out, they do not go for formal medical check ups. This is due to two reasons:
He keeps treating himself most times for all normal sicknesses after he gained confidence about few drugs and diseases.
Second, he has to put a great show in the presence of customers- Doctors, how can he go to them with a weakness called illness?
Most Pharma guys do not do the mandatory annual medical check up in spite of IT benefits available for it. Please check out with your friends.

Pharma guys have the least Healthcare policy cover

Pharma guys depend on the Mediclaim policy given by Companies only. Most often, these amounts are very small, could be as little as Rs 2 lacs. It is designation based and not age based.Example, if the guy is 50 years old , he needs to have at least Rs5-7 lacs worth of floater policy, but, Company may be giving just Rs 2 lacs worth policy for himself as he is a ASM.
If you ask a Pharma guy about medicalim policy, he may not know which Company or how much amount.He may not know the fact that his parents and wife or kids are not covered.Even if they are covered, the amount could be insufficient to meet hospitalisation in a good hospital.

Pharma guys do not take drugs properly
Because of field work or travel he will miss his dosage of drugs.Further, he does not want to show to his boss or subordinate that he is on drugs, lest they use it to attack him!
If he is on insulin, he will not take that dose in any case, for not showing to the world he is “very sick” and is on insulins![By the way, if you are on insulin, you can live for 3-4 decades more, no problem!]

Pharma guys have many health issues and which are not yet diagnosed.

There are many health issues that Pharma guys face which are not diagnosed and are killing them slowly. One example is sleep apnoea.Or popularly called snoring problem. I have created , along with my son No.1 home centric sleep diagnostic business in Bangalore and have first hand information on this.For details visit www.sleepblizz.com

WHAT NEEDS TO BE DONE?
-Every Pharma guy must undergo along with his spouse an annual medical check up. The cost is claimable 100% in IT returns.
– Carry jogging shoes and track suit on tour. Take a walk either in morning or night compulsorily.
– Do “savasana”or similar relaxing exercises at night. Listen to soft instrumental music.
– Do not entertain any mobile after 9 PM from anyone. No morning calls too without morning walk.
– Take a small chapati roll and banana/Apple if you are doing field work alone.
Take family Healthcare policy as follows ,if not taken by Company.This is the least.
Illness is not designation dependent!
Below 45 years- 5 lacs
45-55years- 5-7 lacs
55 years plus- 8-10 lacs

If you are around 50 years, compulsorily take additional healthcare policy as you may not get healthcare policy at low premium as you get older.
If you wish to learn about protecting your family and investments, read my book titled:
ALL ABOUT MONEY, BECOME MONEY SMART!
Available in online stores.

I am sure, your wife will appreciate me for this .
-At least twice a week, take your spouse and kids to a park. Hell with the job!
– Tell your boss that you are on certain medications and you are not under obligations to discuss these.
If you work for a Company where your and your family’s health cannot protect, leave the job.
Living longer is far more important than anything else.
Your Company can get your replacement in few days.
But your wife and kids cannot get your replacement EVER !

Best wishes!

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com

Posted on

WHY “SALES CLOSING” IS THE MADDEST PRACTICE OF PHARMA INDUSTRY?

Everyone associated with Pharma sales have been victims or participants of“sales closing” madness at some or other time. Look at the following practices:
-After 25 th of each month, every pharma sales guy is on the edge. No one can get leaves even if you have to take yourwife to a Hospital.

All Area Managers and Regional Managers park themselves at HO, close to CFA, almost cancelling
field work and tour for almost 7-10 days.
-Too many phone calls and Emails. In the olden days, it was telegram after telegram.
-The famous Delhi Pharma company Managers used to use BC/MC bad words liberally after 25 th. Those who did not use these bad words were called “sissies”. Many others in the industry copied this wonderful management strategy. This company folded up much later, that is another story.
-At many CFA’s ASM’s/RSM’ssleep at there and boast later “ Our entire team slept at CFA “ or “We left only 4 AM!”
-During the last few days, bonus offers and credit periods are given liberally by field Managers.
-In many Companies, orders are “manufactured” at 2 AM midnight at CFA and people go home after “achieving” target! Even buyer does not know what was purchased!
-There is a Mumbai Pharma which has asked all PMs to stay at HO for the last three days and offer credit period up to 120 days for all orders collected. This has happened in March 2019!
-I worked for a Company where what was billed in the previous month was yet to reach CFA, [popularly called “transit billing”], new billing was planned. They went even further by billing what was yet to be taken up for production. ”Under production billing:”! In the same Company, the President used to ask GMs and NSMs to go on tour till 10th of next month and “sales closing” used to take place after 10 th of following month. My ideology and
ethics did not allow me to continue there for long.

I was part of this madness and I had very little power to change the madness till I became a senior enough guy. Then I did the following:

-Asked ASMs and RSMs to tour or do field work till almost last days of the month.
-Made a rule later that no Manager can visit distributors of CFA without permission during last week.
– Insisted on seeing number of customer calls done by Managers on the last day.
-If not signed and sealed or Email , no order to be executed.
-Removed credit period sanction power from everyone right up to GM.

Most dramatic decision of all- Go to temple/church or whatever on 31 st evening and take family out for dinner, to celebrate the month’s achievement!
-In one Company, I asked many distributors to rebook goods back if they do not pay. This resulted in major objections from Finance chief.                                                                                                                                                              Each of these decisions have been dramatic and unpopular with many powerful groups within the Company. These dramatic decisions based on closing of sales were based on highly rational fundamentals.

What are these rational fundamentals?
-Pushing goods and false billing are highly unethical and it as good as” living off”on future earnings. It is similar to taking money from one’s credit card to “pay off” debt of another credit card. You are sinking deeper and deeper in to “false sales” and corporate dishonesty. With these fraudulent sales, incentives and promotions are decided , perpetuating dishonesty across the organisation and in to next generation of leaders.
– 99% of the sales closing malaise comes from Company leadership. It could be MD/VP/GM.But the victims of this “sales terror” are field sales guys.
-Pharma sales primarily come from Doctors and not stockists.
-Doctors support depend on quantity and quality of calls or PR as the case may be.

Selling is an intelligent game coupled with great relationship building skills. It is not based on threat, fear, insulting remarks etc
– Values and financial discipline must be given equal importance to selling or management skills.
-No sales guy should be given power to decide credit periods and liberal bonus offers as these will have serious implications for the finance and the very survival of the Company.
-By diverting time and energy from calls to “closing”, you are going on a “suicidal mission”.No one must be appreciated for this. I would call it sales terror!
-Primary sales are highly predictable if proper secondary sales records are maintained. If average trade secondary sales for the past 3 months are Rs 10 lacs, if the Manager is demanding Rs 15 lacs primary sales for the current month, all of us know he needs psychiatric help! By shifting focus from sales closing to prescription generation or Doctor management, invariably Companies do well both in terms of revenue as well as profitability. But, such change is possible only if the senior management has a combination of marketing skill and ethics.

A lot of sales guys tell me “Sir, Our Company has a terrible sales closing culture, what should I do?’
You cannot change bosses, however you want!
My advice is very simple :
Leave the company which has too many “sales closing mad guys” on top.
Join a Company which discusses strategies, segmentation, positioning, products, perceptions, communications, investments, PR management, skill development, EQ development and so on.

And, you are guaranteed to live longer.
Your wife will have a husband for longer period!
Your kids will have a father by their side when they get married.
Or you may not see your 50 th birthday.
Make your choice.

Best wishes!

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com

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WHY MANY PHARMA SALES GUYS ARE FINANCIAL ILLITERATES?

I had the opportunity to work with around 12000 Pharma people. Most of them from sales.My observation is that barring 10-20% people, many people in Pharma sales are financial illiterates. Few exceptions could be seen in Gujrat or few other places.

Ask any Pharma Sales guy the following questions:
• What is the difference between debit card and credit card in terms of rate of interest?
• Have you done sufficient investment to get the best I.T benefits? How much?
• Do you maintain a file /note book to keep track of your investment?
• What is the difference between SB and CA of Banks ?
• What is your CIBIL score?
• How much interest are you paying on your housing loan?
• What is the difference between PPF and FD of banks in terms of interest?
• What is the difference between debt fund and equity fund ?
• Do you have any personal or family Mediclaim policy? How much?
• Do you have emergency fund equalto 6-9 months’ salary?
• What is your net asset value ?
• If you die suddenly, how will your spouse manage next nine months?
• What happens to your house that your family stays, if you die suddenly?
• Do you have any book at home which keeps track of your assets and finance?

Are you satisfied with the answers?

WHAT IS FINANCIAL LITERACY?

Just because someone is a graduate, it does not mean that you are a financial literate person.
You can be Phd or MBA , still be a financial illiterate person.

Financial literacy means acquiring FIVE COMPETENCIES as above:
*Ability to earn multiple sources of income
*Maximising ability to save regularly, while investing in assets which can create wealth over long period of time and planning retirement income properly.
*Ability to spend wisely and through better purchasing techniques.
*Understanding the difference between “GOOD DEBT and BAD DEBT and getting best deals while borrowing.
*Protecting self and family for all kinds of emergencies.

What are the negative impacts of finance illiteracy?
• People remain poor even though there is a clear opportunity to come out of poverty
• People get into series of debts all through life leading miserable life
• People lose their earnings by investing into assets or investments which give low return or negative returns
• Families go through serious crisis white being sick and end up getting no treatment or mediocre medical treatment
• Leading old age in poverty and misery.
• People spend lot of their time in police stations and courts, fighting finance related cases which may not have a happy ending
• People lose out houses, properties and savings, grabbed by crooks or Banks
• Leading an entire life of poor quality with hardly any good thing in life -houses, furnishings, vehicles, great white goods and holidays/picnics.
• Life of frustration, complaint, anxiety and tension

What does it mean by financial literacy?
-Ability to forecast personal income and expenses accurately.
-Maximum saving by various saving strategies.
-Investing in asset classes which will give maximum returns
-Taking care of family healthcare and emergencies like losing job.
-Planning home buying at the best place by spending least
-Ensuring the best of children’s education and daughters’marriage by planning.
-Investing most appropriately to not only save taxes but also get maximum returns in 20-25 years period.
-taking most appropriate life cover and other insurance.
– Planning retirement by having the best planning etc

It is sad to see that a lot of them are living on” hand to mouth”. They wait for disbursement of expense statement to buy essential stuff at home.I have also seen that many do not go on tours after 25 th because all money is exhausted. It is not uncommon to see false reporting only because they have no money to go on tour, not because they are inherently dishonest.

Large % of the Pharma guys have not shown any place other than 200 kms radius to their family.How many ASMs based in UP have visited Bangalore or Kerala? Or for that matter how many TN based ASMs have seen Himalyas ?
Not seeing other parts of India are due to two reasons. First is not saving enough.Second is working for a “closing fever” Company which will never sanction leave beyond 7 days.

Very sad state of affairs, am I right?

WHAT NEEDS TO BE DONE?

-All Pharma sales guys must read my book titled ALL ABOUT MONEY, BECOME MONEY SMART Or any other books on personal Finance.
-Attend online or offline personal finance training sessions.
-Keep track of Income and expenses every month.
-Design a most appropriate tax saving strategy to maximise returns.
-Take making life cover on self as he is on travel every day.PROTECT FAMILY.
-Take a floater healthcare policy for family including parents in keeping with age profile
-Maintain an emergency fund to meet eventuality like loss of job.
-Planning for each life gaols like retirement, children’s education, daughter’s marriage etc
-Lead a debt free life with dignity.
-Create right kind of will and nominees in all records.
Friends, remember:

Your Company is under no obligation to look after you or your family. If you do not plan and if you do not take care, no one else will. Be sure of that.
Look at the faces of your family members and decide!
BECOME A FINACIAL LITERATEPERSON!
Best wishes!

This blog is written by Simon Daniel, a double postgraduate in management sciences, Ex CEO and Director of leading Pharma/Healthcare Companies with 30 years + track record.
Under his leadership, around eight Pharma SBU’s were created .He took part in creating more than one dozen top IMS brands. Out of close to 12,000 people who worked in his teams, more than 100 have reached positions like GM/VP/DIRECTOR .
He has established two successful start ups too. In Quora [www.quora.com] , he went on to become World No.1 writer in Personal finance advice and investing advice topics, being called a “personal finance guru”

He is the author of highly acclaimed book titled:

ALL ABOUT MONEY BECOME MONEY SMART!

The book is a comprehensive guide to saving, investing, spending, borrowing and protecting-the
five key financial literacy competencies essential for all people.

Book is sold in all leading online stores in India and globally. It is sold through Author’s website www.simondaniel.in
Also sold in www.amazon.in and www.flipkart.com