You Looking for: Student Loan, Business Loan, Credit card, Debit card, Investment Portfolio, Fund Placement, Equity trading, Currency trading, Online Trading, etc., etc.? You should need to understand the Risk & Reward associated with each one and the capacity you deserved and allowed by the society?
Since the evolution of human being, the need of one's life sustaining instruments were used to be managed smartly to meet the need or face the odd time. Frequent natural calamities, disasters and enemies onslaughts were the main causes which motivated the elite / educated of the societies to manage their Fund Resources. They practiced enterprising and venturing to collect food or articles of value to sustain their life and enriching status in their societies. Traditional investing, borrowing, lending, leveraging, crediting, interest earning, and so were evolved to shape-up the latest commerce prevalent in the world, today!
The society's different groups have to manage their Funds according to their specific circumstances. Such groups may be classified according to their ownership of resources:
- 1- High Net Worth (HNW) - Like, Kings, Princes, Queens, Industrialists, Chairmen, Presidents, Artist, Film Stars, Brand Holders, Inventors, Sport Icons, Writers, Leaders, Priests, etc.
- 2- Middle Net Worth (MNW) - Like, CEs, Managers, Business Owners, Writers, Agents, etc.
- 3- Low Net Worth (LNW) - Like, Employees, Workers, Service men, Army men, Students, unemployed persons, etc.
All the above classes roughly represent their Population's strength and resource they are controlling to, as:
- 1- HNW Population Strength 05 % Resources Control 80 %
- 2- MNW Population Strength 15 % Resources Control 15 %
- 3- LNW Population Strength 80 % Resources Control 05 %
The LNWs, being the largest segment of the society with meager income resources, always need more wisdom and smarter planning to sustain themselves in the obvious HNWs segment controlled society. The basic thing is their meager Fund (mostly derived from Savings, Loans, Credits, etc.), to be managed in such a way that their needs for health, food, education, or home could be met timely and satisfactorily.
Investment Arena:
There are some specified arenas where each group likes investing to test their luck and look for profits.
Investing Arenas of HNW:
They usually prefer to invest in: Prime Real Estate, Property, Oil fields, Mines, Banks, Bonds, High Yield Accounts, Lending, Art Peaces, Jewelry, Equity, Race Horses, Casinos, Sports Clubs, Resorts, Brands, Industries, and Lobbying, etc., to name a few.
Investing Arenas of MNW:
They usually prefer to invest in: Real Estate, Property, Term Deposits, Accounts, Bonds, Equity Markets, Currency Markets, Lottery Tickets, Gambling, etc., to name a few.
Investing Arenas of LNW:
They usually prefer to invest in: House, Low Yield Accounts, Mutual Fund, Equity, Currency Trading, Lottery Tickets, Gambling, Small Business, etc., to name some.
Pass Time Avenues:
There are some specified avenues where each group wishes to join as their Pass-Time / hobby:
Pass-Time/Hobby of HNW:
They love to spend their time in: 5*+ Hotels, Islands Parties, 5*+ Resorts, Country Clubs, Golf Courses, Sports Events, Gambling tables, TV Shows, Charity Shows, pets shows, etc., to name a few.
Pass-Time/Hobby of MNW:
They love to spend their time in: 5* Hotels, Parties, 5* Resorts, Clubs, Bridge Parties, Seminars, Gambling, Reading and Writing, gardening, etc., to name a few.
Pass-Time/Hobby of LNW:
They love to spend in: Pubs, Coffee House, Sports Events, Ball room, TV programs, Gambling, Reading, writing, gardening, etc., to name some.
Cash Making Areas (Safe Heavens):
There are some specified areas where each group comfortably resorts to Cash making:
Cash Making Areas of HNW:
They usually make cash by: Bonds Encashment, TFC Redemption, Real Estate Sale, Asset Sale, Currency Market trading, Equity Sale, Bank Deposits Return, Gambling, etc.
Cash Making Areas of MNW:
They usually make cash by: TFC Redemption, Asset Sale, Currency Market trading, Equity Sale, Bank Deposits Return, Gambling, etc.
Cash Making Areas of LNW:
The usually make cash by: Properties (rent), Asset Sale, Currency Market trading, Equity sale, Bank Deposit Return, etc.
Loss Making Avenues:
There are some typical avenues where each group traps to make Losses:
Loss Making Avenue of HNW:
They some how trap in situations like: Migration from Business, Sub-Prime Investment, Divorce, Scandal, Gambling, Legal Settlement, Business Separation, Extravagance Luxury & Pomp, Publicity, Gambling tables, TV Shows, Charity Shows, etc., to name some.
Loss Making Avenue of MNW:
They some how trap in situations like: Migration, Lottery Ticket, Currency Trading, Equity Trading, Divorce, Luxury & Pomp, Publicity, Gambling, etc., to name some.
Loss Making Avenue of LNW:
The some-how trap in situations like: Lending, Lottery Ticket, Divorce, Pubs, Coffee House, Ball room, Gambling, etc., to name some.
Fund Management of MNW & LNW:
The traditional fund management of the two groups is discussed here. As the HNW fund management is often guaranteed (by State, Governments, or Industry), and usually monitored by the effluents sate functionaries and executed by professionals!
Their kitty always over flows, as continuous streams of profits follow to their directions; unless they commit some blunders or the fate goes against them!
Fund Management of MNW:
Traditionally, this class selects very few avenues to invest their funds and have less time to manage them professionally. They look for safe heavens to invest and mostly avoid risky returns. Their low success may be associated to their low risk investments aptitude and major reliance on continuous profits rather than reasonable/burst of profits! They love to put their eggs in different baskets to avoid total collapse.
They use to manage diversified portfolio: Say, 25% in Real Estate/Properties, 25% in Fixed Deposit, 25% in Equity market, 25% in others.
Fund Management of LNW:
Traditionally, this class selects every avenue to invest their limited funds and have no time to manage them, as required. They look for high risk returns. Their repeated failure may be associated to their high risk/careless investments aptitude and far reliance on luck or hearsay.
They invest their limited funds (Saved, borrowed, leveraged, or credited) abruptly in risky avenues and thus mostly receive losses or face total wipe-outs. The tickle-down effect keeps them busy in recovering their fund for most of the time and looking around in repairing their credit ratings!
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