Category Archives: Financial Discipline

Are We Over Protecting Our Children

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In our social system we tend to over-protect our children.   Protection and care to a certain extent up to a certain age is welcome.  But protecting beyond a limit and age, could harm their confidence.   A specific incident during my visit to the Scandinavian region was when I realised this.

I was driving with my wife in Norway.  That was the longest, continuous drive of my life.  A drive of 46 hours without sleep and just two small breaks for refreshments.

We were driving on a single, narrow, risky road in the Northern most part of Europe.  We noticed a youngster standing by the side of the road asking for a lift, pointing towards the direction we were proceeding.  We were happy to pick him up.  He was a 15 year old German, traveling alone from (then) West Germany.  He would travel by public transport if available.  We were in leanly populated areas where public transport was almost non-existent.  Wherever public transport was not available, he would rely on help from the passing by vehicles for drops.

Our destination was Nord Cape.  Soon he was friendly and part of the relevant conversations on the way went like this:

 Me: Where are you headed to?

He: To Nord Cape to watch mid-night Sun.

Me: Oh! We too.  We can drop you right there.

He: Thank you.  But I will get down at the next town. I will work for a couple of days in a restaurant or a shop there, earn some money which would take me to reach my next stop.

Me: But then why don’t you come with us as we can take you to your ultimate destination.

He: No.  I want to see and experience the places, earn myself and then spend.

Me:  Oh! How much money did your parents give you when you were leaving home.

He: What? …..pause….. just equivalent of an American dollar.

Me: What? Just a dollar, for you to go right upto Nord Cape and watch the mid-night Sun.

He:  Yeah.  Why should my parents give me money?  I am capable of managing and earning for myself to spend on my holiday.

It was an eye opener for me.  No doubt we are emotionally attached to our kids to ensure that they are comfortable, safe and secure.  But then, by providing all the emotionally dictated needs  are we depriving them of the experience they would gain otherwise?

This incident encouraged me to permit my son a month long vacation overseas by himself when he was about 15.  I am sure that must have helped him build his confidence, consciously or otherwise, in his hectic travels later in his life for education and for business.

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra

 

Maayra – Should This Continue?

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I am proud of what I did last week.

My niece (brother’s daughter) was getting married.  We have a tradition called ‘Maayra’ in our community where the bride’s maternal uncle  (maama) offers valuable gifts to his sister (bride’s mother) and her daughter (bride).  This basically is with an intention to contribute towards the wedding expenses.

Taking the bride’s mother in confidence, I approached her brother with a request:  “In this marriage, if you approve, we’d like to do away with the tradition of Maayra”

After consulting his family members, maama said that they were fine with that. But in turn, would also like to not have related formalities like ‘Bathhisi’ and ‘Saama Levna’. These are small functions where the sister symbolically invites her brother’s family to the wedding.

Since our side of the family was okay with this, the entire Maayra and related programs were eliminated from the wedding.

Now imagine this.  If this maama has 6 sisters and each of the sisters has 2 or 3 children, the maama will have to offer gifts at each of these weddings – let’s say on about 15 occasions. It just does not end there.  He will also be a part of the Maayra, though on a smaller scale, at the weddings of each child of each niece as ‘Bad Maayerdar’.  Some of the maamas will probably spend a good portion of their lifetime-earnings in Mayraas.

Though this tradition is prevailing since ages, it has become irrelevant in the present time, as the disparity between the rich and the poor has increased widely. In cases where the Maama can afford, they can follow this tradition.  But it sets, a keep up with the Joneses syndrome, or an inferiority complex of sorts, for those who cannot afford it financially.

In cases where the Maama cannot afford, he begs, borrows, pledges his jewelry or property just to fulfill this tradition.  Rates of interest for such borrowings are normally so high that he is sure to be doomed under the burden of paying just the interest.

Is this a fair tradition in the present day situation?

I feel proud that all the Maayra formalities were  eliminated atleast in this wedding. I wish others are inspired and follow similar steps for reform in Society.

Writer  : Badri Baldawa

Editor  : Meeta Kabra

Difficult Challenges? Grab Them!

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“Release these payments for the purchases from Australia,” said my boss, Mr. AA (renamed to hide identity) one of the three directors, who was respected in social and business circles in the Middle East.  It was a transaction of a few hundred thousand US Dollars.

I did not release the payment.  It wasn’t that the funds weren’t available. We were purchasing a quantity way out of proportion to actual requirement. I was not convinced, especially since these were food products that bore expiry dates.

I was the purchases and finance manager. We had set-up a system for placing orders.  Normally, the quantities for a re-order were based on a review of movement of product for the last four months, stock in hand, orders in transit and the seasonal demand.  That’s how a healthy inventory was maintained without a strain on cash flow.

Each of the other directors had their own individual group of companies, other than this company. I had to be loyal to the interest of the company and not to individuals. I insisted on approval of all the directors.

The above order was large and hadn’t gone through the laid down procedure. Most importantly, it was abnormally excessive.  The goods had arrived at the port and the payments had to be made immediately. Fortunately, the order was not in our company’s name.  The other directors considered all aspects and did not approve this purchase.

Mr. AA was upset and had to make alternate emergency arrangements.  On his return to the office, I was called in. I carried my resignation letter with me!  I was expecting to be relieved of my job.

He said, “Will you join me as Chief Purchase Manager and Financial Controller of my Group of companies”.  I realised discipline pays!  I said I needed a week’s time to think it over.  This was in 1981.

Within the week, I got all possible information about Mr. AA’s group.  The information I collected revealed that every day when they closed stores for the day, it wasn’t sure whether they would open the shutters of the business next day morning. Even the staff salary was in arrears for a few months. The financial position was absolutely critical.

After a week, I went to him:

Me: AA, I accept your proposal, if other partners have no objection to it.

AA: I will convince the other partners. Have you given this a good thought?

Me: Yes, I have.

AA: What would be your terms and salary expectations?

Me: It is not relevant.  If I perform, remuneration will follow by itself.

AA: Do you know the financial status of my group?

Me: Yes.  I Know.  Business may close down any day.

AA: You are in such a healthy company. Here, in my group, you are not sure if you’ll get a salary.

Me: Yes.  I considered that.  We have to create a position where everyone gets paid.

AA: I am surprised.  Why?  What makes you join my group?.

Me: Challenge!  It is the challenge which is tempting me to accept this responsibility.  The present company is healthy and wealthy and has systems which will not allow it to collapse.  This can be managed by anyone. But to revive a group like yours would be a real challenge to my abilities.

AA: You are risking your career.

Me: Yes, but I am confident of reviving the company.

I joined the group.  I had the support of a very capable CEO and jointly we resolved the problems.  After a year or so of revival, there were a few from known business circle to seek advise to revive their sick businesses!    I was with them for 5 years till the day I decided to return to India, to start my own business! I thank AA for giving me an opportunity to resolve very complicated problems and learn many lessons which otherwise, I would have missed!  It was a rewarding experience.

If you see a difficult challenge, grab it. It gives opportunities to learn.

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra