The value of Liquid Net Worth


Net worth is defined as  “Assets – Liabilities”. Where assets are everything that you own(house, cars, jewellery, rental properties, securities etc. and in case of companies it would be employees, machinery, factories , bank balance etc. ) whereas Liabilities are credit card and debit card bills, EMI bills, loans, mortgages and other loans  and for companies salaries, long and short term debt payments, taxes  etc.

Whereas Liquid Net worth is “Liquid assets – short term expenses”.

Liquid asset  are cash you hold   or something that can be easily converted to cash (A fixed deposit in Bank )  , to meet short term expenses such as meeting the family expenses, near future payments such as credit card bills, rent, monthly bills  and in case of companies it would be salaries, taxes , administrative and other expenses.

Covid-19 pandemic has brought to the lime light this very important self-assessment of personal, professional, emotional and financial evaluation to the core . It exposed all our fallacies of planning, optimism, denial, underestimation of the problem and not staying mindful of what’s happening around us that is destroying financial , professional and personal wealth and health.

What else is happening is that Nature already started signalling that we have done enough damage to the planet by expressing itself with  extreme weather, unintended severe storms , mild earthquakes(recently in Delhi) which I  think may destroy livelihood more than this covid-19 Pandemic and may lead to more financial distress to families and companies and to countries GDP growth.

When we look at these extra ordinary negative events, Liquid net worth becomes so important   to all of us and it is time that individuals and companies should start to seriously evaluate all possible scenarios of what can go wrong and come up with alternative plans to avoid pain and grief. Companies cannot afford to layoff valuable experienced employees for  this nasty passing cloud called Carona. Companies should have hard cash excluding working capital requirements (Cash is what is more important in present situations that can make or break a company) ,  that can allow them survive without any issue for at least a year with business as usual possibility,  individuals should start asking if they are eligible to spend on any given day. We should avoid waste by not buying that we will not use/eat or can be postponed for a while. There are many more such ways we can assess to increase our Liquid Net Worth and reduce Liabilities to have a peaceful, healthy living or a nice evening walk with your near and dear.  Ponder on this and increase your liquid Net worth and stay hale and healthy.

Note: Never ever go for EMI on Credit card or for Moratorium. Without your attention those bills become so huge that it can destroy all your present or future financial plannings and also net worth will be gone.

New Economic Model and the Role for Academy


The dynamic environment of economic activities that shape the nations growth and prosperity needs a new language and new practices to sustain long term.   There is no end game. It is infinite game of aligning the best interests of our societies to stay hale and healthy, coexisting harmoniously within the wonderful nature by preserving and aligning our economic, industrial, technology and any kind of  progress and wellbeing of all the  living species . This can be achieved by orienting all that progress towards new environmentally friendly products and services and solid growth.

In order to meet that target there is an urgent need to redefine the status quo in Academics and bring academics to the forefront of economic activity of the nation.

Merging Academy and Industry as one entity will lead to major job growth and Economic Resilience when IOT (internet of things), Artificial Intelligence, Robots and Machine learning like technological innovation take away human jobs. The question to ask is  “GROWTH CAN BE MANAGED AND GUIDED, BY WHOM, AND FOR WHAT NEEDS”?  Academy should become the wellbeing centre of excellence (as explained in my Earlier blog here https://skillsnest.wordpress.com/2017/10/31/stop-building-classroom-and-focus-on-wellbeing-buildings-and-more-laboratories/

) to sustain and nurture new opportunities in products and services that align us with environment.

Innovation typically precedes strategic decisions and by redefining academy as part of economic growth of any country we will be in a position to create new opportunities and new possibilities.

Here is the game plan for introducing a new paradigm that I call ‘Economic sustenance by redefining academics’.

  1. The boundaries, language and legal matters that identify universities , colleges , schools and all educational related institutes needs to be redefined with an eye on tapping the vast pools of raw talents of students(knowledge and skills gatherers) , Research scholars, professors by orienting their academic activities on creating new opportunities.
  2. There is a huge effort by government in attracting major industries to invest in their respective states. Some of those industries in areas such as Machine learning, Chip designing, Artificial intelligence, Gene mapping, anti-aging (example: Google Calico project collaborating with Drug maker Abvie https://www.calicolabs.com/ ) have to spend money in establishing research laboratories. Instead Universities and colleges should be tapped and allowed to participate in government’s activities in this kind of initiatives to map the academy’s internal resources, knowledge, skills and infrastructure required by industry and actively engaged. This allows Faculty, students to learn corporate best practices and become valuable contributors to the economic prosperity of the institutes and helps industry with lowering their costs of establishing new laboratories.
  3. State and Federal (central) governments spends a lot of money on infrastructure development projects such as building dams, roads, mining (example sand, minerals etc. ) , smart cities and many such activities by floating tenders and inviting private industry to take up the projects.  Most of the projects are not implemented as designed due to various reasons such as corruption, poor usage of manpower, materials and plethora of issues. Academy and students should be allowed to become part of the project’s stakeholders which helps students, faculty to learn vital project management and people’s skills and earn some money for the institutes. Some of the major project delays, poor quality, and corruption activities can be eliminated as students and academy’s interests will be more in implementing quality and good practices in the projects.
  4. The whole academic nomenclature, infrastructure needs to be redesigned to make them part of this new economic model by mapping the raw talents of the students , expertise of faculty and connecting them to industry needs.
  5. Government should act as facilitator by allowing academy/private participation in projects implemented at state and country wide.

Universities, colleges and Education isn’t here to make us feel comfortable.  The intention, practices and the language is to make students feel excited and raring to go and find the truth and enlightenment. Academic institute in their pure form should be bringing energy, efficiency, bliss and completeness and fulfilment while actively engaging the raw talents of the students.

Want to add your thoughts and feedback. Please do so by commenting.