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.

Food waste. Let’s not contribute to this. How to keep produce fresh.. Read on


Next time you saw food thrown into the dust bin think hard how many resources get wasted such as water, fertilizers, farmers tirelessly working in the fields(labor),Land used for food production,  food storage and the whole supply chain for bringing food to where we live. We waste lot’s of food without any reasons. More food is cooked then required in a family in most of the houses and excess thrown out. Food is also wasted by restaurants, hotels ,in parties and in many other ways.

According to food and agricultulture organization of United nations http://www.fao.org/ (FAO) Roughly one third of the food produced in the world for human consumption every year — approximately 1.3 billion tonnes — gets lost or wasted. We all should know that millions of people somewhere on this planet are dying with hunger and on the other hand we throw away lots of food.  We also loose food and meat due to poor storage facilities, improper transportations and bad handling.

Agriculture uses largest amount of water. Food waste leads to water waste. The food thrown into garbage rots and produce methane gas which is much more deadly than carbon dioxide and depletes ozone layer that protects us from ultraviolet rays of Sun and Methane gas contributes to global warming. This whole thing effects food production with no rains or too much rains and leads to FOOD LOSS. Food loss is crop lost to natural calamities or deadly farm diseases whereas FOOD WASTE is a careless act of humans not paying attention to details of how they are getting food to their tables. Inadvertently we are all contributing heavily towards food loss, food wastage leading to global warming and racing towards food crises and water crises.

Other key findings of FAO of United Nations are.

Industrialized and developing countries dissipate roughly the same quantities of food — respectively 670 and 630 million tonnes.

Every year, consumers in rich countries waste almost as much food (222 million tonnes) as the entire net food production of sub-Saharan Africa (230 million tonnes).

Fruits and vegetables, plus roots and tubers have the highest wastage rates of any food.

The amount of food lost or wasted every year is equivalent to more than half of the world’s annual cereals crop (2.3 billion tonnes in 2009/2010).

Food waste is more a problem in industrialized countries, most often caused by both retailers and consumers throwing perfectly edible foodstuffs into the trash. Per capita waste by consumers is between 95-115 kg a year in Europe and North America, while consumers in sub-Saharan Africa and South and Southeast Asia each throw away only 6-11 kg a year.

There is this infograph on how food is wasted globally click on the link for more details http://www.publichealthdegree.com/ 

Read more by clicking here http://www.fao.org/fileadmin/user_upload/ags/publications/GFL_web.pdf

http://www.unwater.org/downloads/Paper_13_Field_to_Fork.pdf

How to keep Fruits and vegetables Fresh…

A group of Scientists from Malaysia found out that if they coat the fruits, vegetables with  gum Arabic, a natural product from the Acacia trees of Sudan, Africa they are able to keep fruits, vegetables from rotting. Also a company has used the rotten fruits, vegetables and extracted a natural chemical and coated fresh fruits , vegetables with that liquid to keep Food fresh. More details about this can be obtained here.  http://apeeltech.com/

I request you to educate your family, friends and others as much as possible to reduce wastage of food and water. Be a part of the solution.  Next time you look at food think of this blog. Please Spread this information to save people from hunger

From plastic waste to energy


Plastic is derived from natural gas or oil. so it is a source of energy. If you burn plastic for cooking it gives more heat than normal wood or charcoal. But it does pollute the environment while burning plastic in the open.

As part of a project Dow chemicals burnt 578 pounds of plastic ( linear low-density polyethylene (LLDPE), a material used in plastic bags, plastic wrap and films, as well as other products like cable covers and tubes) to convert plastic to energy. It claims that it could recover 96 percent of the energy by burning down the waste plastic materials. We in India should also consider option of burning plastic to convert it to energy instead of sending used plastic bags to landfill. More details of this news click here http://www.greenbiz.com/news/2011/05/24/for-dow-burning-hard-recycle-plastic-better-landfilling

http://docs.google.com/viewer?a=v&q=cache:83BDClXDlugJ:www.americanchemistry.com/plastics/doc.asp%3FCID%3D2369%26DID%3D10698+acc+waste+to+energy&hl=en&gl=us&pid=bl&srcid=ADGEESjcn3l8YtJ_sp7bT2PnE_3a1KtnL4chIabcehYvvCT0G03-VibXpAjRhQ3yzeVmTZvtSXLCBXexXz7RJySDAeIczc5h9WtJ1mKCpVVAUgGSRIXmFf53CWkut9jEh8uKumHj-1Lo&sig=AHIEtbRdz9bYxs78MJm8mqkThGIUpaLRKQ

Waste-to-energy plants are a mainstay of garbage disposal in Europe, as well as an important source of heat or electricity. About 400 plants are scattered across the continent, and together they take care of about 30% of the plastics Europe diverts from landfill.  The Netherlands, for instance, landfills only 3% of its trash, and burns 35% for energy.

Hope we in India do our best to reduce use of plastic or convert plastic back to energy.