compounding

Relentless- Part III

compounding, Financial Independence, Habits, Marketing, Uncategorized

Even passive activities can be relentless

Last 2 posts I have been talking about being relentless with respect to Marketing and sales of various kinds

Today I will be talking about how I realised that the systematic investment plans or SIPS are a different kind of relentless activity.

I have mentioned multiple times that you should give a mandate to your your ETF or mutual fund to deduct the amount directly from your account and invest.

On one level this becomes a passive activity because you are no longer involving your brain to make a decision.

However we have also noted that being relentless is a habit which is needed if you want to succeed systematically rather than episodically.

So where’s the paradox.

If you have to become wealthy then you have to invest relentlessly on a regular basis. A systematic investment plan is also a regular, consistent activity a.k.a relentless. The only difference being that you don’t need to tax your brain. You are automating the process of being relentless for your investment.

To that extent it’s an ideal opportunity….you have outsourced your relentless activity to a system….and you can become wealthy on the way

Think about it…..small amounts of money invested relentlessly…taking advantage of the magic of compounding…can get you financial freedom.

Till next time,.

Carpe Diem!!!

Lazy man’s guide to growing rich

Affirmative action, compounding, Financial Independence, Human Brain

Outsourcing in a lot of contexts is looked down upon. However by outsourcing the routine tasks that you tax your brain with can help you improve your decision making capabilities.

In addition by ensuring that you don’t use your brain, you can actually grow wealthy

Today I am going to be talking about forcing functions which take action irrespective of of your intentions – which the brain can sabotage.

Once you have outsourced the mechanism to invest systematically by giving your mutual fund the authority to automatically deduct money on a given date from your bank account, your brain no longer has to take any decision and you can just relax

We already have so many decisions to make every day that if we load one more , about investing the money, then the brain will fall back to default mode to take the decision some other day. Which if you had not guessed, doesn’t come any day. And life happens. And it happens to all of us.

We then feel bad and think we are procastinators.

Instead just take one decision with the help of your financial advisor and let your investments get done automatically and you will see your wealth grow. First it will not be appreciable but the longer you keep it, the exponential power of compounding will make its presence felt. And literary you don’t have to think about it. It will work whether you are sleeping or traveling

You can utilize this power of outsourcing brain functions in other areas also. I have asked my bank to pay my telephone and gas bills. So now my brain does not have to bother about the bills, their due dates etc. My bank automatically monitors the service providers and makes the payments and informs me. Since it makes the payment only on the due date, that money earns interest, till the payment is made.

This gives me more time and energy to do more high value tasks while I can be lazy about reaching my financial freedom targets.

Till next time

Carpe Diem!!!

Consistency

Affirmative action, Habits, Health, Human Brain

I have been crying hoarse over so many blog posts on the fact that if you invest even very small amounts on a consistent basis, the law of compounding will play its role and you will end up with very large sums of money over a long period of time. For compounding to work you need to things – a long runway and high frequency / rate of interest.

I have heard a lot of speakers talk about massive action, lots of action to move ahead in life, to change behaviors. Frankly for me to change my habits has been tough.

I have written earlier about this book by B. J. Fogg called Tiny Habits where he has this formula B=MAP for creating major behavioral changes.

If you are like me who cannot keep being motivated 36 hours after hearing a Motivational speaker, and you would like to bring about changes in your life, then this book is a must read for you.

I have used ideas in this book and after 3 + months of using the methods in the book, I have definitely been able to make a lot of changes in my behavior.

But the bigger thing I realised that this method which B.J.Fogg has devised actually works on the law of compounding with small changes being done over a period of time resulting in massive changes over a long period. And unlike the resistance your brain gives to doing one massive change, small changes fall below the radar of the resistance of your brain.

The key is consistency – every day trying to get the ball into the basket – one basket at a time

Read this book. Try out his ideas and let me know your views.

Till next time

Carpe Diem!!!

Changing the narrative

compounding, Financial Independence, Health, Marketing

Hello Everyone. Its been quite a few months since I wrote on my blog. I hope all of you, your families and near and dear ones are safe during these tough times.

I have been contemplating a lot about what should constitute my next items on the blog and the structure. While I have been writing over the last few years on “The Magic of Compounding” and its ability to create “Financial Freedom” I was wondering what would be the outcome for someone to achieve financial freedom. Is that outcome really worth the effort.

So that’s what’s been keeping my mind occupied. I have been reading a lot of books in the meantime, which I will analyse in the coming weeks. The biggest benefit which I could think for getting “Financial Freedom” is to have a life well lived. So compounding becomes a tool to get financial freedom and the freedom you get helps you live your life to a full potential or at least with less regrets of “What Could have Been”.

To be able to “Live Life Well” then you need to have other things also.

  1. You need to be in good health – if you don’t have health then all you will think of is your ailments – but if you have good health then you can dream about other things
  2. You need to be able to dream and change contexts from your present scenario – which means you need to gain more knowledge, visit new places and gain more varied experiences
  3. You need to excel on your own Unique Abilities ( a term Dan Sullivan of Strategic Coach uses very often)

Let me know your comments below on what else you think is needed to “live life well”

So I will be changing the narrative of my blog as we go forward – I will not only talk about “Compounding” and “Financial Freedom” which I am very passionate about, but also look at other areas like Marketing and Health.

Marketing and being able to present things and interact with people has been one of my areas which I think I am very good at. So I would like to share those ideas as I come across them.

In addition I have been very fascinated with how improving my daily health habits has helped me improve myself. A lot of you could be in a similar boat so I would love to share those aspects as well.

When I started blogging my emphasis was to help people especially youngsters to avoid the mistakes that I had made as I reached middle age in my financial abilities.

Now while I will keep on that, the narrative would change to also include how a better health and better marketing could help write on our tombstone – This Person Lived Her/His Life Well

So till next time ….

Carpe Diem!!!