How women in India can change the destiny of the country

Financial Independence, Uncategorized

Last few days I have had a writer’s block .  Since my last blog, last weekend, I had been thinking on what should be my next topic but it just wasn’t getting structured

And then today I was listening to the podcast at the Tim Ferriss( tim.blog .)  He was interviewing the author Daniel Pink.

There were many Aha moments…but this post is not about that podcast.During the interview Daniel mentioned that one of his professors once told him that sometimes you just need to start writing and things will get figured out.

That suddenly hit a chord with me.  So here we go….

I was reading the Entrepreneur magazine’s India edition and here I saw couple of very interesting facts.  One of them was an article by Nobel prize winner Muhammad Yunus. He is the man behind the concept of micro finance which has empowered so many women .

One of the things he mentioned in the article is that if illiterate and poor women can transform themselves into entrepreneurs imagine what would happen if millions of high school and University graduates are empowered.

This got me thinking. If we discount for about 30% of India’s population to be children and old people, then out of the remaining 1 billion people you have 50% of them as women. What would happen if these 50% women came into the workforce- either as entrepreneurs or as workers, what would happen to the GDP of our country.  About 400-500million more people in the workforce, which is expected to be the youngest workforce by 2030.

Last year I was in Canada during their 150 year celebrations and I realised that its GDP is close to two and a half trillion dollars, while India’s GDP is also close to 2.5 trillion dollars. However Canada’s population is less than the population of one city in India -Delhi NCR, about 3 crores (30million). India’s population is more than 125 crores(more than 1.25 billion).

In the same issue of the Entrepreneur there is another report which says that if women’s participation in the Indian economy goes up the country’s GDP is likely to go up by 60% that is an amazing figure

If only our women believe in themselves and if we can give them a supporting hand there is massive prosperity which can be created in this country.  Right now for a lot of families in India, buying 3 meals is the biggest outgo of money.  Once each family has multiple earners and expenses on food become a minor part of the spend, then families will educate their kids, they will take better care of them.  and people will spend more on non-food items.  These are exciting times if we take our destiny in our own hands.

Capre Diem!!!

 

 

 

Living carefree forever

Financial Independence, Uncategorized

Last week I saw this movie “102 Not Out”.

It stars 2 of the best actors in Indian cinema Mr Amitabh Bachchan and Mr Rishi Kapoor. It’s a very sweet story about a 102 year old father and his 75 year old son.
The son has lost his interest in doing anything in his life while the father is still active over the age of 100. It is an extremely sweet movie which I would recommend everyone to watch.

The movie got me thinking on how this person would have lived his life from retirement, which in India is typically at age 58, for another 40 + years.

For sure he must have had enough Investments that could last him for 40 years of zero regular income.

The average age that an Indian is approaching 70, what that means is for every 38 years of working life the average Indian will now have to survive without the facility of a regular income help him through those next 10-15 years

Given that medical expenses and medical inflation are at such high levels you really need to think how will you survive without asking for any assistance from your children

There are very few things which are inflation proof and especially for an economy which is growing so rapidly and looks to become the third largest economy in the next 15 to 20 years, inflation pressures will always be very high.

So you need to think in terms of what are your investments and what kind of returns will they give you for you to survive for those years when you don’t have a regular stream of income and still have the will to enjoy like Amitabh Bachchan in 102 not out.  You need to celebrate life not live a life of drudgery.

Tell next time
Carpe diem!!

There is nothing sexy in the process of achieving financial freedom

Financial Independence, Uncategorized

FB-YOUR-STORYOver the last few years I have been reading a lot of books/biographies/auto biographies to find out some kind of drama around suddenly amassing a fortune.

Somewhere I had this feeling that there must be a magic formula or providence would strike and I would definitely be as rich as the Oracle of Omaha –  Warren Buffet. I read the Snowball by far one of the most authentic accounts of his life and other books on him. Found nothing dramatic or sexy in it.  As a matter of fact you sometimes find them boring because their life seems to have the same twists and turns.

I read Tony Robbins and his “Unshakable” and “Money – Master the Game”. Then among others I also went out and read Ramit Sethi and Richard Koch. Again nothing romantic that could suddenly help me leave my job and do what I want to do.

Now most of these guys are seriously rich so they must be doing something right.  Some definitely had their take on finding different ways, like Richard Koch with his fundamental book on 80:20.

Well if you remove the stories and hype surrounding these guys…they just ensured they were following a system continuously for the long term.

They had the same short term distractions that you and I have.  Some of them may have some luck on their side sometimes.  However they just kept at the system they decided they would follow to achieve their freedom.

Unlike me and a lot of us.  We get distracted with things, which when they appear, seem to be big.  But when you look back at life they were small blips but they broke us away from our long term goal.

Irrespective of the path you want to follow, ensure that short term blips do not deviate you from your long term goal.  There will be zigs and zags but keep at it

Carpe Diem!

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Why you SHOULD buy a house

Financial Independence, Uncategorized

What a contradiction….

Last time I gave you all the reasons of why buying a house (in India especially) did not make sense.

I have a friend Sanjay, who almost 27 years back had given me a very nice philosophy, which I did not heed. But the older I have grown the more I have realised, his was a better thought process.

He used to say ‘ pehle dukaan phir makaan’.  For those of you who don’t understand Hindi, it means….if you have some money, first buy a shop (invest in a business), because once the business succeeds it will generate so much money that you can buy many more houses or larger houses.  The fundamental issue over here being that if you have money and can invest in a productive asset which can supplement your cashflow then building assets and creating wealth become even more easy.

A real life example of this was the landlord of our office in Gurgaon.  He had 7-8 properties which he had rented out to offices.  Each of those properties was getting him a passive income which he was utilising to buy even more properties and he did not need to work.

I would strongly recommend reading Robert Kiyosaki’s  book “Rich Dad Poor Dad”. It  talks of a similar philosophy where cash flow (passive income) is important if you want to create wealth.

So coming to the topic of this blog….you Should buy a house if you can give it on rent and get passive income. You Should buy a house in a locality where businesses and a young migrant population are growing.  From that income you could buy more houses.

Most young people in the technology and services industry today carry home huge bonuses if their company succeeds.  Utilise a portion of that money to put in an asset which can give you passive income.  Once the passive income starts you get the opportunity to start thinking in ways of growing your wealth.

Till next time then…think your way to financial freedom through Passive Income!!!