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!!!

 

 

 

There is nothing sexy in achieving financial freedom – part 2

Financial Independence, Uncategorized

Yesterday I wrote about how most of these Ultra rich people – Warren Buffet, Tony Robbins, Richard Koch, Robert Kiyosaki – actually followed a system rigorously even when there were roadblocks around the way

The systems required that they had to do some amount of sacrifices. Maybe they did not go out for a date when they were young because they had to ensure that they were closing something as part of their system.

I also realised when I started a bank mandate initially with just a 1000 rupees. Initially it did matter that even before I could utilise the money, the money went out from the bank. But slowly I got used to it and I went on increasing my commitments to the money getting directly debited from the bank into some Investments.

In 3 years I did not realise what a difference that had made to my financial stability. Based on the possibilities that my investments could do, I actually sat down to figure out a date by which if my assets reached a given value I could leave my job and start doing what I want.

While God has been kind in a lot of these endeavours it is also a matter of the systems working and the investments compounding in the background.

For all those young guys if they read this, just a very small portion of their income if they can directly give a bank mandate, for money to be deducted to go into an investment, without they realising, they can all become millionaires.

If you leave it to your discretion that every month you will invest based on what you save…. You will never be able to invest.

The human brain was designed to ensure that it survived and immediate gratification was more important than long term safety. Hence the brain does not allow you to take a chance with your safety of money and wants you to have it till the last moment. But when you have a system to automatically reduce the money from your bank for an investment the brain gets used to the lesser amount of money and you are able to live a similar Lifestyle even with that less money.

Today there are possibilities of various kinds depending on your appetite and the goals that you have to invest in mutual funds in SAP or in a recurring deposit whichever way you want.

Whatever you do and whatever your risk appetite, put a system in place so that it works in the background and gets you to your goal

If you can resonate with my content, a follow on my Facebook Page will be highly appreciated!

Thanks in advance! 🙂

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Miracles happen ….because human beings are good

Financial Independence, Uncategorized

Today’s blog post has nothing to do with finance directly.

In 2013 there was a massive cloud burst and floods in the Uttarkashi area in India. Thousands of pilgrims going to the Kedarnath temple and people living in the adjoining areas got drowned because of the flash floods.

Today I came to know about a boy whose parents and sister had gone for the pilgrimage.  Since 2013 there was no news whether they were alive or not.  Since their bodies were not found they were not declared dead either.  This boy was a student at that time.

Due to the sudden disappearance of his parents and no financial support from relatives, who actually disowned him, he worked at a petrol pump to somehow earn enough money to survive and complete his education.

On 12th April this year, almost 5 years later he got news from a rescue team that his parents were in coma in a villagers home.  When he reached there he found that the villager herself was pretty poor, but had taken care of his parents and sister while they were in coma.  I am told that his mother and sister are now out of coma and father is still badly unwell.

But when this story was told to me by my friend, both she and I came to this discussion that the miracle was not that in the flash floods the parents and sister of the boy survived but the fact that the villager who herself was not very rich took care of 3 unknown people in coma for almost 5 years.  After that when they come back to consciousness, this lady worked with the government authorities to trace this boy who stays in Noida – about 500-600kms away.

There was no money that she got during those years for taking care of the unknown people. During that time this boy, inspite of all the hardships, through his perseverance studied and got himself a decent job and kept his hopes alive of meeting his parents and sister again.

Its the human spirit and the fact that inherently human beings are good that miracles happen.  The news channels and papers make out that the world is coming to an end but its people like the villager and the boy who show that the world is still a pretty decent place and all over the world there are human beings who are doing positive things that make this world a much better place to live.

Lets spread the positives to make our world a better place….

Till next time

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!!!