snowball

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! 🙂

Featured Image Designed by Freepik

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!

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

Thanks in advance! 🙂

Featured Image Designed by Freepik

Retire at 36 ….part 2

Uncategorized

When we are young and you ask me to save 60% then what are we earning for….if we cant enjoy when we are young, when do we enjoy.

Instant gratification is a the bane of becoming wealthy.  If you read The SNOWBALL-the biography of Warren Buffet, among the richest men in the world, you will realise the benefits of delaying gratification.

There are 3 other ways of looking at the same discussion which I put out in part 1.

Suppose you were to target a corpus of Rs3crore (30 million) at the age of 36 and today you are at 21.

An alternate to the 60% of Rs500000/- could be that you take your initial job at Rs10,00,000 and invest Rs400000/- in the first year and increase the investments every year by 5%  for the next 15 years.

Or you could take a job at Rs500000/-, in the first year save only 40% but in the subsequent years increase the investments every year by 20% instead of 10%.

The last option is to not take up a job at all. Become an entrepreneur. An entrepreneur has the potential to grow earnings geometrically.  The reinvestment in your own business can grow more powerfully than investing anywhere else.

At the end of the day the idea is to do what you love and love what you do….for that invest early so your nest egg can grow faster and then you can enjoy life forever.

Till next time…Placeholder Image