How To Become Rich???? Part-1

You are reading this blog means you have an aspiration to become rich….. Wish you Good luck in your future endeavours….

In this materialistic world everybody wants to become rich ….. Isn't it!

But very few know the way to find this…..

I completed reading the book “think rich and grow rich” by Napoleon Hill, “Rich Dad Poor Dad” by Robert Kiyosaki and in the mid of reading another awesome book “the richest man in Babylon” by George S. Clason.

Just could not stop myself from sharing the secrets with you. Though these books were written almost a century or half a century back, I will try to co–relate this with our modern age.

Coming to the point, my back ground is from IT. So I will give you an example of people mindset from this field. As a software engineer I saw people going crazy of working from onsite and making quick money by earning dollars or any other format of currency whose value is stronger as compared to Indian rupees. But very few get that opportunity while rests feel hopeless slog in the job J

How can I know this??? You guys might be thinking, because I am one among those unfortunate to slog here J

Believe me after reading these books I changed my mindset because money can be build anywhere if it is here or there that hardly matters. But persistence, discipline and patience required. It may give you little discomfort in your early age but will assure a peaceful and glorious old age.

As you know we were told from our childhood that who is rich is not happy... that is also not true always...Aspiring to become rich is a crime .... it is not at all true ...

I strongly believe on the below lines:

"Our prosperity as a nation depends upon the personal financial prosperity of each of us as

individuals." - George S. Clason.

If properly handled we can make peace with money .To make our ambitions and desires to fulfillment, we must be successful with money matters.

Let me tell you steps to build this:

1.    Insure your future income.

2.    Guard your earning by consulting right, wise and ethical person.

3.    Save at least 30% of your annual earning and increase this every year with same percentage as your income increases.

4.    Have an emergency fund

5.    Control your expenses .try to live a lean life as much as possible. Control your instant gratification and avoid loans

6.    Increase the ability to earn

7.    Invest your saving to increase earning. 

and

8.    If you desire to help your friend, do so in a way that it will not bring your friend's burdens upon yourself.

1. Insure your future Income:

You need to Provide in advance for the needs of the growing age and the protection of the family.Never club your insurance and investment goal.In simple words,Take insurance for purely below purposes and never for investment purpose.

You can do this by taking below measures such as

• Term Insurance
• Health Insurance
• Critical illness insurance
• Physical disability Insurance

For Term Insurance read here 

For health insurance, I would suggest to take a family floater. It is similar to group medical insurance. A lump sum amount for all the family members. If you don’t claim it for the year it will maximize by some percentage for next year. I will write in detail on this sometime later.

Critical illness insurance is like for some of the critical illness such as cancer etc… You can consider this after marriage.

Physical disability Insurance is something if in an accident you will lost your part of the body, then your family income will stop. Isn’t it! Suppose if you have a physical disability insurance then your family will be paid the insurance amount and you can run your family from the interest earned from this. Suppose you have a crore of physical disability insurance , and in an accident unfortunately your right hand got damaged and not in working condition. then you can claim the amount and can get 50% of your disability insurance which is Rs 50 lakh .50% because 50% of your body got damaged. However this is just an example .You can read and compare in detail before taking such insurances.

2. Guard your earning by consulting right, wise and ethical person:

Why am I saying this? if you go and buy a land without consulting a right lawyer , then later you may be in immense trouble litigation .Sometimes we need to take experts advice if at all it will cost a little to us. In the long run it will protect our asset and save money from other legal battle and hassles. In turn proper peace of mind and sound health .which increase our creativity to earn more. Similarly before investing in mutual fund, stock, we need to consult a good ethical adviser, who just does not work for commission. Before buying a car if you consult a stock broker what type of suggestion you will get….definitely he will give you advice .But a car mechanic can guide you better and effectively than a stock broker.

3. Save at least 30% of your annual earning:

It is for those members where only one guy is earning in the family .Always try to increase this every year.Suppose next year you got a pay hike of 10% , then increase your saving by 10%.If you are not married, then you must save minimum 50% or and more depending on your financial liability. The day you start your job or business you must plan for the very end point of your career that is retirement! If you don’t do that, time will pass and at last you will be left with very less to survive at your old age .In turn you need to depend on your kids or some other sources .I saw people begging who were earning handsome at their young age. Post marriage you can plan for child higher education, child marriage etc. Always keep realistic goal.Never club your insurance and investment goal.

                The best idea to save 30% is to have 2 bank accounts. As soon as you get salary,set a rule in your salary bank account so that 30% of your salary will transfer to your other account. It may be 1^st of the month or as per your salary day.

How To Become Rich ??? Part-2