Want to get rich?- here’s how

Money, money and money. Our lives circle around this one word. You can’t buy happiness with it but also you surely can’t have happiness without it. Everyone wants to get rich but not everyone gets rich. Is there a secret to getting rich?

As a matter of fact there isn’t any secret recipe to get rich. Its very simple if you have just one thing. Basic Financial Knowledge. All of us are never taught about money in our schools. According to a survey, almost 76% of Indians do not have basic financial knowledge. Being educated doesn’t imply that you are financially educated. Let me give you a practical example. We all have heard about many great businessmen being entirely illiterate. People often envy these people and are often heard complaining that their education was a waste and that even uneducated people are leaps and bounds ahead of them. Here comes the role of financial education. You need to know how money works. Once you know that no one can stop you from becoming rich.

STEP 1. Get out of the rat race.

Most of the people have one dream- pursue a degree, get a job and then find a beautiful spouse for themselves. Unknowingly what we are doing is pushing ourselves into a great rat race. These jobs are nothing but never ending traps. You start working for a company, you work for a year or so you start looking for a raise. Lets say after a year you get promotion but a promotion always comes with bigger responsibilities. Soon after that you start looking for the next promotion but there’s always a catch, promotion means more responsibilities. But all our eyes are fixated upon that paycheck we receive. We don’t even realize that we are stuck in a corporate rat race and most of us spend our whole lives living paycheck to paycheck waiting for the next promotion. What do rich people do?? There’s a famous saying,” Don’t work for money. Let money work for you.”

Although this doesn’t mean that as soon as you pass out you start up your own business to avoid the corporate rat race. Everyone needs to learn. So it would be better if you get a job first, learn some work and then think about opening up your own business.

Step 2. Invest

The word ” investing” is so scary for some of us. Some of also might think its a very boring task. But actually you cannot get rich without investing. So what can you invest in. Here’s a list:-

Stocks- there are many controversial views regarding stocks. Stocks commonly are commonly known as shares. So first of all let me tell what a share is and then I will come back to why it is so controversial. So a stock or a share is basically a holding or a part. Companies often require capital to grow. So in order to raise capital they issue shares of the company. So basically when you buy a stock you are buying a part of the company or you have a share in the companies holding. So its like that you own a part in the business. So whatever a business earns is distributed among the share holders. And with time as the company grows the value of a share of a company also grows. Advantages to investing in stocks is that you require hardly any capital to start with and the profits you earn can be huge.

Although here comes the controversy I was talking about earlier. The catch with stocks is that you need to first learn how the market actually works and you need to learn how to pick good stocks. The time of buying and selling matters too. Most of the times what happens is that people enter the stock market with no knowledge cause they heard that one of their friends or relatives got lucky and earned a huge amount of money from it. These people then end up losing all of their money due to the lack of knowledge and these are the same people who later on are seen saying that “Do not invest in stocks! it is gambling.”

I want all of you to clearly note that it is gambling if and only if you don’t know where are you investing your money. Mr Warren Buffet is a living example of how stocks can create wealth. Being one of the richest in the world with a net worth of 80 billion dollars, buffet has made his wealth almost all of it through stocks. You can’t really say he got lucky!

2.Real estate:- Real estate is a very popular investment all over the world. The real estate market has a advantage over stocks that the market has a comparatively slow rate of change. Prices of houses and buildings do not change drastically day and night. Although entering real estate requires a significant amount of capital.

3. Metals:-Investing in metals is also a fairly common mode of investment. For Indians especially investing in gold and silver is very common. Investing in diamonds, gold, silver and various other precious metals can also give you a nice return on your money although to earn a significant return you may have to wait for a quite a long time. We can see how the prices of gold have surged in the past few months bringing smiles on the faces of the investors.

4.FD’s:– fixed deposits or fd’s is also a good way to multiply money. These are basically money kept in the bank for a specific time duration and the money earns a fixed interest. Its a very safe mode of investment with comparatively low returns.

These are some fairly common and popular modes of investments some others are:-

  • bonds
  • REITS (real estate investments trust)
  • currency
  • arts and antiques
  • cryptocurrencies

I could go on to explain these in detail but that would make the content boring. If anyone wishes to know something more about a particular mode of investment you can drop a comment below or contact me on my email.

There is an interesting analogy related to investment. It goes like this ” FDs and keeping money in the banks in like running 1s or 2s in cricket . Stocks and real estate are like fours and sixes. So in order to score good without getting clean bowled a good batsman uses all of these.”

So the question is once you have understood the importance of financial education. where can we get it from? I would recommend getting it online like from youtube. There are good channels like Asset yogi and Pranjal Kamra.(these are based on Indian market specifically).

Also there are always books. I would highly recommend reading the famous rich dad poor dad for starters. And then there’s always your parents.

Well some of us may find the science of investing boring or may feel like it is going top of their heads. So in my knowledge there is just one solution for that – hire a financial advisor. Although I would recommend learning these things yourself because opinions are often biased.

So that’s just for today. Note in future if you get any rich i need my cut.

Keep sharing! Keep loving ! Stay tuned to your jansevak!!!!

JAI HIND!!!

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