Sources of Income Myth to break: Salary has to be my main source of income. Types of People – Employed, Self Employed, Businessman, Investor Be an Businessman / Investor Leverage OPM, OPT Leverage Technology
Where is the money? I know I need to save. But where is the money? This month my in-laws were in town The TV / Washing Machine / Fridge failed this month
Where is the money? Surprise hospital expense came up Child’s School Term Fees had to be paid
Where is the money? Soft Loan had to be repaid Surprise Trip from Company. Claim will take one month for reimbursement. Aadi Month / Deepavali / Ramzan / Chirstmas / Pongal / New Year / School Holiday Purchases
Myths Summarised Safest option in life is to get a secure job and stay there always Only doctors make a lot of money Sale! Sale! I buy always when there is a sale I will never understand how investing works They have a big house, they must be rich… There is not enough money for everyone to be rich People who make mistakes are stupid Fixed deposits are safer than stocks I will never be rich… Investing in stocks is gambling. Only crooks become crorepathis
If spending money brings you enjoyment, you will never be rich. However if making money brings you enjoyment, then your wealth is guaranteed. Make list based purchases Given a choice – see what the excess amount could be
Invest with a Goal and Make Goal Based Investments If your goal was 10% gain sell once you get it. Don’t get Greedy. Life Goals give clarity for the quantum and term of investment. A purpose will ensure money is not used otherwise or spent.