The Indian Woman

Perhaps I have been a little unfair to the women readers of my blog. You see, I have been writing from my perspective. But when I look back at the 40 odd posts in this blog I am not at all surprised to conclude that all of these apply to women. In fact more so. Being financially well-off is a goal that every women should strive for. An old woman is more vulnerable that her male counter part.

The Indian woman who always - almost always - puts family before self. I am pretty confident that the 70-10-10-10 rule will help them as much as it will help the family. The male ego may put up a little resistance, but once the benefits are apparent, you will see the change.

In fact, every post on this blog applies to the family as a whole. The unit for financial prosperity is the family not the individual.

On my part, I will keep the family in mind in all my future posts.

Definite path to riches

There is one definite way of becoming rich. Unfortunately, this aspect is not as highlighted by get-rich-quick authors. Perhaps, it is taken as given.

Let us get some facts in place first.

1) I am assuming you do not have an infinite source of income.
2) I am assuming you have a profession other than being a Stock Broker.

If these two conditions are met, then there is only one guaranteed way to riches.

Excel in your profession. Become real good at what you do. Reach a position where the the income is much more than your and your family's need for a more-than-a-comfortable life. Invest the excess money so that you can maintain your standard of living even after retirement.

This may take about 20 years of hard work. Meanwhile keep saving and investing wisely so that you do not sink your hard earned money.

You find this piece amusing. I assure you that is not the intend.
Check out the richest people in the world. Let me know if you find any one - apart from royalties - who has not excelled in his/her chosen domain.
Check out the people who live in your neighborhood. The families that are well off would have at least one person doing very well in his profession (CEO / General manager / Whatever).

The path to riches can summarized as follows:

Save & Invest Wisely - Excel in your profession - Use excess money to invest aggressively

This goes totally against the conventional advise of investing aggressively when you are young and invest safely when you are old. The old advise is for people who are average. Not for people who are capable.

Definition of wealth

You say you are rich. You are wealthy.
You may be well off, but are you really wealthy?
There is a distinction, you know?

Wealth is a person's ability to survive so many number of days forward ... or if I stopped working today, how long could I survive?

The above extract is from Rich Dad, Poor Dad and attributed to Buckminster Fuller.

When I read this line for the first time, it scared me. I can just imagine how long I will be able to survive without a job. And more importantly, how well will I be able to survive? So today I may be better off that I was 10 years ago. But I am definitely not wealthy.

Are you?

Insure you way to wealth

To become rich, get insured. 'You must be joking," you say.
Insurance has the lowest Return On Investment.
So I must be out of my mind when I propose that one of the ways to become rich, you need to get insured.
Hear me out please.

Contrary to popular belief, insurance is not just for your future. Yes, you pay a premium to offset any future eventuality.

So, for instance, if you are hospitalized and you have a medical insurance, the insurance will cover your expenses.
If you are disabled and you are covered by insurance, you get an amount that will take care of your loss of capability to earn.

If you die, your family will get a sum of money that will hopefully take the place of the earning member - you - who is no longer there.

But this is only part of the story.
Insurance allows you to take risks in the present.
This is not recognised easily.
If you are insured for the future for a small premium, you do not have to bother to save a huge amount of money for any eventuality.

You can take a part of your present income and start investing without fear of a failure.
And investing, though fraught with risks, is the only game in town that can make you rich.

Lesson: Cover yourself adequately for the future. Get insured. And then invest boldly in the present.