Money can work

A lot can happen in just a year! # Large Cap Stock Returns (%) 1 Adani Transmission Ltd 356% 2 Future Retail Ltd 337% 3 Edelweiss Financial Services Ltd 219% 4 Motilal Oswal Financial Services Ltd 213% 5 Vakrangee Ltd 198% 6 Titan Company Ltd 178% 7 IIFL Holdings Ltd 152% 8 DLF Ltd 133% 9 TVS Motors Ltd 111% 10 Sun TV Network Ltd 111% In fact, average return on these stocks is 200.8%   i.e., your investment was TRIPLED in 2017 !

Risk comes from the fact that you are speculating without knowing the fundamentals. I have heard people saying a million times, "Stock market is very risky, many people have lost all their hard earned money!". But, the fact is, Saving in a bank account is more riskier than investing in stock market! Yes, you heard it right! People think they are smart enough to save money in their savings account/fixed deposits/recurring deposits, pile up cash every month and in long-term, they would have a huge cash for a rainy day. But, as I said risk comes from the fact that you are speculating without knowing the fundamentals. Many people just forget about inflation! That's a secret wealth destroying machine! Take a look at the inflation of the last 10 years in India Averaging it comes close to 7.97% Now take a look at the savings account, fixed deposits, and recurring deposit interest rates - averages around 6% to 8%. Now add to this taxes, additional ...

There are several investment options out there, but investing in stocks is perhaps the best option and here are five reasons why. 1. Start Small You can start investing in stocks even with small amount of money, as little as 500 INR ($7.75) per month. On contrast, If you want to invest in real estate you would need huge capital to start with which many of us cannot afford to. Hence, investing in stocks is a great way to get started! 2. Liquidity You can cash-out and exit stock investments anytime . If the circumstance arises such as any emergency you can easily exit all your stock holdings and take the money out with just a few clicks. On contrast, it is very difficult to sell any real estate property etc. 3. High Growth Stock market is the best way to build your wealth. If you look at some of the richest people in the world, they all had more than 90% of their wealth made in stocks . Legends like Warren Buffet, Bill Gates, Mukesh Ambani, Benjamin Graham etc. all of ...

Photo by freestocks.org on Unsplash Many people find it difficult to analyse their personal finances at a macro level. They just live all their life sleepwalking without knowing where they are headed in terms of building their financial wealth. But, it is really not that complex to get a birds eye view of your financial future. One can easily tell if a person is going to be rich or not just by looking at their " cash-flow statement " ! A cash-flow statement is a very simple tool anyone can use to keep track of their personal finances. It has two parts - Income Statement and a Balance Sheet. Below is an example of a simple cash-flow statement. Profit/Loss Statement "Profit/Loss Statement" helps you keep track of your income and expenses. Here you can write down your earnings like salary, savings account interest earned, etc. You can also write down your expenses like food, rent, shopping, etc. Balance Sheet "Balance Sheet" helps...

Thoughts are the most powerful assets one can have. As buddha once said "What you think, you become!" is very much true and relevant even today! The way rich and middle class people think are very different. Rich believe money is not evil Money can't buy everything in life. But remember without money the world doesn't move! To get access to good healthcare, food, shelter, one needs money ! Money gives you the freedom to live the life you want to lead.  There is nothing wrong in wanting money.  Rich focus on the needs Most of them get attracted to the new gadgets/products announced almost every week, be it phones, cars, etc. Many get addicted to shopping online, where you can shop from a catalog of millions of items with just a few clicks. But, thinking rich means focussing on essentials, buying what you need instead of what you want ! Rich acquire assets Middle class people always have their job salary as their only source of income ! While ri...