Money can work

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...

More than 95% of the people work in a day job as of today. They get their paychecks by end of the month, spend almost everything and maybe save a little for the rainy day! This goes on and on for many years to come. They work harder and harder every single day, hoping to please their bosses, getting a good salary hike or maybe move to different company for a better salary! Most people think that they are racing to the richness, instead they are in a rat-race and it is never ending! Getting a bigger salary will only make you grow your expenses to lead a "better lifestyle". Even if you were conservative enough to lead a simple lifestyle no matter how much you earn, "Inflation" is going to kill the value of your hard earned money. Breakfast which used to cost 5 Rs about 10 years ago cost 40 Rs today! Whether you like it or not inflation keeps killing value of money. Money is an illusion; Bigger salary is not going to solve your problems! As Rob...