Mad about Money Magazine_Nov2016

October, 2016, Being STREET SMARTMoMandAeboyutIssueno.2. is better thanCover story: being study smartAVERAGE PEOPLE HAVELOTTERY MENTALITY THE KEY TO MAKINGTHE RICHHAVE AN MONEY ISACTION WORKING SMART NOTMENTALITY WORKING HARDEnjoying the luxury of financial The rich understand why it’s wrong to ...And Many More!freedom at 30... not 80 attach emotions with money or vice versa pg. 10 pg. 22

MoMandAeboyut Issue no.2Content 10_How do the rich08 04 become rich and why do IfBeing street the others remain poor?The rich understand smart is betterwhy it’s wrong to than being study 12_What if there is noattach emotions with smartmoney or vice versa money tomorrow? - The common fear06 Cover story: of the average classEnjoying 02 14_The rich don’t rest onthe luxuryof financial Average their laurelsfreedom people haveat 30… lottery 16_Your credit scorenot 80 mentality. The rich is not an indicator of your have an income or bank balance action mentality 18_ Middle class mentality feels superior by looking down upon the rich 20_Being a millionaire isn’t difficult if you know how to prioritize your needs 22_The key to making money is working smart not working hard 24_Reasons why some people fail in business 26_ A rich man’s mantra for a great life @ 40 Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form of by any means electronic, mechanical, photocopying, recording or otherwise, without the permission of MadAboutMoney magazine. All information in MadAboutMoney magazine is checked and verified to the best of the publisher’s ability, however the publisher cannot be held responsible for any mistake or omission enclosed in the publication.

MoMandAeboyutEditor’s Note Failure is a part and parcel of life’s journey and of any business venture that we may undertake. But if we know why we fail then we can take steps in future to see that we don’t make the same mistakes again. I am a very successful entrepreneur today but I have had my share of failures. I have failed as an engineering student, I failed again as an IAS aspirant and then yet again after an initial successful stint as a loan agent. Having seen the lows in business, I feel I have some experience in dealing with failures and would like to share with you, my readers , the reasons why some people fail in business. Avoid these traps and you can defeat failure more easily. Most people lose heart when they fail a couple of times and give up. To them every time they don’t succeed becomes a failure. They don’t see these as opportunities to learn from their mistakes and do better the next time. Edison, on inventing the light bulb, is believed to have said – I have not failed. I’ve just found 10,000 ways that won’t work. Believing you have failed will invariably lead to more failures. So treat every failure as a challenge, practice your skills and win the next round. Constantly coming up with excuses to cover up your flaws and faults is a sure fire way to going down in business and in life. You cannot hide behind your mistakes and expect to be absolved of blame and helped to progress in life. Business is a team effort. It is only when everyone pulls his weight that the business prospers. Failures are people who want the glory for themselves when other people are putting in the effort. To avoid becoming a failure, learn to give credit where it’s due and become a good leader and inspire others with your example. Sachin Mittal

MoMandAeboyut AVERAGE PEOPLE HAVELOTTERY MENTALITY THE RICH HAVE ANACTION MENTALITY4

MoMandAeboyut “IF ONLY I COULD WIN THAT LOTTERY… LIFE WOULD BE ALL A BED OF BOTTOM LINEROSES.” THIS IS A TYPICAL AVERAGE MENTALITY WHICH HARDLY TAKES So, if you harbor ne- ONE ANYWHERE. gative thoughts about your situations and cryTake a minute of your average class suffices in fear. What if there is no for things you weren’t busy schedules and itself with fewer assets money tomorrow? What able to achieve, life will think why your life they achieve their goals will they do and how will surely knock you downisn’t the way you wished? as. It is their individual they manage things? The or move downwards.Your friend achieved that beliefs that make them as middle class follows a But, if you keep a posi-millionaire tag, while you two different souls on the ‘constrained’ environment tive outlook and carrystill seem to be chasing same planet. of thoughts, which triggers on your actions stayingyour dreams even after a their pathway towards positive, everything willlot of endeavors. Our mi- ‘’I always knew I was going failure. Living life with the seem just the way younds speak several langua- to be rich. I don’t think I fear of losing everything is thought it to be. Thus,ges that either transforms ever doubted it for a minu- their biggest weakness. a valid justification forus into beings creating te.’’ - Warren Buffet why rich have an acti-magnanimous things in ATTITUDE on-oriented mentalitylife or believe in ‘staying ACTIONS SPEAK TOWARDS LIFE and the average havecontent with whatever is LOUDER THAN IN GENERAL lottery mentality toachieved’ theory. THE WORDS follow the right pathSo, let’s highlight upon fa- The third most important and keep up yourcts that make rich people Second, most important fact that differentiates spirits high to enjoy thedifferent from the commo- belief, which makes the the rich from the average best in life leisure.ners in detail. rich ones take a leap ahe- is their attitude towards ad than the middle class is life in general. The rich HOWTO GROWTHE RICH VS the way they address risks people earn money by UP & GET RICHAVERAGE CLASS – A and challenges. How? pursuing their passion.MINDSET ANALYSIS In the case of the rich, They do it with their eyes This month’s tip ‘actions speak louder than open and whole-hear-Some endless facts the words.’ They believe tedly and surely achieve Start Saving Earlyand reasons make the in taking actions and are goals in life of living a The habit of savingtwo classes of people confident of it. They work good and luxurious life. money should not bedistinct from each accordingly right from the On the other hand, the initiated after you get aother. Here are the few start till they win. Their go- average people earn mo- job. Rather saving is aessential points that will als aren’t prioritized basis ney by doing things they habit one can actuallyhelp us understand both their needs, but desires. hardly love. Most of their start anytime- from athe scenarios: Hence, they stay rich fo- financial plans surround piggy bank to even a rever. On the contrary, the notions like for example, children’s joint accountBELIEFS VARY average class seeks ‘se- reacting emotionally on with their parents. curity’ more than ‘growth.’ money matters, and that The parents need toRich people move forward They will do everything they can win a jackpot start talking about thewith the belief - ‘sky is the and anything to retain their without even trying to value of money and itslimit’ for their aspirations security. This happens play it, so on and so forth. proper utilization fromand dreams, whereas the because they live their life a younger age 5

MoMandAeboyutBeing streetsmart is betterthan being Bookish knowledge helpsstudy smart you learn the lessons of the past. But does it prepare you for the ever- changing future? We don’t think so!6

MoMandAeboyut DOES OBTAINING Well, dreams bookish knowledge never gained behind the doors A HIGHER do become translates well into real life. can never expose you to reality, and the the changes and advan- EDUCATION only way to make it ha- Education is a cements happening arou- DEGREE HAVE ppen is to be passionate must. Degree? nd the world. It can neverANYTHING TO DO and determined. Not really give you the taste of the WITH GETTING How? Here is some smart challenges and hurdlesRICH? WHEN YOU advice for you to consider: The important thing is to you could face and how LOOK AT THAT choose your goal and gain to handle it while you’reSHINY EXPENSIVE Street smart as much knowledge as at it. But if you enter the BENTLEY DRIVE vs. study smart you can about it. You don’t world from an early age, need a Harvard degree for you will learn and expe- PAST YOU, Usually, when you dream that. Know the best pra- rience the flavor of suc- CHAUFFEURED of making it big, you scout ctices, catch hold of the cess, failures, stagnations means and ways and take trade secrets, and learn and various other situati- BY A SUITED suggestions from your the tricks of the trade to ons, in real-time. There is WHITE-GLOVED parents, friends, and your accomplish what you’ve learning here. EducationMAN WITH A RICH surrounding network. aimed for in life. Be pas- will remain a significantBUSINESSMAN IN The first thing they would sionate about it and soon part of everyone’s life. THE BACKSEAT, suggest is to get yourself you will realize that you Schools are a must, for DON’T YOU WISH the best college degree have become a magnet everyone. It is what you YOU WERE THAT you possibly can. “Go to to success and wealth. Bill choose, thereafter, isMAN IN THE BACK Harvard Business School Gates, although a college what will help you write a SEAT? ARE THEY or Oxford if you want to dropout, was extremely new chapter of your life. make it big. Otherwise, you passionate and knowled- So choose wisely and ALL HARVARD will always be a slave”… is geable about his work. His soon you will find yourself OR OXFORD something that has been dream of revolutionizing sitting in the back seat of taught all throughout your the world of computers, that Bentley.GRADUATES? ONE childhood. Isn’t it? Well, it is and will to make it real, is THING IS FOR true, to an extent. But let’s what made him the man MONEY see how many of the Har- he is today. He made the MATTERS SURE. THEY ALL vard and Oxford pass outs brand – Microsoft – a DREAMT BIG AND have become a “Steve household name, and And it matters Jobs” or a “Bill Gates”? Well became the world’s to every person KNEW HOW TO honestly speaking, none. wealthiest person, without working hard to earn ACHIEVE THEIR It has been observed that earning any high profiled it. Whether it is a it takes more than just a college degree. Today, all multi-million dollar DREAMS.. college degree to join the the Harvard and Oxford rich businessman billionaires club. You need graduates work for him. or a manager in the to have the knack for ma- corporate firm, they king money, determination, Out the door all dream of multiply and knowledge. Above all, experience their wealth each you need to be passionate vs. behind day. The rich still about it. No college will the door have their way when teach you this; it is somet- experience it comes to getting hing which is part of your wealthier; it’s the less character, your DNA. Being Bookish knowledge helps affluent who struggle street smart is better than you learn the lessons to make it big. being study smart. Not to of the past. But does disappoint you, but there it prepare you for the 7 are more unemployed aro- ever-changing future? We und the globe with good don’t think so! Knowledge degrees than the ones with basic education. Anyways,

MoMandAeboyutEnjoying the luxuryof financialfreedomat 30...not 808

MoMandAeboyut that said job, till you have The words ‘financial freedom’ isn’t a reasonable amount in something that people exactly understand your bank account to the meaning of. On the other hand, retire comfortably. But the word ‘debt’ strikes unease and to where is the financial some extent fear in people’s minds. So freedom in this scenario? why does this happen? Making people Why do we have to achieve that only when financially literate can solve this problem.. you’re eighty years old?For many generati- summer? Not so much. TIPS FOR ons, people have RELATIONSHIP So your summer should FINANCIAL encouraged children BETWEEN TIME be utilized by searc- FREEDOM to study hard, just so that MANAGEMENT hing for a slightly higher they can become do- AND WORK paying, better job, related Today’s Tips ctors or engineers. Why is to your major. That way, this? Because these two In order to achieve the you earn as well as gain Expand Your Income jobs provide immediate said financial freedom at the experience. Adding Horizon hiring as well as security; a MUCH younger age, said experience will defi- If you are too fearful security in the sense, if where one can actually nitely be a bonus to your to take risks and you’re fired, it’s not going enjoy the benefits, you résumé. It’s a win-win quit your job for a to be very difficult to find should actually be clever situation really. start-up, try to utilize another job. about the relationship the money you between time manage- DON’T EXCHANGE have in a smarterPARENTS ARE ment and work. Debt is MONEY WITH way. Do thoughtfulBECOMING something everybody TIME, BE SMART investments inAWARE, BUT tries to avoid. The most ABOUT IT shares or propertiesTHE CHANGE IS common type is be- which can bringEXTREMELY SLOW cause of student loans So don’t exchange mo- you money faster and honestly, people ney with time, be smart and with little effort, But there has been especially students don’t about it and try to come besides your regular a divergence to this have a choice. In today’s up with ways in which salary at the end of tradition. People, though day and age, the cost of you can be benefitted at the month. still a very small percent good quality education the same time. of the population, are comes at a high price. So thinking and planning Team Work Matters giving their children free So if you are in debt, the ahead allows you to enjoy If you are aiming for will to pursue what they first thing on your agenda the luxury of financial financial freedom dream to do. Parents are should be to get rid of it. freedom at maybe age and has a family, becoming aware, but the In the fastest and earliest thirty, instead of eighty. your spouse also change is extremely slow. way possible. If you’re Making time and money needs to think So the rule of the world a college student and work for you is one of likewise. As a team, is basically to study till struggling with a moun- the passive sources of you need to work you land a good, paying tain of debt, taking up income. So the bottom out on your financial job. Then you work at the waitressing job at the line is, making time and gains and expenses local coffee shop isn’t go- money work you is the to reach towards ing to help you financia- best way to go about life, financial freedom lly. On the other hand, the instead of it being the timings might be flexible other way around. 9 enough for you to study for your tests and exams. Here’s where you should be smart about it. Wor- king at the café is going to help you during your semesters but during the

MoMandAeboyut THE RICH UNDERSTAND WHY IT’S WRONG TOATTACH EMOTIONS WITH MONEY OR VICE VERSA10

MoMandAeboyutBalancing your money is the key to having enough.- Elizabeth WarrenWith almost journey to become rich. does the wealthy lot do to earning money isn’t the everything “Balancing your money is inherit their philosophies only thing they should surrounding the key to having enough.” ― and strategies on wealth do to become rich. Tomoney, emotions play a Elizabeth Warren creation to the children. become rich, foremostsignificant role in the lives The middle class, on the things to exempt fromof people whether belon- other hand, behaves in DON’T LET MONEY their lives are emotionalging to a rich society or just the opposite manner. CONTROL YOUR tantrums they oftenthose living a middle-cla- A typical average class LIFE throw at the cost ofss life. While the rich focus person usually tries to gain earning money.on the fact that emotions more sympathy for his It is a fact that moneyshould be kept at bay, the present financial state from makes our life easy and MORE THANmiddle class often stress others. However, even if convenient to handle. EMOTIONSthemselves over both sometime in their lives With money, you can – IT IS YOURemotionally and mentally they earn an astonishingly have easy access to all VIRTUE THAT WILLin the urge to acquire large amount of money, the things you have evermore money.So, how sho- they may not know how to wished. The affluent MAKE YOU RICHuld you be handling such handle it. Their emotional class strives to managesituations? Let’s discuss side becomes a lot more money better because Follow your virtue, andwhat each category of active, and that is why they they understand the soon you will see tablespeople thinks on this for a fail to earn the monetary importance of wealth turning in no time. Thebetter understanding. wisdom, which the rich in their lives. This is path of becoming rich have in plenty. why they don’t rest comprises of right attitude,EMOTION VS. their financial goals on will in achieving your goals, MONEY emotions and play a safe zeal to take up risks, trials,COMMOTION MANAGEMENT game. Thus, it should and nonetheless strong - CHILDHOOD also be understood by and positive attitudes thatWealthy people have a INHERITANCE the average class that will bring your dreamsstrong sense of financial come to life.intelligence that helps Individuals, irrespectivethem crack every of their class inherit LIFESTYLE OF THE RICH AND THEmilestone time and again. thoughts about money SUPER RICHThey take their financial from childhood. Howdecisions keeping you saw your parents So, if you are aiming for the lifestyle of the richemotional distress aside, managing finances when and the super rich, don’t get hassled by theas according to them it you were a kid, will lay a investment market. If you can’t afford the richdoes no good in their foundation for how you man’s ways now, you can definitely adopt their may handle money in ways. All you require is perseverance, the right future. There lies a huge knowledge and good advisors on board. gap between what beliefs the poor people impart 11 to their children and what

MoMandAeboyut HOW DO THE RICH BECOME RICH AND WHY DO THE OTHERS REMAIN POOR? What is it about the rich that is different? It is their perspective on life and their attitude to problems. They look at each problem as an opportunity and dive right in to achieve their dreams.12

MoMandAeboyut1. The rich act, the ordinary procrastinate2.3. The rich believe in acting immediately. The others ma-4. gnify the difficulties they see and are afraid that they will5. fail so they put off action. The rich are gamblers, the ordinary play safe The rich are fearless, they are ready to take on risks. The ordinary are worried they may fail and are not comforta- ble doing anything that is not a sure shot thing. The rich think ahead, they have big plans The rich believe that if they think big, have big dreams and go all out in their actions. The ordinary look at the immediate future. The rich are passionate about their work and goals The rich are determined to achieve what they set out to achieve. The ordinary have no great commitment or perseverance. The rich aim for success, the ordinary are satisfied as long as they don’t fail The rich are focused on success. The ordinary have no drive, they hope fate will help them, they do not want to put in any effort.So which do you want to be - rich or ordinary ? Make a decision, now.Change your mindset today and adopt the attitude of the rich so that you too can join the ranks of the wealthy. 13

MoMandAeboyutWHAT IF THERE IS NOMONEY TOMORROW?- THE COMMON FEAROF THE AVERAGE CLASSThe middle class is constantly plagued by fears of moneyrunning out suddenly. The rich have more than theyjustifiably need and the poor have so little that, for them,it is not worth worrying about.14

MoMandAeboyutYes, it is very fri- income, expenses and rooms in your house think RULES FOR ghtening to think debts like, loans, credit of taking in paying guests CHANGING that you have no cards, etc. Prioritize your or tenants – register with YOUR MONEYmore money, your credit expenses and debts and organizations like Airbnb, MINDSETcards are maxed out, your pay the crucial ones – Stayzilla which helpEMI’s are due, school those that are absolute travelers find places to stay. Rule 1fees, club fees, wages for necessities (EMI onhome-help, groceries, etc house/car, school fees, LOANS WILL ONLY Savings Doesn’thave to be paid for. electricity, water, basic ADD TO YOUR Make You Rich food, insurance, tax). LIABILITIES The scarcity of moneyYOU DO NOT is the reason whyBECOME POOR RUTHLESSLY Taking a loan to help throughout our lifeAND MONEYLESS CUT OUT you tide over a financial we always intent toOVERNIGHT UNNECESSARY crisis is not advisable make big savings. EXPENSES –it will only add to your Accumulation ofBut except in a major liabilities. Borrowing on money for a certainglobal or national financial Next, ruthlessly cut out your credit card is just as time is a stereotypicalcrisis, you do not become unnecessary expenses dicey – it will come back money mindset.poor and moneyless such as gym/club to bite you when you Rather invest inovernight. It takes time for membership – go for a least expect it. But, if in shares, properties oryour financial resources run, exercise at home or spite of all your measures mutual funds- whereto dwindle down and hit in the park -cancel your you still end up on broke- with little effort yourock bottom. So don’t wait 2nd mobile connection, street, remember that can actually multiplytill you have your back to if you are living in rented hardships strengthen your moneythe wall – start protecting accommodation, try and your character, theyyourself from the start. shift to a less expensive make you rethink your Rule 2 one, give up using the 2nd priorities and restartTHE BEST PLAN car, use alternate transport matters from a different Check YourIS TO KEEP AN – bus, metro, walk where angle. It teaches you to ExpendituresEYE ON YOUR possible, besides saving be grateful for what you A monthly budgetFINANCES RIGHT money, this will also had and to be careful plan helps youFROM THE improve your general in future. In times of to check yourBEGINNING. state of health and well- financial trouble you expenditures and being. Stop eating out, know who your true delivers you certainThis way, you know how cook at home, it’s cheaper. friends are and you get in hand cash at themuch you have in reserve Reduce electricity bills by to know your capabilities end of the month.at any point of time. If you switching off lights, fans, and talents. Whenever you tendfind that your money is electrical appliances when to spend money forgetting depleted faster not being used. There So stop worrying about anything beyondthan you want, then it is are many more ways you running out of money this budget plantime to take stock and can find to cut down your – take steps to ensure think twice “Is itfigure out what to do spending. that you don’t and if really necessary?”now. You have to get into you cannot do that, for This way you canwhat is called financial Finally look for ways to whatever reason, then actually curtail yoursurvival mode. The first earn money. Forget your see it and use it as an spendthrift nature.step is to calculate your ego, take up a 2nd job, opportunity to become it does not matter if you a stronger and better 15 are over-qualified for it; it human being. will bring you the money that you desperately need. You can make and sell handicrafts – online retailing is a good option. If you have extra space/

MoMandAeboyut THE RICH don’t rest on their laurelsThe very thought of you getting up in the morning and finding yourself surrounded by immense wealthsurely seems like a beautiful dream. People who fancy becoming rich and dream of living a lavish and luxurious lifestyle are either actually living it or working towards it.16

The very topic here have achieved and just Think like a rich man, MoMandAeboyut has the answer to end their peril there. It and to do so be part of all your queries “The never strikes them that the rich man’s club. It RISKrich doesn’t rest on their if they continue to work will broaden your reach AVOIDANCElaurels.” It means, with on the wealth upscaling and horizon... MADE SIMPLErich becoming richer, only techniques, their fortuneone protocol is the key to will multiply two-folds. Meet people who have Construct a Strongtheir success and that is, The problem is that the gone through phases Financial Portfolio‘’do not cease efforts even poor man has a horse you are in at present andafter achieving the goal.” vision, and will only share your experience Seek advisors helpIn conclusion to the above see what is in front of with them and vice- to layout a suitablestatement, let’s take a them. They are often a-versa.Visit online investment plancomparison between the scared of exploring new or offline seminars, for your businessideologies of the poor and horizons because of the webinars and try to model keeping yourthe rich people. uncertainty involved. study things well before financial agenda They lack the vigor and the making any investments and goals in mind.Rich people knowledge to expand their for earning profits. The entire processideology assets and build a fortune involves a bucket for themselves and their Buy small assets instead full of mathematicalRich people are generations to come. of planning for bigger calculations thatconstantly working The only thing that ones with fewer finances. would concludetowards exploring new stops the poor from profits and returns onavenues of growth achieving their goal is Avoid big loans to your invested moneyand finding new ways their thinking - ‘more is relieve the stress of for future purposes.to hone their money bad,’ whereas, the riches repaying them. On the contrary,making skills. They keep follow the mantra of for businesses thatstriving towards making ‘more is less.’ To overcome your wealth are already in thetheir lifestyle better building challenges, firstly investment pool andthan before and adding How to behave avoid shortcuts because wish to enjoy morebigger and better assets like the rich? there are none, and never monetary gains onin their kitty. The rich build your dreams on their investments, itwould put emphasis There is nothing in this false beliefs. The science is time for them toand all their focus on world that comes for free of becoming rich is to get their investmentmaximizing their assets or comes easily. But then, educate yourself, always plans revised to staywhich are of high value there is nothing that one think big, and try to move up-to-date with theirand do not depreciate or cannot be achieved. A beyond boundaries competitors. Consult abecome liabilities. The simple change in attitude to achieve your goals. financial advisor whorich are not born with the and perspective towards Making right decisions at would direct you inexpertise of generating life can help you achieve the right time and most the right direction andwealth. Although they do your goal. So here are few importantly being an get the ball rollinginherit a large piece of Ideas that may be helpful: opportunist is the solutiontheir fortune from their for becoming wealthy. 17predecessors, they learnand polish their skill tomanage their wealth,maintain it and thenmultiply it eventually.Poor peopleideologyThe poor seem prettysatisfied with what they

MoMandAeboyut Your credit score is not an indicator of your income or bank balance18

MoMandAeboyut YOU HAVE THE POWER TO MAKE A POSITIVE CHANGE, AND YOU CAN START UTILIZING THAT POWER AS SOON AS NOW. FORMING GOOD FINANCIAL HABITS IS THE REAL “WEALTH,”Agood credit score YOUR CREDIT INCOME IS A MINUS TO takes you places. SCORE IS AS MINUSCULE PART CREDITS - PLUS You will find banks GOOD AS YOUR OF THE EQUATION TO WEALTHrunning after you, provi- DEBT SCOREding premium services, Also, even if you are rich In case you are looking atcards, and higher loans Alas, your credit score is but make bad financial improving your financialeven if you don’t want not an indicator of your choices, or delay in situation, wait for a salarythem! But on a serious good income or strong repayments negatively, hike or higher revenuenote, it takes you notc- bank balance. It just tells it will impact your credit in your business. Insteadhes higher in eligibility you whether you are score. Since credit of depending on yourwith financial institutions, reliable enough to lend depends on so many credit score to improveand it has nothing to do money to and your ability different factors, income your financial situations,with you income. to pay it back. That’s about is a minuscule part of cultivate good financial it. In simple words, no the equation. habits to improve your need to celebrate. Your financial circumstances. credit score is as good The best plan is to pay You have the power to as your debt score. To off all old debts and not make a positive change, understand how credit open any new ones. Then and you can start utilizing score measures up, here perhaps you’ll become that power as soon as is the calculation: debt-free. Relieve yourself now. Forming good from all credit cards, car financial habits is the real 3 5% of your score is and student loans, etc. “wealth,” and you can based on your debt And one fine day you’ll buy just about anything history. knock off that last burden you wish. Learn the on your shoulders - the techniques of saving 30% is based on your mortgage. As a result, your money and making the debt level. credit score will become right investment choices. “indeterminable.” This is It will improve not only 15% is based on the great news! Through this your wealth status but length of time you’ve technique, you can save a also your ability to stay off been in debt. ton of money, and you’re debts and increase your able to pay in cash for all purchasing power. You 10% is based on new purchases. With this, you will automatically get the debt. don’t need a credit score, best score amongst the since you don’t plan on banking institutions. 10% is based on the using credit! Doesn’t this type of debt. sound great! So don’t keep praising your credit score because In other words, stay in debt your life will be much for as long as you can. How better without it. Discard ridiculous is that? all debts, save money and pay cash. Do that, and you will be well on your way towards building wealth— not your credit score. 19

MoMandAeboyut Middle class mentality feels superior by looking down upon the richAmong many it is considered rude to think and talk about money. Being not so rich is actually seento be a desirable state and our middle class mentality feels superior by looking down upon the richand successful. Here are some reasons as to why we, in middle class Indian households, don’t have sufficient money or savings. And what we can do to build our fortunes.20

MoMandAeboyutContinuing to live with parents Lack of financial literacyWe tend to stay on in the family house even when we We learn how to manage our household expenses basisstart earning thinking it saves money. Actually we shut our incomes. But we do not try to play the market andourselves off from potential opportunities. look for alternative routes to make money.Belief in and dependence on Apathy towards moneypolitical will and ability and financial situationWe believe that politicians and the government will Our typical middle class outlook makes us turn our facecreate jobs and feed the hungry hordes. And we wait in away from money. We pretend it is not part of our life sohope that we can then make money. we do not try to manage it. Ego problems regarding “suitable jobs”We have a lot of false pride about the kind of jobs we sho-uld do and so miss out on opportunities to make money. So change your attitude. Throw out your old-fashioned beliefs about money. Start earning, making money and enjoying life.Money is not evil – it is essential and makes life a lot easier for us. 21

MoMandAeboyutBeing amillionaireisn’t difficultif you knowhow toprioritizeyour needsWhen it comes to earning wealth, aforemost thing that you should keep inmind is to stay focused on whatever youplan for in life. We briefly present herehow well you can build your financial statuswithout worrying much.22

MoMandAeboyutInvestment plan that givesmaximum returnsUse your wealth in a way that it can makeyou wealthiest in future.Clearing debts is theprincipal thing to doDebts have destroyed many people’sdreams of becoming rich. Hence, it isessential you keep a close eye on yourexisting debts and reduce them to zero assoon as possible.Make a plan for multipleinvestmentsIt is good if your invested money hasbrought in immense profits to you. But,depending on just one type of investmentfor future monetary benefits isn’t enough.One sacrifice can make abetter tomorrowToday, you might have to sell your fancy andluxurious car to start up a new venture. Buttomorrow you may be able to buy thingsthat you never imagined to own proudly. 23

MoMandAeboyut The key to making money is Working smart not working hard24

MoMandAeboyut HAVE YOU EVER WONDERED ABOUT HOW OTHER PEOPLE BECOMERICH IN VERY LITTLE TIME WHILE YOU KEEP WORKING LONGER HOURS AND DON’T MAKE HALF AS MUCH AS THEY DO?This happens to than currently. and you spend too much Manage your time better: most of us. We What is the secret of this time doing unproductive Finally, manage your time think that the har- you ask. So here it is – work. Take on clients who better, more efficientlyder we work, the more we what you need to do to are reasonable about so that you are morewill get and become rich. be able to do this: work and time pressures. productive and can earnBut that is not so. The key more in less time.to making money is wor- Get help: Follow the 80/20king smart not working Get help if you find you principle Successful peoplehard or working for a lon- are unable to cope with – 80% of your income work smart and haveger time. What you need your workload. Hire must come from 20% time for pursuingto do is to be thoughtful someone to do the of your time. Work for their personalwith your time – be more boring, routine work so clients who pay more. interests. It makesproductive but less busy. that you can use your Sell products that bring it easy for them toDon’t let work take over time to do the more in greater profits. Don’t focus on their workyour life so much that you challenging part which waste time on what and hence increasehave no personal time will bring in the money produces minimal income productivity whichnor should you allow your in spite of maximum time in turn helps themwork to suffer because Know your worth: and effort. finish in less time. Ifyou are giving excess im- Know your worth and you want to join theportance to your personal charge according to the Save time: ranks of the wealthy,needs. You need to get a value of the work you Group and complete then start workingproper work-life balance provide. Do not undersell similar tasks together smart and soon youwhich means less time or shortchange yourself. If so that you save time will find yourself withgiven to work but working the client/buyer respects on them. See if anything more money in yourin a way that increases and appreciates your can be repackaged or hands and moreyour work-efficiency and work, there should not be refreshed with minor time to devote toyour income – in other any objection when you modifications. Leverage your family and yourwords more money than raise your fees. your current offerings into own interests.you are making now but something that can earn aby spending less time Work odd hours: higher income 25 – when there is less distraction, less Stop offering freebies interruption and when – charge for whatever you can work at your you provide and charge peak efficiency what you are worth. Use your unique skills to bring Avoid extra value to the client but - demanding clients: ensure that you are being – they work you to the paid for your services bone and are never happy

MoMandAeboyut Reasons why somepeople fail in business26

MoMandAeboyutAVOID THESE TRAPS AND YOU CAN DEFEAT FAILURE MORE EASILY Failures do not have faith in themselves – they believe in “failure” Most people lose heart when they fail a couple of times and give up. Treat every failure as a challenge, practice your skills and win the next round. Failures under-promise and over-deliver This is considered to be a fool-proof plan – promise less and keep expectations low, then over deliver and get praised for it. But over time people see through this strategy and you end up with disappointing results, i.e. as a failure.Failures rely on excuses to get out of a tight corner You cannot hide behind your mistakes and expect to be absolved ofblame and helped to progress in life. Take responsibility, correct your lapses and work hard to make a mark in whatever you are doing.Failures do not go the extra mile nor do they find a unique way of doing things People fail because they do only just as much as is required, they are not ready to do a bit more which can actually pay them richdividends. To be better than others you need to do things differently. Failures want to hog the limelight, do not give credit to others To avoid becoming a failure, learn to give credit where it’s dueand become a good leader and inspire others with your example.. 27

MoMandAeboyut A rich man’s mantra for a great life @ 4028

MoMandAeboyutONCE YOU KNOW HOW YOU WANT YOUR LIFE TO BE AND HAVEINITIATED EFFORTS EARLY, NOTHING WILL STOP YOU. YOURDETERMINATION AND HARD WORK WILL HELP ENJOY YOUR LIFE AT 40.Here are few ideas of to inflate your savings, more money over time is learn to budget and save planning in the right which will result in rapid to invest it. Invest in real up for retirement. direction to become growth in wealth. One estate, mutual funds, in rich and retire by 40:- can also choose the stock markets if you know PLANYOUR path of entrepreneurship the tricks, etc. There are FREEDOM – LIFE @ 40OPEN ALL instead of being slaves plenty of options and alsoDOORS OF for the corporates. If good advisors to help you It is OK to set a dateOPPORTUNITIES. you have the business with choosing the right when you will go slow. acumen, invest in creating investment choices. By the time you have While you are young and a business out of your By the time you reached reached 40, you have eager to rule the world, skills, and at building it you mid 30’s, you have saved enough to bid work towards finding up. If you are determined earned enough and goodbye to working like ways to earn that extra and good at what you do, experienced enough a slave. It’s also good to buck. Apart from a regular you’ll be a millionaire in to start planning for plan in advance. Make job, you can find more no time. your retirement. Your a retirement budget, means to earn – through investments should be meaning you need to your hobbies, extra MULTIPLY YOUR part of your plan. What sit down and figure out shifts, so on and so forth. MONEY you have invested in what your income and No matter which path today, will reap results expenses will look like you choose, with hard Once you’ve earned good in retirement age. So be for your new life. It will work and dedication it is enough, start investing. wise and calculative. And depend on what lifestyle possible to grow income Learn the tricks, speak above all be fixed towards you choose. over time. Choose ‘simple to wealthy people who your goal.Avoid taking You should also keep living, but high thinking’ invest wisely, and use loans or being in debt for a in mind to maintain at approach in your early these learnings to grow longer time. Keep a close least about one year of 20’s. Determine ways your money. Your late 30’s track of your expenses. expenses in cash before is the right time when you The habits you learn in calling it quits. The cash want to put most of your your 20s will stick with you cushion gives you a sense money to work. One of the throughout your life. It is of security, and it can most efficient ways to earn the right age to earn more, be used for unforeseen emergencies as well. 29

MoMandAeboyutMadBytes30

MoMandAeboyut EARLY HUMANS USED BLOOD AND BAT POO AS MONEYBefore the invention of bills, ancient civi-lizations utilized numerous other commo- dities as currency. The list includes ani- mals, shells, blood and bat guano (poo). Imagine sticking that stuff in your wallet. THE IDEA FOR THE FIRST ATM WAS CONCEIVED IN A BATHTUB Inventor John Shepherd-Barron dreamed the concept for the first ATM while in the bathtub during the 1960s, and there were no ATM fees. Now, if only they can install ATMs in bathtubs. THERE ARE MORE CREDITCARDS THAN PEOPLE IN THE U.S. If you don’t own a credit card, chances are you know someone who owns one or more.175 million Americans have credits cards, with each person owning an average of five. That represents over half the current U.S. popula- tion. 175 million times five equals way more credit cards than actual citizens. 31

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