Investment Mindset

Let’s go back in time.

We had one Tv broadcasting channel, we have to wait for one entire week just to watch a movie on Saturday and Sundays. There were no malls, no fancy restaurants, no multiplex cinema halls. We didn’t know anything about luxury brands. We were happy to wear whatever our parents bought for us. Playing happily with friends at nearby ground.

Then what happened, internet revolution took over the world, the world of consumerism begun. They called it consumerism, capitalism, and whatever fancy terms they want us to call it. They turned Men against women in the name of women empowerment and Fight for equality. They turned peaceful life into chaotic one. And created all the rich people diseases like depression, anxiety and so many.

Our parents lived a peaceful life, today peaceful life is a luxury. The cost of living is still affordable but earlier it was much better than today. We had little to no distraction. Our parents’ income was less, so does the cost of living. They had much lesser distraction. Distraction in the sense of options to spend money. They hardly spend anything un necessary. They saved every single rupee and turned it into gold without aware of financial literacy, probably only investing options available for them. For those with little more money, the real estate became the next big opportunity.

System

Today, Unfortunately, most of the people are broke, and financially uneducated, emotionally weak when it comes to money. They are not able to take decision to invest. This has arisen due to lack of financial knowledge. Lack of financial discipline and lack of financial planning.

In today's world, financial education is most important because the system is designed for the financially educated, investors, but unfortunately, we are never taught to be investors, we are taught to go to school, earn a degree, get a job, earn a decent salary and then spend it on the service or products sold by the corporations. We are never taught how to take this money we are earning and convert it into wealth. We are being trained to earn money and taught to convert that money into buying clothes, buying cars, go to vacations.

Our economy is designed to keep you poor and keep spending. It is profitable for the industry and the corporates if you are financially uneducated and poor. This is the harsh truth. And no one is bothered enough to make you understand. The system is designed to keep us poor until we learn to invest, invest in financial literacy and education, and to keep us away from making the right choices and creating more wealth for ourselves.

I am not against spending, economy will collapse if people stop spending, I am suggesting to spend less and only on basic necessities till you achieve that financial strength, and earn more at your initial stages, sacrifice a little at the beginning for a greater future. It is very difficult in the early couple of years because you hardly see any good results, but over the time you will reap the benefits. Sacrifice your twenties to learn more about investing, financial literacy, avoid un necessary spendings. In our country cost of living isn't that higher. You don't have to wear luxurious items in your 20's to impress someone. Once you become wealthy society will respect you. Once you start spending you don't have to worry about your income your spending will be taken care by your investments. Even if you don't spend the society and the system will make you spend.

Our system is designed to spend 2 rupees when you are earning only one rupee. We are encouraged to spend our future earnings in the present. We are encouraged constantly to work harder and make everyone else rich; we are working to make Banks rich, we are working to make corporations rich., Except ourselves. If you want to make wealth you have to understand the system, you have to find the ways to spend less and invest in yourself.

Every time, corporations make profit because we are spending and working harder to buy their products and service, we are being forced to watch the TV show they produce, consume their service which they have created. you just need to be smart to see that.

Financial Literacy

Our parents were never taught about financial education, we didn’t get anything either. And it is still the same for this generation.

Most of our financial literacy comes from our parents. Unfortunately, no one ever taught them about finance when they were growing up. We are in fact the luckiest to be living at this period of technological revolution, where you can find answers within a minute for any topic. We can make good decisions about our finance.

We all went to schools and colleges but we never learnt anything about being wealthy or manage our finance, leave alone being wealthy we never ever learnt to pay our taxes and how it works. We went to college so that we can get a degree and work in a company for salary. That’s what we have been told, work, get pay check by the end of the month, pay your bills, take care of our parents, and repeat the cycle. And government will intervene at the end of financial year and get it share for every rupee we ever earned.

Solution

Investing requires discipline, a solid framework, and clear financial boundaries. It’s essential to allocate funds wisely, determining how much to invest and distinguishing fixed expenses to maintain financial stability.

While life offers invaluable gifts like air, water, and love[ I still believe], for free; while most things come at a cost, especially in today’s capitalist economy. Financial success is built on understanding that everything, even life itself, carries its own price. Developing an investment mindset means accepting these realities and preparing for them with a thoughtful, strategic approach.

One of the hardest things to do is to Invest early. Savings alone will never make you wealthy, savings will never outgrow inflation. Investing at the earliest is the best way, don’t think much about the rate of return. Over the time once you are confident enough and have developed strong warrior mindset think of investing in any form, be it in real estate or gold, or equity.

Three most important things to consider here are

· Control the cash inflow,

· Control the cash outflow,

· Grow your cash.

Control the inflow of your income.

Salary alone won't make you rich, investing your salary in a right asset makes you rich. Especially cashflow assets. Like rental properties or high dividend paying stocks. Invest your income in yourself first to increase your salary and early promotions. Plan from your young age, the moment you start earning learn to save. Save as much as you can in your 20s, then allocate wherever and however you want.

Do whatever you can, to keep your bank account growing.

Fix your cash outflow,

Before anything else stop financial bleeding, stop money from leaving your account. keep track of every rupee you spend. Close all your loan which carries the highest rate of interest at the earliest. Like personal loan, vehicle loan. Build a budget, plan your spending. Cut your spending or else increase your income stream.

Use money as a tool

Money makes money, period. If you want to become wealthy you have to invest. If you don’t want to invest because if you can’t handle the ups and downs of the market or you just want to enjoy the life, then don’t Invest.

Three main things which can build wealth,

· The amount of Money You invest,

· Time period you want to invest,

· and the rate of interest.

Out of these three, only two things are in our control. The money to invest and Time.

The amount of money to invest is in your control; you can decide how much to invest, when to invest, and where to invest. Plan and save as much as required for emergencies; it should be liquid enough to use when required. It’s a personal choice. It depends on various parameters. And plan how much money you want to invest and what kind of assets. Different assets have different rate of return and risks.

Time, again, is in our control. You have to make a decision to invest for the long term or for the short term.

Rate of return is the only thing that is not in our control. For short-term fixed return instruments, we have a choice. Examples include fixed deposits, recurring deposits, and PPF. The rate of return on these assets are anywhere between 4% to 8%. For assets like real estate, gold, and stocks, the return is not fixed. They are risky investments. However, for the long term, we can expect higher returns due to time factor, value appreciation, inflation, and compounding.

Conclusion

Develop more financial pleasures, devour more experiential pleasures, realise your talents and gifts and learn to live honest a living. Remember, being wealthy is a strong mindset, and it must become your ultimate goal. It doesn’t happen on its own. Develop a strong mentality, commitment to a lifestyle for few initial years. Sacrifice few years for a long lasting wealth. And spend wisely. Trust me when I say this, once your cross a certain threshold wealth will never stops growing even if you want it. Our system is designed for the wealthiest. Be bold to look beyond your comfort zone.

The goal is not to enjoy the nice things the goal is to afford to enjoy those nice things.