Simplyfying finance: Chapter 1

Yesterday I got 2 mails / comments one said

a. your blog is too simple and the second b. your blog is too complicated.

I could not agree more. This is like being asked to speak to school – and all the kids from class 1 to class X being the audience.

It is really difficult to address such a crowd because if I address the class V student (see misuse of average!!), the class 1 student will not understand anything, and the class X student will be bored.

How does one handle this? I know not.

But here is an honest attempt.

How to get rich?

Is this a fair starting point for any young person starting with life? I guess so.

Let us what makes us financially rich. Obviously it is the having of money. Money buys you security and a chance to do what you want rather than what you MUST.

How does one accumulate money over a long period of time?

That is right. LONG PERIOD OF TIME. Creating wealth in the short run is every man’s desire, but does not happen. Unless of course you are a successful film star or cricketer.

The steps are:

1. Earn a lot of money (beyond the scope of this blog!)

2. Manage your money well (hey! )

3. Learn about risk and protect yourself from risk

4. Have the wisdom to know that getting 8% from Public Provident fund is easy, and earning 12% from equity markets is BRILLIANT over a 40 year life period. It can make you seriously wealthy.

—to be continued……….

 

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    2 Responses to “Simplyfying finance: Chapter 1”

    1. Hello.

      Please could you let me know what is your email id and contact number ?

    2. I am not able to find rest of the parts;were they not written??

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