Wealth Creation

Wealth-Creation
Originally uploaded by megarajan.

Friends ,

This one is not a Novel nor a Self Improvement book. This one is a Investing tutorial .

This book has been titled "Laymans Guide to Wealth Creation " and published by Outlook ,one of the leading weekly magazines of India.

I havent read the entire book. But I felt whatever I have read till now as very useful and hence sharing it with you .

The goal of this book is to teach financial discpline and tricks of financial investing and success in the financial world for the larger segment of Indian population , the Salaried Middle Class.

Financial Discipline usually does not go beyond the "Make a Monthly budget" in most of the households. It has been found out in surveys also that though Indians are the most savvy to save money , they are short of ideas in saving it .Till now , We have been knowing only one way to save money , Investing in Gold and House .

This book helps us to understand various ways to save money and also gives a roadmap of what we should be doing at each major turning point in our life.

This book is divided into the following chapters.

1. Wealth Basics.
2. Age 20 - 35
3. Age 35 - 60
4. Age 60 - Beyond .

The First chapter tells you what is wealth. Most of us think that a Wealthy person is one who owns lot of things.
But its not so .

Wealth is "Your Assets - Your liabilities"

If your liabilities are more as in my case :-) , you are not a so wealthy person . :-)

If you dont have any liabilities then u are one of the most wealthiest person .

But there cannot be a person without any liabilities . Liabilities include things such as

1. Costs for Marriage
2. Costs for Childrens Education
3. Costs for House
4. Costs for Items like Car etc..

This book teaches you how to reach all of these without being a kanjoose.

Some of the major points I have imbibed from this book .

1. Identify your Financial Needs

2. Translate your Financial Needs into Financial goals

3. Put a monetary value on each of your Financial Goals.

4. Have Financial Discipline :

Financial Discipline means try to save little amounts over a long period of time rather than investing a huge amount in a single go .

Lets assume that you wish to invest 50K at the end of this year .

You can invest 50 K by saving some amount monthly , gradually building to 50K , or put 50K at the end of the year .

Can you tell me which is better.

Saving some amount monthly is the best way to do .

5. Plan out your retirement.

You might not have heard of Retirement planning till now, bcos you might not have thought of retirement now. But plainning is essential .

Lets assume that to maintain the current lifesyle after you retire , you will need to have 1 Crore as Retirement Savings.

1 Crore , Are you Joking ? you might ask me .. But it is possible .

This book will teach you how to do it.

Did you know that if you are financially disciplined and put 5K every month from the time you start earning till you retire , you would have put 20 Lakhs from your pocket and you would have got 80 Lakhs as Interest alone . :-)


You dont believe it .Thats the power of Compound Interest. Your Interest too earns Interest.

1 Crore - 20 Laks of your money + 80 lakhs of Interest

All of whatever I have said is available in this book and much more.

This is the best Investment decision you can make .

If you make a buying decision of just 50 RS , you will literally get to know how to make a Crore :-)

Cheers
Megarajan