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We are a Mutual fund Distribution Firm. Firm in Industry for more than a decade. Happy to share some beautiful thoughts with investment and life

The Journey of wealth Creation

Sunday Musings

The Journey Of Wealth Creation.

It intrigued me as I was learning about personal finance planning. We had a session on Home loan planning, Children’s Goals planning, Insurance, Retirement planning many more. Each of the plan is based on and proportional to one’s income right? 

Two major questions:

Q1. How crucial is this Ratio?

Q2. Is this ratio 50-30-20 constant for all? 

Seeking answers to these questions was quite a journey. Finally, I got a resolution to this from Senior Personal Finance Professional, Expert and Trainer Mr. Hitesh Soni. He gave me a very popular quote from none other than the master wealth creator Warren Buffet. I had read this quote many times before but it never made more sense than today.

”It’s never the income or salary that makes you RICH , it’s always the spending habits.

This one single quote, I could correlate to so many more wisdom quotes that lead to this one -Take away -”Always have right ratio of Income : Expenses”

  1. popular one in Hindi – Never have “Aamdani Atthanni Kharacha Ruppaiah” (translated – Your expense exceeding your Income = Debt Trap) 
  2. Nature has enough for everybody’s Needs but never enough for Everybody’s Greed – Mahatma Gandhi. So is true with your income, if proportionally spent it has enough for all your needs but never sufficient for your wants.
  3. Everyone, a person with a salary of 10 thousand, One lakh or even Ten Lakh, has to have a proportional match of income and expense to embark journey of wealth creation.
  4. Very practically categorise your spendings as “NEEDS” & “WANTS”. Remember needs are limited and wants are limitless.
  5. “Chah Nahin Chintah Nahin Manwa Beparwaah, Ja Ko Kachuha Na Chahiye Woh Shahah Ke Shah” (No wants, No worries, He who wants nothing is Richest of all!). this is another extreme of increasing wealth but a great lesson to take! To become rich drop your wants!

We will continue this series on budgeting seeking answers to our two initial questions in the following weeks!

Knowing when to QUIT

Knowing when to quit

On May 22, 2019, Mount Everest saw a traffic jam as 300 mountaineers made it to the summit that day, creating a traffic jam, a picture of which went viral the next day.

German alpinist, David Gottler, was not among those who summited. He was just 200 meters from the peak when he turned back. David was also among the lucky ones.
In 2019, the Everest climb saw 21 mountaineers die while attempting to scale the world’s highest peak – the highest number to die so far!

Why did he turn back despite being an experienced climber who had already conquered five of the 14 different 8000m peaks on Earth.

He took a crucial decision. That day that the risks were way too much to attempt to summit despite being so close. 

His experience told him that the crowd trying to reach the peak would make him wait for his turn which could prove fatal as above 26,000 feet you are in the death zone when there isn’t enough oxygen for humans to breathe.

The summit of Mount Everest is 8,848 meters (29,029 feet) high, an elevation at which each breath contains only one-third of the oxygen found at sea level.
And David was a purist who was climbing without supplemental oxygen.

At only 200 meters from the peak David took perhaps the most sensible and courageous decision of his life – to give up the climb and come down.

He didn’t win the mountain that day, but he won over his ego. Only a man without an ego can decide when to give up and when to clench your teeth and push on regardless.

All our lives we have been constantly told by motivational speakers and others, never to give up and yet here was an experienced mountaineer who simply says that making it to the peak is not all that matters, when even the less experienced ones were summiting that day.

There were many who went up that day, but in the process exhausted their oxygen supplies while waiting for the queue of other mountaineers to clear up before they could summit. Some of them ran out of oxygen on the way down and died.

The true climbers respect the mountains and as Sir Edmund Hillary said; “Human life is far more important than just getting to the top of a mountain.”

There are climbers who climb to enjoy the view and not always to plant a flag on the peak.

Sometimes in our lives it is more important on how we enjoy living than how “successful” we are in the eyes of others or even ourselves.
Quitting takes a lot of courage and sometimes only the wise can give up even when success seems so near.

They always ask themselves: What is the cost of winning?Is it worth to scale the summit?

Know when to quit & stay blessed forever.