Professional Documents
Culture Documents
Money
January, 2017,
Issue no. 5.
MONEYGASM
- ECTASY MONEY
RELATED
TUNING
YOURSELF
CONTROL YOUR
EXPENSES OR
TO THE FREQUENCY
OF SUCCESS
YOUR EXPENSES
WILL CONTROL YOU
WHAT CAN
DAMAGE YOUR
PROSPECT
OF BECOMING
RICH?
MONEY
CANT BUY
HAPPINESS,
BUT WHAT
CAN
POVERTY
BUY?
Cover story:
MONEY IS NOT
EVERYTHING
but you need plenty of it before thinking so
MadAbout
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MadAbout
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Issue no.4
Content
08
06
A comfortable
life will never
make you a
millionaire
18_Moneygasm - ectasy
money related
22_Tuning yourself
10
Never rely on a
single income to
make you
a millionaire
Cover story:
04
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Editors Note
If theres one common
thread, that runs
through each and every
one of us connecting us
and binding us to each
other is this we are
all mad about money
in our respective lives!
Be it a multimillionaire
businessman or the
local neighborhood
vegetable vendor, our
madness about money
is a crucial part of our
existence the madness
to have it, the madness
to attain it, the madness
to save it and protect
it and of course, the
madness to have excess
of it and be rich!
Sachin Mittal
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Vijendra Singh,
Shravan Giri,
Rajiv Ranjan,
Swadesh Mishra,
Anubha Rathore,
Dheeraj Kumar,
Officer Out-standing
Creative Technologist
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Akanksha Mishra,
Johny Chopra,
Soma Ghosh,
Hopefully optimistic
Buzz Ambassador
Abhijit Banerjee,
Ahmed Ansari,
Tight fistedalways
Idea Ambassador
Dillip Rout,
Account-ability Officer
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or some, money is a
translation for being
able to afford the
few harmless indulgences of life and being able
to enjoy the little luxuries. For others, its the
way to make ends meet.
Something to just get by
and not really indulge in
decadence! And so, while
you may not need more
of it and while it definitely
cannot offer a replacement for everything in
life, money definitely is a
big necessity.
This type
of attitude
creates
negativity
about being
rich or having
money
The world is full of clichs.
And, being rich or having
adequate money is another clich that is associated with dishonesty or
being immoral for living an
extravagant lifestyle. Every
It gives us an
excuse to be
lazy
Statements like these are
basically a way for us to
feel good about ourselves
about our inadequacies
and our flaws. It basically
gives us approval that its
okay to be lazy and not
really do much about achieving financial success.
This is in no way to say that
financially secure people
are competent and others
are not. But, achieving
financial success does
require us to go out of the
way and get out of our
comfort zone.
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A comfortable life
will never make you
A MILLIONAIRE
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I am
responsible
for my circumstances
This statement is an
insight derived by Dave
Ramsey, author of the
article 20 Things the
Rich Do Every Day from
analysis of feedbacks
received from around the
world on this article.
This statement is important because being rich is
a mind game. This school
of thought advocates the
fact that every individual
has the ability to change
his/her circumstances.
Again, if you are strong
willed, and you know
what it takes to reach
the sky, you can change
it. If you are not scared
of hard work, readily
The good vs
the evil
An average person usually
thinks of the rich as the
exploiting dictators who
suck the money out of the
poor people to gain for
themselves. Apparently,
they also believe that the
Gods favor the fortunate
ones and shower them
with more and take away
from the needy. It is a very
unjustified and unreasonable thinking. The rich are
the way they are because
of their habits, and the
poor remain poor because
they refuse to change and
to improve. The average person needs to rise
above this I am the victim
mindset. They need to
stop being a target of the
almighty and accept all
challenges with an open
and positive mind. There
is no Good or Evil person.
There are only positive
and negative thoughts.
And it can only change if
Excuse
yourself from
excuses
There should be no ifs
or buts when you want
to achieve a goal in life.
Once you start with it,
thats when you start
slipping. Face your problems chin up and avoid
quitting just because you
hit a roadblock..
Avoid giving into silly excuses like procrastination,
too many long working
hours, luck not on my side,
finances slipping away,
etc. You need to exit your
comfort zone and usual
habits because a comfortable life will never make
you a millionaire.
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The mindset of
rich people
Books such as Secrets
of the Millionaire Mind
by T. Harv Eke tell a lot
about the mindset of rich
people. What they think
about money, how they
perceive it in comparison to poor or not so rich
people. Learning how rich
people think can be a very
useful stepping stone as
you can then figure put if
your thought process matches theirs. In case your
thoughts dont match, this
can be considered as a
hurdle, and this is what
you might want to change
about yourself. The mindset is the key.
Your Worst
Enemy:
Procrastinating
We understand that its
hard to sit back and relax
with so much going in
todays fast life. And this
is what makes time even
more valuable than it used
to be earlier. Time is an
asset that you never get
back. Give your goals the
highest priority. If you are a
procrastinator, you can use
Anger drives
wealth away
Fear is an emotion that
stops people from taking a
step, from taking an action,
from making a decision.
Fear leads to inaction, which will take you nowhere
in best case, and bring
you down in worst case.
Fear doesnt let you move
forward. Anger, on the
other hand, drives wealth,
prosperity and mental
health away. It also takes a
toll on your immunity and
overall well-being. You
cant be rich or successful
if you are spending money
and time to get your health
fixed. Shame is a painful emotion, as you feel
inferior about yourself. How
do you expect to excel
when you dont think you
are capable or deserving
of succeeding. The lesser
you feel about yourself, the
more you spend on yourself. That doesnt sound
like success at all.
CHANGING
YOUR MONEY
MINDSET
Rule 1
Stay Away From
Debts
Debts are the worst
thing one can have
as it prevents your financial plans to grow.
Hence rather than
going for mindless
expenditures through
credit cards, make
sure you use your debit cards more. Even
with a pay raise, debts
do affect a family income in many ways.
Rule 2
Simplify And Make
Realistic Monetary
Goals
Do not make material gains and possessions as your long
term goal. A prosperous stress free present and a social and
financial security for
you and your familys
future should be the
goal for life. Owning
houses, cars are part
of this goal.
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e keep
worrying why
we feel left
behind financially despite
all our genuine efforts to
build wealth. The answer
to all the above ambiguities is simple. Building
wealth is not purely about
the genuinity of the efforts
alone but also the direction of the same. Let us
simplify it further
BUILDING
MULTIPLE INCOME
STREAMS IS THE
BEST SOLUTION
While our income rises
in pennies, the financial
commitments grow in
pounds. To tackle our
requirements, it is highly
prudent to build multiple
income streams which will
take us to the shore safely.
Diversify your savings
and investments in
various streams whose
dependency differs in a
huge manner
Earmark a portion of
your income on savings.
Let these savings be
diversified into market
dependant and nonmarket dependant
investments. Fixed and
Recurring Deposits are
less market dependant,
fetching you assured
allied income. Investing
in Monthly SIP and
Mutual Funds can
be highly market
dependant. Bifurcate
separate amounts for
each type of savings
based on your risk
taking capability
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A
THERE IS A
FAMOUS SAYING
- WEALTH
COMES THOSE
WHO BELIEVE IN
THEMSELVES AND
ARE DETERMINED
TO MAKE IT
HAPPEN. ANYONE
CAN EARN
MONEY AND
MULTIPLY IT TWOFOLD. BUT HOW
MANY PEOPLE
DO YOU KNOW,
WHO KNOW HOW
TO MAKE THEIR
MONEY WORK
FOR THEM AND
SELF-MULTIPLY!
sk any of the
wealthy people
living an abundant
lavish life, and they will
raise their hands. They
just know the game too
well. They just let their
money do the bit while they focus on other
luxuries of life. You can
be one of them too. The
constant urge of ruling
the world like a king is
what that will earn you
the entire kingdom. But,
is it so simple? Yes, it may
be if you behave like one.
If you can Dream it, you
can do it.
Walt Disney
Just follow these simple
rules and youll be on
your way to your goal:
PROTECT AND
SAFEGUARD YOUR
MONEY
The first step towards
becoming a rich man is
to monitor your expenses, and not worry about
it. Most of the times you
spend more than what
youve planned. It is the
prime reason why you fall
short of cash for every
important assignment,
which you waited for
long. Budgeting will help
you spend money wisely
and within limits, and
also make you learn to
respect it. In other words,
you can control your
money well if you plan to
spend it intelligently rather than money controlling your life. Thus, every
single expense needs to
be budgeted well enough to avail maximum
monetary reaps in future.
PAMPER YOUR
MONEY
By pampering, we mean
to love it, respect it and
save it. It is important
because it will make your
money grow exponentially. Manage your wealth
in a way that it prepares
you for the unexpected
situations and circumstances. After paying off
all your debts, tuck away
rest of the money into
savings. Let it rest, and
let it grow. There will be
a point when the money
you saved would have
doubled or tripled over
time through interests.
Remember to keep
fueling your savings now
and then.
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FINANCIAL TRAP
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history is crucial in current times since various
credit information organizations such as CIBIL and
the like track and pass
on the credit history of
individuals to banks and
other financial institutions. In the calculation of
your credit score, almost
35% weightage exists on
your repayment history.
Hence, if you have a poor
credit history, you will
find it very difficult to get
loans from banks in the
future. Your credit card
limit will also get affected
and in some cases credit
cards even get blocked
for people with a poor
credit score.
WHY IS STAYING
DEBT FREE
IMPORTANT?
Staying debt free and
having a clean borrowing
THE ROUTE TO
BEING DEBT FREE:
STEP 1
Know your status:
Your first step is to know
whether you have already
fallen into the EMI trap or
not and if you have then
how deep in it you are.
Experts say that if an individual is paying EMIs to
the tune of 45% of his/her
income, then it is already
a matter of concern.
STEP 2
Assess your debts:
Take a good look at the
kind of debts you are
paying EMI for. Are these
good debts? That is, are
these EMIs for assets or
investment towards yourself that will give returns
in the future? Max to
max 25% of your income
STEP 3
Possible debt
repayments:
Make a list of all your
debts and analyze which
ones are the costliest
and which ones the
cheapest. Credit card roll
overs, for example are
the most expensive with
almost 40% interest rates
so they should top your
repayment list.
Second priority is your
personal loans. Take into
consideration the tenure
of these since theres
an element of penalty
involved. If you see that
the loan would get over
in a couple of months
then there is no point.
Repay loans which still
have 6-12 EMIs to go at
least. One should also
look at the tax aspects
of the loan since some
provide exemption benefits and might be better
to keep in comparison to
the others. For example,
educational loans.
STEP 4
Unique ways to be
Debt Free
You can think of consolidating your debt in order
to go debt free. Taking
a loan to repay other
loans might sound like
a bizarre idea but it can
actually work since the
new interest rate would
at least be lower than the
interest rates of personal
loans and credit card
roll overs. Loan against
property also works
towards liquidity. However, if you lack discipline
than such measures might not work since taking
another loan might just
be adding to your problems. In case you take a
loan against property and
then go for a holiday with
that money, you would
basically be digging a
deeper financial burden
pit for yourself.
As a conclusion, it
can be said that,
being debt free
and not having to
think about the
constantly growing
EMI amounts leads
to a lot of positives
both on your credit
score front as well
as your personal
financial planning
front. So now that
you know how to go
about being debt
free, what are you
waiting for? Get out
of those big financial
traps called EMIs!
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MONEY CANT BUY YOU HAPPINESS. YEAH, AGREEDITS TRUE. BUT CAN POVERTY
BUY YOU HAPPINESS THEN? CAN IT?
THE ANSWER IS MOST DEFINITELY A RESOUNDING NO! AND WHY JUST HAPPINESS?
POVERTY CANT BUY YOU ANYTHINGNOT FOOD, NOT SHELTER, NOT CLOTHING
HENCE DEFINITELY NOT HAPPINESS EITHER! HENCE, I HAVE A PROBLEM WITH THIS
PROVERB IN THE FIRST PLACE.
SO WHY THIS
NEGATIVITY?
Money cant buy happiness essentially means
that something else can
and that something has
to be something thats
not money or may be
the opposite of money
so in our little human
minds, we summarize
that having no money is
then okay.
BUT IS IT?
If we were to rephrase this
statement and say it out
loud what the sentence
secretly tries to sayand
that ispoverty can buy
happiness. So I ask you
friendsis that true?
The only thing poverty
can (perhaps) save you
from is the added worry
about how much to save,
where to invest and the
tax implications. Other
than thatwhat does
poverty save you from? I
dare ask.
WHEN YOUR
LITTLE HOUSE
NEEDS REPAIR
You might argue that a
little house beside the
river with your loved ones
is a happier and more
peaceful existence than
a glass facade high-rise
WHAT YOU
SHOULD BE
DOING INSTEAD
Trash that proverb! Yes I
mean it! Such negativity is not needed in life,
really. Be practical. You
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month BUT Rs. Y has to go towards. Will become a thing of the past!
4. Making it easier to quit your boring job whenever you want to! (Moneygasmic, isnt it?)
5. Freeing your mind of the stress and anxiety thats part and parcel of debts.
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THE BEST
MONEYGASM
SITUATION IS
DEFINITELY BEING
COMPLETELY
DEBT FREE! YES,
NOTHING RELATED
TO MONEY CAN
GIVE YOU THAT
ECSTASY THAN
WAKING UP ON
THE 1STMORNING
OF THE MONTH
AND REALISING
THAT YOU HAVE
NO EMIS TO PAY!
YES, JUST THINK
ABOUT ITNO
EMIS TO PAY!
DOESNT IT FEEL
LIKE A DREAM?
IT DOESAND
THE COOLEST
THING ISTHIS
MONEYGASM
SITUATION,
ANYONE CAN
ATTAIN IT
IRRESPECTIVE OF
THEIR INCOME OR
NET WORTH!
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WELL STOCKED UP EMERGENCY FUND SITUATION
When we think about emergency funds, we tend to think about it as a short term goal.
Strictly speaking that might be true but its implications and benefits are for much longer term and thats exactly why it features in our top moneygasmic situation list. Our
Top 5 reasons for having a well-stocked emergency fund include:
1. Takes away most of the money related stress, worries and anxiety and provides a
sense of security of having a reserve if you ever get into an tight spot
2. Softens the big blows of unexpected and sudden life events such as job loss or
medical emergencies
3. Features as one of the crucial finance management tools since if one can be dis-
ciplined enough to save for an emergency fund, he/she would be able to save up
for any financial goal that the person might have.
4. Acts as an intermediate source of finance between your income and your inves-
tmentsthat is, the half way mark where you can safely stand and use the money
without disrupting any long term investments that you have
5. Makes the wild stock market swings more tolerable and emotionally less dama-
ging since you always know that your survival would never be at stake a true
moneygasm situation indeed!
A TRULY
MONEYGASMIC
SITUATION WOULD
BE TO HAVE A
WELL-STOCKED
UP EMERGENCY
FUND! WELL,
I DO REALIZE
THAT YOU MIGHT
NOT HAVE BEEN
EXACTLY THINKING
ABOUT THIS, AS
IT DIRECTLY DOES
NOT RESULT IN
ANY ECSTASY
FOR YOU PER
SEHOWEVER,
IT INDIRECTLY
WORKS TOWARDS
KEEPING YOUR
MONEY RELATED
ECSTASY INTACT
AND OVER LONG
TERM! AND IF YOU
ASK ME, THATS
EXTREMELY
CRUCIAL!
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A SECURE JOB
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the race. The vast exposure world wide web and
technological advancements have thrown on
people has complicated
life more than value adding to the same. People
have started dragging
themselves towards the
competitive edge in such
a fast paced manner that
there is no such thing as
a secure job today.
COMPETITION IS
COMPLICATING
THINGS
JOB SCENARIO
TODAY
The world has become
highly competitive. We
live in a professional
era that is absolutely
different from the yester
years. Every moment
matters for succeeding
in career. Anyone who
slacks in thinking for a
few seconds faces the
danger of losing out in
KEY DIFFERENCES
IN APPROACHES
Organizations today work
based on the performance of employee. This
CONCLUSION
There is no single factor
that helps organizations
retain work force for lon-
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TUNING YOURSELF
TO THE FREQUENCY
OF SUCCESS
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When you make a decision, you flip your brain onto a different
frequency. You begin to attract whatever is on that frequency.
~ Bob Proctor
Think like a
successful
person
Fake it till you make it.
Its not just some quote.
Its the truth. Keep saying
something to yourself and
you will actually start believing it and it will start happening. Tell yourself you
are already successful and
it will happen. It is bound to
happen. Read the stories
of successful people who
made it big. Keep yourself
engrossed with success
stories and try to surround
yourself with successful people. You will start
observing that good things
have started gravitating
towards you.
Set yourself to
the frequency
of success
To do that, you will have
to define success in real
quantifiable measure. Dont
think of it as an abstract
concept. Set clear and
precise goals and know
what success means to
you. Dont think of it as
some distant identity that
is impossible to achieve. If
even one person can do
what you wish to achieve,
then it means its achievable. Thats the first step
to setting yourself to the
frequency of success.If you
can do even this much, you
are on the path to success
and achievement.
But, it is important to take
that first step and the
path will keep getting
created on its own. You
will keep figuring things
out and the all the pieces
of the puzzle will slowly
start falling into places.
HOW TO
GROW UP &
GET RICH
STEP 1
Gain Knowledge
About Money
The understanding
and utilization of
money have gone a
revolutionary change
over the decades.
Hence from an early
life do not let your finances be handled by
advisors or your bank.
Rather read yourself
and try to gain the
knowledge about the
dynamics of money
and its investments.
STEP 2
Have Clear
Expectations
It is important to have
a definite and clear
understanding about
what you want out of
your life. The expectations also need to be
realistic and should
be in sync to your own
skills and capacities.
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WHO CONTROLS
WHAT MATTERS
Three things that a human
being must not become a
slave of are people, past
and money. Among these
three things, dealing with
money which is prevalent
everywhere is one of the
toughest things. I provide
here some tips for having
money under your control
so you do not fall under
its control
UNDERSTANDING
THE NATURE OF
MONEY
Money is an omnipotent
force in the world next
only to God. However, it
is the most eluding factor
too. While earning sufficient money is the most
FIRST STEP TO
CONTROLLING
MONEY
The very first step to
controlling your money is
to track in a meticulous
manner the areas in to
which it flows. Every little
expense needs to be
tracked if you want to have
complete control over the
money you have. Create a
tracker that will help your
track your expenses on
a day to day basis. This
will automatically help
you track your weekly
and monthly expense
status. Regularly tracking
expenses will make you
understand the major
areas where your money
is getting wasted. This will
automatically help you
contain spending your money in the concerned area.
INVESTING
PRUDENTLY IS THE
SECOND LOGICAL
STEP
As soon as you recognize
the area where your money
is getting wasted, plugging
MAKE YOUR
MONEY SEEK
YOUR PERMISSION
When you streamline
your expenses, every
movement of your money
happens with your permission. Money starts seeking
your permission to enter in
to a space and exist out of
many. Anyone who cannot
control his own emotions
can certainly not control
his money. Controlling
ones emotions is the key
to controlling your money.
Lack of control over your
emotions creates financial
loss. Be conscious about
the interaction between
your emotions and money
so that you never ever
get under its control. Lack
of money is the state in
which money takes control
over you. Ascertaining
the wastage areas at the
appropriate time and building money in the form you
wish to build will help you
to have complete control
over your money.
HOLD ONTO
YOUR CASH
Plan 1
Plan a long-term
strategy for your cash
You seemed a lot happier when the prices
of stocks were high
and expected it go
higher. Now, that they
are behaving in just
an opposite manner
doesnt mean all is
gone. The rich wont
stress over markets
downturn, although
it would make them
take charge to monitor their savings and
investments and see
they dont lose it..
Plan 2
Monitoring Wealth is
Important
Stash your wealth
whichever way, you
think is suitable,
but keep your eyes
on it at all times.
Keep track of all the
investments so that
you are aware of the
slightest fluctuations
in the market. It will
also help you in maintaining budgets for
future expenses and
investments.. Money
comes to those who
have faith in themselves. So, restructure
your financial portfolio, harmonize with
the markets ups and
downs and never give
up on your dreams to
achieve your financial
goals. Rise, awake
and stop not until the
goal is reached.
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Looking Rich
Vs. Being Rich
THEY SAY SEEING IS BELIEVING! BUT, WE NEED TO ASK OURSELVES,
IS IT REALLY TRUE? ARE THINGS ALWAYS THE WAY THEY LOOK? WELL,
MORE THAN HALF THE TIMES, THEYRE NOT.
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WERE THE
CREATURE OF THE
EYES
We rely on our eyes to
judge/analyze things.
But, when we scratch the
surface, things often turn
out to be completely differently and not how they
looked initially. Thats the
THE MARK
ZUCKERBERG
STORY
Just the other day, Discovery was broadcasting a
show about Mark. It talked
about how his employees
thought that Mark wears
the same jacket again and
again. It was not until later
that the employees at
Facebook found out that
he actually has several jackets that look exactly the
same. An average person
will be thrown in for a loop
hearing this. But, theres a
reason why he wears similar looking jackets every
day. It saves him the time
and the energy that is otherwise wasted browsing
through the wardrobe
trying to figure out what to
wear. Zucker knows that he
only has one item to pick
and so he can save more
time and use it to actually
become rich instead of
looking rich.
RICH PEOPLE
DONT HAVE TIME
TO LOOK RICH
because they
are busy making
money.
By all means, go ahead
and look great! Just dont
always think that good
looks are the definition
of wealth and richness.
Most rich people are
busy making money
and couldnt care less
about what they look like,
because they dont have
anything to prove and
hence dont feel the need
to overcompensate for
things by their looks.
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BANKS SHOULD BE
PAYING YOU,
NOT THE OTHER
WAY AROUND
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Those who
keep saving
money on
everything
We come across many
people who keep saving
money on everything, but
dont think twice before
buying a phone on credit
card. Most of us have
done so, but when you
come to think about it, its
just a phone, it can wait.
Why buy it if you cant
afford it? Save money for
it, and may be when you
actually get to buy it, the
rates already drop to suit
your pocket.. Consumerism has always been beneficial for companies and
End up
worrying
about the
payments
And its not just the money
that we are talking about
here. No. You also end up
worrying about the payments, about the last dates, about the load youve
got on your head. The
more such unnecessary
expenditure you incur, the
more worrisome it gets. It
is draining, exhausting. The
tension you go through
every day, every moment
feeds on y our energy,
your life and your time. You
know the most important
asset we all have? Its time!
Time is an asset that once
spent can never come
back. Make sure you spend
your time on good things,
with good people. Things
that matter, people that
make you become a better
version of you.
TIPS FOR
FINANCIAL
FREEDOM
Tip 1
Team Work Matters
If you are aiming for
financial freedom
and has a family,
your spouse also
needs to think
likewise. As a team,
you need to work
out on your financial
gains and expenses
to reach towards
financial freedom.
Tip 2
Budgeting Is
Important
To curtain expenses
and pay off your
loans, a budget is the
most essential key
to financial freedom.
It gives you a clear
picture about the
money which you
need to spend and
the money you can
actually end up saving.
Tip 3
Start Early
Financial freedom
should be a goal that
should be cultivated
early in life and
hence an attitude
to save money
and make proper
investments at an
early stage and at
regular intervals is
crucial.
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Without knowledge of
what to do with money,
it will be gone
Its one thing to earn money, to earn plenty of it. We know its not an easy
task to do so, but thats not the end of your journey. On the contrary, this
is where your journey reaches its most crucial checkpoint.
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NEVER SPEND
MORE THAN YOU
EARN:
It is plain common sense,
and we would like to
explain with an example.
Suppose you earn Rs.
30,000 per month, and
have a monthly expense
of Rs. 38,000. This would
mean that each month,
you will have a debt of 8
thousand rupees, resulting in a total debt of Rs.
96,000 at the end of the
year. This amount would
be hard to clear up. On
the other hand, if you
spend exactly what you
earn, you wont have even
a single penny to save for
an emergency. If your expenses are less than your
income, you will always
have money to save. So,
make sure your expenses
are always less than your
income, and the lesser
the expense, the more
you can save.
MAKE MORE
MONEY WITH
YOUR MONEY:
People always wonder
how rich keep making
money even while they
sleep. The thing is they
have saved plenty of it
before setting foot towards this goal.
Once you have saved a
good amount of money,
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Cheap cost & good quality
The basic logic about things being available for cheap is that
they are made up of not-so-good components or raw materials. Everyone, after all, is in business. People in business
target to earn profit and do not run a charity show. This being
the case, they invest in producing superior quality products
that would enhance the name of their brand. Their focus is
to safeguard their bottom line and top line. Any prudent businessman would not do anything that would damage the
image and brand name of their products. For this reason,
they use quality material and produce quality products.
This is the justification why one set of people do not go in
for cheap cost products since they know what the quality
of the same would be
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FINANCIAL EDUCATION TELLS
YOU HOW YOU CAN USE THE
TAXATION POLICIES IN YOUR
FAVOR AND HOW TO AVOID THE
BAD DEBT AND USE GOOD DEBT
TO YOUR FINANCIAL ADVANTAGE.
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WHETHER WE
WOULD LIKE
TO ADMIT IT OR
NOT, BUT A HUGE
CHUNK OF OUR
LIFE REVOLVES
AROUND EARNING
AND MANAGING
FINANCES. SO, IT
GOES WITHOUT
SAYING THAT
FINANCIAL LITERACY
IS SOMETHING THAT
WE SHOULD NOT
TAKE LIGHTLY.
e have to
make so many
decisions throughout the life regarding
finances and so being
literate in this particular niche is the only weapon in
your arsenal to make sure
you end-up taking sound
decision. Not just that, its
the only way to discern
whether or not someone
is giving sound advice or
simply trying to scam you.
Take a look at the benefits
of being financial literacy
education
It enables you
to make your
own financial
decisions
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SO, YOU HAVE SPENT MORE THAN YOU EARNED AND NOW YOURE
FINDING YOURSELF BURIED UNDER A MOUNTAIN OF DEBT. THATS OKAY!
WEVE ALL MADE MISTAKES. NO JUDGMENT! HAVING A LOT OF DEBT IS
THE PROBLEM. NOW LETS TALK ABOUT THE SOLUTION.
he thing about
getting out of
financially challenging situations is that you
hear all kinds of advice.
So much so, that after a
point you begin to lose
the sense of whats right
and whats not. You rely
on professional help. You
listen to what experts
have to say. You suddenly decide to become a
mathematician crunching
numbers and calculating
interest rates trying to
make your way out of it.
But, Dave Ramsey - the
famous American businessperson and motivational speaker who helped
countless people come
THE HUMAN
PSYCHOLOGY
According to Dave, the
ability to pay off debt
successfully has many
psychological implications. One of these implications is experiencing
those yes, I was able to
do it moments. You enjoy
that moment when you
are able to successfully
check an item off the list.
For example, say you
owe money to ten people
and make a list of it. Accordingly to this rule, you
begin by paying off the
person you owe the least
amount of money.
THE BENEFIT
OF BUILDING
MOMENTUM
SLOWLY
If you start off by the biggest item on your list, theres a high likelihood that
soon you will start feeling
discouraged and may give-up midway. We human
want instant results. And
not being able to pay off a
huge loan for long could
easily make you frustrated. Before you know, you
succumb to debt fatigue.
But, when you start by the
easiest item on the list,
you start building the momentum slowly but surely.
The step by step success
makes you feel more confident that you are headed
the right direction, and
that what youre trying to
achieve is not impossible.
You feel confident that will
get there.
ACTIVATES THEIR
MINDS REWARD
MECHANISM
What Dave meant when
he said that its not about
math, but about momentum - was that the art of
paying off debt is less
about the math being in
favor of helping you pay
off the highest interest
rates first. People just want
to feel like they have been
able to pay off a loan and
have only few more to go.
For them, the psychological implications associated with list getting shorter
and shorter activates their
minds reward mechanism
by releasing dopamine.
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