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MadAbout

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

Dont let EMIs become your biggest


financial trap
pg. 14

In the modern era there is no


such thing as a secure job
pg. 20

Without knowledge of what to


do with money, it will be gone
pg. 30

MadAbout

Money
MadAbout

Money

Issue no.4

Content

08

06

A comfortable
life will never
make you a
millionaire

What can damage


your prospect of
becoming rich?

12_Wealth comes those

who believe in themselves

14_ Dont let EMIs

become your biggest


financial trap

16_ Money cant buy

happiness, but what can


poverty buy?

18_Moneygasm - ectasy
money related

20_ In the modern era

there is no such thing as a


secure job

22_Tuning yourself

to the frequency of success

24_ Control your

expenses or your expenses


will control you

26_ Looking Rich


Vs. Being Rich

28_ Banks should be

10

Never rely on a
single income to
make you
a millionaire

paying you, not the other


way around

Cover story:

04

Money is not everything, but you


need plenty of it before thinking so

30_ Without knowledge


of what to do with money,
it will be gone

Neither this publication nor any part of it


may be reproduced, stored in a retrieval
system, or transmitted in any form of by any
means electronic, mechanical, photocopying,
recording or otherwise, without the
permission of MadAboutMoney magazine.
All information in MadAboutMoney magazine
is checked and verified to the best of the
publishers ability, however the publisher
cannot be held responsible for any mistake
or omission enclosed in the publication.

MadAbout

Money

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!

To put this in the


current perspective,
8th November 2016
might have come that
morning like any other
day but it definitely left
with a bang! Almost two
months now, towards
a new and constantly
changing cashless
economy, the only
statement that can
perhaps hold true about
each and every citizen
of India is everyone is
currently Mad About
Money, specifically
cash! So right from the
government down to the
average young student,
everyone is mad about
one single thing right
now and thats money!
In this issue too we deal

with money itself as


a core asset, what it
means and stands for.
More importantly, it
will be about each and
every facet that drives
us crazyhow to earn
it easily, how to have
it more, how to save it
better, how to invest
it to grow, but more
importantly, and here
lies the difference, how
to change our mindsets
so that all this happens
by default and much
easily!

Our lead story this


edition is quite an
interesting read where
we talk about looking
rich vs being rich. Since
we all want to become
rich, have we ever
questioned ourselves
whether we want to
look rich because we
want people to think
we are rich, or whether
we want to be rich so
that we can look rich.
Which do we want
more? Which is more
important to us? Which
is more important to
people who are already
rich and successful?
The Tatas and the
Zuckerbergs of the
world? What do they
do? How do they spend
their time? In being rich
or looking rich? More
importantly, does one
necessarily define the

existence of the other?


Interesting elements to
assess from a mindset
perspective isnt it?
Our lead story in our
inaugural edition is all
about this and much
more.
To conclude, Mad About
Money is here to talk
about everything to
do with money that
draws your attention
and passion, but in a
different way, with
a slightly different
touchso that unique
magic wand that just
makes all this slightly
more attainable in
practical terms.
So keep reading and
keep getting rich!

Sachin Mittal

MadAbout

Money

The Mad Gang who makes


it possible every month

Vijendra Singh,

Shravan Giri,

Rajiv Ranjan,

Giving a tight twist to money

Tech at his fingertips

Joining forces in troubleshooting

Swadesh Mishra,

Anubha Rathore,

Dheeraj Kumar,

The world in his pocket

Designer craft creator

Sees the glass half full

Manager Money Craft

Officer Out-standing

Creative Technologist

Arts & Crafts Designer

Joint Creative Technologist

Chief Money Scientist

MadAbout

Money

Akanksha Mishra,

Johny Chopra,

Soma Ghosh,

Hopefully optimistic

Spreading the good word

Creating the big buzz

Associate Money Scientist

Buzz Ambassador

Abhijit Banerjee,

Ahmed Ansari,

An idea for a song

Tight fistedalways

Idea Ambassador

Lord of the Ledgers

Magazine designed by:

Chief Buzz Creator

Dillip Rout,
Account-ability Officer

Wire | Digital Creative Agency

MadAbout

Money

Money is not everything,


but you need plenty of it
BEFORE THINKING SO
You do know who said these words, right? The richest man on earth
Bill Gates! This coming from the richest person on the planet - it must
mean something.

MadAbout

Money

THERES NO DENYING THAT MONEY IS


NOT EVERYTHING. BUT, ITS DEFINITELY
SOMETHING. YOU CANNOT DENY THE
FACT THAT YOU NEED IT FOR SURVIVING.

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

time we hear statements


like these - that disapprove
money/wealth it hits us
on a subconscious level.
Unknowingly it moulds
our mind into creating a
negative attitude towards
wealth.
Thats precisely why its not
uncommon for many people to feel guilty for being
able to afford certain things
financially and for their financial success - that most
people dont have.
This type of negativity
towards money/finances
is bound to affect you in
some way or the other
and discourage you from
putting your best efforts to
achieve financial stability.

Our minds may


be free, but we
are bound by
the matter
Sure, money is not something that you need for feeling joyful. You know - the
kind of joy you feel when
you see you kid getting
good grades, or the kind
of joy you get by helping
someone. Our emotions
including fear or happiness dont accept credit
cards. But, we are bound
by our physical needs. Our
mind may be free to think
whatever it wants to as it
doesnt really understands
the monetary terms, our
bodies do rely on the power that comes with being
financially sound and
having enough money; for

it needs safety and security. We do need a home,


good food to survive, and
clothes on our body.

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.

It forces us into finding


out who we are and
what our true calling is. And, all that
requires efforts. But,
because we want to
stay comfortable and
lazy, we give ourselves excuses with statements like money
is not everything and
we dont need it, when
clearly you do need it
even if just to get by.
So, next time you find
yourself thinking that
you dont need money;
make sure you have
earned enough of it.

MadAbout

Money

A comfortable life
will never make you

A MILLIONAIRE

Your dream a bungalow or a mansion, top luxury cars in


your garage, multi-million dollars in your bank account, a
private plane that you can take to anywhere in the world.
This is your dream but the rich are already living it. In fact,
they are so accustomed to it that it is a normal lifestyle to
them. This is where you, a daily wager, needs to reach. You
will know it when being rich becomes a habit rather than
choosing to be wealthy.

MadAbout

Money

ts all about the mindset - the way you


think, the way you see
life, the way you see
opportunities and the
actions you take.

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

engage in self-improvement techniques, make


the right choices and
embrace good habits,
you will know that you
are on the right path. If an
average person continuously seeks to improve
themselves by all means
at their disposal, circumstances will automatically
turnaround, creating an
abundance of wealth
and prosperity. Hence it
proves, that those who
cry over spilled milk are
responsible for it. They
should stop victimizing
themselves in the name
of destiny and luck.

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

you move away from negativity and remain within


the positive mindset.

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.

The gist of the matter is,


reason the reason that
stops you from doing
what should be done to
achieve your dreams.
The moment that feeling
pops up I cant do it
do it. Charm yourself up,
polish up and have the
rich for your company,
learn, and get rich.

MadAbout

Money

WHAT CAN DAMAGE


YOUR PROSPECT OF
BECOMING RICH?
There would definitely a question that always strikes the mind
of entrepreneurs: why am I not becoming rich? As much as the
question is important, the answer to it holds a higher precedence.
10

MadAbout

Money

ottery winners. They


win a huge sum of
money just like that,
and lose it just the same
way. Now think about other
entrepreneurs, the investors, the people who play
a calculative yet adrenaline
laden game. These people
get rich, and then they
lose money, but they earn
it all again. These people
make others wonder if
getting rich is a matter of
destiny and luck. This is
the question that must be
answered. We know its
not possible to answer this
question perfectly, but we
are here with the best that
we can. After all, thats all
that matters. Its not about
being absolutely right, its
about knowing where we
can fail and how to overcome it, not avoid it. You
cant avoid risks, you learn
to take risks and turn them
into your favor.

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.

Learn from the


habits of the
rich
Your habits should take
you towards wealth,
success and healthy mind.
Success is not a onetime
event, its a habit, so if you
want to be wealthy, make
your habits that match your
vision. Start with inculcating a habit of saving. The
best idea is to spending
money after saving a
certain amount, rather than
spending money beforehand and then saving the
rest, chances are, there
wouldnt be any money
left to save at the end of
the month.Learn from the
habits of rich people, and
adapt them. You can either
work for weekends, or
work for a car, or a house.

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

this trait in your benefit too.


Just delay the unnecessary
expenditures and events
that need your time but
arent important. As they
say, Lamborghini doesnt
advertise because the
people who can afford it
are not watching television,
they are making money.

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.

11

MadAbout

Money

Never rely on a single


income to make you
A MILLIONAIRE
What did he do to become a millionaire? This is a common feeling that
most of us experience in our life at one point or the other. We see many
of our contemporaries moving forward faster than us when it comes to
finance. Even people who have regular savings habit do a self-introspection
every now and then to understand why they feel like stagnating in a single
point for a long time.

12

MadAbout

Money

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

WHY INCOME FROM


MULTIPLE STREAMS
IS A MUST
Before we venture into the
importance of multiple
streams of income, it becomes inevitable to understand why it is so. We live
in a society in which no job
is as secured enough as
it was in the yester years.
Almost 80% of the population relies on the income
that is generated from
their job to run a livelihood.
When the job is lost, life
comes to a standstill which
is a high risk situation.
Health care and Education are two aspects that
are highly important in

everyones life. These two


aspects are the costliest
ones too. Most of us lead
a life in which we are not
able to pay cash for our
purchases, particularly the
high end ones like furniture, car or house. Buying
things using cash remains
a dream most of the times.
We accumulate debts and
repaying them swallows
most of our income from
a single stream namely
employment.

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

Invest a portion of your


income in real estate.
Let your first investment
on real estate be on a
property rather than a
land since property is
capable of generating
income earlier than plots.

the same. Ensure this


business doesnt steal
much of your time which
you need to spend on
your regular job. Let
this venture fetch you
income that is an addon to your regular one

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

If your office works only


five days a week and
your weekends are at
your disposal, think of
ways that will de-stress
you and at the same
time fetch you some
extra income. If you are
good at singing and
music relaxes you, start
taking music class for
children in your vicinity
during weekends. This
will earn you the much
sought for name, fame
and money. If you
can coach children
on games, utilize the
weekends which
will become highly
productive and relaxing

If you have enough


income to balance your
savings versus leading
a comfortable life,
invest possible amounts
in small businesses
assessing the profit
earning capabilities of

We would insist you to


think When there are
multiple streams available
for spending why not create the same for earning?

MAKING MONEY WORK FOR YOU


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 you've 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.
Burden off your Money
Get rid of all the debts and let your money breathe. If you want your money to work for you, this is a crucial step. Debts
could emerge due to various reasons like people investing their money without researching well in stock markets,
buying and selling real estate or having loans on credit cards, etc. Not only are these factors strenuous, but extremely
hard to overcome. So, your budgeting should also include clearing all kinds of dues at the earliest to have
some breathing space regarding the cash inflow.

13

MadAbout

Money

WEALTH COMES THOSE


WHO BELIEVE IN THEMSELVES
14

MadAbout

Money

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.

Average people live beyond their


means. Rich People live below theirs.
Steven Siebold

LET YOUR MONEY


BREATHE
Get rid of all the debts
and let your money
breathe. If you want your
money to work for you,
this is a crucial step.
Debts could emerge
due to various reasons
like people investing
their money without
researching well in stock
markets, buying and
selling real estate or
having loans on credit
cards, etc. Not only are
these factors strenuous, but extremely hard
to overcome. So, your
budgeting should also
include clearing all kinds
of dues at the earliest
to have some breathing
space regarding the
cash inflow.

PUT YOUR MONEY


WHERE IT GIVES
YOU MONEY
Stack up your cash in a
high-yielding savings
account. Your money will
generate more value as
it sits there. A high-yield
saving account offers
attractive interest rates
that make your money
grow. There you go, your
money just doubled itself
without you having to

intervene. Though risky,


stock markets are a great
place to invest and to doubling your money. Invest
your money in profitable
and growth accustomed
companies and organizations as these business
entities are valued higher.

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.

15

MadAbout

Money

Dont let EMIs

become your biggest

FINANCIAL TRAP

Home loan EMI check, Car loan EMI - check, Personal


Loan EMI - checkthe list is endless! The reality of todays
households is centered around everyone trying to keep
their heads over the host of EMIs that they need to pay out
every month!

16

MadAbout

Money
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.

eedless to say, for


manythe amount
spent on monthly
EMIs has gradually become greater than their monthly income! The result?
Resorting to the plastic
in the wallet for making
purchases, and worse, for
withdrawing cash.
In short, unchecked debt
increase and thereafter
fatter and fatter credit
card bills do nothing other
than dig deeper pits for
you and your family. And
dangerously this is too
common a story today!
What one needs is a well
thought out route towards
being debt free. Dont let
EMIs become your biggest financial trap!

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

should go into EMIs that


are non-mortgage loans
or fall under discretionary
spending. However, this
does not mean that EMIs
for good debts in huge
proportions every month
is financially healthy!
There are umpteen no
of examples where car
loans or personal loans
get rejected for people
with good debts such
as home loans, but with
monthly EMI amounts
that are more than two/
third of their net 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


HAPPINESS, BUT WHAT
CAN POVERTY BUY?
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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.

ait, if you are


starting to think
that I am the
mean minded miser who
only counts money and
doesnt care about anything else, thats far from
the fact. I am very much
the balanced person who
values both the little happy and romantic nuances
of life, values hard work as
well as believes in living
comfortably.
Infact, Im probably a little
too balanced or practical
than many and thus have
a problem with that above
statement. I mean why
this misplaced negativity
about money? The statement is all too common
and if I may dare to say
so, an all too common a
justification for the lazy
who would not want to
use their potential in doing something worthwhile
(assuming they have it).

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

on a congested cosmopolitan city with people


with plastic smiles all
around. Okay, but what
about when your little
house needs repair and
you cant afford it and the
roof eventually caves in?
What about the times
when your loved ones fall
sick and you cant pay to
save them? What about
the times your kids want
better education or to
pursue their passion and
you cant support. Money
might not buy happiness
all the time, but lets face
itneither does poverty
and in far lesser instances than the former! Isnt
it always better to be
rich than poor or let say
better to be working and
aspiring towards a comfortable life style rather
than justifying being poor
and helpless?

WHAT YOU
SHOULD BE
DOING INSTEAD
Trash that proverb! Yes I
mean it! Such negativity is not needed in life,
really. Be practical. You

need money in life to be


comfortable and to be
happy. It might not be
your main focus in life but
you need it and it does give
you happiness. The first
paycheck gives you happiness, the first gifts you buy
for your parents give you
happiness, your first house,
first car, that occasional
vacation with your loved
one from your hard earned
savingseverything gives
you happiness.

So lets just get


real hereour focus
needs to shift from
justifying being lazy
and not thinking
about money, to accepting that money
does make a difference and is needed
and focus on your
work and more importantly your savings and investments
that you make from
it, for real happiness
and peace in future!

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COMPLETE DEBT-FREE SITUATION


If you want to make most of your finances, being debt free is not even an option, its a
dire necessity! You can argue that there are good debts and bad debts like the home
loan EMI vs credit card for shopping debate, but keeping aside that for the time being,
its a fact that any kind of debt ultimately negatively affects your income and drags it
down. My top 5 Moneygasmic reasons for going debt-free include:
1.

Being in complete control of your income in its entirety an incredible feeling!

2. Having more money to save, invest and hence, to spend!


3. Removing the big BUT from your finance related statements. Eg I earn Rs. X per

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.

So what are you waiting for, in life...go debt-free n be stress-free!

20

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!

MadAbout

Money
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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In the modern era


THERE IS NO
SUCH THING AS

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

ven jobs that fell


out of this category
were considered
safe if people worked in
the same place for many
number of years. People
performed these jobs in
a monotonous manner
which in turn made them
feel highly safe and
steady. This scenario persisted for many decades
emphasizing the relativity
between the duration
and job security.

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

The speed in which the


world is moving today
has inculcated a thought
process that is totally
opposed to the earlier
day thinking. Today, the
longevity of service is no
more related to security
of the job being done.
Performance parameters have become highly
stringent for every role
in organizations. Peoples performance levels
are being assessed in a
periodical manner irrespective of the duration
of their association with

the organization. These


performance standards
mostly depend on the
business expectations
from the concerned market and the performance
of the Competitors.

KEY DIFFERENCES
IN APPROACHES
Organizations today work
based on the performance of employee. This

Organizations today work based on the


performance of employee. This calls for
constant up-gradation of ones skill sets to suit
market standards from time to time.
calls for constant up-gradation of ones skill sets
to suit market standards
from time to time. Unlike
the olden days, people
no more stick to jobs in
organizations beyond a
point of time. Being with
organizations depends
on the growth prospects
that it is able to provide to every employee.
People quit organizations
very frequently for higher
money and positions.
Today, Employees expectations from a job are
typically the money they
earn and experience they
gain out of being on rolls.
No emotional or psychological bonding gets
created between employees and organizati-

ger duration of time. As


long as one performs and
business requirements
are being met, he is on
the job. The moment
when these factors go
for a toss, the job is out
of hand. This approach of
the organizations as well
as the individuals has
created a scenario today
where there is no such
thing as a secure job.

ons relieving them of any


commitments towards
each other. Once an employee feels he is ready
for the next level, he
jumps job without setting
any expectations on the
job security aspect.

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

MAKE THE LAW OF


ATTRACTION WORK IN YOUR
FAVOR. YOU KNOW WHAT
THEY SAY - YOU ATTRACT
NOT WHAT YOU WANT,
BUT WHAT YOU ARE!
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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

his famous quote


by one of the most
successful people
on earth gives away a
lot than meets the eye
about finding and achieving success. These are
pearls of wisdom which
if applied rightly can set
into motion a series of
actions that will definitely
lead you upto success.
If you want to tune into a
particular channel on the
radio, what do you do?
Of course you adjust the
radio button accordingly,
dont you? You do that to
set the radio to a certain frequency; the one
that matches with the
frequency of the channel.
As soon as you can do
that, you start downloading the information from
that channel.
Well, guess what! Human
mind is quite like that
radio you use to tune into
various channels.
Now its up to you to decide which frequency you
set your mind to. A miserable person sees misery
in every situation. A happy
person sees happiness in
every situation. The same
way, a person with the mindset of success sees it in
all situations around him.

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.

Make the law


of attraction
work
Theres nothing you cant
achieve if you really set
your mind to it. But, of
course you have to be
sure about what you want
and the fact that you really
want it. Just wishing for
something is not enough.
You have to believe in it.
Believe that success will
come to you, and it will.
Make the law of attraction
work in your favor. You

know what they say - You


attract not what you want,
but what you are! if you
are successful in your
mind, you will start attracting it in everything else
as well; whether you mean
entrepreneurial success,
success in relationship, or
success materialistically.

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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Control your expenses


or your expenses
will control you

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SOME THINGS NEVER CHANGE IN LIFE. THEY REMAIN SO


CONSTANT THAT WE KEEP STRUGGLING TO HANDLE THEM IN
A PROPER MANNER. ONE SUCH THING THAT CAUSES ISSUES
OF DIFFERENT TYPES IS OUR FINANCE.

inance is the cumbersome happiness


which can turn our
life in to a pain filled hell.
The main reason for this
is that our income comes
through a single path
while expenses continue
happening vide many
side roads. If expenses
do not get controlled at
the right time every time,
we will inevitably come
under its control sooner
or later. Control your expenses or your expenses
will start controlling you

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

difficult thing in the world,


spending happens automatically. Money never
stays in a place but keeps
flowing from one space to
another constantly in an
effortless manner

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

the loopholes needs to be


done immediately. Divert
the money that was going
for a toss towards prudent
investments and savings.
This will help you control
your moneys movement
in the direction you want it
to move.

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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ut, look closer.


Look at the biggest
millionaires. Look at
Bill Gates. The guy is the
definition of geek. Look
at Mark Zuckerberg. Its
hard to think of a nerdier
looking person than him,
and yet hes the youngest
billionaire in the history.
The guy virtually controls
everyones life around the
globe. Something to think
about, isnt it?

BUT, CAN YOU


REALLY TELL
THAT BY THE WAY
THESE PEOPLE
LOOK?
Imagine someone coming
from an alternate dimension, who knows nothing
about the people on the
earth. Do you think they
could describe a persons
personality who they
are purely based on
their looks? Chances are
slim to none!

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

power of deception. The


entire advertising industry
has been long exploiting
the power of deception to
lure the customers in. You
pass by a bakery shop
and all the items are presented in an alluring way
to catch the customer
attention. But, we all know
that most of the stuff that
looks good on the surface, doesnt necessarily
taste that good. The same
way, just because someone appears to be rich
looking outwardly, may
actually be buried under
a mountain of debt.

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.

If you were given a choice between


looking rich and being rich, what
would be your pick? Different
people will have their own pick.
FACEBOOK AND
INSTAGRAM the
game of deception
based on looks
Its hard to imagine any
other platform that could
better describe the game
of deception involving
looks than these leading
social media channels. Do
you really think people
actually look the way they
try to portray themselves
on Instagram and Facebook? We all know how
sometimes people that
we meet on everyday basis sometimes look like an
entirely different person
on Instagram all thanks
to the countless filters
and effects available.
Just because a person is
relaxing near a swimming
pool or near a beach doesnt mean that, that person is having the time of
his life. People only show
what they want to show,
and not the truth.What we
see on Instagram are only
the highlights of peoples
lives. Try to catch them off
guard someday relaxing
in their PJs and youll see
what they actually look
like. The same concept
applies to looking rich
and actually being rich.

Its not to say that the two


are mutually exclusive.
Meaning if you are rich
then you would look ugly
or that all broke people
look good. Its just that
the two dont necessarily
define each other.

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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Sounds radical, right?


But no, this is not a
radical thought; rather
this is how it should be.
If you want to maintain
healthy finances, this
isthe only possible way.

BANKS SHOULD BE
PAYING YOU,
NOT THE OTHER
WAY AROUND
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ee, the basic idea is


that if you are spending more money
than you earn, you are
losing money. If you plan to
do something big with your
career, or your life, you
need to make decisions
that can, and will curb your
basic desires. Whats more
important for you, the car
you want to buy, the house
you need to purchase, the
investment you need to
make to start your own business, or that pair of funky
shoes? Is your weekend
party more important than
the dream vacation you
always wanted but couldnt materialize because
of budget restraints?

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

banks. You buy expensive


phones with money you
dont have, and end up
paying a good amount
of money to the phone
company, and even a
larger amount to the bank
as an interest.

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.

Plan your life


according to
your aim
Sounds like a lecture, right, no, this is a life lesson.
This is a lesson that many
people learn the hard way.
You need to plan your life
according to your aim,
according to your ultimate
objective. Phones, expensive clothes wont leave a
lasting mark. Every phone
becomes a thing of past,
every expensive cloth
gets out of fashion. Stop
paying banks money that
you dont have to impress
people that dont even
matter, especially at the
cost of your goals. Read a
quite somewhere couple
of days ago: Lamborghini
doesnt advertise because
people who can afford it
dont waste time watching
television.
Yes, that television can
wait. If you can afford to
buy either a Smart TV or
go to a vacation with your
loved ones, we dont need
to tell you which one you
should choose. Make
memories. Smart business
owners know this; its high
time you should also join
the league.

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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THE WAY YOU


SPEND, MANAGE
AND INVEST YOUR
MONEY LEAVES
A PROMINENT
IMPACT ON YOUR
LIFE, AND EVEN
THEN, MAJORITY
OF SCHOOLS
DONT TEACH YOU
THESE SKILLS.
ALTHOUGH
THE MARKET IS
FULL OF EVER
CHANGING
CONCEPTS, BUT
THERE ARE SOME
RULES THAT JUST
NEVER CHANGE.
THEY ARE CALLED
THE BASICS, AND
THEY FORM THE
FOUNDATION OF
ALL OTHER RULES.

ets take a look at


these rules, otherwise you will never
know what to do with your
money, and youll keep
losing it.

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.

We all have heard that good old quote, Money


begets money, right? As much as it sounds like
honey to the ears, it takes effort and wisdom to
make it a reality.

PLAN FOR THE


FUTURE:
And we are not talking
about retirement here.
Remember all those car
ads where they ask you
to make a down payment
now and start giving installments from next year
onward, youve got to be
sure that you will be able
to make those payments.
If you are not sure, let go
of the deal. On the other
hand, if you invest in an
accidental cover plan for
your car, you will have
your expenses covered
in case of such unwelcoming emergency.

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,

invest some part of it in


high interest investment
account. But never ever
empty all the money
from your low interest
standard savings account. Always save enough
amount of money so
that you have something with you in case an
investment doesnt work
out. See, the first thing
that you must know, and
we are sure you do, is
that the trends of money
making have changed a
great deal. But the basics
havent changed a bit.
Yes, there are higher
paying jobs; there are
more growth opportunities, in current times. But
keeping your expenses
lower than your income,
investing part of your saved money will always be
a good advice. And never
blow up your paycheck
the moment you get it,
think about our future
and plan accordingly.

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JUST BECAUSE SOMETHING


IS CHEAP DOESNT MEAN ITS
WORTH THE COST
We live in a society which has two types of people in it. While one set
of people is highly cost conscious, the other is highly quality conscious.
There have been opinion clashes between these two classes of people all
throughout history. People who are highly quality conscious feel threatened
to go in for cheaper priced things. This is due to the inherent fear that low
cost things will not be of good quality.
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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

Quality and cost go hand in hand


Some people swarm in to buy products that are cheap in
cost just for the happiness the possession of the product
provides. Certain others buy cheap cost products knowing
that they can enjoy those things for very short periods of
time. Another psychology behind buying cheap cost products is to show off the possession of products in front of
the green eyed monsters around them. One more aspect
that makes people buy cheap cost products without bothering themselves with the quality is to experience variety
from time to time. The other thinking pattern of people
is that the price of the products are purely based on the
brand name it is associated with most of the time. All these
theories act as the logic behind ways of thinking that make
people compromise on the quality of products.

If the low cost means bad quality


Before taking the decision to buy a cheap cost product, just
think if the low cost means bad quality or superior value. Value and quality are always proportionate to each other. We do
not get anything in this world without sacrificing some other
thing. We cannot get anything we want in this world, without
letting go off something else. This is applicable for cost and
quality of the products too. If you want to go in for a good quality product probably you may have to compromise of the
cost. This will certainly be worth the buy. However, if you are
cost conscious and want to stick to a budget, then you are
automatically compromising on the quality many a times.
While the final decision whether to compromise on cost or
quality is purely yours, remember, just because something is
cheap doesnt mean its worth the cost.

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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.

Financial education helps

you know the difference between

GOOD AND BAD ADVICE

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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

You know the


difference
between asset
and liability
You may think you already
know the difference, but
believe it, most people
dont. For example, its
common to think that your
house is an asset when in
fact its not. Heres why
its not helping you earn
any money. If anything, its
only draining you off of it.
Taxes, mortgages, what
not! You have to pay these
things. A rental property

on the other hand is


putting money in pocket.
So, there you have a true
asset. Financial knowledge and literacy helps you
understand such difference. With that knowledge,
you know whether youre
being offered sound financial advice and whether or
not you actually stand to
make anything out of it.

For example, anything


related to oil exploration, affordable housing,
etc. are the areas where
government cuts back
on taxation. 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.

You know the


difference
between good
debt vs. bad
debt

It enables you
to make your
own financial
decisions

Not all debt is bad. Most


financial advisors are seen
advising people to avoid
the debt. But, they wont
tell you to avoid the bad
one. And, its easy to start
to blindly follow any advice if you dont understand
such nitty-gritties.
Examples of bad debt would be going on vacations
or buying luxury items
using credit cards. But,
using banks money to buy
a rental property is actually the good kind of debt.
You are not using your
money to invest in the
property and the rent you
will receive each month
will easily make up for the
debt. The same goes with
taxation. Smart investors
who are well-educated
financially know that government offers relaxation
on various investments.

Theres no such thing as


a tough or easy question. Either you know the
answer or you dont. When
you know the answer,
question seems easy and
if you dont, its challenging. The same goes for
making financial decisions.
If you know what hand
youre being dealt with,
you make good decision.
Otherwise, you rely on
outside help for making
financial decision. And as
long as you rely on somebody else, you can never
be fully sure of whether
youre being offered good
advice or bad.
Therefore, do make it a
point to stay abreast with
the latest goings on of
the financial market and
keep reading finance related stuff to increase your
knowledgebase.

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PAYING OFF DEBT IS ABOUT


MOMENTUM, NOT MATH!

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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

out of debt successfully


says that - you dont have
to be a math expert or a
financial guru to have a
plan to get out of debt.
According to him, people
should pay off their debts
from smallest to largest.
Its not really so much
about mathematics, as
its about building the
momentum.
Lets understand what he
actually means by that,
shall we?

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.

Just the act of knowing


that you have one less
person to deal with is
enough to make you feel
as if a huge baggage
has been lifted off your
shoulder.

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.

Starting off with the


smallest loans and
gradually moving
towards bigger items
reduces the likelihood
of debt fatigue happening. So, that should
pretty much explains
how you can exploit
human psychology in
the favor of bidding
your loans goodbye.

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