MadAbout

Money
April, 2017,
Issue no. 7.
DEVELOPING
A MILLIONAIRE
MINDSET

Schools create employees not Press the right buttons: Desi Finance: See an opportunity
entrepreneurs Earn in leisure and make it happen!
pg. 10 pg. 12 pg. 26
 Mad About
Money Issue no.7

Content 10_Schools create

employees not
entrepreneurs

12_ Press the right

buttons: Earn in leisure

06
The desire to
be rich is as
important as the
14_ Things to do in the
new economy
business model

Dissatisfaction
18_5 reasons why rich
people go broke
can be the driving
force to grow
20_ Developing a
16
wealthy
millionaire mindset

26_ Desi Finance: See

an opportunity and make it
happen!

08
Financial Fears Sure Fire
28_8 Weird Ways to
make money

30_Re-Skilling for the

ones aiming to be rich
Growth Stoppers

32_Get rich, stay rich

34_Diamonds are not
forever - a feature on
declining prices of diamonds

22
Neither this publication nor any part of it
may be reproduced, stored in a retrieval
system, or transmitted in any form of by any

24
means electronic, mechanical, photocopying,
recording or otherwise, without the
permission of MadAboutMoney magazine.

There is a difference Feeling that the All information in MadAboutMoney magazine

between being rich world is mine can is checked and verified to the best of the
publishers ability, however the publisher
and being wealthy lead you to financial ruin cannot be held responsible for any mistake
or omission enclosed in the publication.

2
 Mad About
Money

Editors Note
Welcome to this edition of Mad About Money!
In our previous editions we have talked about the specific
money mindsets needed to get rich as well as the individual
personality traits and habits that rich people have and the
tools they use in order to get there. This edition, as always,
we have something new and unique for you to know and
understand! The answer to the all-important question
What do you do once you get rich?
Like our cover for the edition says GET RICH. STAY RICH.
Yes, thats rightthis edition talks about how to go about
once you have already reached your destination. You must be
thinking that once you get rich, thats the end of your journey
right? The happy ending to all your money problems, and the
I lived happily ever after conclusion to your lifes story? Well
thats far from being true. Trust me, getting rich is just 50% of
the journey. The struggle to keep that money, staying rich and
sustaining your lifestyle is the next crucial 50% of it!
There are too many people in this world who have made
it big in life, gotten rich, only to lose all or most of it later
just because they did not know how to handle it. Specially
for people who have not been born into wealthy families
and are actually seeing so much money for the first time.
Knowing how to go about it and what to do with your money is
extremely crucial and cannot be avoided.
So starting from providing you different weird ways to make
money to stating the top reasons why rich people go broke,
from showing you how to see an opportunity and encash on
it, to making you understand the difference between being
rich and being wealthy, all topics in this edition of Mad About
Money is about sustainability. Sustaining your wealth, your
money. Not just being rich but truly staying rich forever and
after in your financial fairy tale.
So 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 touch that unique magic wand
of mindset change that just makes all this not only attainable in
practical terms but also sustainable for you and your coming
generations to enjoy!. Simply put, if taken in seriously and
internalized with sincerity, it holds the power to change lives and
destinies. Are you up for it? Keep reading and keep getting rich!
Happy reading

Sachin Mittal

3
 Mad About
Money

The Mad Gang who makes

it possible every month

Vijendra Singh, Shravan Giri, Rajiv Ranjan,

Manager Money Craft Creative Technologist Joint Creative Technologist
Giving a tight twist to money Tech at his fingertips Joining forces in troubleshooting

Swadesh Mishra, Anubha Rathore, Dheeraj Kumar,

Officer Out-standing Arts & Crafts Designer Chief Money Scientist
The world in his pocket Designer craft creator Sees the glass half full

4
 Mad About
Money

Akanksha Mishra, Johny Chopra, Soma Ghosh,

Associate Money Scientist Buzz Ambassador Chief Buzz Creator
Hopefully optimistic Spreading the good word Creating the big buzz

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Idea Ambassador Lord of the Ledgers
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5
 Mad About
Money

DISSATISFACTION
CAN BE THE DRIVING FORCE
TO GROW WEALTHY

6

YOU MUST NOT HAVE HEARD THIS PHRASE QUITE OFTEN.
IN FACT, YOU MIGHT NOT HAVE HEARD THIS PHRASE AT ALL.
THE MAIN REASON FOR THIS IS BECAUSE MOST PEOPLE WILL
ASK YOU TO BE CONTENT IN LIFE. THEYLL TELL YOU TO BE
SATISFIED WITH WHAT YOU HAVE AND BE AT PEACE. HOWEVER,
TODAY I WILL TELL YOU SOMETHING WHICH IS COMPLETELY
OPPOSITE. ILL ASK YOU TO BE DISCONTENT IN LIFE IF YOUR
AMBITION IS TO BE RICH AND SUCCESSFUL.
Being content is closely
associated with being ha-
ppy. A philosopher once
studied what happiness
actually is. She says that
happiness is relative and
everyone experiences di-
fferent types of happine-
ss. All these happiness is
not necessarily related to
each other and one kind
of happiness may conflict
with the other. So, in other
words having too much of
one kind of happiness mi-
ght undermine other kind
of happiness, making you
docile and handicapped
in your thinking process.
EVOLUTION:
Lets look at how we
evolved into the most
dominant species on the
planet. We evolved from
being mindless apes to
super intelligent homo
sapiens. From building
fire to building nations, we
have done it all. How did
you think all this happe-
ned? By staying content? I
dont think so.
If humans would have
been satisfied by just
building fire, they would
have still stayed in the
stone age killing animals
and living under rocks.
The inherent nature of
human beings is being
dissatisfied, otherwise
there would have been no
evolution for us, or more
precisely evolution so
fast. It is that dissatisfacti-
on that has made humans
go the extra mile, lift that
extra kilo, move that extra
brick.
Evolution is the biggest
proof that humans have
been dissatisfied through
centuries, and that is not
a bad thing. In fact, that
is the best thing that has
happened to our species,
and that is why we have
come so far.
REVOLUTION:
Dont listen to your peers
or elders or gurus saying
that you should be satis-
fied with what you have.
You should never be sa-
tisfied with what you have,
in fact you should never
be satisfied at all. Make
sure that you stay hungry
to make more and make
plenty. Thats the revolu-
tion I want you all to have
within yourself. Break free
Mad About
Money
IF YOU HAVE MADE
A SIGNIFICANT
AMOUNT OF MONEY
EITHER BY SAVING
OR BY SMARTLY
from the comfort zone, COMMERCIALIZING
get cracking today.
YOUR SKILLS,
If you have made a signi-
ficant amount of money
either by saving or by
smartly commercializing
your skills, it does not
mean you should stop
or you have come to any
sort of an end. It basically
shows what you are capa-
ble of and you should use
HOW TO
it to build your confidence GROW UP
to make more of yourself.
Building your wealth is
AND GET
not a journey from point RICH
A to point B. It sure starts
STEP 1
from point A but there is
not point B, that journey
should never end for you.
If you want to stay rich,
stop taking financial
decisions abruptly.
Revolutionize the way you
The rich are extremely
think! It all starts there.
Being content with what
careful about making
investment decisions.
you have today basically
means you are strangling STEP 2
the hopes of what you
You will find plenty
might have tomorrow.
of investors keen on
Go all in, take risks, make
investing in a new idea
calculated decisions and
or startup. Be fully re-
make your money grow
ady with your proposal
with you. Look at oppor-
with a long view of the
tunities around you, know
turnaround. Leveraging
the market, invest wisely
your credentials and
and quickly. You will be
experience can tip the
surprised how rich you
pitch in your favor.
can be if
7
 Mad About
Money

FINANCIAL

FEARS
SURE FIRE
GROWTH
STOPPERS

8

FINANCIAL
FEAR 1
Financial fear refers to
the fear or anxiety that we
have in life regarding our
finances. One of the most
traumatizing financial fear
that people possess is
that a catastrophe will
happen and drain all my
finances!
Needless to say, this fear
wreaks havoc in many an
individuals mind, limi-
ting him/her in taking
risks or other important
financial decisions in life.
For example, one hears
about someones relative
meeting with a serious
accident and immediately
your financial fear crops
up that what if this hap-
pens to you and all your
hard earned savings and
investments get drained
by sudden unforeseen
medical expenses! You
get traumatized just thin-
king about it!.
Well, the only way to
deal with this financial
fear is consciously and
gradually shifting from
the what if to the then it big and when such
what approach! Simply
put, your strategy should
be to think about what
you could financially do
if such an event does
takes place. Remember,
you will always have
things that are under your
control and beyond your
control. Focus on the
former and gradually let
go of the latter. Always
keep 6 months salary as
an emergency fund and
tell yourself that only by
making little changes in
the factors that you can
control, can the uncon-
trollable factors have less
impact if they happen at
all. Lastly, deep breaths.
Everything doesnt hap-
pen to everybody. Stay
calm and get rich!
FINANCIAL
FEAR 2
Financial fears almost
always keep one from
taking prudent financial
decisions leading to
losing out on great inves-
tment opportunities most
of the time. One of the
most common financial
fears happen to be this
I will lose everything that
I have in the stock mar-
ket!, and needless to say,
people shy away from
investing in the stock
market even in the face
of seemingly very good
investment options.
That is sad. We slog all
our life in order to make
until and unless you give
an opportunity comes,
especially through the
stocks avenue, one shies
away from it just because
of the financial fear. I am
not asking you to put all
your saving in stocks. No,
never. But a well-planned
equity strategy gives you
more ROI than anything
ever can and if someone
cannot take the advan-
Mad About
Money
WELL, THE ONLY
WAY TO DEAL
WITH THIS
FINANCIAL FEAR
IS CONSCIOUSLY
AND GRADUALLY
SHIFTING FROM
THE WHAT IF TO
THE THEN WHAT
CHANGING
YOUR
APPROACH!
MONEY
MINDSET
tage of this just because METHOD 1
of the inner anxiety, then
thats sad. Debts have destroyed
many peoples dreams
So Step 1 Assess your of becoming rich. Hen-
risk tolerance level. Ask ce, it is essential you
yourself how much you keep a close eye on
will be comfortable to your existing debts and
lose in case of a market reduce them to zero as
correction. Lets say its soon as possible.
20%. Once you realisti-
cally think and arrive METHOD 2
at this 20% figure, you
can easily diversify your Our typical middle
portfolio against this class outlook makes
across asset classes and us turn our face away
size of companies, etc. from money. We pre-
Step 2; tell yourself that tend it is not part of our
life so we do not try to
100% of everything in the manage it. This must
stock market, you do not change.
stand a chance to lose
everything. Lastly, always METHOD 3
remember that not
We learn how to ma-
investing in stock market
nage our household
also offers a certain level
expenses basis our in-
of risk since then you are
comes. But we do not
assuming that inflation
try to play the market
will never erode the inte-
and look for alternative
rest on your savings. So
routes to make money.
worry less, earn more!
9
 Mad About
Money

SCHOOLS CREATE
EMPLOYEES
NOT ENTREPRENEURS
Schooling is a system that has been in vogue for many
centuries now. While the methods of schooling might have
differed between periods, the concept has been in existence
across the globe from time immemorial. This concept has
contributed a large number of people to the working class
which has striven hard for the development of the society. The
reality however has been that all efforts of schools culminate to
create employees, not entrepreneurs.

10

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.
Conventional schools
treated the community
around as a separate entity
which was involved only
for commercial purposes
attached to education.
Marks scored by the
students in the exams
conducted by the schools
acted as the basic tool
to assess the level of
CONTRIBUTION OF knowledge of students.
CONVENTIONAL Schools worked more
SCHOOLS like one of the tasks to be
endured by the students
Conventional schools than a value adding place.
prepared students for
living life in a disciplined All the above created a
manner. Students of subservient mentality in
such schools were students right from the
expected to just absorb young age. They grew up
information in a passive with a mindset which was
manner. The teachers highly closed. The activity
acted as the major of fostering thinking did
source of knowledge and not happen at all. Children
information. Parents had grew up like machines
no role to play in a typical which worked in a perfect
conventional school manner as per the given
scenario. instructions.
ENTREPRENEURSHIP
IS A DIFFERENT BALL
GAME
The gap between the
education system and
entrepreneurship is
still huge despite the
developments witnessed
in the schooling systems.
Progressive schooling is
the requirement of the
day. Instead of preparing
students to live life,
schools must become
a part and parcel of life.
Schooling must not
alienate students but
involve them in activities
as problems solvers and
planners. Teachers must
take the role of guides
and facilitators fostering
creative thinking skills
rather than remaining
entities of authority.
Parents must be involved
in the learning experience,
making children learn goal
setting and many more
attributes that will lead
them to success.
Children must be allowed
to take decisions so that
their risk taking abilities
get fostered right from a
young age. Learning must
be approached more
from a pragmatic angle
and must not get limited
to the content in the
Mad About
Money
text books. Knowledge
assessment of students
must be based on
their interactions rather
than just their grades
in the exams. Such
assessments must lead
to progression rather
than being the end point
to define the potential of
students.
CHANGE IN THE
APPROACH OF
SCHOOLS
When the approach of
schools changes and the
community gets involved
in the complete process,
every child will learn
entrepreneurial skills right
from their childhood. No
school or college can
foster entrepreneurial
skills in an exclusive
manner. They can only
teach a bunch of life skills
which can value add to
the students as future
human beings.
Creating entrepreneurs
is the collective
responsibility of many
entities around students.
Let us stop creating
employees in huge
numbers. Employees
create middle income
class of people in the
society. When we focus
in creating more and
more entrepreneurs,
we create a world of
successful business which
will improve the quality
of life we live in a holistic
manner.
11
 Mad About
Money

PRESS THE RIGHT

BUTTONS:

EARN IN LEISURE
Wealth is a passion of the highest order- immortalized by every
nobleman, Patrician, Prince that ever existed. Once the world had
industrialized in the eighteenth century, people had leisure time.
New forms of entertainment sprang up. The smarter people leisurely
invested in leisure goods.
As the Fourth Industrial revolution dawns upon with complex neural
networks, quantum computers, robots, 5-D printers, self-driving cars;
it is time to get smarter! What happens when the Fourth Industrial
revolution disrupts the job market? What shall be your sources of
income and the sources of multiplication of your wealth? Take a
moment to fathom the massive amount of changes that lie before you.

12

SAY THE MAGIC
WORDS AND
ENCORE!
The four magic words
for the fourth disruption:
Press the Right Buttons.
Technology has
transformed the way
financial markets are
organized. FinTech is
the elusive golden hen.
There are no limits to the
growth of FinTech. With
the right software, the right
approach and portfolio,
and the right risk appetite,
you can earn as much as
you want.
Money is evolving with
time. Trading went digital
in the nineties. Now,
currency has gone digital,
transformed by the
revolutionary blockchain
technology. Bitcoin is one
such market disruption.
It would be smart to
use this commonplace
knowledge to advance
your monetary interests in
the currency market. And
this is just the first stroke of
the multiple opportunities
that lay before you in the
leisure time that the fourth
industrial revolution brings
with it!
THE SEDUCTIVE
APPEAL OF
FINANCIAL
MARKETS
Researchers at IBM and
Google have proclaimed
that the entry of quantum
computers in commercial
applications is not far.
The appeal of quantum
mechanics laid in its
weirdness. Simplistically
speaking, a change in
one particle could cause
a change in another
particle across space. This
is exactly how financial
markets work.
Federal Reserve is due
to announce a possible
hike in interest rates this
month. This means a
capital flight from India to
United States because the
dollar is a safer currency
for investment purposes.
Prime Minister Narendra
Modis party wins the UP
elections and the stock
market jumps in joy (pun
intended). Or on a grimmer
note, Lehman Brothers
Mad About
Money
KEEP DREAMING
LIKE LALAJI
BECAUSE THIS
PARTICULAR
LALAJI IS HAVING
THE TIME OF HIS
LIFE!
goes bankrupt and stock AS LAZY AS YOU
markets across the world CAN GET, LALAJI
collapse (a financial
tragedy). There is an old man of
forty. He lives with his
Financial markets are
parents in a rented three-
where sociological,
room apartment in a well-
political, regulatory,
connected part of New
and economic agendas
Delhi. He is unmarried, by
intersect. And hence, a
choice. He is a freelance
popular photograph that
software developer who
circulates around when a
invests in Bitcoins (1 Bitcoin
tragic incident occurs is
= 82089.92 Indian Rupee),
of people staring at the
sold his shares in a famous
building of the Bombay
NBFC today, has a general
Stock Exchange in
store and a shoe shop
Mumbai. So when your
where he intends to install
regulatory authority
the software the popular
decides to decrease
Amazon-go supermarket
the amount of cash a
uses, has bought a
Non-banking financial
three-storey building in
corporation can dispense
the north campus that
for gold, it is time to sell
he rents out to students
your stocks!
and has invested in
With all its complexities, a Exchange traded funds
passion for wealth cannot of the recently floated
exist without a passion for public sector insurance
financial markets. companies.
13
 Mad About
Money

Millennial
Finance

THINGS TO DO
IN THE NEW
ECONOMY
Rachel Green, the legendary character from the show F.R.I.E.N.D.S left
the groom at the altar and ran away from her wedding because she
thought her husbands head looked like a potato. She found a gravy
boat more attractive than her fianc.
Hilarious, was it not?
The show was the lifestyle Bible and still provides solace to everyone
who has ever watched it. As the show progressed, the viewers
realized, Rachel did not leave her fianc because she thought he
looked like Mr Potato head. She left him because of her drive to be
financially independent.

14

BEING RACHEL
The Indian youth has a significant disadvantage in
terms of being financially independent. They live-off
their parents as the latters cultural duty. There is a set
trajectory that life takes, albeit at a different time for
everyone. After school, college, job, marriage, children-
repeat. There is little space for financial independence.
The space for financial independence that should, in theory,
be free from all interferences of culture is actually saturated
with it. The first thing a millennial in India needs to do is:
Leave such a trajectory at the altar because it is antediluvian.
AS INDIA ASPIRES TO BE
BRAND INDIA
The cultural influence on the idea of financial
independence is enormous. Terms such as, middle-
class, simple life, simple needs are not only glorified
but are considered legitimate goals to aspire towards.
Even as India aspires to be Brand India, banking upon
her absolutely gorgeous demographic dividend; being a
depositor, simple, average, middle-class person with a
stable job (a clear misnomer in the twenty-first century)
and small short-term desires are considered noble. Here
is the second thing a millennial needs to do: break away.
The term noble is as antediluvian as the trajectory
mentioned earlier. The contradictions of traditional
simplicity as a goal to aspire towards is not a choice
anymore. The intoxication with the simple, sub-continental
life ended in 1991 and more so in 1993, when the
Securities and Exchange Board of India was established
(more on this in the next issue of Mad About Money).
YOU ARE SO LUCKY!
The world is standing at the cusp of a new beginning.
More than the exciting politics of our times, it is
technology that shall change the manner in which life
operates. Did you know that by 2030, privacy is going
to be a thing of the past with the rental economy in its
full bloom while your morning coffee shall be served
with toast by a robot? (Check out the World Economic
Forums website for more details).
What this means is, you shall have enough money
(hopefully with a basic income if the governments decide
in the affirmative) to invest. The cardinal choice that you
shall make 10 years later is not which course to study,
but which skill to invest in!
Mad About
Money
THE THIRD THING A
MILLENNIAL NEEDS TO DO
Lucky to be born in such exciting times, are we not?
So, the third thing a millennial needs to do: Skill up, and
then diversify. The term interest area or specialization
as we know it today will undergo huge changes in the
new economy. For instance, Political Science, Research
methodology, Python (or its grandchild) in Data Sciences
and Economics or Eugenics, Nanotechnology, Quantum
Mechanics and Financial Market shall be ONE skill.
The change is evident in the new MOOCs one can find online.
Mass production of skills is history! Robots have it covered.
And that gives the Millennials of today an unprecedented
opportunity to be the risk-takers, history-makers!
UNO, ZWEI, TROIS!
A successful investment banker who works in the city of
London leaves his job to start a juice bar that also sells
quinoa in central Delhi. Be ready to hear more stories of
the kind because profit, money, quality, passion and drive
to succeed is going to converge in emerging economies
like India.
Our advice? Invest, invest in this new form of
sustainability! Uno (success), Zwei (knowledge) and Teroi
(happiness): nothing is more real in the new economy
than these three virtues.
In our subsequent issues, we introduce you to the
options that are for the risk takers, the ones with the
appetite for more-than simple. So the fourth thing a
millennial needs to do is: subscribe to Mad About Money!
SKILL FOR THE TWENTY
FIRST CENTURY
Let us leave you with a problem that requires emotional
intelligence and critical thinking (an indispensable skill
for the twenty first century):
You start earning via freelancing as a writer/developer.
You earn your first income, i.e., twenty five thousand.
It is not much. But it is your first. You have your eye
on a new range of hair products by the ever-fantastic
Body Shop. You have been longing for it. The money
is in your account. You have three options: set up a
professional website to showcase your work, invest in a
SIP (systematic investment plan) or purchase the ginger-
castor-argon hair care range that you have longed for a
year. Ponder away!
15
 Mad About
Money

THE DESIRE TO

BE RICH
IS AS IMPORTANT
AS THE

BUSINESS
MODEL
Napoleon Hill, a Great
Depression-era author and
former advisor to President
Franklin D. Roosevelt in his
famous book Think and Grow
Rich stated that thinking about
being rich is as important as the
act of making the money for
being rich. You must have come
across thousands of personal
finance books on the shelves
these days you will find hundreds
of titles on how to spend less,
how to save more, how to invest
better, how to retire early, how to
get out of debt faster so on and
so forth. But the most important
thing all these books fails to
mention is taking the first step
get the desire to be rich first.

16
 Mad About
Money

YOU MUST BE THINKING HOW IS DESIRING TO BE RICH CAN BRING YOU

RICHES. SIMPLY WISHING SOMETHING DOES NOT MAKE IT MAGICALLY
COME TO LIFE. ITS TRUE, YES. WISHING TO BE RICH WONT BRING YOU
RICHES. BUT DESIRING WITH A SOLID STATE OF MIND WILL MAKE IT
INTO AN OBSESSION, AND THEN YOUR MIND WILL PLAN DEFINITE WAYS
AND MEANS TO FULFILL THAT OBSESSION, MAKING YOU RICH AND
SUCCESSFUL.

TODAY ILL EXPLAIN TO YOU FIVE VERY SIMPLE STEPS THAT WILL
TURN YOUR DESIRE OF BEING RICH TO ACTUALLY BEING RICH AND
SUCCESSFUL. AND THESE STEPS MUST BE INTEGRAL TO YOUR
BUSINESS PLAN BECAUSE THESE STEPS WILL ENSURE A SMOOTH
JOURNEY FROM THE DESIRE TO REALITY.

Step 1:
Spend some time alone
and fix the exact amount
of money you desire.
Create a benchmark for
yourself. It is not enough
for you to say something
intangible like I want a amount cant be an
lot of money or I want intangible number, same
plenty of money. You with the date. You need
have to have a tangible
amount in mind and be
definite to the imagined
amount.
Step 2:
Now comes the very
important next step.
Determine exactly how
much you intend to give
in return of getting the
imagined amount of
money in future. You have
to realize that there is no
such fact as something begin immediately. Once
for nothing. You must you have the plan, start
be ready to sacrifice and
toil for reaching your
monetary goal. How
much will you sacrifice
and toil is entirely upto
you, but remember,
your effort is directly
proportional to the
results.
Step 3:
Now establish a definite
date when you want to
possess the money you
desire. Like the desired
to have a target date fixed
in your mind so that you
have a clear path laid in
front of you, a clear path
with a deadline. Without a
deadline, there is no way
for you to reach your goal,
on time.
Step 4:
Now what you need to
do is create a definitive
plan for carrying out
what you desire, and
without further delay.
Once the plan is set, its
set. Whether you are
ready or not, get on with it
immediately.
IF YOU COMPARE IT
Step 5:
PERSONAL FINANCE
The final step of the plan
is basically a culmination
of the last four steps.
Write down a clear
concise statement of the
amount of money you
desire to acquire, the time
limit for the acquisition,
your intention to what
you want to give for the
money, and the entire
roadmap of your desired
acquisition. Now what you
need to do is read out the
written statement aloud,
twice daily. Once right
before bed at night and
once in the break of the
morning.
IT MIGHT SEEM LIKE A
PRETTY BASIC PLAN
TO ALL THOSE HEAVY
GUIDES YOU READ,
BUT BELIEVE ME
THIS IS WHAT ALL OF
THEM COME DOWN
TO. THEY JUST COME
WITH A LOT OF BELLS
AND WHISTLES
BUT THEIR ENTIRE
MATTER SPEAKS
OF THE STEPS I
MENTIONED ABOVE.
SO START DESIRING
TO GET RICH TODAY,
BECAUSE THAT IS
THE FIRST STEP TO
A PLAN THAT WILL
ACTUALLY MAKE
YOU RICH AND
SUCCESSFUL IN
YOUR LIFE.

17
 Mad About
Money

5
REASONS WHY RICH
PEOPLE GO BROKE

BEING RICH DOES NOT NECESSARILY MEAN YOU HAVE FINANCIAL EDUCATION. SO WHEN
PEOPLE SAY THAT WHEN I GET RICH ALL MY MONEY PROBLEMS WILL GO AWAY, THEY
HAPPEN TO BE FAR AWAY FROM THE TRUTH! THE FACT IS, WITH MORE MONEY COMES
NEWER PROBLEMS AND WITHOUT PROPER FINANCIAL EDUCATION, YOU CANNOT KEEP
THE MONEY WITH YOU. LOTTERY WINNERS GOING BROKE, MILLION DOLLAR WORTH
ATHLETES GOING INTO DEBT, EXAMPLES ARE NUMEROUS ALL AROUND. THE REASON
BEING THAT ONCE PEOPLE HAVE MONEY, THEY DO NOT KNOW WHAT TO DO WITH IT!
HERE ARE THE TOP 5 REASONS WHY RICH PEOPLE GO BROKE:

18

NOT
GROWING UP
WITH MONEY
Individuals who have not
grown up seeing money,
and have become rich
later on in life, do not
have a clue as to how
to handle it. Either they
stash the money away
in bank accounts or lose
it in unwise gambling,
etc. Him/her neither
having a past of handling
huge sums of money,
nor having the right
financial education ends
up not doing anything
constructive with it.
Hence, the proverb
Money does not
make you rich, financial
education does.
THE
EMOTIONAL
EUPHORIA OF
IT ALL
Lets face it, money gives
a different sort of a high to
people. Individuals start
thinking they are very
clever and everything
that they are thinking is
right while in reality they
act more stupid then
they think! Feeling that
the world is mine often
leads to people spending
all their money on luxury
that they have always
dreamt of, losing it all in
the process.
LENDING AND
DONATING TO
LOVED ONES
When you have a lot
of money, it becomes
very difficult to say no
to loved ones, friends
or family who are a little
sort of cash right then.
Infact people cant even
say no to themselves
and spend money on
excessively expensive
things so saying no to
loved ones also becomes
very difficult and you cant
stop yourself from going
further into debt with
more money!
INVESTING
WITHOUT
FINANCIAL
EDUCATION
When people become
rich, by default they
think themselves to be
extremely financially
savvy! This is of course
the worst possible
mistake to do! It might
well be the case that they
OUR TYPICAL MIDDLE CLASS OUTLOOK
MAKES US TURN OUR FACE AWAY FROM
MONEY. WE PRETEND IT IS NOT PART OF OUR
LIFE SO WE DO NOT TRY TO MANAGE IT.
THIS MUST CHANGE.
Mad About
Money
suddenly got lucky and
got rich! So when you get
assets in the future. Bad
expenses on the other
rich, you start investing hand are expenses that
in whatever comes your you use to buy liabilities
way, whatever you feel that eat up your money
would work without without producing any
the right education and asset. Houses, cars,
analysis. But remember, etc are all actually
just because you can bad expenses since
afford to make big realistically speaking,
investments doesnt all they do is gobble up
mean you should make your money without really
them and lose all your producing other assets
fortune in the process. for you.
Again, getting financially
educated is the right way
So now that you know how
to go!
rich people go bankrupt,
time to hit those brakes!
NOT Step back, take a look at
what you have and then
KNOWING THE get yourself financially
DIFFERENCE
educated so that you can
use your money to make
BETWEEN more money, instead of
blowing it all up! Best of
GOOD luck! Stay rich. Stay happy!
AND BAD
EXPENSES
Individuals usually make
more bad expenses than
good ones, especially
when they are rich. The
difference between the
two is simply that good
expenses are used to buy
assets that create more
19
 Mad About
Money

DEVELOPING
A MILLIONAIRE
MINDSET
MILLIONAIRES ARE
MILLIONAIRES TODAY
OWING TO THEIR HABIT
OF TAKING GOOD CARE
OF THEIR MONEY. THEY
PREFER TO GET RICH IN
A SLOW AND STEADY
MANNER, RATHER THAN
IN A FAST MANNER. THE
KEY DIFFERENCE IS IN
THE MINDSET.

20

Wealthy people think about
their financial position for an
average of three to four hours
per month. On the contrary,
self made millionaires who
have put in their flesh and
blood in making money, think
for approximately thirty hours
and more about their finance
every month. This mindset
fosters the habit of prudent
decision making pertaining
to money every time the
same needs to be spent or
invested. This mind set yields
profitable results giving
financial freedom in a slow
but steady manner.
Wealthy people think about
their financial position for
an average of three to
four hours per month. On
the contrary, self made
millionaires who have put
in their flesh and blood in
making money, think for
approximately thirty hours
and more about their finance
every month. This mindset
fosters the habit of prudent
decision making pertaining
to money every time the
same needs to be spent or
invested. This mind set yields
profitable results giving
financial freedom in a slow
but steady manner.
Dont ever lose money.
Millionaires have financial
habits that help them multiply
their money. They never take
time to think about investing
the money. They usually take
a long time to investigate
about the investment options
where their money is going
to be parked. Financial
decisions taken under the
pressure of self or someone
else usually tends to misfire.
Financial decisions taken in
urgency can result in loss of
money. Consider investment
opportunities as buses that
keep coming one after the
other. For all you know, many
a times, money not invested
in the wrong option is money
saved from loss.
et
ds
3
Min
set
ind
2
M
dset
1
Min
Negotiate hard to increase the
value when you sell something.
Mad About
Money
Learn to negotiate hard.
Never wait depending on
Millionaires value every
luck. Your financial position
penny of theirs. Negotiate
is like a bird in your hand.
hard and pay as little as
Do not look at the two birds
possible when you buy
on the branch to come in to
something. Negotiate hard
your hands by luck. You may
to increase the value when
lose the one in hand too.
you sell something. Develop
Remember, luck favors the
the habit of consciously
ones who try hard.
monitoring every penny that
goes out of your pocket.
Remember, every negotiation
saves or fetches you that
extra penny which matters
if you want to become a
millionaire.
Insure your earnings. Dont
get blocked by the usual
mindset which considers
Insurance as a waste where
et money lies idle. Insuring
ds
4
Min
safeguards you during
situations when you are
caught unguarded.
et Becoming a millionaire is
ds
5
Min
a combination of traits like
thoughtfulness, courage,
persistence and character.
As the saying goes, slow and
et
steady wins the race.
ds
Min
6
21
 Mad About
Money

FEELING THAT THE

WORLD IS MINE CAN
LEAD YOU TO FINANCIAL RUIN

22
 Mad About
Money

WORLD IS MINE generations to follow, you push in the new start-up

FINANCIAL RUIN should sit back, plan and business, a sudden medical
NECESSARILY SYNDROME judiciously and intelligently emergency, a marriage, the
FOLLOWS FROM WHAT IS IT? categorize your spending list is endless. You might
BEING FINANCIALLY When you suddenly get your so that some goes towards suddenly feel bad if you
WELL-OFF IN THE hands on a lot of money, be it such things but mostly the do not help them out in
FIRST PLACE. THIS an inheritance or a lottery win money is used to make their times of need when
MEANS THAT IF YOU or even a business deal that more moneyso that the you possess so much
went the right way, you feel entire corpus doesnt dry money. Well, sadly this
THINK GETTING
that the world is yours! It can up and you can sustain your is yet another sure shot
A LOT OF MONEY
be of course, but you need to new standard of living! way towards financial ruin.
WILL REDUCE
strategically plan for it! The Such benevolent acts
ALL YOUR MONEY feeling per se can do more unknowingly spiral out of
PROBLEMS THAN damage than good and more
YOU TEND our control and honestly,
UNFORTUNATELY than often leads to complete TO BECOME most of these you will
YOU ARE HIGHLY ruin! Lets see why and how. GENEROUS perhaps never get back.
MISTAKEN. RICH TOWARDS THE Even if you do, it would
PEOPLE GO BROKE WORLD: be without interest or any
YOU TEND TO
TOO AND STARTING After your inner need to other kind of ROI.
FROM MULTI-
OVERSPEND ON
show the world that you
MILLION DOLLAR YOUR DREAMS: are rich, comes the next
Lets face it, when you So the world is mine feeling
WORTH ATHLETES dangerous need the need can eventually make you
suddenly win a lottery
TO LOTTERY to be generous towards a popper again if you dont
and feel that the world is
WINNERS, THERE your near and dear ones. step on the brakes now.
yours, what do you do?
ARE NUMEROUS Many of your dear friends Remember, the world can
You go around splurging it
EXAMPLES ALL or family might be short be yours only and only if you
on things which you have
of cash and in some kinds can sustain this money. Get
AROUND US WHERE always dreamt of but could of a problem which would yourself a financial planner,
PEOPLE WHO HAVE A never afford. That luxury get sorted if only there categorise your money, divide
LOT OF MONEY WERE bungalow, the sports car, was a little money. A little it into chunks of savings,
EVENTUALLY NOT perhaps a world trip? So
investments, debt payments
ABLE TO HOLD ON basically you just splurge
and spending and then sit
TO IT, RESULTING IN it all off and get back to
back and sip on that drink
FINANCIAL RUIN IN where you started from!
finally you have done your
THE PROCESS. Nothing can be sadder.
best to make the world yours.
If and when you have a
SO WHY DOES THIS chance of changing your
HAPPEN? WHY DO life forever and maybe the
RICH PEOPLE GO
BROKE? AND WHY
CANT PEOPLE
HANDLE MONEY
WHEN ONE HAS
IT? THE ANSWER IS
SIMPLE THE ALL
TOO TYPICAL AND
USUAL NOW THE
WORLD IS MINE;
SYNDROME.

23
 Mad About
Money
THERE IS A DIFFERENCE BETWEEN
BEING RICH AND BEING WEALTHY
THE OTHER DAY I RAN INTO AN OLD FRIEND,
WHO COMES FROM INDIAS ONE OF THE
BIGGEST RETAIL CHAINS- BIG BAZAAR.
WITH A LOT OF DISMAY, HE TOLD ME THAT
THEIR PRIME LOCATION IN SOUTH MUMBAI
WAS BEING SHIFTED TO A SUBURBAN AREA,
WHILE THE FORMER LOCATION WAS GIVEN
AWAY TO THE GLOBAL LIFESTYLE BRAND,
H&M. THE IDEA WAS THAT H&M WILL CATER
TO UPMARKET CONSUMERS LOCATED IN
SOUTH MUMBAI.
IT WAS A PREMIUM LUXURY BRAND,
DISPLACING A MASS BIG BOX RETAILER, BIG
BAZAAR. IT LEFT ME WONDERING ABOUT
THE STATUS OF LUXURY GOODS MARKET IN
INDIA. ARE THERE ENOUGH LUXURY GOODS
CONSUMERS? CONSUMERS BUY FROM H&M
BECAUSE OF ITS VALUE PROPOSITION OR
IS IT BECAUSE THEY WANT TO LOOK RICH
WITH THE PREMIUM BADGE ASSOCIATED
WITH H&M?
24
Ostentatious
display of
wealth
The truth is, Indians love
to flaunt their money.
They do not shy away
from ostentatious display
of wealth. Marriages are
one such platform where
one can witness Indias
ramp walk on who is the
richest show. Well, its not
such a bad thing. If you
got it, you will flaunt it.
Who doesnt want luxury
and other shiny things in
life?
There is a strong interest
Indias consumption in luxury goods. The tags
story of luxury goods
has changed drastically.
There is an increase in
appetite for luxury goods
amongst consumers.
Number of High Net
worth Individuals
(millionaires) in India
have increased and
data suggest that
luxury market in India
has been growing at
unprecedented levels
(currently valued @$18.5
billion).
Strong interest
in luxury
goods
have become important
for people. H&M stores

are opening and other
global luxury brands
are setting their foot in
Indian market. High-
end perfumes, jewelry
and handbags remain
consumers favorites.
However, there are many
reasons to feel downright
glum about this market
ebullience.
Mad About
Money
Take for example- You
want to buy Mercedes-
Benz. There are two ways
you could go for it. You
A WEALTHY can directly buy this car
or you can carefully invest
PERSON LOOKS FOR in a short term stock,
OPPORTUNITIES from which you can get
TO GROW HIS good returns and from
those returns you can
ASSETS SO THAT HE buy a Mercedes-Benz

As the consumption
COULD PAY FOR HIS for yourself. A wealthy

of luxury goods is LUXURIOUS WISHES. person will choose the

increasing, consumer
behavior is also
undergoing a drastic
change. Consumers are
continually relinquishing
their conservative Indian
avatars, and having a
hard time controlling their
spending spree. Indias
average household debt
(amount of money all
adults in a household
owe to financial
institutions) has been
continually rising without
fail for 5 years. In their
attempts to flaunt their
money and look rich, wealthy the same. With
these riches are in actual
losing their true wealth.
Person who
wishes to be
little less rich now. I am not suggesting that
To the rich it may not
matter if these are poor
investments, but to a
person who wishes to be
wealthy, it should. Wealth
doesnt impress anyone. It But purchase them by
seeks freedom. Freedom
to buy anything one
wants without losing on
prior money.
If you take into account
ones balance sheet, you your wealth
may find both rich and
all the hard assets in
store of rich, the rich may
look even richer than the
wealthy one. But, is he?
latter. Being rich is lucky,
staying rich is strategy.
you keep your money Choice
intact or dont spend it
on things that you have
between
longed for. Purchase creating
them. Invest in luxury
goods all you want.
wealth and
spending it
keeping an attitude of a
wealthy person, not a rich Ever heard, Money
person. How? Lets see. creates money? Its true.
How to flaunt Money works round the
clock. It doesnt do any
good by lying in cash
without chests and nor does it
spending on it? grow by spending on
depreciating luxury
Warren Buffet invests in assets. It needs to keep
permanent assets such moving. One needs to
as roads, electricity and
railways. He chooses
keep investing it for

wealthy Put more them because new

When you spend on a
Louis Vuitton bag or an
Armani Suit or Mercedes-
Benz, you are not being
wealthy, you are being
rich. Why? See, it from
the point of view of a
smart investor. Sure,
you will look rich with (even when it comes
these, but in reality,
you have bought these
depreciating assets by money on a liability by
trading your money for it.
So, you have just become
money in his technologies and
coffer inventions may get
replaced by newer ones
The difference between and old stocks may
rich and wealthy is a go down, but roads,
simple one. A wealthy electricity, railways, etc.
person looks always for are some permanent
alternative ways to put assets which wont go
more money in his coffer down so abruptly.
to buying), while a rich A wealthy person looks
person may just put his for opportunities to grow
his assets so that he
taking money out of his could pay for his luxurious
coffer. wishes.
it to multiply. Money
needs your nurturing
and acknowledgement.
A wealthy person well
understands this.
Dont be a pretender
spender. Flaunt away
your money in limited
edition watches, cars and
handbags, but take a little
longer route and create
more wealth for fulfilling
your whims and fancies.
Be a smart spender!

25
 Mad About
Money

Desi Finance

SEE AN OPPORTUNITY
AND MAKE IT HAPPEN!

26

WANT TO HEAR THE
THREE MAGIC WORDS
THAT SHALL MAKE
YOU POP OUT OF
YOUR CHAIR: YOU
ARE BROKE. THAT IS
OUR VANTAGE POINT
FOR THE REST OF
THIS ARTICLE. YOU
ARE BROKE IN NEW
DELHI/MUMBAI (PICK
YOUR CITY) IN 2017.
WHAT DO YOU DO?
WALKING AROUND
IN DELHI YOU SHALL
FIND MANY MARKETS,
SCENARIOS, AND
OPPORTUNITIES.
DESI FINANCE IS
ABOUT THE THIRD:
OPPORTUNITIES.
S
tanding in the land
of unexplored
opportunities in
an ecosystem of
people who want to spend
but do not know where to
spend it is an entrepreneurs
dream. My NRI friend Aryan
just got back to India from
London mesmerized by the
quinoa revolution. Quinoa
is the staple diet for the
Latin Americans. Rice is
to India what Quinoa is to
Latin Americans. It is hailed
as the hallmark of success
for globalization. Over a
cup of coffee in the market
complex opposite IIT Delhi,
he asked me:
You have no idea how
unexploited Indian markets
are. I just wish I could start a
quinoa revolution in India. Do
you think it is possible?
Being the patriotic Indian,
I replied, No Aryan, you
should not do it. We live in
India. We should promote
domestic grains like barley,
maize and Bajra. Why
should you import a grain
from South America and sell
it in India?
No is the favourite word for
novelty
No is the favourite word for
novelty. If you hear No to
something in India, you are
doing something novel. And
not everything novel is not
worth pursuing. My friend
Aryan started importing
quinoa from a dealer in
London, started selling it on
Amazon and approached
me to file a collective bid
for a franchise restaurant
based in New York. He saw
an opportunity and he made
it happen! The Baap of all
protein foods is now catching
on in India.
Let us go back to our
vantage point now: Imagine
you are broke. You have no
money. You are living with
your friend in the suburban
area of Rohini in Delhi. You
have no money. You pick
up a job as a restaurant
manager near your place
and now, you have to
make money. You cannot
borrow and in this particular
scenario, your parents are
not an option.
The cultural baggage of
financial dependence is
shed. What are you going
to do? Scenarios like this
provide perspective on
the importance of financial
independence. We are lucky
to be born in a culture where
it is an obligation for familial
systems to coexist financially
but this is a matter of luck
and not a privilege. And that
is as much as luck as we
should lead ourselves to
believe we have.
Money is not only for the rich
It is empowering to be
financially independent.
Money is not a sin item.
Money is money. It is an
enabler. Money, contrary to
what populist narrative would
have you believe, is not only
for the rich or stratospheric
entity you cannot achieve.
Looking out for the correct
opportunity at the right time
is the basic characteristic
of an entrepreneurs mind.
Not only should you be
able to gauge the dynamic
of the market, but win the
hearts of your consumer. You
should be able to crunch
data into comprehensible,
implementable ideas that
are not only self-sustaining
but increasingly profitable.
But prefixing all that with
an I can do it attitude
is extremely important.
Whatever you do, your
cause, your product or your
service has to be able to
transform into a tangible
entity that can promote itself.
The comparative advantage
is against you when you
are starting a business or
investing your money in one.
The first hurdle that you
have to cross is a no. It is
hard. But it is surmountable.
How do you deal with
an audience whose first
response to a product
is no? My broke friend
decided to open a caf. He
took a personal loan and I
loaned him the rest of the
money. He got the design
ready, the menu ready; he
had all the right ideas. We
were looking for a space.
Indians are prudish, he said
brooding. We were standing
Mad About
Money
near a chole-kulche stall
opposite PVR Prashant Vihar.
The patriot in me revolted.
How dare you say such a
thing? It is blasphemy. Indians
are honest and humble.
People with simple needs.
Internet is a human right now
Well, simple needs is a
flimsy concept. Needs
change with time. Internet
is a human right now. I think
it should be a fundamental
right, like equality. A
hundred years later, it will
be a need simple need to
own a Tesla electric flying
car. I am trying to sell them
gold at the price of Channa
and no one wants to buy it. I
am selling them smoothies,
coffee, juices, a detox diet
and all organic! In a foreign
country, it would sell in a
jiffy! But here, choosing the
right spot is a nightmare.
And whenever I tell one of
the people here the menu,
they freak out and taunt me
by showing me fresh fruits.
How is one supposed to
start a business here?
The patriotic fervour toned
down a bit. My broke
friend, I said lovingly,
You are looking in the
wrong direction there. PVR
Prashant Vihar sees a daily
footfall of students, couples.
It is a movie hall. The idea of
relaxation for people here is
a movie and a pizza. I took
my friend to a hospital. Well,
outside a hospital and we
rented the ground floor.
That is where we run our
successful caf called,
Swastha Bharat. (The patriot
in me could not resist that
name)
Now, dear reader, would you
be interested in working on a
project of a grand seven star
apartment on TRAPPIST 1?
27
 Mad About
Money

8
WEIRD WAYS
TO MAKE
MONEY
HOW MANY TIMES HAVE YOU STORMED
INTO YOUR ROOM, LOOKED FOR A LITTLE
CASH HERE AND THERE, TURNED YOUR
POCKETS INSIDE OUT AND EXCLAIMED
WHY ON EARTH DO I NEVER HAVE
ENOUGH MONEY?! IF YOU ARE READING
THIS ARTICLE, CHANCES ARE, THAT
A LOT OF TIMES! WELL, FOR ALL YOU
FOLKSHERE ARE THE TOP 8 WEIRDEST
MONEY MAKING WAYS FOR YOU TO GET
A HIGH ON!

28

1.Sell your
photographs
Almost all of us have a
DSLR now and what we
all do with it is go click
happy, taking snapshots
of whatever we fancy and
of course our vacation
snaps! Well, organiza-
tions pay huge sums
of money to buy well
composed photographs
from online sites for their
webpages, blogs, etc. So
go put your photographs
on sale!
2. Become a
life model
Being a ramp or a com-
mercial model might
need a lot of hard work
and effort..including ha-
ving the right height and
body type, but unknown
to many, being a life
model for painters, scul-
ptures, etc are not only
a good thing for artistic
reasons but it also pays!
Such life modeling needs
all types of body shapes
and sizes, hence however
you are you can definitely
life model for art!
3. Sell your hair
Next time you get a
haircut, try and earn
some money for it! Hair
is always needed for
making wigs and other
theatre disguises, etc. So
you can sell your hair to
earn some money!
4.Become
a hangover
helper
As weird as it may sound,
life is all about identifying
opportunities around you
and encashing them!
All of us have had those
mornings with severe
hangovers where you
cursed being alone and
thought only if there was
someone to do this, give
that, help me get over
the hangover, etc. Yes, so
if you happen to live aro-
und a student communi-
Mad About
Money
ty, become a professional So get hold of your dart
hangover helper in the set and go earn some
locality! cash!
5.Give Product 7.Sell a secret
Demos language:
Starting from malls to big In todays day of what-
fairs, from corporates to sapp, messenger and
individuals, brands are all the social networ-
always on the lookout king apps and features,
for people to give their having a code language
product demo to win the the code to which only
mindshare of their poten- you know and the person
tial target group. So be you share it with, is a
it the latest smartphone novel and romantic way
with some cool featu- to make communication
res or a household item interesting! Rack your
like a roti maker, giving brains a little, invent a
product demos are easy secret language and go
cash right there! sell it and its code key!
8.
6.Organize Become a
Games in Sales face painter in
Meets front of a kids
Marketing, sales meetin-
school
gs, be it a product launch If you have drawing ta-
or a distributor meet, are lent, want to earn cash by
always about inviting having fun, nothing like
a group of people and carrying a set of brushes
then making them happy. and paint to a childrens
Usually organized in five school during the eve-
star properties, there is ning holiday hours. One
always a need for fun kid gets his/her face pa-
and games arrangement inted and you are done!
outside the banquet Get ready for atleast an
during the waiting hours hour of painting, laughter,
etc when distributors can happiness and of course
have fun and win prizes! fast cash!
29
 Mad About
Money

RE-SKILLING
for the ones
AIMING TO BE RICH
30

I
f you are an ambitious
business owner or an
individual who aims to
be rich, you must realize
the importance of re-ski-
lling yourself or your
business or your work
force. Re-skilling not only
enables you to stay at par
with the industry but also
gives you the power to
TODAY ALL provide quick innovative
solutions to the constant
BUSINESSES
problems arising from
FACE MULTIPLE
day-to-day business
CHALLENGES affairs.
ON ALL FRONTS
MAINLY BECAUSE You snooze,
OF EVER you lose
DYNAMIC MARKET
Understand this, the de-
ENVIRONMENT. mand and expectations
WHATS from your customers are better. In this process,
HAPPENING NOW in a constant rise and it
IS BUSINESSES will keep on increasing.
Only way to keep up with
DEMANDING
their increasing expecta-
ADVANCED SKILL tions is getting re-skilled
SETS BECAUSE time to time. You snooze,
THE NATURE you lose.
OF THE WORK Re-skilling means acqu-
IS CONSTANTLY iring new skills, which
CHANGING AND when combined with
GROWING. THE your understanding of
your domain gives you
CONCEPT OF RE-
the power to surge ahead
SKILLING HAS in this fluctuating market.
HOWEVER HAVE Re-skilling gives you
BECOME THE the power to adapt fast,
CENTRAL FACTOR as fast as the market is
FOR MAINTAINING
moving and that is going
to give you the edge
THE BUSINESS your competitor will lack.
MOMENTUM. Re-skilling is a smart
move, a move you must
make if you ever want to
be rich and successful.
We have extensively tal-
ked about the why part, must enroll yourself into
now lets talk about the a program. A program
how part. Heres a simple will help you develop
7 step program that will
help you or your business
re-skill effectively:
EVALUATE:
Your primary first step
is to evaluate the pain
points in your business.
Evaluate carefully to find
out the shortcomings
and how things can be
a continuous process. It is
you will discover certain
traits and abilities have
been left out, you can
then add them with your
re-skilling abilities.
IDENTIFY:
In this step what you
need to do is identify
your skillset and your
performance gaps.
Conduct assessments
and surveys to determine
what you know and what
you need to know to
achieve your goals.
DEVELOP:
What you now need to
do is develop a re-ski-
lling program for yourself.
You can either do this
yourself or take special
help form re-skilling con-
sultants. Either way, you
updating yourself.
skills you currently dont
Mad About
Money
possess right now, and
learning these skills will
help you fill the gap you
have in your business
right now. Invest in a
re-skilling program, its
highly recommended.
PLAN AHEAD:
Remember, re-skilling is
not a one-time thing. You
might acquire a re-ski-
lling program that will
enable you to fight your
current shortcomings but
what about tomorrow?
You need to plan ahe-
ad and keep training
yourself so that you stay
ahead of the times, not
let the times stay ahead
of you. You must mainta-
in a timeline where you
can periodically re-skill
yourself and always plan
ahead for the future.
Reskilling is often
a matter of neces-
sity in the business
world. If you want to
be rich and stay rich
you must make sure
that you must learn
new skills and keep
31
 Mad About
Money

CREATE AN APP, INVEST IN MARTIAN

POTATOES AND CORIANDER:

GET RICH,
STAY RICH It is said that change is the only constant. A successful
individual employs tactics to exploit change to get rich,
stay rich. A young man of about eighteen creates an app,
sells it to a Chinese multinational, invests in a project that
shall grow a variety of potatoes on Mars, uses the profits
from this ego good to finance his investment in premium
quality coriander grown in Gujarat and buys exchange
traded funds floated by the government of India and
purchases a farm in the outskirts of Delhi to engage in
peri-urban agriculture.

32

H
e then uses his constant income to purchase
an urban space on the twenty second floor
of a building in Mumbai which he divides in
half to rent out to a restaurant and set up a
recreational centre for an ageing population.
What you just read about is the dream life of a millennial
in 2030. This is also the way wealth is created, retained
and multiplied; by exploiting all opportunities that appear
with changing times.
THE POLE STAR OF THE
CORPORATE WORLD:
MONEY
As technology changes the way we do things, it is
essential to re-skill. This re-Skilling should not be merely
about learning to code for big data or consulting, which
are going to be base level requirements for most jobs of
the future.
Re-Skilling for the ones aiming to be rich involves
learning to identify opportunities, embracing failures,
moving on, starting again and walking through the maze
of challenges of a changing society to get rich.
Ambition has to be navigated using the pole star of
the corporate world: money. Once you have reached
your destination to stay profitable; navigate faster. In a
changing world, it is paramount that you embrace all
opportunities that come your way. If Elon Musk had
continued working for PayPal, the explosive entry of
SpaceX and disruptive forces of Tesla would have never
happened. Intelligent navigation through the stormy
waters of business involves being an adept captain:
The vision is as important as the model.
A talented employee is your best investment.
Break-even should not elusive forever.
You are the golden asset for your business. Listen to Risk appetite: Idle wealth is worthless in practice
the market, listen to your employees (look at them like
consumers of your product) and rely on data. Data is
called the new oil for a reason.
Never ever ignore an opportunity to expand.
But navigate using the pole star only!
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Money
HOW DO
ENTREPRENEURS
STAY RICH?
Ever noticed how some people do not work, but stay
rich? One word answer to how that happens: Financial
markets. They have been around since the first
entrepreneur invested money in the first ship that sailed
from Europe to explore the world for commodities that
could be sold in the home market for a huge profit.
The fixed deposits, treasury bills, National savings
schemes, IPOs, ETFs, derivatives, futures, bonds, mutual
funds, pension schemes; these are a part of the financial
market. The intimidating jargon is only so in appearance.
It works fairly simply: recently the futures of Coriander
on an Indian stock exchange regained value in the wake
of demand for premium Coriander in foreign market.
Coriander is a part of the commodity market. Had
you purchased a future of coriander for six thousand
rupees last sowing season, you would earn rupees nine
thousand from it this month.
Did you know the savings interest rate that you gain
when your money lies idle in the bank is a derivative of
the manner in which financial markets operate?
Three things you require to stay rich:
Hawkish eye (which is a trait acquired by experience)
Awareness of the limits to your risk appetite
Once you have mastered the above mentioned mantras
of wealth awareness, get on and sail on the ship to
explore the treasures that lay hidden in the sea of
constant change! Bon Voyage!
33
 Mad About
Money

THIS MONTHS FEATURE STORY

DIAMONDS ARE NOT

FOREVER - A FEATURE
ON DECLINING PRICES
OF DIAMONDS
Diamonds are forever Definitely one of the most popular
proverbs used by the marketers. Well, practically speaking, it
is quite a hard stone so it will probably last for a long time. But
financially speaking? Is it durable in nature? Will it hold good or
increase in value over the years? If we look at the data of the past
30-40 years or so as well as the current diamond price index,
unfortunately, diamonds are probably not forever as is claimed.

34

A BIT OF A BACKGROUND:
A popular diamond industry benchmark, the Rapaport
Diamond Index, states that the prices of top quality
diamonds have gone down by as much as 80% in
the last 35 years. And this collapse is real time, in
inflation-adjusted terms. For example, if a diamond
cost $6000 in 1978, as per the index it costs around
$11,000 now. Even though this might look like an
increase, but if one was to adjust it against the
inflation, then the stone has actually lost about half its
value in reality!
Diamond prices had again picked up during 1980,
but after the market crash in that year, it reached
lows and from then have not really gone up again.
They have kept up with the inflation, but if one
was to include all the related costs brokers fees,
commissions, retail percentages, insurance costs, etc
then the prices are still very much in the abyss. As a
comparison, people who had invested in government
bonds or stock-index funds, have multiplied their
money several times.
THE RECENT PAST:
Going a bit forward, if we look at our recent past, just
9 years ago, world famous diamond producer De
Beers opened Snap Lake - its celebrated landmark
project in Canada which was their first underground
diamond mine outside Africa. By 2014, $2.2bn
had been spent on development and operations.
However, not even a single diamond is now produced
at Snap Lake and last year, the mine was closed
along with a massive 400 job cuts. The family
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Money
responded that they are facing the worst diamond
market downturn in years.
This temporary close down of the mine basically
sums up the issues faced by the diamond industry in
current times. The downturn gained momentum last
year and has resulted in considerable financial pain
for all stakeholders including miners, dealers as well
as retailers.
THE CURRENT PRICE FALL:
Coming to the present, according to Rapaports report
in January 2017, the average price of 1-carat diamonds
fell by 5% and of 3-carat diamonds by 8.5% in 2016.
In the Indian context, after PM Mods Demonetization
move on November 8th, where high value bank notes
were illegitimated, diamond sales suffered all the
more in the fourth quarter.
Since demonetization wiped out 85% of money
in circulation, orders from local jewelers faced a
huge dent. Domestic Indian demand saw a huge
fall in demand even with the wedding season and
valentines season being at the forefront. Average
price of half carat diamonds and one-carat diamonds
fell another 4.8% and 3% respectively in the fourth
quarter. Only the 3-carat diamonds were seen to
hold their stand with a 1.4% price rise over this period.
Rough diamonds faced the same fate as that of their
polished counterparts.
Thus, it can be safely concluded from past data that
irrespective of what marketers say, diamonds might
not be a womans best friend after all, and definitely
are not forever!
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