SECRETS OF WEALTH CREATION
SHOULD ONE BE FRUGAL ??
Living life is
miserable, if you hate your job and can’t afford to quit because you can’t miss
even a week without pay.
If you live below your means and save 10% of every
paycheck, you’ll have a very good cushion for emergencies within a year. In 5
years, you’ll have roughly 6 months salary saved - that takes away a lot of
stress and worry.
Once you learn to live frugally, it becomes a bit of
a game. I know which is the cheapest (and good quality) restaurant in my area,
which store has the cheapest groceries and which store saves me the most on medicines.
I take out cash at the beginning of the month and see if I can stretch it for
the whole month. I drive a well maintained 5 year old Nissan Sunny that looks elegant.
I am member of Cawnpore Club and hence prefer to use the services of the club
to the fullest. Clubs, offer the best and very low cost luxuries facilities to its
members, I invest the money so save in mutual funds and have been patiently
multiplying even the small sums of the moneys so invested and earn even more.
As a result, I can retire
right now and be just fine.
However, I am not “penny wise and pound foolish” - I
value my time and don’t take things too far. I’m frugal - not cheap.
I tip well at
restaurants, hire the best to consultants and pay my staff well. I happily pay
for quality items that will last for years.
This all thought process
and life style comes from being an investor - I know how hard it is to make a
10% return so if I can stretch my money by 10% or more that’s like getting a
tax free gain.
I never indulge in impulse
buying of luxuries.
I am deeply influenced by reading about many frugal
millionaires on google - the “quiet money” that will pay for quality, but not
pseudo luxury brands. Many people who look rich have a lot of debt and are just
“pretending” to be wealthy. One small crisis and they would lose it all.
You may read https://thecollegeinvestor.com/5656/5-millionaire-neighbor-telling/
and such other articles on google. They are very helpful.
Being reasonably frugal helps you build a cushion
for the inevitable emergencies in your life. You won’t make smart financial
decisions when your back is against the wall and you have to decide which bills
to pay or what possessions to sell to make ends meet. The larger that cushion,
the more peace of mind you’ll have. And that as they say, is priceless.
RAJIV KAPOOR
CERTIFIED INVESTMENT ADVISOR
9839034761
