RandomBlog2011 | wealthymatters

Self-Defeating Beliefs About Wealth

February 1, 2011 4 Comments

If a person says he/she would like to be wealthy but you find them struggling,you will find them having one or more of the following self-defeating beliefs about wealth.These beliefs sap energy and kill initiative.

Belief No. 1: How much you earn depends on how hard/long you work or how highly skilled you are

Such a person becomes a workaholic and often believes in driving other people to work.A person like this might have a professional degree and quite often believes in chasing professional qualifications.He/she believes that a professional qualification often entitles them to more money.With these people the focus is on the work and its length, hardness, unpleasantness and/or skill.They believe in their own merit and get upset when they feel the world does not reward them justly.These people focus on the process and not the results.Their focus is not on wealth generation, which should be their goal if they want to be wealthy, but on part of the process, i.e. the nature of the work they engage in to make money, which they believe will make them wealthy.

Belief No. 2: Work is not meant to be enjoyable.

Such people often unconsciously believe that the more they suffer at work,the more meritorious they are and the more deserving they are of wealth.As they believe in the virtues of suffering,these people often maximize their own suffering and those of others around them.They are resistant to the thought that pain might be an indicator that they are going about things the wrong way or the hard way that there might be better,easier and less painful ways of going about things.

As a contrast consider these words of Warren Buffet “I get to do what I like to do every single day of the year.I tap dance to work, and when I get there, I think I’m supposed to lie on my back and paint the ceiling. It’s tremendous fun.”

Obviously the more fun you find work the less you have to force yourself to do it.Your body and mind instead of rebelling and sabotaging your efforts are actually engaged in harmony to produce your best work. Read more of this post

Filed under Theory, Tidbits, Tool Kit Tagged with Age and Wealth, Education and Wealth, Enjoy Work, Enjoyable Work, How much you earn, Money as a Constraint, RandomBlog2011, Researching Business Plan, Self Defeating Beliefs, Self Defeating Beliefs about Wealth, struggling, Wealth from Unglamourous Businesses

8 Habits of Millionaires

January 30, 2011 2 Comments

Here is a to – do- list that can make almost anyone a millionaire.The operative word is millionaire as in a person with a few crore rupees.This list does not require a person to be specially talented with money.All that is required is the will to become a millionaire and the discipline and persistence to stick to doing small things repeatedly till you master them.You won’t get to live the life of the Rich and Famous but you and your family will be comfortable later in life.

Earn to Invest, Not Earn to Spend

The first skill you need to master is to learn to control your impulses and delay gratification.Just force yourself to postpone buying unnecessary things for longer and longer periods .Allow yourself to buy those things only when you have saved up and invested a certain amount of money first.After a while you will find it easy to first invest money and then spend the remaining.If you have debts, force yourself to invest first , pay your EMIs and then spend, in that order.

Have a Plan and Work the Plan

Then use this calculator https://wealthymatters.com/2011/01/26/target-crorepati/ to figure out how much you need to save and start putting it away monthly to make your first crore.To find the best interest rates refer to this post https://wealthymatters.com/2011/01/19/interest-rate/ .Now that you know how much to put aside and where you need to do it,you have your basic plan in place to become a millionaire.

Develop Many Income Streams

A person can work only that hard and that long and only at that many jobs in a day to make money.So its important to start acquiring assets that make you money.So ,for example, you will have to consider buying a good mutual fund or some good dividend yielding shares.

Understand your Finances

Also you need to be aware of exactly how much you are making, how much you need to save and learn to develop a budget for spending.You need to know how to evaluate how your investments are doing.For that you can take the help of this post https://wealthymatters.com/2011/01/26/cagr-calculator/ .The more you know the more you can make out of your investments and the less people can cheat you. Read more of this post

Filed under Tool Kit Tagged with compounding, crore, delayed gratification, Develop Many Income Sources, discipline, Earn to Invest, Habits of Millionaires, impulse control, Manage Risk, Millionaire, persistence, plan, RandomBlog2011, Studying Ways to Make Money

How Wealthy People Behave That The Poor Do Not

January 29, 2011 13 Comments

Following is a list of the differences in the habits of the wealthy and the poor found in the book “Secrets of the Millionaire Mind-Mastering the Inner Game Of Wealth” by T. Harv Eker.I have found these distinctions to be quite true.And if you think about the actual behaviour of richer and poorer people you personally know you will be able to verify the differences yourself.

I use this checklist periodically to check my own thought patterns and behaviour and correct them.I have personally benefitted from this exercise and I urge you to try it.

Wealthy people believe, “I create my life.” Poor people believe, “Life happens to me.”

Wealthy people play the money game to win. Poor people play the money game to not lose.

Wealthy people are committed to being rich. Poor people want to be rich.

Wealthy people think big. Poor people think small.

Wealthy people focus on opportunities. Poor people focus on obstacles.

Wealthy people admire other rich and successful people. Poor people resent rich and successful people.

Wealthy people associate with positive, successful people. Poor people associate with negative or unsuccessful people.

Wealthy people are willing to promote themselves and their value. Poor people think negatively about selling and promotion.

Wealthy people are bigger than their problems. Poor people are smaller than their problems.

Wealthy people are excellent receivers. Poor people are poor receivers.

Wealthy people choose to get paid based on results. Poor people choose to get paid based on time.

Wealthy people think “both”. Poor people think “either/or”.

Wealthy people focus on their net worth. Poor people focus on their working income.

Wealthy people manage their money well. Poor people mismanage their money well.

Wealthy people have their money work hard for them. Poor people work hard for their money.

Wealthy people act in spite of fear. Poor people let fear stop them.

Wealthy people constantly learn and grow. Poor people think they already know.

Filed under Tool Kit Tagged with book, Habits of the Wealthy, How the Wealthy Behave, How the Wealthy Behave the Poor Do Not, How the Wealthy Think, How Wealthy People Think The Poor Do Not, Millionaire Mind, RandomBlog2011, Secrets of the Millionaire Mind-Mastering the Inner Game of Wealth, T. Harv Eker

Are You Born To Be A Billionaire ? Self Assessment Tool

January 27, 2011 Leave a comment

If you weren’t born a billionaire and are not banking on marrying a billionaire or thinking of taking to crime or plunder in a big way, your best chance of becoming a billionaire is through business. So do you have it in you to become a self-made billionaire through business?

1. CAN YOU QUIT SWEATING THE SMALL STUFF?

Can you quit spending an inordinate amount of time on perfecting your product or service ? Can you instead focus on building your business and its systems ? Do you need to attend to every little thing that goes on in your business or can you delegate?If you can focus on the big picture,you are one step closer to building a big business.

2. ARE YOU A VISIONARY ? CAN YOU SEE THINGS BEFORE ANYONE ELSE DOES ?

Self-made billionaires like Dhirubhai Ambani and L.N.Mittal were or are not just great businessmen. They don’t just dominate industries–they transform them and spawn new ones. This requires great vision. Billionaire entrepreneurs do not just work within the confines of the current market, they anticipate things much further afield. They see things that no one else does.

3. DO YOU HAVE A FIRM BELIEF IN YOURSELF AND YOUR VISION ?

To crack the $1 billion barrier, you need total, unwavering belief in your vision–and an immutable will to pull it off.

4. CAN YOU HANDLE RISKS ?

Do you have the courage and confidence to check fear and doubt and stay the long course.Can you think clearly in the face of danger?Can you stay cool?Can you find ways of managing risk? Read more of this post

Filed under Entrepreneurship, Tool Kit Tagged with billionaire, billonaire entrapreneur, Dhirubhai Ambani, L.N.Mittal, RandomBlog2011, Self Assessment Tool, self-made billionaire

Company Deposits – Caveat Emptor

January 20, 2011 1 Comment

When inflation is high and interest rates on term deposits and bonds are low, or when fixed income instruments start offering equity like returns during liquidity crunches, company fixed deposits become tempting. Here are a couple of things to consider to rein in your greed.

1.No one became a billionaire via company deposits, unless he owned the company taking the deposits, so hold your horses.Company deposits can be tax inefficient, so think twice before sticking your in money here.

2.A company FD is an unsecured debt so if a company is liquidated, FD holders are paid after debenture holders and commercial lenders. By then there might not be enough to pay back the principal, much less interest. Liquidation proceedings take time so even whatever little money might be returned to you will take a while to come. So avoid companies with accumulated losses. Read more of this post