Thought for food

Me (to my friend): Where do you invest to cater to your basic needs?

My friend: well, I don’t. Instead, I work for a company and they pay me for that.

Me: So, what about your time? Isn’t that an investment to your work place and in return you get paid?

My friend: If I don’t work, I will waste my time. (More confidently) At least, I am using my time positively and getting paid. If feels sooo goooood (smiling at me).

Most of the people in this world work for an organization or the government and they pay people for living. If the organization shuts down because of recession / bankruptcy, or government halts working due to political disputes, etc. (now you won’t deny this because you know what happened to America recently!), we all know what happens… insecurity, more and more jobless people, more financial strain, negative environment all around. In all this mess during recession, a person only cares about the salary that he/she is no more earning but completely ignores his/her skills that are developed while working for the organization/government.

A job is really a short-term solution to a long-term problem. – #Robert Kiyosaki

We should invest out time and effort at job for only two things in this order.

1.       Learn Skill.

2.       Earn money short-term.

When you learn a skill, you improve on it on the job (may be after the job) to make sure that works for you. For example, an accountant learns accounting and improves upon its fundamentals on the job. Also, he/she finds out that the accounting is interesting subject and will surely keep him/her happy if pursued for the life time. However, the individual should always keep in mind that his/her accounting skills are helping more to the organization. In long run, the accountant may start his own practice of accounting to make sure he is direct beneficiary of his skills.

To conclude, a person should INVEST time (the most precious entity in the world) and focus on skills development to make sure his/her basic needs are provided. 

Learn more and more skills and utilize them for your benefit and recession, government disputes, bankruptcies will not be able to touch your financial freedom forever!

Tell me what you think about the idea of focusing more on skills development than your SALARY. Do you think its going to change something in your life ?

Like my blog so that others may also benefit.

Post your comments. I would love to here back from my readers.

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Many thanks for reading. Happy Investing !

Investing made very very simple...

In today’s complex and competitive financial world, a common man struggles to identify the right investment tool to achieve their personal and financial goals. Plethora of deductions like income tax, health insurances, EPF, multiple advice from different people of different backgrounds make it even more confusing for one to even get in to this game. This eventually makes Fixed Deposits (FD) the most favorable destination for investors so that they do not have to deal with the commission-hungry insurance agents, useless bank agents and adamant tax agents.

Frequent news about inflation eating up the profits of FDs leaves an investor thinking what should be done with the existing money as well as the future savings income. Few investors go back to the “different people of different backgrounds” to get new ideas about how should they react and most of them wait and watch their way to economic nosedive. The commission-hungry insurance agents show new unit linked plan and the investor buys in looking at the carrots like life cover, “assured’ income or return, amazing tax saving opportunity, etc. The commission-hungry mutual fund agent does the same and wins their share of commission. Sooner or later, the common man’s all savings income goes in to the hands of equity market (commonly known as share market). The “agent” takes common man to a nasty roller coaster ride where nobody (actually everybody in this world) is a driver!

I have seen many people struggling to fulfill their personal goals due to this rat race. Most of them complaining about one of the agent, bank, market or the government!

If you buy something that you don't need, soon you will have to sell things that you need! -- Mr. Warren BUffet

I generally start discussion with such clients with one simple question -- Do we take only one medicine for all the medical problems?

You get the idea?

The investment world becomes simpler as soon as you understand your needs (like your sickness) and the investment vehicle (like medicine). Most of the times, you know what medicine is going to help you if you have cold and fever.

In the investment world as well, one should first understand personal needs. Here are most common needs to start with.

·         Food and day-to-day needs

·         Home

·         Child’s education

·         Security

·         Well-being of the family in case the income-generating member is no more.

·         Health management

·         Post retirement income

As all the needs are very specific in nature, they are surely going to need that specific investment highly specialized for the same. I call this concept “need-specific investment”. If one start clubbing the investments for more than one need, he/she has higher probability of paying for something that is not going to be useful. How is the deal of free comb with a bath-soap for a bald guy?

I will start expanding needs and need specific investment tools in my next week’s blog. So, keep an eye on my future blogs…

In the meantime, please let me know your needs and the investment tools that you may have used for the same. Also, let me know if you are struggling to find an investment tool for your specific need. I will try my best to address them.