There’s an epidemic taking in the world that no one wants to talk about. It’s one of leading sources of depression, divorce and suicide and yet we are scared to talk about it, is called financial illiteracy. Numbers don’t lie 80% of Indians live paycheck to pay check. 50% of Indians have no money in their savings account at all. 70% of senior citizens around 60yrs of age who are looking to retire don’t have more than 60000rs as savings. It costs money to eat, it costs money to wear clothes and it costs money to have a roof over your head. We need money to survive but school won’t teach you anything about money. When was the last time someone taught you keeping your money in bank will keep you broke. I am sure no one.
The price of things keeps on increasing by 5-7% (avg rate)per year which is called inflation(It was in two digits, a decade ago). That means a candy that cost you 1re on January 1st will cost you around 1re 6paisa by end of the year on 31st dec. In the bank saving account your money grows by 3.5 to 4%. That means if you deposit 1re in bank on 1st Jan, it will be 1re 4paise on 31st dec. That means the candy will cost you, 1.06 paise at end of the year and your money will grow maximum to 1.04 Paisa. You can no longer afford the candy because you just lost money. Every year you keep your money in bank, it loses some value.
Rule 1 for investment
Don’t invest money when you are guaranteed to lose. That’s why rich people don’t invest in bank’s. So why does bank wants you to lose money because every time you invest money in bank they lend it for some loan at a much higher interest rate.
They pay us almost nothing and charge us around 8% when we borrow that money as loan. Also another way bank uses our money is called fractional lending that convert your 1re deposited into lots of 1re. This way they can lend your 1re repeatedly making 8% every time they lend it out while you lose money. That’s why bank spend crores in advertising to convince us to them, so they can become rich and we become poor.
Well no one told you that that’s why we are here. You have to think differently from the majority. As Steven covey says ” You have to start with the end in your mind”. If you want to be rich, you have to work towards your goal. If you don’t want to be the majority, you can’t think like what majority does. It’s not gonna be easy no one else is going to do it for you, you have to do it for yourself.
The price of things keeps on increasing by 5-7% (avg rate)per year which is called inflation(It was in two digits, a decade ago). That means a candy that cost you 1re on January 1st will cost you around 1re 6paisa by end of the year on 31st dec. In the bank saving account your money grows by 3.5 to 4%. That means if you deposit 1re in bank on 1st Jan, it will be 1re 4paise on 31st dec. That means the candy will cost you, 1.06 paise at end of the year and your money will grow maximum to 1.04 Paisa. You can no longer afford the candy because you just lost money. Every year you keep your money in bank, it loses some value.
Rule 1 for investment
Don’t invest money when you are guaranteed to lose. That’s why rich people don’t invest in bank’s. So why does bank wants you to lose money because every time you invest money in bank they lend it for some loan at a much higher interest rate.
They pay us almost nothing and charge us around 8% when we borrow that money as loan. Also another way bank uses our money is called fractional lending that convert your 1re deposited into lots of 1re. This way they can lend your 1re repeatedly making 8% every time they lend it out while you lose money. That’s why bank spend crores in advertising to convince us to them, so they can become rich and we become poor.
Well no one told you that that’s why we are here. You have to think differently from the majority. As Steven covey says ” You have to start with the end in your mind”. If you want to be rich, you have to work towards your goal. If you don’t want to be the majority, you can’t think like what majority does. It’s not gonna be easy no one else is going to do it for you, you have to do it for yourself.
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