Retire Rich At 40 A Day : New Edition by P.V Subramanyam

Author:P.V Subramanyam [Subramanyam, P.V]
Language: eng
Format: azw3
ISBN: 9789387860322
Publisher: TV18 BROADCAST LTD
Published: 2019-03-06T00:00:00+00:00

CHAPTER

Impediments

to Riches

21

Food for thought:

• What is stopping you from getting

rich?

Here are my observations as to why people do not get rich. Almost all of them will justify their not being well off – “I had to pay for my parents’ expenses,”, “My children’s schooling is expensive,”, “My medical bills aren’t coming down anytime soon,”. These are but rationalisations, and the deeper answer lies in some very ordinary sins we daily gleefully indulge in.

‘The only way you will ever permanently take control of

your financial life is to dig deep and fix the root problem.’

- Suze Orman

First on the list, the activity people learn since childhood but go wrong with all their life:

Spending.

We spend most of our money using electronic gadgets – online, credit cards, debit cards, etc. This has one convenience of course – of not having to carry cash. The other advantage is that the data on what you spend is electronically available and can be analysed. Here is an attempt – this of course is generic, but you can analyse your expenses too. Let me enumerate them:

You bought a house too big or in too expensive a location: Did you stop to think whether you could have bought a flat in a slightly less expensive location, or just a smaller house? Do you realize that your Housing EMI is forcing you to work longer and compromise on the size of your Retirement corpus?

You have replaced your car too soon: Most people buy a car every 5-6 years. Really? Is it necessary? Can you not push it to, say, the 8th or 9th year? Or buy a smaller car? A bigger car costs more in not only fuel, but also insurance, maintenance, etc. See if you can work with a smaller car – given Indian roads you really cannot unleash the power of a bigger car anyway.

Your trading mistakes: The ‘small trading losses of Rs. 2000 or Rs. 200,000’, depending on your portfolio, all add up. Losing money while trading is a big drain on your ability to save money.

Appetizers / Salads / Desserts: Eating out is not a very sensible thing to do, but we all do it. The big worry here is not the food bill, but the subtle manner of increasing your bill. As soon as you walk in ‘Water – bottled or ordinary’, then the offer of appetizers, papad, salad, and in the end, the dessert. Be careful of how you are being had. Monitor your eating-out expenses, and find substitutes like packaged sweets (even better, make them) and consume at home – at least you are not paying for the ambience!

Clothes: It is not just which brand you buy, but also how many such clothes you buy. Do an audit of your cupboard. Cross your heart and ask yourself if that you need those 122 shirts or 54 pants! This may be an exaggeration but according to a retail trade expert, the shops in Mumbai have more stock than what Mumbai buys over a 5-year period.

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