Do You Love your Money – the way Mukesh Bhai Loves his Money? Secrets of getting wealthy.

 

1^st September 2020

Do You Love your Money – the way Mukesh Bhai Loves his Money? Secret of getting wealthy.

Dear Fellow Travelers,

Namaste! Our last post on Advance Investment concepts was super hit with really serious readers. They appreciated the same. There is a belief that if you love something or somebody with your deep feelings – it will get attracted to you. Mukesh Bhai has the most money in India as of now. So, he must be loving his Money in a different way than most of us. Let us learn from him.

My Experiments with Normal Investors

For the last 29 years – I have asked a simple question to many of the guys. For the last 5 years, I am doing silent observations of their questions / their way of working. I normally ask them to put numbers 1, 2, and 3 on the following priorities.

To be WEALTHY / To have LUXURIES / To be Comfortable

Most guys have given number one to – Comfortable life, Second to LUXURY, and third to be WEALTHY. Their thinking is if they are comfortable – they will try for LUXURY and if by a stroke of luck they become WEALTHY they have no issues. Many see them as stages of their life - First being COMFORTABLE and last being WEALTHY. They are 100% wrong!!

THESE THINKING HAVE AFFECTED THEIR LIFE LIKE ANYTHING.

They live life in PIECES. They are different in their JOB / with their family / with their friends and they are 180 degrees different when they are SURE that NOBODY is watching them / seeing them or nobody will come to know.

How this AFFECTS their INVESTMENT BEHAVIOUR?

They will invest in various asset classes and fall in love with them. They will invest some money for MARRIAGE of their CHILDREN / EDUCATION of their CHILDREN / THEIR RETIREMENT and things like that.

Now, they are planning to remain POOR for life. How? Let me share the important statistics for PER CAPITA INCOME in INDIA.

PER CAPITA INCOME in India: -

It is around USD 1500 as per various estimates. I am not concerned with the EXACT FIGURE. I am concerned with the implication of the same.

If you convert this to INR – it would be around Rs.1 lakh per person.

Now, he has to meet his FOOD / CLOTHING and SHELTER out of this. The Gross saving rate in India is about 30%. So, he is left with say Rs.30000 at the end of the year.

(If you are in the USA – your figure is 15% saving with USD 55000 per capita income).

Now, you have Rs.30000. You will start investing for your SON’s Education / daughter’s marriage / your retirement. Your Rs.30000 gets shared between your 3 objectives. Say Rs.10000 each.

Since you have broken up this amount to achieve your objectives – you have settled for LOWER RATES of RETURN on EACH OF THEM to get ASSURED RETURNS!!

In the process, you have made THREE compromises –

 

1.   You have broken up your STRENGHT into 3 areas.

2. You are going for lower rates of return due to investment in guaranteed investment schemes (as you have not invested in learning investing or appointing personal consultants).

3.   Your goal is very low to get over with your responsibilities.

You are doing all of the above for your goal of COMFORTABLE LIFE!! Let me share a FACT– if you feel you are really comfortable in your life, you must have compromised a lot in your life!! COMFORTS and COMPROMISE go hand in hand.

Thanks to the above 3 steps – you will NEVER BE WEALTHY following this approach.

How Mukesh Bhai or Wealthy people deal with their Life and Money?

They see LIFE as TIME. When they see LIFE as time – they know they have just 24 hours a day. If they use this time for PETTY activities – they will have no time for things they really want to do.

So, they buy TIME of other people around them. When others are working for them – they have more and more time for themselves.

Time per day is 24 hours only for all of us. We all have limited money in terms of all our assets. These are the two most important resources we have. Look at your day from morning to night and honestly answer yourself following questions.

1.   How much time you really spend in productive work?

2. What kind of activities or work you are doing (you may call it productive) in order to save your money?

3. Do you understand the difference between the work you have a passion for and work you can do it? 

4. Most Normal guys go for their passion like singing/painting/writing when they retire. Whole life they did the work just to earn enough to meet their responsibilities. They waste their cream years and energy in doing something which they had NO PASSION to do.  

So, Normal people waste their TIME resources. When they waste their TIME, they are wasting their LIFE.

The smartest of the smart guy spend their maximum time only and only on their business or passion activities. They also use their money as a focused weapon to multiply their wealth.  

They see all their assets in terms of MONEY. When they see their ASSETS in terms of MONEY – they do not fall in love with any objective or asset class. They are flexible to change their asset classes depending on the opportunities at a given point of time.

The day you start seeing your Assets – Gold / Shares / Real Estate / Other savings in terms of MONEY – you will not bet attached to them. All the time you will think is - How to use the combined force of all your money to generate more money?

Many of my clients get attached to shares of a particular company. They want to hold on to them even when they are not making money or quoting at very high P/E. This obsession is a part of EGO and Ignorance. Ego with Ignorance is a deadly combination for failure in life.  

Mukesh Bhai is selling his darling company shares to other people at high prices without any obsession. He knows the fair value of his company and when he is getting the best price – he is selling without any worry. There are people who are buying his shares – when he is selling his shares!!    

In short, see all your ASSETS as your MONEY and put your money to the best use.

How DESTINY MANAGEMENT is DIFFERENT?

We don’t work for COMFORTS. We work for WEALTH and serious WEALTH. We understand one simple thing – if we have wealth – luxuries and comforts will come automatically and at our terms and our pace. We are not in competition with JOB SECURITIES / RETIREMENT PLANNING and other kinds of planning. We are talking about VERTICAL GROWTH. All vertical growth has vertical fall also.

So, to make SERIOUS MONEY, we first find out the LONG-TERM TREND. Way back in AUGUST- 2012 – we have categorically written that India will have the Best time between 68 years of independence to 86 years of independence i.e. 2014 to 2032. ( that post is still available on our blog. Proof of our Vision).

We had a vision of coming 18 years for India. In 2012, we did not know that NARENDRA MODI will become PM in the 68^th year (2014) and things will change FAST. The point here is – we understand our HOME TURF very well. This is the first point before you invest your single rupee anywhere.

When we know the TURF – we know which asset classes will be most beneficial over a period of time. We are okay with the ups and downs of the market for a short period of time as long as we are sure it will outperform all other asset classes in the end. Our conviction comes from the study of our first step as we mentioned above.

In our approach – you use the power of FOCUS of your money to a particular asset class and you go for the ultimate goal of WEALTH – so all your WISHES / OBJECTIVES are easily achieved. No need for PIECEMEAL living.

What NEXT?

Whatever I have written is 100% common sense and deep down you know that it makes sense to you also. You also want to follow Mukesh Bhai's approach, but you are not able to follow, as you are not ready to invest in educating yourself for the new skill sets. You need to master the fine art of investments before you can do the above.

If you like our approach – you can learn the fine art of investments from us. Just contact us.

Have a Sweet September.

Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.