Magic Formula for Financial Abundance in Life

Saturday, 08 December 2018

Magic Formula for Financial Abundance in Life

Greetings from Hitesh! Our last post on GOLD was timely, it seems. In any case, our call is for 2019. So, don’t be happy with some rise instantly. Today we are sharing a MAGIC FORMULA for financial abundance. I assure you, if you follow this, you will never have to be depended on anybody for your financial needs.

Normal minds are programmed to get attracted to difficult and challenging things as they operate from of EGO. My GURU has always told me - EASY IS BEST - If something is not EASY, it can’t be best. So, I follow that.

What is the MAGIC formula?

Spend less than what you earn. Invest the difference and allow that investment to compound over 20-30 years.

Isn’t this easy and simple. I am sure you all would have known it – intuitively or through your learning. Many of you will have a following question.

If we go on investing as per above, when we will enjoy our DREAMS like GOING TO WROLD TOUR or Buying a PRIVATE JET?

This is a very good question. Life is not about investing or creating wealth. It’s about enjoying. But to enjoy the life without STRESS, please follow the below given steps. These will allow you to enjoy all the luxury without affecting your financial situations/ health and relationships, negatively.

1.  Decide the Surplus: - What is the surplus of your income over your expenditure? Say you are earning Rs.1 lakh per month and your expenditure is Rs.50000 per month, you have a surplus of Rs.50000 per month. Simple.

2.  Invest this surplus in two ways: - Invest 60-70% in secure or guaranteed return kind of investments. This will give you typically about 5-8% p.a. return on that. Say you are investing in BANK FIXED DESPOSITES or some insurance plan.

Many guys will find it difficult to follow above step. Say you are a businessman and you are earning 20% net profit margin in your business, you may not like to agree to invest your surplus in 5-8% return kind of investments.

Over the last 25 years, I have come across many clients, who did not follow this. They put whole money to their business or their investments and when the business situations changed drastically or when the market crashed, they got wiped out.

Unfortunately, since 2009, we had seen one side teji and many new investors were under impression that market can’t come down and they will keep on earning good return. But the year 2018, wiped them out.  

3.  Invest remaining 30-40% in GROWTH asset classes: - Ideally, you should invest above 30-40% in such asset classes which will give you return in the range of 15% - 25% per annum. You will take some RISK for the same as it’s not guaranteed kind of return.

Now, if anything goes wrong with this 30% to 40%, you will still have 60% to 70% to fall back.

4.  Now comes the DREAM enjoyment part: - Say you want to splurge your money to something which is your dream. Say you want to buy your own PRIVATE JET. Don’t worry. I have a solution for the same. Use the money generated from 3^rd step for enjoyment or financing your dreams. You need to use the 15-25% surplus you generate on above 30-40% for the same and keep the capital invested.

Here, two good things will happen. You will be MOTIVATED to invest as well as you will give your full focus on managing your investments. You know it that if you don’t focus on them – you will not be able to buy your JET.

This approach will make you enjoy your dreams with peace of mind while making you secure mentally and financially in the worst of situations.

Sir John Templeton’s advise for INVESTMENT SUCCESS and BEING WEALTHY.

To support our suggestions – we are today quoting Sir John Templeton. He said for investment success – you need to know the ASSET ALLOCATION and for feeling wealthy in any areas – your relations, your health, your finances – you need to be GRATEFUL. You can feel wealthy only and only if you feel grateful.

Investment success is a NUMBER and Being WEALTHY is a FEELING. Being wealthy is not about the NUMBER, as many of you might believe.

Investment is about outer success and wealth is about inner success. Investment focuses on earning more and more. Wealthy focuses on enjoying / giving more and more.

What NEXT?

Learn to art of ASSET ALLOCATION while you invest. This will give you sound sleep in any market situations. If you need help in investing – you can approach us.

Wish you all a HAPPY WEEKEND.

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

Live With Passion…Invest With Passion.

Hitesh Parikh.