Friends, hope that until now, a lot of trial & error and money & time has been spent in social media forums to make them billionaires (owner of social media forum sites) without much personal benefited to you. Or you might have been lost your money lured by the online scammers (cheaters).
Let’s make some real income by using your Smartphone or Laptop/PC. It’s your turn now to make money through an internet facility. Of course, this will take some time as a business setup need to take off. Indeed, everything requires a little bit of patience and time, isn’t it?
It is presumed that 70%-80% of income or make money online opportunities floating on the internet are mostly fraud, scams or lure you to do it try or you may have to work very hard to earn a small amount of money, for example, creating the Google Adsense, web pages, affiliate marketing, Youtube channel etc.
How Rich People Acquire Assets & Become Richer?
In short, assets put money in your pocket, and liabilities take money out of your pocket. Assets are the items you own which can make a profit for you. Liabilities are what you owe items, which take money from you.
How you can make real money from stock (Business) and why most people (common men) think about the stock market as gambling? On the contrary, they (poor and middle-class) habitual to acquire liabilities and think of them as assets.
Why The Poor & Middle-Class Habitual To Acquire Liabilities
Remember: investing in a good stock or company means, you are investing in the real business which is managed by the professional workers of that company.
It is proof and shows that all billionaires in the world have created their wealth from the Stock Markets, either directly or indirectly. Directly refers to the direct investment in stock and indirectly refers to who listing their companies in the stock exchanges i.e. Exchange BSE or NSE
Let’s Learn & Copy From the World’s Renowned Investors?
Once the world’s richest person, Warren Buffet created his wealth from investing in stock while other well-known billionaires like Bill Gates (founder of Microsoft), Mark Zuckerberg (founder of Facebook), Sergey Brin & Larry Page (founder of Google) made their wealth through the stocks market by listing their companies in the stock exchange.
In India too, you will find many billionaires like Rakesh Jhunjhunwala and Vijay Kedia who created their entire wealth from direct investing in the stock markets and Mukesh Ambani, Dilip Shanghvi, Azim Premji, Ratan Tata etc. who created their wealth through listing their companies in the BSE and NSE India
Let’s Learn Habitual of Rich People Do To Create Wealth.
The habit of rich people is they acquire assets such as stock, bonds, gold, silver, etc. Because history is proved that the stock or real estate returns are above-inflation. To invest in real estate requires big amounts, therefore, the market is not accessible for all investors (means -buying of land, constructing the building, etc).
For salaried individuals and other professionals, the stock or Mutual Fund’s SIP is the best way for wealth creation. Suppose, if you have no time to do it yourself, and then you must invest in mutual funds, which is managed by professional (on behalf of investors) in the stock. Avoiding equity investment means your retirement life is at risk because inflation has eaten up your bank’s FD & RD interest earned. Invest Online SIP
How Inflation affects our day to day expenses?
In simple language, inflation is the increase in the price you pay for goods. Today if your monthly expenditure bill stands at Rs. 10,000 per month then certainly over the next one year it will increase.
Inflation means a decline in the purchasing power of your money. As per Government data, the average inflation rate in India is up and down around 5% to 11% annually sometimes it may go beyond that too. It means that if today Rs. 10,000 is required to cover up all your monthly expenses then after one year, the same will take Rs. 11,000 or Rs.12,000.
A simple way to understand and how inflation affects our day to day expenses?
Most of you will get a figure of around 10 %. (It can be even more). So, 100 rupees investment in bank fixed deposit return at around 107-108 after one year but for it costs 110 or 111 rupees to cover-up the same day to day expenses. Isn’t the bank’s fixed deposit yielding a negative return of Rs. -2%-4%?
If we compare, the Real Estate and the Stock Market/Mutual Funds, the latter one is a good choice for every individual investor due to the following reasons: You can start with as low as Rs.1,000 onwards as SIP per month. However, in Real Estate, you can’t go with such a small amount. For the small investor, equity/stock investment is much more convenient than the real state.
Stock Markets and Mutual Funds are highly regulated by the Government.
The Stock Market and Mutual Funds are highly regulated. Thus, the price is much more transparent. The SEBI (Securities and Exchange Board of India) supervised both. The SEBI has taken almost all steps to safeguard the interest of all investors including small investors. However, in Real Estate, price discovery itself is not so transparent. You will be duped by fraud dealers easily.
Equity investing offers high liquidity (liquidity means easily convertible to cash). You can purchase stock anytime and also sell at any time. There is no obligation. You can sell it after 1 minute or 1 month or 10 years or and above whenever you want.
However, in Real Estate, you can’t purchase land to sell it on the very next day or week. You can buy and sell stock from anywhere in the world. With the online trading platform, physical presence is not necessary. Buying and selling are possible with just a click of a mouse or press of your mobile keypad. In Real Estate, investment is not that simple. Because of many such advantages and above-inflation return, the stock/mutual funds investment must be a part of everyone’s 2nd income business. Invest Online SIP
Let’s Start to Acquire Assets Not The Liabilities Copy How Rich People Acquire Assets.
Over a period of 5-15 years if your average annualized return remains within 20%-30% then you can easily achieve financial freedom. Noted, the world’s most successful billionaire investor and also once the world’s richest person, Warren Buffett made his wealth by just 22% annualized return.
Newcomer into the Stock market is expected to get 10%-20% MONTHLY return and started as an ‘INTRADAY trader’ also called ‘Day Trader’ in the stock market and end-up with loss and finally blame the stock market forever. They also DISCOURAGE other people to participate in it. The INTRADAY trader and investment for the long term is a different approach to the same market. Later one is advisable.
On the other hand, the most of the trader/investors gladly accept 7%-8% annual return from the Bank’s Fixed Deposit or Recurring Deposit but the same person can’t accept a 15% to 25% annualized return from the Stock or Mutual Funds, whereas compound interest is also given in Mutual Funds investors.
Nothing will happen until you decide. Make a decision and move forward
Friends, don’t wait for the right time to start. It is said, the first step for anything is to start the first step. Once Albert Einstein said, ‘Compound interest is the eighth wonder of the World’. The rule for compounding is simple-the sooner you start investing, the more time your money has to grow. Invest Online SIP Let’s learn how Rich People Acquire Assets and copy them.
Know the Differences of Assets or Liabilities and Think about the Assets, not the Liabilities
It is always encouraged DIVERSIFYING your total budget for investing, means don’t put all your eggs in one basket. Diversified means invest your partial amounts to stocks, some in mutual funds and some amounts in gold, etc.
Whatever endeavour you tried so far, success or failure, don’t blame others, accept it and move on. Blaming others simply increases the chances of repeating the same mistake in the future. Failure also teaches you some life-changing lessons. And remember, no pain no gain, without any risk-taking you can’t go beyond a mediocre result.
Happy Investing! Stay healthy and wealthy ahead…
Sri Tadu Gumbo,
CEO & Editor – www.TradeonGo.Mobi/Mobile-Journalists
Writer, Forex & Stock Analyst,
IFA/Mutual Fund Distributor: ARN-135554,
Authorised Person: ICICI Securities Ltd.
Documentary Film Maker & Photographer (hobby) FREE Consultancy services for Mutual Funds & Stock Investors. Call: 9707494944, WhatsApp: 8132803318, Email: firstname.lastname@example.org
Assets put money in your pocket, whether you work or not, and liabilities take money from your pocket. These quotes were inspired and taken from Robert T.Kiyosaki’s book name “Rich Dad Poor Dad“. Beautiful book about assets and liabilities. Everyone must read it. Rich Dad Poor Dad by Robert T.Kiyosaki
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