Wealth building strategy that can help you become rich – The Financial Express
The right financial planning can actually make the difference between living a good lifestyle and staying broke with the same income.
Back in 2001, a father of young twin brothers, Ajay and Rahul, decided to gift his sons Rs 1,00,000/- each on their 21st birthday. Both Ajay and Rahul were almost alike in every sense. They both studied in the same engineering college, and both went to work in the same IT firm in Mumbai and got happily married.
However, there was this one difference. By the time the twin brothers turned 40-year old, Rahul’s gifted Rs 1,00,000/- had skyrocketed in value to approx. Rs 1,45,19,274/-. And Ajay’s gifted money lost its value to a meagre Rs 4262/-.
How is it really possible?
Have you ever wondered what can make such a mountainous difference?
It’s not that one wants to accumulate wealth and become rich, and the other doesn’t. The difference lies in one thing.
The Right Financial Planning
Let me explain.
Ajay used his Rs 1,00,000 to buy two Royal-Enfield Bikes (an Eicher motors product) around Rs 55000/-each at that time.
Rahul invested Rs 1,00,000 in buying 5714 stocks of Eicher Motors for Rs 17.50 per stock.
Both Ajay and Rahul bought their assets from the same company. The bike’s value reduced by 95%, while the stock’s value appreciated by 14419%.
I know this is a lifetime, extraordinary example but here’s the point.
The exact amount of money used differently turned around their lives and their families lives forever. And this is just one decision. Rahul knew the power of proper financial planning. So he naturally made several good financial decisions in the last 20 years.
He controlled the outflow of his money and stretched every saved penny to its maximum potential. As a result, he could spend on things he loves without guilt. Travel with his wife and kids to various exotic locations in Europe and send his kids to one of the best colleges in America, and his retirement is secured. But Ajay and his wife have so many small-small and sometimes even big fights because of the financial crunch and tight situation. And he is always worried about the big expenses that suddenly come up in future. Not a good situation to be in, right? And this is the reason I am writing to you all today.
The Right Financial Planning Can Actually Make The Difference Between Living A Good Lifestyle And Staying Broke With the Same Income.
Let me give you one more example.
Today with Rs 100, you can buy 10 chocolate bars. Let’s …….