Life and Productivity Tips

#1: Do not spend money. Invest money. Most people, when making a purchase, ask all the wrong questions. For instance, when buying a new pair of shoes, do not ask how good they look or what brand they are. Ask how long they’ll last, and in what kind of weather, and what the warranty is. If you get a good pair of warm waterproof boots with a lifetime warranty, they could literally be the last pair of boots you’ll ever need to buy. It is much better to buy a $400 winter jacket which will last you 20 years than a $200 one which will last you six. And both of those are better than the $1000 one which will be out of fashion in three. In other words, there are financial ramifications to every spending decision you make. If you buy an iPhone, will you also need a case for it? How expensive is the data plan? If you buy a house, how will that impact your taxes? What is the resale value looking like? #2: A dollar saved is $20 earned This one is pretty simple. If you put $1 in an...

90% of the people don’t save. Therefore 90% of the people are poor. Most people spend money to buy things they don’t need with money they don’t have. Saving is the habit of the rich. Spending is the habit of the poor. In order to switch from poverty to riches, one only needs to switch their poverty mindset with a rich one. Financial independence is simply a state of mind that attracts better money management habits. Financial independence is the ability to live for the rest of your mortal life without having to work for money. The poor work for money. The rich work for pleasure. Never work for money. Have money work for you. Never build a business. Build a system. Show me a poor man that can manage money and I’ll show you a fish that lived on land. The poor and the rich none had an advantage over the other. Both were born in the same neighborhood, played the same games, ate the same food, traveled in the same bus to school, went to the same school. Money is an effect - ...

Lets start with a character. Rohit recently completed his engineering. He is placed in an IT firm with an annual package of  Rs. 7.2 lakh  ($ 10,000). His take home after tax income is  Rs 50,000  ($ 700). Rohit said, “ Hey Sahil! I have got a new car. ” I said, “ Congratulations! That’s cool. Which car did you buy? ” Rohit,“  I always dreamt about Honda City since my engineering days. Hence I got my dream car. ” Image source:  google I said,  “But you recently started your job. How did you manage to get the money to finance the car?” Rohit,  “I got it on EMI with 90% loan. The EMI comes out Rs. 20,109 ($ 282) for 6 years.” I said,  “But that’s a lot of money. How much do you save monthly?” . Rohit,  “Saving? Bro, I am just 24 years old. I have my entire life to save. Moreover, I want to enjoy my life for the next 5-6 years. It is too early to think about savings.” Fast forward 6 years when I met Rohit in one of ...