Financial Freedom - Do what you have to have to Do First

Do what you have to do, until you can do what you want to do - Oprah Winfrey

An article written in the Washington post states that, "Only 13 percent of people worldwide actually like going to work". If you are one among of the lucky 13 percent, you are welcome to stop reading this article. If you want to live a happy life, you need to do the job which you love.   

In our early childhood, we might have dreamed to become a Farmer,Chef, Entrepreneur, business man, etc. However due to peer pressure and attractive salary from other jobs, most of us might have been forced to pursue a career which we don't like.However, there are some exceptions, in-which the people are blessed to join a job in their early career, which they love the most.

In this modern age, we have been programmed to do a job for salary and not as per our passion. Our status is judged by the amount of our paycheck. No one bothers to ask us whether we like our job ? 

During my recent research about Financial Freedom / Financial Independence, I am pleasantly surprised to come across some of the persons, who have planned their Finance brilliantly and retired early from their 9 AM to 6 PM jobs. One such person in Mr.Money Mustache. 

Mr.Money Mustache have planned his finance from the day he got his first paycheck. He have retired successfully at the age of 31, from his Software Job. He is now guiding persons across the world to come out of the 9 AM to 6 PM Ratrace and live their dreams. Now after retirement, he spends quality time with his family and do what he truly loves.  

Once you achieve financial freedom, your assets ( Rental Home, Bonds, Stocks, etc) will generate income ( Cash flow) that will fulfill your monthly expenses. So that you no longer depend on your job for your monthly expenditure. 

Tips to Younger Generation : 
1) Join the course / degree that you love most. 
2) Don't join the course / college as your friend have joined it or your father have adviced you to join. 
3) Don't select the job that pay you most, instead select the job that you pay attention most. 

Tips to Freshers / New Joiners : 
1) Try your BEST to get the job that you love most. 
2) Incase if you don't get the job You love, accept the job whichever comes on your way and start planning your finances early. 
3) Everyday allocate some time to sharpen your skills for the Job that you would like to do after your early retirement. 

Tips to Married Persons : 
1) I strongly recommend you to achieve Financial freedom, before you pursue your passion. 
2) You have the primary responsibility to take care of your family and dependents [If Any], and don't take the risk of changing the career path until you have a financial security.  

Summary : 
1) It is possible to live your dreams, if you start planning your finances early. 
2) Financial Management is an art and everyone of us to learn it to multiply it. 
3) If you are married, pursue your dreams only after achieving your Financial Freedom / Financial Independence. 

Five Golden Rules on Financial Management by Mr.Senthamizhan

Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like —Will Rogers

Mr.Senthamizhan Maniarasan is the founder of Semmai Vanam [ A training initiative, that helps the people, to go back to our human basics and nature ]. He regularly delivers speeches about healthy, happy, peaceful and meaningful living.

In the below article, I have presented the tips given by Mr.Senthamizhan about Financial Management during one of his lectures.

1. Never buy a home on EMI [ Home Loan ]
2. Never buy a car on EMI [ Car Loan ]
3. Never Spend too much money for Wedding / Marriage
4. Never Spend too much money for Birthday party
5. Never spend too much money on child’s Education

After doing a thorough research in the Internet, books, Youtube, etc all the financial planners advice's is not to buy a home on EMI. Even the world’s No.1 personal Finance guru Robert Kiyosaki [ Author of Rich Dad Poor Dad] labels the home that we stay as liability [ Which takes money from our Pocket ].

I strongly agrees to all the above five points about the financial management suggested by Mr.Senthamizhan. It is we who put ourselves in the Financial Ratrace and always complaint someone else for our problems.

Let’s have a clear understanding between Wants and Needs and spend only for the things that is a need. Wish you all a wealthy and prosperous life.

Key Lessons from the Book "The Richest Engineer"

Famous Quotes on Personal Finance

Give a million dollars to someone who does not possess the attitude of a millionaire and that person will most likely lose it. But take away all the wealth from a true millionaire and in no time he or she will build a new fortune. Why? Because those who earn their millionaire status develop the skills, knowledge, and experience to duplicate the process again and again – Jim Rohn 

Good health, longevity, happiness, a loving family, self-reliance, fine friends. if you [have] five, you’re a rich man.
― Thomas J. Stanley, The Millionaire Next Door

25 Beautiful Quotes from the book “The Richest Engineer”

The book “The Richest Engineer” contains lot of beautiful quotes about financial planning. In this article, I have presented the important teachings from the book “The Richest Engineer”, written by Abhishek Kumar.

1. If you want to learn  to do something right, watch someone who has done it successfully.
2. It is not possible to live a really complete or successful life unless one is rich.
3. The key to happiness is not more money. Happiness is an art to be studied and practised. More money will only make you more of what you already are.
4. Financial intelligence solves problem and produces money.
5. Earning money is an art and keeping your earned money with yourselves is a different art.
6. Rich people are committed to being rich and that is why they are Rich.
7. If you took all the money in the world and divide it equally among everybody, it would soon be back in the same pockets it was before.
8. Either you create million excuses or you create million rupees. But you cannot create both.
9. Rich People are students throughout their life. Poor People’s learning stops after formal education.
10. A small step is much more powerful than the mightiest intentions.
11. Wealth is not limited; rather it grows. It grows whenever man exerts energy.
12. A part of all you earn is yours to keep.
13. Every rupee that you save and invest is a like an employee who works for you.
14. A man who seeks to learn more of his craft is always highly rewarded.
15. It is not the profession but your love and dedication towards your profession which will help you rise up in your life.
16. Excellence comes when the performer takes pride in doing his best.
17. Happiest people are those who use their natural talents to the utmost.
18. A budget is people telling their money where to go instead of wondering where it went.
19. A rupee saved is one and half times a rupee earned.
20. Money is like a flow of water and if you do not control it’s flow then it will find its own way.
21. Learn to work harder on yourself than you would do on your job.
22. It’s not what you know, it’s who you know.
23. The real goal of our life should be touch and improve the lives of others.
24. The ultimate sense of happiness comes when you realise that you have been of help to someone in need.
25. Wisdom and knowledge is of no use until it is put into action. 

Amazon Book Purchase [Click the Image] : 

Top Books for Financial Planning

First you Learn, then you remove the "L" - Anonymous 

Anyone can become rich, through proper financial planning. I have been asked by many persons to refer the books to improve their Financial IQ or Financial literacy. So, in this post, I have presented the list of books, that have helped me to improve my financial literacy. 

All the below books are unique in their own way and will help you for your wealth creation and accumulation. It is not important how much you earn that matters, but how you manage and plan your finance makes a big difference. 

P.S : You can purchase the book in Amazon by clicking the image.  

The Richest Engineer - Abhishek Kumar 
Abhishek Kumar have surely scored 100 marks in his debut book about wealth creation and accumulation. If you are an salaried professional, who pays a major part of your salary to home loan EMI and Car loan EMI and upgrades your lifestyle based on the paycheck rise and doesn't have any investment then this book is written keeping you in the mind. 

A special note of appreciation to the author,Abhishek Kumar for making the complicated financial terminology in an easy understandable format with beautiful examples. If you are bored of reading fat books about financial planning, then you can surely pick this book as it is written in a novel format as a conversion between Vinay [ Financial expert ] and his college mate Ajay, who seeks his financial advice about wealth creation and accumulation.

Pro's : 
It is written by an Indian Author for Indian Professionals. 
It is based on Indian tax laws and regulations. 
It is written in a simple language that can be understood even by a beginner in financial planning. 

Famous Quote : 
Remember, either you create million excuses or you create million rupees. But you cannot create both. 

Rich Dad Poor Dad - Robert T Kiyosaki

Rich Dad poor Dad is the #1 Personal finance book of all  time written by Robert Kiyosaki. Most of the financial freedom books that are written in the recent times are based  on the concepts discussed in the book. It is Robert Kiyosaki who changed the definition of Assets and Liabilities. As per him, "Assets are the one that put Money in your pocket. Whereas Liabilities are the One that take money from your pocket". In this book Robert Kiyosaki shares the wisdom of wealth creation and multiplication, as taught by his Rich Dad (Robert's friend Mike's Father). 

Pro's : 
It will change your outlook towards Money. 
It will help you improve your Financial IQ. 
It boldly highlights all the financial mistakes which we commonly do. 

Famous Quote : 
"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." - Robert Kiyosaki

 

Let's Talk Money - Monica Halan 
Let's Talk Money is one of the best books about Financial planning. I hope and wish that the contents of this book must be part of the school book and should be taught to every Indian children.

It is not about how hard your earn, but about how smartly you plan your finance that matters the most. Monica Halan explains in detail about the financial mistakes which we commonly do and gives a simple solution to all our financial problems.

Highlight of this book is about the Money box, which each and everyone of us should follow to have a financial disciple to live a happy and prosper life. "Let's Talk Money" gives a clear blueprint about the money management.

Pro's : 
1) It is written by an Indian author for an Indian market environment.
2) It gives a detailed explanation about the Money Box [ Insurance, Investment, Emergency Fund, Retirement Planning ]

 

From the Rat Race to Financial Freedom - Manoj Arora 

This book beautifully captures the blueprint of a common man's journey from the Rat Race to a Financial free life. Manoj Arora shares his wisdom that he used to achieve the Financial freedom. 

This book is written by a common man to a common man who have unconciously trapped in the Rat Race. This book will be the lighthouse for the persons, who would like to come out of the Rat Race and live their dreams. 

As per Mr.Manoj Arora ( Author of the successful book "From Ratrace to Financial freedom" ), only two percent of the people think about financial freedom and only one percent of the people achieve it and live their dreams. 

A big word of appreciation for the author, to write a financial planning book that is simple and easy to understand. He motivates and inspired the readers that "If Financial Freedom is possible for him, it is possible for everyone through proper Financial planning"

Pro's : 
1) It is easy to understand the financial concepts written in the book. 
2) It is written in a simple language. 
3) It is written by an Indian author for the indian environment.

Famous Quote : 
"Financial Freedom is less about Financials and more about freedom." - Manoj Arora



 Happy reading. I wish you good health, happiness, wealth and prosperity.  

Enjoying Spiritual life Through Effective Financial Planning

Life is a struggle, but it is a happy struggle if we can remember Krishna and be attached to hearing and chanting His holy names in the association of His loving devotees - Ananda Vrindavana Dasa

In this Youtube video Ananda Vrindavana Das prabhu gives his hard earned wisdom on Wealth accumulation and creation. Even-though he belongs to a rich Gujarati family, he walked out of his luxury home, because of his love towards Lord Krishna [ISKCON]. He is a self-made millionaire, who made money in safe long term securities and bonds. 

He guides the Younger generation, to achieve financial freedom, with proper financial planning for 20 years and do a peaceful spiritual service to Lord Krishna. 

Highlights : 
1) Take Term insurance. 
2) Invest in long term mutual funds.
3) Live a Simple life 

30 Inspiring Quotes on Financial Freedom

I wish that the below financial freedom quotes by the great minds will motivate and inspire you to reach your financial goals. Joy is in the journey. So, let’s enjoy our journey towards the financial freedom, to live a more meaningful and purposeful life.  

1.“Rich people have small TVs, small cars, but big libraries.” - Manoj Arora

2."Financial freedom is available to those who learn about it and work for it." - Robert Kiyosaki

3."Formal education will make you a living; self-education will make you a fortune." - Jim Rohn

4."My definition of financial freedom is simple: it is the ability to live the lifestyle you desire without having to work or rely on anyone else for money." - T. Harv Eker

5."Working because you want to, not because you have to is financial freedom." - Tony Robbins

6.“Do not focus on money, instead focus on a problem that needs to be solved for the world. Money will follow you as a bi-product.” - Manoj Arora

7."To get rich, you have to be making money while you're asleep." - David Bailey

8."You don't need to raise money. You need to be smart and be focused." - Mark Cuban

9."I believe that through knowledge and discipline, financial peace is possible for all of us." - Dave Ramsey

10."The key to financial freedom and great wealth is a person's ability or skill to convert earned income into passive income and/or portfolio income." - Robert Kiyosaki

11."Financial Freedom is less about Financials and more about freedom." -  Manoj Arora

12.“You either master money, or, on some level, money masters you.” - Tony Robbins

13."Financial freedom is freedom from fear." - Robert Kiyosaki

14."Never spend your money before you have earned it." - Thomas Jefferson

15."It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." - Robert Kiyosaki

16."Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all."  -Dale Carnegie

17.“To achieve what 1% of the world’s population has (Financial Freedom), you must be willing to do what only 1% dare to do. Hard work and perseverance of Highest order.” - Manoj Arora

18.“Do not save what is left after spending, but spend what is left after saving.” -Warren Buffet

19.“Beware of little expenses. A small leak will sink a great ship.” -Benjamin Franklin

20.“The best thing money can buy is financial freedom.” -Rob Berger

21.“Financial freedom is a mental, emotional and educational process.” - Robert Kiyosaki

22.“Financial freedom is available to those who learn about it and work for it.” - Robert Kiyosaki

23.“You must gain control over your money or the lack of it will forever control you” - Dave Ramsey

24.“At least eighty percent of millionaires are self-made. That is, they started with nothing but ambition and energy, the same way most of us start.” – Brian Tracy

25.“The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.” – Robert Kiyosaki

26.“The only difference between a rich person and poor person is how they use their time.” – Robert Kiyosaki

27.“Too many people spend money they earned… to buy things they don’t want… to impress people that they don’t like.” -Will Rogers

28.“Compound interest is the eighth wonder of the world.” -Albert Einstein

29.“There are two ways to get rich : One is by acquiring much and the other is by desiring little.” - Jackie French Koller

30. I remember saying to my mentor, ‘If I had more money, I would have a better plan.’ He quickly responded, ‘I would suggest that if you had a better plan, you would have more money - Jim Rohn

Top Ten Mantras for Financial Planning

1. Pay yourself first before spending (Invest in assets).

2. Save minimum 10% of your monthly take home every month.

3. Concentrate on buying Assets (Put money in your pocket) rather than Liabilities ( Put hole in your pocket ).

4. A penny saved is a dollar earned

5. Don't put all the Investments (Eggs) in one basket.

6. If you buy the things which you don't want, you might need to sell those things to buy the things that you want.

7. Under the power of compounding and start investment / Saving early.

8. Track your Cash inflow / Cash outflow every month.

9. Understand the difference between Wants / Needs.

10. Always have a Financial Mentor who guides you in the right direction.

15 financial Lesson’s from the book Rich Dad Poor Dad

Financial freedom is a mental,emotional and educational process - Robert T.Kiyosaki

Rich Dad Poor Dad is the #1 Personal Finance book of all time written by Robert T Kiyosaki. In this article I have presented the 15 financial lesson’s that I have learnt from this book.

Lesson-1 : The poor and the middle class work for money. The rich have money work for them.

Lesson-2 : Employees are taxed when they earn, spend and save. However, the rich people don’t pay much tax like a normal salaried employee.

Lesson-3 : Financial education will help the people to come out of the Rat Race and make them Financially independent.

Lesson-4 : When the Paycheck / income increases, concentrate on investing in assets rather than increasing your spending.

Lesson-5 : It’s not how much money you make, but how much money you keep than makes your rich.

Lesson-6 :  Rich People acquire assets. While the poor and middle class acquire liabilities.

Lesson-7 : Employees makes their business owners rich and not themselves.

Lesson-8 : The harder the middle class employees work, the more they pay the taxes.

Lesson-9 : Rich people have corporations that will be taxed on the leftover amount after spending.  

Lesson-10 : When you are young, work to lean, not to earn

Lesson-11 : Pay yourself first [ Invest in assets]  before you spend your salary [Income].

Lesson-12 : A house, in which you are staying is not an asset. However,  a rental home [Which you owns] that is giving you money can be called as an asset.

Lesson-13 : Invest for cash-flow. Savers are losers.

Lesson-14 : Rich invest their money and spend what is left. However, the poor spend their money and invest what is left.

Lesson-15 : My poor dad often said, I'D rather be happy than rich. My Rich dad Said "Why not be both?"

I wish you great wealth and happiness in your beautiful life.

Amazon Book Purchase : Click here

Mr.Money Mustache's - Lessons about Financial freedom

The Greatest thing money can buy is financial freedom - Damien Thomas

Mr.Money Mustache is financial planner blogger, who retired at the age of 31. He have retired from his tech-industry cubicle jobs, just by cutting down his expenses and investing the surplus amount wisely [ conservative vanguard index funds and a rental homes ].

He now guides many persons across the world to live a financially free meaningful and fulfilling life.  

1.Work is better, when you don't need money. 
2.Financial freedom will help you to spend quality time with family. 
3.Actual purpose of life is to be happy. 
4.Live a simple frugal life. 
5.People live an expensive lifestyle [Buying expensive cars / houses / vacations ] and always complaint that they have no money to achieve financial freedom. 
6.Spend much less than you earn. 
7.If your saving percentage is high [ 64% of your monthly take home salary], then you can retire early.
8. Don't fall prey to the materialistic lifestyle. 

15 Golden Rules for Financial Freedom

Financial freedom is available to those who learn about it and work for it - Robert Kiyosaki 

Financial freedom allows you to do what you love, rather than forcing your mind to love what you do. 

Once you achieve financial freedom, your assets ( Rental Home, Bonds, Stocks, etc) will generate income ( Cash flow) that will fulfill your monthly expenses. 

As per Mr.Manoj Arora ( Author of the successful book "From Ratrace to Financial freedom" ), only two percent of the people think about financial freedom and only one percent of the people achieve it and live their dreams. 

Anyone can achieve financial freedom by properly managing your finances. Staring the financial planning early will help you to retire early. 

Golden Rules :
Rule - 1 : Save more than your expenses. 
Rule - 2 : Plan your short-term, Mid-term and long term investments wisely ( Consult financial planners for guidance )
Rule-3 : Mitigate the risk by buying Insurance ( Term, Critical Illness, Accident, Home ) 
Rule-4 : Start planning your finance early as soon as you join a job. 
Rule-5 : Your money should grow while you sleep ( Invest wisely ) 
Rule-6 : Have a clear financial goal in mind. 
Rule-7 : You achieve financial freedom when your corpus accumulated is 25 times your annual income. 
Rule-8 : Live a simple minimalistic lifestyle.
Rule-9 : Your investment must beat the inflation. 
Rule-10 : Don't put all the eggs in the same basket ( Diversify your Investment ) 
Rule-11 : Always have a good financial mentor, who guides you in the right direction.
Rule-12 : Pay yourself first before spending ( Invest in assets ) 
Rule-13 : Concentrate on buying Assets ( Put Money in your pocket ) rather than Liabilities ( Put hole in your pocket ).
Rule-14 : A penny saved is a dollar earned ( Power of compounding ) 
Rule-15 : The more you learn, the more you earn. Improve your financial IQ.    ( Read lots of good books ) 

Anyone who follows the above 15 golden rules will be free from the Rat race ( 9 AM to 6 PM ) and live a blissful fulfilling life. Wish you all the very best and success for your financial freedom journey. 

References : 
1. Rich Dad Poor Dad - Robert Kiyosaki
2. Let's talk Money - Monica Halan
3. From Ratrace to financial freedom - Manoj Arora 

Let's Talk Money - Book Review

One of the best books that I have read about Financial planning so far. I hope and wish that the contents of this book must be part of the school book and should be taught to every Indian children.

It is not about how hard your earn, but about how smartly you plan your finance that matters the most. Monica Halan explains in detail about the financial mistakes which we commonly do and gives a simple solution to all our financial problems.

Highlight of this book is about the Money box, which each and everyone of us should follow to have a financial disciple to live a happy and prosper life. "Let's Talk Money" gives a clear blueprint about the money management.

Final Verdict :
Even-though there many financial planning books available in the market, this book is specially customized for the Indian environment. I strongly recommend this book to each and everyone of you, who wants to upgrade your financial literacy.

Amazon Book Purchase : Click here