Sie sind auf Seite 1von 36

MadAbout

Money
April, 2017,
Issue no. 7.
DEVELOPING
A MILLIONAIRE
MINDSET

Schools create employees not Press the right buttons: Desi Finance: See an opportunity
entrepreneurs Earn in leisure and make it happen!
pg. 10 pg. 12 pg. 26
Mad About
Money Issue no.7

Content 10_Schools create


employees not
entrepreneurs

12_ Press the right


buttons: Earn in leisure

06
The desire to
be rich is as
important as the
14_ Things to do in the
new economy
business model

Dissatisfaction
18_5 reasons why rich
people go broke
can be the driving
force to grow
20_ Developing a
16
wealthy
millionaire mindset

26_ Desi Finance: See


an opportunity and make it
happen!

08
Financial Fears Sure Fire
28_8 Weird Ways to
make money

30_Re-Skilling for the


ones aiming to be rich
Growth Stoppers

32_Get rich, stay rich


34_Diamonds are not
forever - a feature on
declining prices of diamonds

22
Neither this publication nor any part of it
may be reproduced, stored in a retrieval
system, or transmitted in any form of by any

24
means electronic, mechanical, photocopying,
recording or otherwise, without the
permission of MadAboutMoney magazine.

There is a difference Feeling that the All information in MadAboutMoney magazine

between being rich world is mine can is checked and verified to the best of the
publishers ability, however the publisher
and being wealthy lead you to financial ruin cannot be held responsible for any mistake
or omission enclosed in the publication.

2
Mad About
Money

Editors Note
Welcome to this edition of Mad About Money!
In our previous editions we have talked about the specific
money mindsets needed to get rich as well as the individual
personality traits and habits that rich people have and the
tools they use in order to get there. This edition, as always,
we have something new and unique for you to know and
understand! The answer to the all-important question
What do you do once you get rich?
Like our cover for the edition says GET RICH. STAY RICH.
Yes, thats rightthis edition talks about how to go about
once you have already reached your destination. You must be
thinking that once you get rich, thats the end of your journey
right? The happy ending to all your money problems, and the
I lived happily ever after conclusion to your lifes story? Well
thats far from being true. Trust me, getting rich is just 50% of
the journey. The struggle to keep that money, staying rich and
sustaining your lifestyle is the next crucial 50% of it!
There are too many people in this world who have made
it big in life, gotten rich, only to lose all or most of it later
just because they did not know how to handle it. Specially
for people who have not been born into wealthy families
and are actually seeing so much money for the first time.
Knowing how to go about it and what to do with your money is
extremely crucial and cannot be avoided.
So starting from providing you different weird ways to make
money to stating the top reasons why rich people go broke,
from showing you how to see an opportunity and encash on
it, to making you understand the difference between being
rich and being wealthy, all topics in this edition of Mad About
Money is about sustainability. Sustaining your wealth, your
money. Not just being rich but truly staying rich forever and
after in your financial fairy tale.
So Mad About Money is here to talk about everything to do with
money that draws your attention and passion, but in a different
way, with a slightly different touch that unique magic wand
of mindset change that just makes all this not only attainable in
practical terms but also sustainable for you and your coming
generations to enjoy!. Simply put, if taken in seriously and
internalized with sincerity, it holds the power to change lives and
destinies. Are you up for it? Keep reading and keep getting rich!
Happy reading

Sachin Mittal

3
Mad About
Money

The Mad Gang who makes


it possible every month

Vijendra Singh, Shravan Giri, Rajiv Ranjan,


Manager Money Craft Creative Technologist Joint Creative Technologist
Giving a tight twist to money Tech at his fingertips Joining forces in troubleshooting

Swadesh Mishra, Anubha Rathore, Dheeraj Kumar,


Officer Out-standing Arts & Crafts Designer Chief Money Scientist
The world in his pocket Designer craft creator Sees the glass half full

4
Mad About
Money

Akanksha Mishra, Johny Chopra, Soma Ghosh,


Associate Money Scientist Buzz Ambassador Chief Buzz Creator
Hopefully optimistic Spreading the good word Creating the big buzz

Abhijit Banerjee, Ahmed Ansari, Dillip Rout,


Idea Ambassador Lord of the Ledgers
Account-ability Officer
An idea for a song Tight fistedalways

Magazine designed by: Wire | Digital Creative Agency

5
Mad About
Money

DISSATISFACTION
CAN BE THE DRIVING FORCE
TO GROW WEALTHY

6
Mad About
Money

YOU MUST NOT HAVE HEARD THIS PHRASE QUITE OFTEN.


IN FACT, YOU MIGHT NOT HAVE HEARD THIS PHRASE AT ALL.
THE MAIN REASON FOR THIS IS BECAUSE MOST PEOPLE WILL
ASK YOU TO BE CONTENT IN LIFE. THEYLL TELL YOU TO BE
SATISFIED WITH WHAT YOU HAVE AND BE AT PEACE. HOWEVER,
TODAY I WILL TELL YOU SOMETHING WHICH IS COMPLETELY IF YOU HAVE MADE
OPPOSITE. ILL ASK YOU TO BE DISCONTENT IN LIFE IF YOUR A SIGNIFICANT
AMBITION IS TO BE RICH AND SUCCESSFUL. AMOUNT OF MONEY
EITHER BY SAVING
OR BY SMARTLY
Being content is closely stone age killing animals from the comfort zone, COMMERCIALIZING
associated with being ha- and living under rocks. get cracking today.
ppy. A philosopher once The inherent nature of
YOUR SKILLS,
studied what happiness human beings is being If you have made a signi-
actually is. She says that dissatisfied, otherwise ficant amount of money
happiness is relative and there would have been no either by saving or by
everyone experiences di- evolution for us, or more smartly commercializing
fferent types of happine- precisely evolution so your skills, it does not
ss. All these happiness is fast. It is that dissatisfacti- mean you should stop
not necessarily related to on that has made humans or you have come to any
each other and one kind go the extra mile, lift that sort of an end. It basically
of happiness may conflict
with the other. So, in other
extra kilo, move that extra
brick.
shows what you are capa-
ble of and you should use
HOW TO
words having too much of it to build your confidence GROW UP
one kind of happiness mi-
ght undermine other kind
Evolution is the biggest
proof that humans have
to make more of yourself.
Building your wealth is
AND GET
of happiness, making you been dissatisfied through
not a journey from point RICH
docile and handicapped centuries, and that is not
A to point B. It sure starts
in your thinking process. a bad thing. In fact, that STEP 1
from point A but there is
is the best thing that has
not point B, that journey
EVOLUTION: happened to our species,
should never end for you.
If you want to stay rich,
and that is why we have stop taking financial
Lets look at how we come so far. decisions abruptly.
Revolutionize the way you
evolved into the most The rich are extremely
think! It all starts there.
dominant species on the REVOLUTION: Being content with what
careful about making
planet. We evolved from investment decisions.
Dont listen to your peers you have today basically
being mindless apes to
or elders or gurus saying means you are strangling STEP 2
super intelligent homo
that you should be satis- the hopes of what you
sapiens. From building You will find plenty
fied with what you have. might have tomorrow.
fire to building nations, we of investors keen on
You should never be sa- Go all in, take risks, make
have done it all. How did investing in a new idea
tisfied with what you have, calculated decisions and
you think all this happe- or startup. Be fully re-
in fact you should never make your money grow
ned? By staying content? I ady with your proposal
be satisfied at all. Make with you. Look at oppor-
dont think so. with a long view of the
sure that you stay hungry tunities around you, know
turnaround. Leveraging
If humans would have to make more and make the market, invest wisely
your credentials and
been satisfied by just plenty. Thats the revolu- and quickly. You will be
experience can tip the
building fire, they would tion I want you all to have surprised how rich you
pitch in your favor.
have still stayed in the within yourself. Break free can be if

7
Mad About
Money

FINANCIAL

FEARS
SURE FIRE
GROWTH
STOPPERS

8
Mad About
Money

FINANCIAL
go of the latter. Always
keep 6 months salary as

FEAR 1
an emergency fund and
tell yourself that only by
making little changes in
Financial fear refers to the factors that you can
the fear or anxiety that we control, can the uncon-
have in life regarding our trollable factors have less
finances. One of the most impact if they happen at
WELL, THE ONLY
traumatizing financial fear all. Lastly, deep breaths.
WAY TO DEAL
that people possess is WITH THIS
Everything doesnt hap-
that a catastrophe will FINANCIAL FEAR
pen to everybody. Stay
happen and drain all my
IS CONSCIOUSLY
calm and get rich!
finances!
AND GRADUALLY
SHIFTING FROM
Needless to say, this fear FINANCIAL THE WHAT IF TO
THE THEN WHAT
CHANGING
YOUR
FEAR 2
wreaks havoc in many an
individuals mind, limi- APPROACH!
ting him/her in taking MONEY
risks or other important Financial fears almost
always keep one from
MINDSET
financial decisions in life.
For example, one hears taking prudent financial tage of this just because METHOD 1
about someones relative decisions leading to of the inner anxiety, then
meeting with a serious losing out on great inves- thats sad. Debts have destroyed
accident and immediately tment opportunities most many peoples dreams
your financial fear crops of the time. One of the So Step 1 Assess your of becoming rich. Hen-
up that what if this hap- most common financial risk tolerance level. Ask ce, it is essential you
pens to you and all your fears happen to be this yourself how much you keep a close eye on
hard earned savings and I will lose everything that will be comfortable to your existing debts and
investments get drained I have in the stock mar- lose in case of a market reduce them to zero as
by sudden unforeseen ket!, and needless to say, correction. Lets say its soon as possible.
medical expenses! You people shy away from 20%. Once you realisti-
get traumatized just thin- investing in the stock cally think and arrive METHOD 2
king about it!. market even in the face at this 20% figure, you
of seemingly very good can easily diversify your Our typical middle
Well, the only way to investment options. portfolio against this class outlook makes
deal with this financial across asset classes and us turn our face away
fear is consciously and That is sad. We slog all size of companies, etc. from money. We pre-
gradually shifting from our life in order to make Step 2; tell yourself that tend it is not part of our
the what if to the then it big and when such until and unless you give life so we do not try to
what approach! Simply an opportunity comes, 100% of everything in the manage it. This must
put, your strategy should especially through the stock market, you do not change.
be to think about what stocks avenue, one shies stand a chance to lose
you could financially do away from it just because everything. Lastly, always METHOD 3
if such an event does of the financial fear. I am remember that not
not asking you to put all We learn how to ma-
takes place. Remember, investing in stock market
your saving in stocks. No, nage our household
you will always have also offers a certain level
never. But a well-planned expenses basis our in-
things that are under your of risk since then you are
equity strategy gives you comes. But we do not
control and beyond your assuming that inflation
more ROI than anything try to play the market
control. Focus on the will never erode the inte-
ever can and if someone and look for alternative
former and gradually let rest on your savings. So
cannot take the advan- routes to make money.
worry less, earn more!

9
Mad About
Money

SCHOOLS CREATE
EMPLOYEES
NOT ENTREPRENEURS
Schooling is a system that has been in vogue for many
centuries now. While the methods of schooling might have
differed between periods, the concept has been in existence
across the globe from time immemorial. This concept has
contributed a large number of people to the working class
which has striven hard for the development of the society. The
reality however has been that all efforts of schools culminate to
create employees, not entrepreneurs.

10
Mad About
Money

TEAM WORK
MATTERS text books. Knowledge
assessment of students
If you are aiming for financial must be based on
freedom and has a family, your their interactions rather
spouse also needs to think than just their grades
likewise. As a team, you need to in the exams. Such
work out on your financial gains ENTREPRENEURSHIP assessments must lead
and expenses to reach towards IS A DIFFERENT BALL to progression rather
financial freedom. GAME than being the end point
to define the potential of
The gap between the students.
education system and
entrepreneurship is CHANGE IN THE
still huge despite the APPROACH OF
developments witnessed SCHOOLS
in the schooling systems.
When the approach of
Progressive schooling is schools changes and the
the requirement of the community gets involved
day. Instead of preparing in the complete process,
Conventional schools students to live life, every child will learn
treated the community schools must become entrepreneurial skills right
around as a separate entity a part and parcel of life. from their childhood. No
which was involved only Schooling must not school or college can
for commercial purposes alienate students but foster entrepreneurial
attached to education. involve them in activities skills in an exclusive
Marks scored by the as problems solvers and manner. They can only
students in the exams planners. Teachers must teach a bunch of life skills
conducted by the schools take the role of guides which can value add to
acted as the basic tool and facilitators fostering the students as future
to assess the level of creative thinking skills human beings.
CONTRIBUTION OF knowledge of students. rather than remaining
CONVENTIONAL Schools worked more entities of authority. Creating entrepreneurs
SCHOOLS like one of the tasks to be Parents must be involved is the collective
endured by the students in the learning experience, responsibility of many
Conventional schools than a value adding place. entities around students.
making children learn goal
prepared students for Let us stop creating
setting and many more
living life in a disciplined All the above created a
attributes that will lead employees in huge
manner. Students of subservient mentality in
them to success. numbers. Employees
such schools were students right from the
create middle income
expected to just absorb young age. They grew up Children must be allowed class of people in the
information in a passive with a mindset which was to take decisions so that society. When we focus
manner. The teachers highly closed. The activity their risk taking abilities in creating more and
acted as the major of fostering thinking did get fostered right from a more entrepreneurs,
source of knowledge and not happen at all. Children young age. Learning must we create a world of
information. Parents had grew up like machines be approached more successful business which
no role to play in a typical which worked in a perfect from a pragmatic angle will improve the quality
conventional school manner as per the given and must not get limited of life we live in a holistic
scenario. instructions. to the content in the manner.

11
Mad About
Money

PRESS THE RIGHT


BUTTONS:

EARN IN LEISURE
Wealth is a passion of the highest order- immortalized by every
nobleman, Patrician, Prince that ever existed. Once the world had
industrialized in the eighteenth century, people had leisure time.
New forms of entertainment sprang up. The smarter people leisurely
invested in leisure goods.
As the Fourth Industrial revolution dawns upon with complex neural
networks, quantum computers, robots, 5-D printers, self-driving cars;
it is time to get smarter! What happens when the Fourth Industrial
revolution disrupts the job market? What shall be your sources of
income and the sources of multiplication of your wealth? Take a
moment to fathom the massive amount of changes that lie before you.

12
Mad About
Money

KEEP DREAMING
LIKE LALAJI
BECAUSE THIS
PARTICULAR
LALAJI IS HAVING
THE TIME OF HIS
SAY THE MAGIC industrial revolution brings
LIFE!
WORDS AND with it!
ENCORE!
THE SEDUCTIVE
The four magic words APPEAL OF
for the fourth disruption: FINANCIAL
Press the Right Buttons. MARKETS
Technology has
transformed the way Researchers at IBM and
Google have proclaimed goes bankrupt and stock AS LAZY AS YOU
financial markets are
that the entry of quantum markets across the world CAN GET, LALAJI
organized. FinTech is
computers in commercial collapse (a financial
the elusive golden hen.
applications is not far. tragedy). There is an old man of
There are no limits to the
The appeal of quantum forty. He lives with his
growth of FinTech. With Financial markets are
mechanics laid in its parents in a rented three-
the right software, the right where sociological,
weirdness. Simplistically room apartment in a well-
approach and portfolio, political, regulatory,
speaking, a change in connected part of New
and the right risk appetite, and economic agendas
one particle could cause Delhi. He is unmarried, by
you can earn as much as intersect. And hence, a
you want. a change in another choice. He is a freelance
popular photograph that
particle across space. This software developer who
circulates around when a
Money is evolving with is exactly how financial invests in Bitcoins (1 Bitcoin
tragic incident occurs is
time. Trading went digital markets work. = 82089.92 Indian Rupee),
of people staring at the
in the nineties. Now, sold his shares in a famous
Federal Reserve is due building of the Bombay
currency has gone digital, NBFC today, has a general
to announce a possible Stock Exchange in
transformed by the store and a shoe shop
hike in interest rates this Mumbai. So when your
revolutionary blockchain where he intends to install
month. This means a regulatory authority
technology. Bitcoin is one the software the popular
capital flight from India to decides to decrease
such market disruption. Amazon-go supermarket
United States because the the amount of cash a
It would be smart to uses, has bought a
dollar is a safer currency Non-banking financial
use this commonplace three-storey building in
for investment purposes. corporation can dispense
knowledge to advance the north campus that
Prime Minister Narendra for gold, it is time to sell
your monetary interests in he rents out to students
Modis party wins the UP your stocks!
the currency market. And
and has invested in
this is just the first stroke of elections and the stock
With all its complexities, a Exchange traded funds
the multiple opportunities market jumps in joy (pun
passion for wealth cannot of the recently floated
that lay before you in the intended). Or on a grimmer
exist without a passion for public sector insurance
leisure time that the fourth note, Lehman Brothers
financial markets. companies.

13
Mad About
Money

Millennial
Finance

THINGS TO DO
IN THE NEW
ECONOMY
Rachel Green, the legendary character from the show F.R.I.E.N.D.S left
the groom at the altar and ran away from her wedding because she
thought her husbands head looked like a potato. She found a gravy
boat more attractive than her fianc.
Hilarious, was it not?
The show was the lifestyle Bible and still provides solace to everyone
who has ever watched it. As the show progressed, the viewers
realized, Rachel did not leave her fianc because she thought he
looked like Mr Potato head. She left him because of her drive to be
financially independent.

14
Mad About
Money
BEING RACHEL THE THIRD THING A
The Indian youth has a significant disadvantage in
MILLENNIAL NEEDS TO DO
terms of being financially independent. They live-off Lucky to be born in such exciting times, are we not?
their parents as the latters cultural duty. There is a set So, the third thing a millennial needs to do: Skill up, and
trajectory that life takes, albeit at a different time for then diversify. The term interest area or specialization
everyone. After school, college, job, marriage, children- as we know it today will undergo huge changes in the
repeat. There is little space for financial independence. new economy. For instance, Political Science, Research
methodology, Python (or its grandchild) in Data Sciences
The space for financial independence that should, in theory,
and Economics or Eugenics, Nanotechnology, Quantum
be free from all interferences of culture is actually saturated
Mechanics and Financial Market shall be ONE skill.
with it. The first thing a millennial in India needs to do is:
Leave such a trajectory at the altar because it is antediluvian. The change is evident in the new MOOCs one can find online.
Mass production of skills is history! Robots have it covered.
AS INDIA ASPIRES TO BE And that gives the Millennials of today an unprecedented
opportunity to be the risk-takers, history-makers!
BRAND INDIA
The cultural influence on the idea of financial UNO, ZWEI, TROIS!
independence is enormous. Terms such as, middle-
A successful investment banker who works in the city of
class, simple life, simple needs are not only glorified
London leaves his job to start a juice bar that also sells
but are considered legitimate goals to aspire towards.
quinoa in central Delhi. Be ready to hear more stories of
Even as India aspires to be Brand India, banking upon
the kind because profit, money, quality, passion and drive
her absolutely gorgeous demographic dividend; being a
to succeed is going to converge in emerging economies
depositor, simple, average, middle-class person with a
like India.
stable job (a clear misnomer in the twenty-first century)
and small short-term desires are considered noble. Here Our advice? Invest, invest in this new form of
is the second thing a millennial needs to do: break away. sustainability! Uno (success), Zwei (knowledge) and Teroi
(happiness): nothing is more real in the new economy
The term noble is as antediluvian as the trajectory
than these three virtues.
mentioned earlier. The contradictions of traditional
simplicity as a goal to aspire towards is not a choice In our subsequent issues, we introduce you to the
anymore. The intoxication with the simple, sub-continental options that are for the risk takers, the ones with the
life ended in 1991 and more so in 1993, when the appetite for more-than simple. So the fourth thing a
Securities and Exchange Board of India was established millennial needs to do is: subscribe to Mad About Money!
(more on this in the next issue of Mad About Money).
SKILL FOR THE TWENTY
YOU ARE SO LUCKY! FIRST CENTURY
The world is standing at the cusp of a new beginning. Let us leave you with a problem that requires emotional
More than the exciting politics of our times, it is intelligence and critical thinking (an indispensable skill
technology that shall change the manner in which life for the twenty first century):
operates. Did you know that by 2030, privacy is going
to be a thing of the past with the rental economy in its You start earning via freelancing as a writer/developer.
full bloom while your morning coffee shall be served You earn your first income, i.e., twenty five thousand.
with toast by a robot? (Check out the World Economic It is not much. But it is your first. You have your eye
Forums website for more details). on a new range of hair products by the ever-fantastic
Body Shop. You have been longing for it. The money
What this means is, you shall have enough money is in your account. You have three options: set up a
(hopefully with a basic income if the governments decide professional website to showcase your work, invest in a
in the affirmative) to invest. The cardinal choice that you SIP (systematic investment plan) or purchase the ginger-
shall make 10 years later is not which course to study, castor-argon hair care range that you have longed for a
but which skill to invest in! year. Ponder away!

15
Mad About
Money

THE DESIRE TO

BE RICH
IS AS IMPORTANT
AS THE

BUSINESS
MODEL
Napoleon Hill, a Great
Depression-era author and
former advisor to President
Franklin D. Roosevelt in his
famous book Think and Grow
Rich stated that thinking about
being rich is as important as the
act of making the money for
being rich. You must have come
across thousands of personal
finance books on the shelves
these days you will find hundreds
of titles on how to spend less,
how to save more, how to invest
better, how to retire early, how to
get out of debt faster so on and
so forth. But the most important
thing all these books fails to
mention is taking the first step
get the desire to be rich first.

16
Mad About
Money

YOU MUST BE THINKING HOW IS DESIRING TO BE RICH CAN BRING YOU


RICHES. SIMPLY WISHING SOMETHING DOES NOT MAKE IT MAGICALLY
COME TO LIFE. ITS TRUE, YES. WISHING TO BE RICH WONT BRING YOU
RICHES. BUT DESIRING WITH A SOLID STATE OF MIND WILL MAKE IT
INTO AN OBSESSION, AND THEN YOUR MIND WILL PLAN DEFINITE WAYS
AND MEANS TO FULFILL THAT OBSESSION, MAKING YOU RICH AND
SUCCESSFUL.

TODAY ILL EXPLAIN TO YOU FIVE VERY SIMPLE STEPS THAT WILL
TURN YOUR DESIRE OF BEING RICH TO ACTUALLY BEING RICH AND
SUCCESSFUL. AND THESE STEPS MUST BE INTEGRAL TO YOUR
BUSINESS PLAN BECAUSE THESE STEPS WILL ENSURE A SMOOTH
JOURNEY FROM THE DESIRE TO REALITY.

Step 1:
Spend some time alone
and fix the exact amount Step 3:
of money you desire. Now establish a definite
Create a benchmark for date when you want to
yourself. It is not enough possess the money you IT MIGHT SEEM LIKE A
for you to say something desire. Like the desired PRETTY BASIC PLAN
intangible like I want a amount cant be an IF YOU COMPARE IT
TO ALL THOSE HEAVY
Step 5:
lot of money or I want intangible number, same
plenty of money. You with the date. You need PERSONAL FINANCE
have to have a tangible to have a target date fixed The final step of the plan GUIDES YOU READ,
amount in mind and be in your mind so that you is basically a culmination BUT BELIEVE ME
definite to the imagined have a clear path laid in of the last four steps. THIS IS WHAT ALL OF
amount. front of you, a clear path Write down a clear
THEM COME DOWN
with a deadline. Without a concise statement of the
Step 2: deadline, there is no way
for you to reach your goal,
amount of money you
desire to acquire, the time
TO. THEY JUST COME
WITH A LOT OF BELLS
Now comes the very AND WHISTLES
on time. limit for the acquisition,
important next step. BUT THEIR ENTIRE
your intention to what
Determine exactly how
much you intend to give Step 4: you want to give for the
money, and the entire
MATTER SPEAKS
OF THE STEPS I
in return of getting the Now what you need to
do is create a definitive
roadmap of your desired MENTIONED ABOVE.
imagined amount of
acquisition. Now what you
money in future. You have plan for carrying out
need to do is read out the SO START DESIRING
to realize that there is no what you desire, and
written statement aloud, TO GET RICH TODAY,
such fact as something begin immediately. Once
twice daily. Once right BECAUSE THAT IS
for nothing. You must you have the plan, start
be ready to sacrifice and without further delay.
before bed at night and THE FIRST STEP TO
once in the break of the A PLAN THAT WILL
toil for reaching your Once the plan is set, its
morning. ACTUALLY MAKE
monetary goal. How set. Whether you are
much will you sacrifice ready or not, get on with it YOU RICH AND
and toil is entirely upto immediately. SUCCESSFUL IN
you, but remember, YOUR LIFE.
your effort is directly
proportional to the
results.

17
Mad About
Money

5
REASONS WHY RICH
PEOPLE GO BROKE

BEING RICH DOES NOT NECESSARILY MEAN YOU HAVE FINANCIAL EDUCATION. SO WHEN
PEOPLE SAY THAT WHEN I GET RICH ALL MY MONEY PROBLEMS WILL GO AWAY, THEY
HAPPEN TO BE FAR AWAY FROM THE TRUTH! THE FACT IS, WITH MORE MONEY COMES
NEWER PROBLEMS AND WITHOUT PROPER FINANCIAL EDUCATION, YOU CANNOT KEEP
THE MONEY WITH YOU. LOTTERY WINNERS GOING BROKE, MILLION DOLLAR WORTH
ATHLETES GOING INTO DEBT, EXAMPLES ARE NUMEROUS ALL AROUND. THE REASON
BEING THAT ONCE PEOPLE HAVE MONEY, THEY DO NOT KNOW WHAT TO DO WITH IT!
HERE ARE THE TOP 5 REASONS WHY RICH PEOPLE GO BROKE:

18
Mad About
Money

NOT LENDING AND


suddenly got lucky and
got rich! So when you get
assets in the future. Bad
expenses on the other
GROWING UP DONATING TO rich, you start investing hand are expenses that
in whatever comes your you use to buy liabilities
WITH MONEY LOVED ONES way, whatever you feel that eat up your money
would work without without producing any
the right education and asset. Houses, cars,
Individuals who have not When you have a lot
analysis. But remember, etc are all actually
grown up seeing money, of money, it becomes
just because you can bad expenses since
and have become rich very difficult to say no
afford to make big realistically speaking,
later on in life, do not to loved ones, friends
investments doesnt all they do is gobble up
have a clue as to how or family who are a little
mean you should make your money without really
to handle it. Either they sort of cash right then.
them and lose all your producing other assets
stash the money away Infact people cant even
fortune in the process. for you.
in bank accounts or lose say no to themselves
Again, getting financially
it in unwise gambling, and spend money on
educated is the right way
etc. Him/her neither excessively expensive So now that you know how
to go!
having a past of handling things so saying no to rich people go bankrupt,
huge sums of money, loved ones also becomes time to hit those brakes!
nor having the right
financial education ends
very difficult and you cant
stop yourself from going
NOT Step back, take a look at
what you have and then
up not doing anything further into debt with KNOWING THE get yourself financially

DIFFERENCE
constructive with it. more money! educated so that you can
Hence, the proverb use your money to make
Money does not
make you rich, financial INVESTING BETWEEN more money, instead of
blowing it all up! Best of
education does.
WITHOUT GOOD luck! Stay rich. Stay happy!

FINANCIAL AND BAD


THE EXPENSES
EMOTIONAL EDUCATION
EUPHORIA OF When people become
Individuals usually make
more bad expenses than
IT ALL
rich, by default they
good ones, especially
think themselves to be
when they are rich. The
extremely financially
difference between the
Lets face it, money gives savvy! This is of course
two is simply that good
a different sort of a high to the worst possible
expenses are used to buy
people. Individuals start mistake to do! It might
assets that create more
thinking they are very well be the case that they
clever and everything
that they are thinking is
right while in reality they
act more stupid then OUR TYPICAL MIDDLE CLASS OUTLOOK
they think! Feeling that
the world is mine often MAKES US TURN OUR FACE AWAY FROM
leads to people spending
all their money on luxury MONEY. WE PRETEND IT IS NOT PART OF OUR
that they have always
dreamt of, losing it all in
LIFE SO WE DO NOT TRY TO MANAGE IT.
the process. THIS MUST CHANGE.
19
Mad About
Money

DEVELOPING
A MILLIONAIRE
MINDSET
MILLIONAIRES ARE
MILLIONAIRES TODAY
OWING TO THEIR HABIT
OF TAKING GOOD CARE
OF THEIR MONEY. THEY
PREFER TO GET RICH IN
A SLOW AND STEADY
MANNER, RATHER THAN
IN A FAST MANNER. THE
KEY DIFFERENCE IS IN
THE MINDSET.

20
Mad About
Money
Dont ever lose money.
Millionaires have financial
habits that help them multiply
their money. They never take
Wealthy people think about time to think about investing
their financial position for an the money. They usually take
average of three to four hours a long time to investigate
Learn to negotiate hard.
per month. On the contrary, about the investment options Never wait depending on
Millionaires value every
self made millionaires who where their money is going luck. Your financial position
penny of theirs. Negotiate
have put in their flesh and to be parked. Financial is like a bird in your hand.
hard and pay as little as
blood in making money, think decisions taken under the Do not look at the two birds
possible when you buy
for approximately thirty hours pressure of self or someone on the branch to come in to
something. Negotiate hard
and more about their finance else usually tends to misfire. your hands by luck. You may
to increase the value when
every month. This mindset Financial decisions taken in lose the one in hand too.
you sell something. Develop
fosters the habit of prudent urgency can result in loss of Remember, luck favors the
the habit of consciously
decision making pertaining money. Consider investment ones who try hard.
monitoring every penny that
to money every time the opportunities as buses that
goes out of your pocket.
same needs to be spent or keep coming one after the
Remember, every negotiation
invested. This mind set yields other. For all you know, many
saves or fetches you that
profitable results giving a times, money not invested
extra penny which matters
financial freedom in a slow in the wrong option is money
if you want to become a
but steady manner. saved from loss.
millionaire.

Insure your earnings. Dont


get blocked by the usual
mindset which considers
Insurance as a waste where
et money lies idle. Insuring
et ds

4
ds Min

3
Min safeguards you during
situations when you are
caught unguarded.

et Becoming a millionaire is
ds

5
Min
set a combination of traits like
ind

2
M
Wealthy people think about thoughtfulness, courage,
their financial position for persistence and character.
an average of three to As the saying goes, slow and
four hours per month. On et
steady wins the race.
ds
Min

6
the contrary, self made
millionaires who have put
in their flesh and blood in dset

1
Min
making money, think for
approximately thirty hours
and more about their finance
every month. This mindset
fosters the habit of prudent
decision making pertaining
to money every time the
same needs to be spent or

Negotiate hard to increase the


invested. This mind set yields
profitable results giving

value when you sell something.


financial freedom in a slow
but steady manner.

21
Mad About
Money

FEELING THAT THE


WORLD IS MINE CAN
LEAD YOU TO FINANCIAL RUIN

22
Mad About
Money

WORLD IS MINE generations to follow, you push in the new start-up


FINANCIAL RUIN should sit back, plan and business, a sudden medical
NECESSARILY SYNDROME judiciously and intelligently emergency, a marriage, the
FOLLOWS FROM WHAT IS IT? categorize your spending list is endless. You might
BEING FINANCIALLY When you suddenly get your so that some goes towards suddenly feel bad if you
WELL-OFF IN THE hands on a lot of money, be it such things but mostly the do not help them out in
FIRST PLACE. THIS an inheritance or a lottery win money is used to make their times of need when
MEANS THAT IF YOU or even a business deal that more moneyso that the you possess so much
went the right way, you feel entire corpus doesnt dry money. Well, sadly this
THINK GETTING
that the world is yours! It can up and you can sustain your is yet another sure shot
A LOT OF MONEY
be of course, but you need to new standard of living! way towards financial ruin.
WILL REDUCE
strategically plan for it! The Such benevolent acts
ALL YOUR MONEY feeling per se can do more unknowingly spiral out of
PROBLEMS THAN damage than good and more
YOU TEND our control and honestly,
UNFORTUNATELY than often leads to complete TO BECOME most of these you will
YOU ARE HIGHLY ruin! Lets see why and how. GENEROUS perhaps never get back.
MISTAKEN. RICH TOWARDS THE Even if you do, it would
PEOPLE GO BROKE WORLD: be without interest or any
YOU TEND TO
TOO AND STARTING After your inner need to other kind of ROI.
FROM MULTI-
OVERSPEND ON
show the world that you
MILLION DOLLAR YOUR DREAMS: are rich, comes the next
Lets face it, when you So the world is mine feeling
WORTH ATHLETES dangerous need the need can eventually make you
suddenly win a lottery
TO LOTTERY to be generous towards a popper again if you dont
and feel that the world is
WINNERS, THERE your near and dear ones. step on the brakes now.
yours, what do you do?
ARE NUMEROUS Many of your dear friends Remember, the world can
You go around splurging it
EXAMPLES ALL or family might be short be yours only and only if you
on things which you have
of cash and in some kinds can sustain this money. Get
AROUND US WHERE always dreamt of but could of a problem which would yourself a financial planner,
PEOPLE WHO HAVE A never afford. That luxury get sorted if only there categorise your money, divide
LOT OF MONEY WERE bungalow, the sports car, was a little money. A little it into chunks of savings,
EVENTUALLY NOT perhaps a world trip? So
investments, debt payments
ABLE TO HOLD ON basically you just splurge
and spending and then sit
TO IT, RESULTING IN it all off and get back to
back and sip on that drink
FINANCIAL RUIN IN where you started from!
finally you have done your
THE PROCESS. Nothing can be sadder.
best to make the world yours.
If and when you have a
SO WHY DOES THIS chance of changing your
HAPPEN? WHY DO life forever and maybe the
RICH PEOPLE GO
BROKE? AND WHY
CANT PEOPLE
HANDLE MONEY
WHEN ONE HAS
IT? THE ANSWER IS
SIMPLE THE ALL
TOO TYPICAL AND
USUAL NOW THE
WORLD IS MINE;
SYNDROME.

23
Mad About
Money

THERE IS A DIFFERENCE BETWEEN


BEING RICH AND BEING WEALTHY
THE OTHER DAY I RAN INTO AN OLD FRIEND, There is an increase in
Ostentatious appetite for luxury goods
WHO COMES FROM INDIAS ONE OF THE
BIGGEST RETAIL CHAINS- BIG BAZAAR. display of amongst consumers.
WITH A LOT OF DISMAY, HE TOLD ME THAT wealth Number of High Net
THEIR PRIME LOCATION IN SOUTH MUMBAI worth Individuals
WAS BEING SHIFTED TO A SUBURBAN AREA, The truth is, Indians love (millionaires) in India
to flaunt their money. have increased and
WHILE THE FORMER LOCATION WAS GIVEN
They do not shy away data suggest that
AWAY TO THE GLOBAL LIFESTYLE BRAND,
from ostentatious display luxury market in India
H&M. THE IDEA WAS THAT H&M WILL CATER
of wealth. Marriages are has been growing at
TO UPMARKET CONSUMERS LOCATED IN unprecedented levels
one such platform where
SOUTH MUMBAI. one can witness Indias (currently valued @$18.5
IT WAS A PREMIUM LUXURY BRAND, ramp walk on who is the billion).
DISPLACING A MASS BIG BOX RETAILER, BIG richest show. Well, its not
BAZAAR. IT LEFT ME WONDERING ABOUT such a bad thing. If you Strong interest
got it, you will flaunt it.
THE STATUS OF LUXURY GOODS MARKET IN
Who doesnt want luxury
in luxury
INDIA. ARE THERE ENOUGH LUXURY GOODS
CONSUMERS? CONSUMERS BUY FROM H&M and other shiny things in goods
life?
BECAUSE OF ITS VALUE PROPOSITION OR There is a strong interest
IS IT BECAUSE THEY WANT TO LOOK RICH Indias consumption in luxury goods. The tags
WITH THE PREMIUM BADGE ASSOCIATED story of luxury goods have become important
WITH H&M? has changed drastically. for people. H&M stores

24
Mad About
Money
are opening and other Take for example- You
global luxury brands want to buy Mercedes-
are setting their foot in Benz. There are two ways
Indian market. High- you could go for it. You
end perfumes, jewelry
and handbags remain A WEALTHY can directly buy this car
or you can carefully invest
consumers favorites. PERSON LOOKS FOR in a short term stock,
However, there are many OPPORTUNITIES from which you can get
reasons to feel downright
glum about this market
TO GROW HIS good returns and from
those returns you can
ebullience. ASSETS SO THAT HE buy a Mercedes-Benz

As the consumption
COULD PAY FOR HIS for yourself. A wealthy

of luxury goods is LUXURIOUS WISHES. person will choose the


latter. Being rich is lucky,
increasing, consumer
behavior is also staying rich is strategy.
undergoing a drastic little less rich now. I am not suggesting that
change. Consumers are
To the rich it may not
you keep your money Choice
intact or dont spend it
continually relinquishing
their conservative Indian
matter if these are poor on things that you have
between
avatars, and having a
investments, but to a
person who wishes to be
longed for. Purchase creating
them. Invest in luxury
hard time controlling their
spending spree. Indias
wealthy, it should. Wealth goods all you want.
wealth and
average household debt
doesnt impress anyone. It But purchase them by spending it
seeks freedom. Freedom keeping an attitude of a
(amount of money all
to buy anything one wealthy person, not a rich Ever heard, Money
adults in a household
wants without losing on person. How? Lets see. creates money? Its true.
owe to financial
prior money.
institutions) has been
continually rising without If you take into account How to flaunt Money works round the
clock. It doesnt do any
fail for 5 years. In their ones balance sheet, you your wealth good by lying in cash
attempts to flaunt their may find both rich and
money and look rich, wealthy the same. With
without chests and nor does it
these riches are in actual all the hard assets in spending on it? grow by spending on
losing their true wealth. store of rich, the rich may depreciating luxury
look even richer than the Warren Buffet invests in assets. It needs to keep
Person who wealthy one. But, is he? permanent assets such moving. One needs to
as roads, electricity and
wishes to be railways. He chooses
keep investing it for

wealthy Put more them because new


it to multiply. Money
money in his technologies and
needs your nurturing
When you spend on a and acknowledgement.
Louis Vuitton bag or an
coffer inventions may get
A wealthy person well
replaced by newer ones
Armani Suit or Mercedes- The difference between and old stocks may understands this.
Benz, you are not being rich and wealthy is a go down, but roads,
wealthy, you are being Dont be a pretender
simple one. A wealthy electricity, railways, etc.
rich. Why? See, it from spender. Flaunt away
person looks always for are some permanent
the point of view of a alternative ways to put assets which wont go your money in limited
smart investor. Sure, more money in his coffer down so abruptly. edition watches, cars and
you will look rich with (even when it comes handbags, but take a little
these, but in reality, to buying), while a rich A wealthy person looks longer route and create
you have bought these person may just put his for opportunities to grow more wealth for fulfilling
depreciating assets by money on a liability by his assets so that he your whims and fancies.
trading your money for it. taking money out of his could pay for his luxurious
So, you have just become coffer. wishes. Be a smart spender!

25
Mad About
Money

Desi Finance

SEE AN OPPORTUNITY
AND MAKE IT HAPPEN!

26
Mad About
Money
WANT TO HEAR THE quinoa revolution in India. Do and not a privilege. And that near a chole-kulche stall
you think it is possible? is as much as luck as we opposite PVR Prashant Vihar.
THREE MAGIC WORDS
should lead ourselves to
THAT SHALL MAKE Being the patriotic Indian,
believe we have.
The patriot in me revolted.
YOU POP OUT OF I replied, No Aryan, you How dare you say such a
should not do it. We live in Money is not only for the rich thing? It is blasphemy. Indians
YOUR CHAIR: YOU
India. We should promote are honest and humble.
ARE BROKE. THAT IS It is empowering to be
domestic grains like barley, People with simple needs.
financially independent.
OUR VANTAGE POINT maize and Bajra. Why
Money is not a sin item. Internet is a human right now
FOR THE REST OF should you import a grain
Money is money. It is an
THIS ARTICLE. YOU from South America and sell Well, simple needs is a
enabler. Money, contrary to
it in India? flimsy concept. Needs
ARE BROKE IN NEW what populist narrative would
change with time. Internet
DELHI/MUMBAI (PICK No is the favourite word for have you believe, is not only
is a human right now. I think
novelty for the rich or stratospheric
YOUR CITY) IN 2017. it should be a fundamental
entity you cannot achieve.
WHAT DO YOU DO? No is the favourite word for right, like equality. A
novelty. If you hear No to Looking out for the correct hundred years later, it will
WALKING AROUND something in India, you are opportunity at the right time be a need simple need to
IN DELHI YOU SHALL doing something novel. And is the basic characteristic own a Tesla electric flying
FIND MANY MARKETS, not everything novel is not of an entrepreneurs mind. car. I am trying to sell them
SCENARIOS, AND worth pursuing. My friend Not only should you be gold at the price of Channa
Aryan started importing able to gauge the dynamic and no one wants to buy it. I
OPPORTUNITIES.
quinoa from a dealer in of the market, but win the am selling them smoothies,
DESI FINANCE IS London, started selling it on hearts of your consumer. You coffee, juices, a detox diet
ABOUT THE THIRD: Amazon and approached should be able to crunch and all organic! In a foreign
OPPORTUNITIES. me to file a collective bid data into comprehensible, country, it would sell in a
for a franchise restaurant implementable ideas that jiffy! But here, choosing the
based in New York. He saw are not only self-sustaining right spot is a nightmare.
an opportunity and he made but increasingly profitable. And whenever I tell one of
it happen! The Baap of all But prefixing all that with the people here the menu,
protein foods is now catching an I can do it attitude they freak out and taunt me
on in India. is extremely important. by showing me fresh fruits.
Whatever you do, your How is one supposed to
Let us go back to our
cause, your product or your start a business here?
vantage point now: Imagine

S
service has to be able to
tanding in the land you are broke. You have no The patriotic fervour toned
transform into a tangible
of unexplored money. You are living with down a bit. My broke
entity that can promote itself.
opportunities in your friend in the suburban friend, I said lovingly,
an ecosystem of area of Rohini in Delhi. You The comparative advantage You are looking in the
people who want to spend have no money. You pick is against you when you wrong direction there. PVR
but do not know where to up a job as a restaurant are starting a business or Prashant Vihar sees a daily
spend it is an entrepreneurs manager near your place investing your money in one. footfall of students, couples.
dream. My NRI friend Aryan and now, you have to The first hurdle that you It is a movie hall. The idea of
just got back to India from make money. You cannot have to cross is a no. It is
relaxation for people here is
London mesmerized by the borrow and in this particular hard. But it is surmountable.
a movie and a pizza. I took
quinoa revolution. Quinoa scenario, your parents are How do you deal with
my friend to a hospital. Well,
is the staple diet for the not an option. an audience whose first
outside a hospital and we
Latin Americans. Rice is response to a product
The cultural baggage of rented the ground floor.
to India what Quinoa is to is no? My broke friend
financial dependence is
Latin Americans. It is hailed decided to open a caf. He That is where we run our
shed. What are you going
as the hallmark of success took a personal loan and I successful caf called,
to do? Scenarios like this
for globalization. Over a loaned him the rest of the Swastha Bharat. (The patriot
provide perspective on
cup of coffee in the market money. He got the design in me could not resist that
the importance of financial
complex opposite IIT Delhi, ready, the menu ready; he name)
independence. We are lucky
he asked me: had all the right ideas. We
to be born in a culture where Now, dear reader, would you
were looking for a space.
You have no idea how it is an obligation for familial be interested in working on a
unexploited Indian markets systems to coexist financially Indians are prudish, he said project of a grand seven star
are. I just wish I could start a but this is a matter of luck brooding. We were standing apartment on TRAPPIST 1?

27
Mad About
Money

8
WEIRD WAYS
TO MAKE
MONEY
HOW MANY TIMES HAVE YOU STORMED
INTO YOUR ROOM, LOOKED FOR A LITTLE
CASH HERE AND THERE, TURNED YOUR
POCKETS INSIDE OUT AND EXCLAIMED
WHY ON EARTH DO I NEVER HAVE
ENOUGH MONEY?! IF YOU ARE READING
THIS ARTICLE, CHANCES ARE, THAT
A LOT OF TIMES! WELL, FOR ALL YOU
FOLKSHERE ARE THE TOP 8 WEIRDEST
MONEY MAKING WAYS FOR YOU TO GET
A HIGH ON!

28
Mad About
Money

to many, being a life ty, become a professional So get hold of your dart
model for painters, scul- hangover helper in the set and go earn some
ptures, etc are not only locality! cash!
a good thing for artistic
5.Give Product 7.Sell a secret
reasons but it also pays!
Such life modeling needs Demos language:
all types of body shapes
and sizes, hence however Starting from malls to big In todays day of what-
you are you can definitely fairs, from corporates to sapp, messenger and
life model for art! individuals, brands are all the social networ-
always on the lookout king apps and features,
3. Sell your hair for people to give their having a code language
product demo to win the the code to which only
1.Sell your Next time you get a mindshare of their poten- you know and the person
photographs haircut, try and earn tial target group. So be you share it with, is a
some money for it! Hair it the latest smartphone novel and romantic way
Almost all of us have a is always needed for with some cool featu- to make communication
DSLR now and what we making wigs and other res or a household item interesting! Rack your
all do with it is go click theatre disguises, etc. So like a roti maker, giving brains a little, invent a
happy, taking snapshots you can sell your hair to product demos are easy secret language and go
of whatever we fancy and earn some money! cash right there! sell it and its code key!
of course our vacation 8.
snaps! Well, organiza-
4.Become 6.Organize Become a
tions pay huge sums a hangover Games in Sales face painter in
of money to buy well
helper Meets front of a kids
composed photographs
from online sites for their As weird as it may sound, Marketing, sales meetin-
school
webpages, blogs, etc. So life is all about identifying gs, be it a product launch If you have drawing ta-
go put your photographs opportunities around you or a distributor meet, are lent, want to earn cash by
on sale! and encashing them! always about inviting having fun, nothing like
All of us have had those a group of people and carrying a set of brushes
2. Become a mornings with severe then making them happy. and paint to a childrens
life model hangovers where you Usually organized in five school during the eve-
cursed being alone and star properties, there is ning holiday hours. One
Being a ramp or a com- thought only if there was always a need for fun kid gets his/her face pa-
mercial model might someone to do this, give and games arrangement inted and you are done!
need a lot of hard work that, help me get over outside the banquet Get ready for atleast an
and effort..including ha- the hangover, etc. Yes, so during the waiting hours hour of painting, laughter,
ving the right height and if you happen to live aro- etc when distributors can happiness and of course
body type, but unknown und a student communi- have fun and win prizes! fast cash!

29
Mad About
Money

RE-SKILLING
for the ones
AIMING TO BE RICH
30
Mad About
Money

I
f you are an ambitious
business owner or an
individual who aims to
be rich, you must realize
the importance of re-ski-
lling yourself or your
business or your work
force. Re-skilling not only
enables you to stay at par
with the industry but also
gives you the power to
TODAY ALL provide quick innovative
solutions to the constant help you or your business possess right now, and
BUSINESSES re-skill effectively:
problems arising from learning these skills will
FACE MULTIPLE help you fill the gap you
day-to-day business
CHALLENGES affairs.
EVALUATE: have in your business
ON ALL FRONTS Your primary first step
right now. Invest in a
MAINLY BECAUSE You snooze, is to evaluate the pain
re-skilling program, its
OF EVER you lose points in your business.
highly recommended.

DYNAMIC MARKET Evaluate carefully to find


PLAN AHEAD:
Understand this, the de- out the shortcomings
ENVIRONMENT. mand and expectations and how things can be Remember, re-skilling is
WHATS from your customers are better. In this process, a continuous process. It is
HAPPENING NOW in a constant rise and it you will discover certain not a one-time thing. You
IS BUSINESSES will keep on increasing. traits and abilities have might acquire a re-ski-
Only way to keep up with been left out, you can
DEMANDING lling program that will
their increasing expecta- then add them with your
ADVANCED SKILL tions is getting re-skilled
enable you to fight your
re-skilling abilities. current shortcomings but
SETS BECAUSE time to time. You snooze,
what about tomorrow?
THE NATURE you lose. IDENTIFY:
You need to plan ahe-
OF THE WORK Re-skilling means acqu- ad and keep training
In this step what you
IS CONSTANTLY iring new skills, which need to do is identify yourself so that you stay
CHANGING AND when combined with your skillset and your ahead of the times, not
GROWING. THE your understanding of performance gaps. let the times stay ahead
your domain gives you Conduct assessments of you. You must mainta-
CONCEPT OF RE-
the power to surge ahead and surveys to determine in a timeline where you
SKILLING HAS in this fluctuating market. what you know and what can periodically re-skill
HOWEVER HAVE Re-skilling gives you you need to know to yourself and always plan
BECOME THE the power to adapt fast, achieve your goals. ahead for the future.
CENTRAL FACTOR as fast as the market is

FOR MAINTAINING
moving and that is going DEVELOP:
to give you the edge
THE BUSINESS your competitor will lack. What you now need to
MOMENTUM. Re-skilling is a smart do is develop a re-ski- Reskilling is often
move, a move you must lling program for yourself. a matter of neces-
make if you ever want to You can either do this sity in the business
be rich and successful. yourself or take special world. If you want to
help form re-skilling con- be rich and stay rich
We have extensively tal- sultants. Either way, you you must make sure
ked about the why part, must enroll yourself into that you must learn
now lets talk about the a program. A program new skills and keep
how part. Heres a simple will help you develop updating yourself.
7 step program that will skills you currently dont

31
Mad About
Money

CREATE AN APP, INVEST IN MARTIAN


POTATOES AND CORIANDER:

GET RICH,
STAY RICH It is said that change is the only constant. A successful
individual employs tactics to exploit change to get rich,
stay rich. A young man of about eighteen creates an app,
sells it to a Chinese multinational, invests in a project that
shall grow a variety of potatoes on Mars, uses the profits
from this ego good to finance his investment in premium
quality coriander grown in Gujarat and buys exchange
traded funds floated by the government of India and
purchases a farm in the outskirts of Delhi to engage in
peri-urban agriculture.

32
Mad About
Money

H
e then uses his constant income to purchase
an urban space on the twenty second floor
of a building in Mumbai which he divides in
half to rent out to a restaurant and set up a
recreational centre for an ageing population.
What you just read about is the dream life of a millennial
in 2030. This is also the way wealth is created, retained
and multiplied; by exploiting all opportunities that appear
with changing times.

THE POLE STAR OF THE HOW DO


CORPORATE WORLD: ENTREPRENEURS
MONEY STAY RICH?
Ever noticed how some people do not work, but stay
As technology changes the way we do things, it is rich? One word answer to how that happens: Financial
essential to re-skill. This re-Skilling should not be merely markets. They have been around since the first
about learning to code for big data or consulting, which entrepreneur invested money in the first ship that sailed
are going to be base level requirements for most jobs of from Europe to explore the world for commodities that
the future. could be sold in the home market for a huge profit.
Re-Skilling for the ones aiming to be rich involves The fixed deposits, treasury bills, National savings
learning to identify opportunities, embracing failures, schemes, IPOs, ETFs, derivatives, futures, bonds, mutual
moving on, starting again and walking through the maze funds, pension schemes; these are a part of the financial
of challenges of a changing society to get rich. market. The intimidating jargon is only so in appearance.
Ambition has to be navigated using the pole star of It works fairly simply: recently the futures of Coriander
the corporate world: money. Once you have reached on an Indian stock exchange regained value in the wake
your destination to stay profitable; navigate faster. In a of demand for premium Coriander in foreign market.
changing world, it is paramount that you embrace all Coriander is a part of the commodity market. Had
opportunities that come your way. If Elon Musk had you purchased a future of coriander for six thousand
continued working for PayPal, the explosive entry of rupees last sowing season, you would earn rupees nine
SpaceX and disruptive forces of Tesla would have never thousand from it this month.
happened. Intelligent navigation through the stormy Did you know the savings interest rate that you gain
waters of business involves being an adept captain: when your money lies idle in the bank is a derivative of
The vision is as important as the model. the manner in which financial markets operate?

A talented employee is your best investment. Three things you require to stay rich:

Break-even should not elusive forever. Hawkish eye (which is a trait acquired by experience)

You are the golden asset for your business. Listen to Risk appetite: Idle wealth is worthless in practice
the market, listen to your employees (look at them like Awareness of the limits to your risk appetite
consumers of your product) and rely on data. Data is
called the new oil for a reason. Once you have mastered the above mentioned mantras
of wealth awareness, get on and sail on the ship to
Never ever ignore an opportunity to expand. explore the treasures that lay hidden in the sea of
But navigate using the pole star only! constant change! Bon Voyage!

33
Mad About
Money

THIS MONTHS FEATURE STORY

DIAMONDS ARE NOT


FOREVER - A FEATURE
ON DECLINING PRICES
OF DIAMONDS
Diamonds are forever Definitely one of the most popular
proverbs used by the marketers. Well, practically speaking, it
is quite a hard stone so it will probably last for a long time. But
financially speaking? Is it durable in nature? Will it hold good or
increase in value over the years? If we look at the data of the past
30-40 years or so as well as the current diamond price index,
unfortunately, diamonds are probably not forever as is claimed.

34
Mad About
Money

A BIT OF A BACKGROUND:
A popular diamond industry benchmark, the Rapaport
Diamond Index, states that the prices of top quality
diamonds have gone down by as much as 80% in
the last 35 years. And this collapse is real time, in
inflation-adjusted terms. For example, if a diamond
cost $6000 in 1978, as per the index it costs around
$11,000 now. Even though this might look like an
increase, but if one was to adjust it against the
inflation, then the stone has actually lost about half its
value in reality!
Diamond prices had again picked up during 1980,
but after the market crash in that year, it reached
lows and from then have not really gone up again.
They have kept up with the inflation, but if one
was to include all the related costs brokers fees, responded that they are facing the worst diamond
commissions, retail percentages, insurance costs, etc market downturn in years.
then the prices are still very much in the abyss. As a This temporary close down of the mine basically
comparison, people who had invested in government sums up the issues faced by the diamond industry in
bonds or stock-index funds, have multiplied their current times. The downturn gained momentum last
money several times. year and has resulted in considerable financial pain
for all stakeholders including miners, dealers as well
as retailers.
THE RECENT PAST:
Going a bit forward, if we look at our recent past, just
9 years ago, world famous diamond producer De THE CURRENT PRICE FALL:
Beers opened Snap Lake - its celebrated landmark Coming to the present, according to Rapaports report
project in Canada which was their first underground in January 2017, the average price of 1-carat diamonds
diamond mine outside Africa. By 2014, $2.2bn fell by 5% and of 3-carat diamonds by 8.5% in 2016.
had been spent on development and operations. In the Indian context, after PM Mods Demonetization
However, not even a single diamond is now produced move on November 8th, where high value bank notes
at Snap Lake and last year, the mine was closed were illegitimated, diamond sales suffered all the
along with a massive 400 job cuts. The family more in the fourth quarter.
Since demonetization wiped out 85% of money
in circulation, orders from local jewelers faced a
huge dent. Domestic Indian demand saw a huge
fall in demand even with the wedding season and
valentines season being at the forefront. Average
price of half carat diamonds and one-carat diamonds
fell another 4.8% and 3% respectively in the fourth
quarter. Only the 3-carat diamonds were seen to
hold their stand with a 1.4% price rise over this period.
Rough diamonds faced the same fate as that of their
polished counterparts.
Thus, it can be safely concluded from past data that
irrespective of what marketers say, diamonds might
not be a womans best friend after all, and definitely
are not forever!

35
Mad Mad
Money