1 year ago
Bill Gates once said, “If you are born poor it’s not your mistake, but if you die poor it’s your mistake.” When I read this remarkable quote, I question myself what is the difference between rich and poor. In fact, if I am not wrong in my opinion, then one thing is clear; everyone wants that financial freedom in his/her life. Sadly, many people are not enjoying it in a decent manner. The reason is that they are fighting just for the sake of bread and butter in their daily lives rather than stepping out of their comfort zones. This narrow mind must be changed, if he/she wants to be financial free in life.
As I am a finance student, I can see finance as a major part of people’s works. Be it share markets, bond markets, mutual funds, real-estates, derivative markets, gold markets, insurance products and so on. In life, financial freedom is so important in order to buy goods and services at par level. Similarly, every now and then, we often hear that wealth is created by investing. Let us understand it this way; first, an investor should take a share of current earnings and separate a good portfolio amount of their savings as they should invest towards wealth creation at the end.
Needless to say, if you work more, save more. Spend less. This way you will be out of debt and on your way to building real wealth in no time. In the end, this will allow returns on your money to compound ways. After all, money is all about the exchange and the transactions that we have with each other. Money isn’t anything objective. It’s about a collective story that we tell each other regarding values. It is a collective fiction. That’s a really powerful concept in today’s business world.
Quite interestingly, investing would help you achieve high returns as compared to bank’s saving account which provides a mere 4 percent return. Therefore, I personally insist investing in financial markets could provide returns upwards of 20 per cent or so if given the right time horizon. And even though money is a leading cause of stress in relationships, ‘Time’ magazine reports that globally 40 per cent of couples don’t discuss how they will manage their money before getting married.
Most importantly, we should all focus on pool of wealth creation rather than living with a clueless mind.
I would like to conclude by saying “The best thing money can buy is ultimately financial freedom when it comes to living happy and prosperous life.”
Author is currently pursuing an MBA degree at Charotar University of Science and Technology in Gujarat, India.