Money can buy happiness

You are grumpy!

Your friend asks you what happened.

You say you are tensed because your son’s admission to college is round the corner and you are having difficulty arranging the money!

Sounds similar? Sounds familiar?

And then when your friend says don’t worry, something will come around. But it’s not so easy because it’s your problem and it’s difficult to take things so casually!

We have been told multiple times that life is not about money. Also, we have been told that money can’t buy you happiness! But the fact is money can’t buy you happiness in the actual sense but it does buy you food which you place on the table!

One of the biggest anxiety problems is the money problem.

If you have debt issues: You can’t be happy

If you have a health crisis in your family: You can’t be happy.

Though health comes before wealth, you can dry up your wealth in one unfortunate crisis! How will you be happy after that? Your future anxiousness will only take you far off from happiness!

So whether you like it or not, it’s important to solve your money problems to ensure happiness! Your basic needs should be well covered for you to even think of being happy!

How do you do it? It’s difficult, but the fun fact is that you can turn this around even if you are broken today.

Let’s go!

First, get a hang of all your spending. 

Get rid of any spending which is not a need.

Control your wants. And save and invest the rest!

There is no way you can garner wealth if you have not invested in equities.

Equity investment doesn’t mean you buy any cheap stocks! Believe, it’s your business which you are buying to be a part of! Buy with the notion of holding on for at least 15 years! Do not buy based on tips or don’t get into FOMO!

If you want a secure future and a happy life you need to get rid of your anxiousness! It’s not easy in theory because if you have a money problem you can’t be happy. Anyone telling you otherwise, don’t care for you because it doesn’t happen that way!

You should have the habit of purchasing equity regularly. You should be proud of your investments!

If your debts are taken care of and you decide to live a life within your means then you will have a happy and joyful time with your family and a good night’s sleep. Very few can afford this.

If you can start living a life within 50% of your earnings from today, be pretty sure that in 10 years to 12 years’ time, you won’t be running around for money. But you have to patiently do this.

So what to do with the other 50%?

Break that up into 2 parts:

30% – Wants

20% – Investments.

In your “wants”, you can have your EMIs. That is the maximum you are allowed to spend in EMIs. By default 20% has to go into investments.

100 – Age

If you are 25 years of age, subtract 100 from your age, that’s 100-25 = 75. Now 75% goes into equities and 25% in liquid products which can be RD (Recurring Deposits), FD (Fixed Deposits) or Liquid funds, or any endowment products. I prefer liquid funds because they can be redeemed easily.

If you have debts that will run for more than 10 years, make sure that in your next raise, you will put that extra money in servicing those debts. Debts cripple you. So get rid of them at the earliest.

If you follow the above rules consistently, 10 years down the line, you won’t be working for money because now money will work for you. It will grow when you sleep and that means you will have true control of your time. When this happens, you can do what you want to do rather than being forced to do something which you are not passionate about.

Are you facing difficulty in managing to create your goals and maintaining them? If yes, connect with me over LinkedIn and we can have a chat. Always happy to help.

Till then, take care and God Bless!

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