Your 9 to 5 job will never make you rich

Your 9 to 5 job will never make you rich, here's why?

Right from our childhood, we are taught to work hard, obtain high grades and secure a good job. Educational courses comes with a promise of annual package one may bag after graduation. But, the question of so many educated unemployed & financially struggling people is still unanswered.

It is not a mystery that 90℅ of the wealth is owned by 10℅ elites in the world. There are only two communities in the world, rich and the poor. But wealth is not the only difference between them. Financial knowledge and intelligence is the secret to become rich. They definitely know what others don’t. Poor work for money but rich make their money work for them.

                People work harder to only pay taxes and bills. They plan to save not multiply and this what makes difference. Money without knowledge is money soon gone. At the end of the day, it is not how much you earn but how much you keep to invest first. That is why, so many accountants and bankers go bankrupt because intelligence overpowers qualification where money is concerned.

ref : Reserve Bank of India

People in their early career do not realize the importance of investments and financial growth. They get addicted to overspending and expensive lifestyle. Capitalism and flaunting trends has even dragged people with low income in it. EMI's and loans have made non eligible customers buy expensive products they can’t afford and don’t even need. People end up buying products in super market, those were not on their list. But this doesn't stop here. Once they face responsibilities, their world turn up side down. Unfortunately, fixed deposits, retirement plans and few stereotype real estate investments come to their rescue which hardly earn more than peanuts in ever increasing inflation and taxation. This doesn't mean we should stop shopping but if we will buy today things we don’t need, tomorrow we will have to sell things we want.

Invest Mumbai clearly points out all these facts and helps people avoid these mistakes in life. We can surely become financially independent, if we really want to. The biggest question you may ask yourself before taking financial decisions is whether you need this or is it value for money? Invest Mumbai plans to direct some effective measures in the up coming articles.

Do like and comment.

Author is highly inspired and is a religious follower of 1997 best seller book 'Rich dad Poor dad' by author 'Robert Kiyosaki' and his thoughts resemble to the rich dad series to a great extent. 

Market Trends in 2016

                                     

                            If you are planning to buy a house in 2016 , you need to read this...

            If you are planning to buy a house in 2016, it is advised to wait and watch the market for some more months. Real estate market in India saw a massive boom in the year 2004 and the prices have hiked 7 to 8 times since then. It is only after 9 years expansion cycle , it came to a halt in the early 2013.

                Most of the people are unaware of the real estate cycle of expansion and contraction, which artificially creates inflation and deflation to plunge the huge wealth from masses and transferring it to the elites pulling the strings. People riding this cycle appropriately are benefited and working against are wiped off. This is in similarity to stock exchange's bull and bear markets and stock pumping and dumping. The graph below shows different phases of real estate cycle.

ref : http://www.dce.harvard.edu/

                         One can easily understand that the prices escalate in a bull market forcing one to buy a home at a higher rate ; wherein its actual value is comparatively less. If we look at real estate prices in the whole  90’s , prices remained stable for a decade. But the dramatic rise since 2004 indicates that the prices are still in bubble. The biggest enemy of common man is the home loan which have made people its slave in the 20^th century. It is not a coincidence that ease of mortgage and high prices has hit the market simultaneously. People, due to high rent are forced to go into debt and spend their most of the income in managing a shelter.

                        Housing prices started declining in 2014 due to low demand but newly elected BJP government led by CM Devendra Fadnavis  , dramatically under the guise of Mumbai development plan 2034 ordered to stop new project approval. In addition to unsold housing inventories , new supply would have further pushed prices down proving nightmares for huge builders and ache din for common people. Prices have plummeted 20% since 2013 and expected to fall further. In fact, one can find a good deal at a bargain price at a local developer.

                       According to market experts and analysts , year 2016 may face crisis and market crash similar to recession of 2008. Oil price have gone record low around 30$ a barrel, gold and silver are undervalued and middle east tension may impact prices further which are still in bubble. US dollar crisis and massive deflation are few other predicted events for 2016. It would be wiser to understand our financial situation , market trends , future aspects and then take some concrete decision because our best investment is our time in financial education.

                       Hope you find this article helpful and do like, comment and share .

Zeeshan Sayed

Invest Mumbai