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6 easy ways to get broke

Haha.. We have all discussed ways to make Money, how to save Money. secure your future, and live with Financial Independence.

While we continue to grow, and spread Financial Literacy, todays topic is off the grid, stating 6 easy ways to get broke, so you can avoid them all. 😉 If you wish.

1 . Getting Involved in a Get Rich Quick Scheme

Yes, while your intentions might not be wrong, creating wealth is not an overnight game, not for most! Being part of a Ponzi or Pyramid scheme, where you get money if you recruit people can be your way towards not just wasting away your life savings money, but also the time & effort. Not to mention the legal repercussions that one might face. Want to read more about them click here.

2 . Winning a Lottery

Though it sounds great, those happy hormones ain’t gonna last long. Yes you heard us correct, according to a study more than 50% of Lottery winners end up broke within five years. So next time you play that game, remember its just a game with rules not in your favor. Wanna read more, this is an interesting read I found.

3 . Addiction

Whether its an Addiction to Drugs, or Video Game; Addiction can leave a pretty deep hole in your pocket. Take the Cocaine addiction for example, people start small but with time they end up buying several grams a day, doing that for just a year if you have an average household Income can leave you broke, and not to mention the side effects of it on Health. If you thought, drugs were worse, then gaming addiction is even worst, gamers often neglect aspects of real life, including their finances and job. From being late on a job, to spending recklessly on virtual artifacts like skin, coin, life etc, to getting fired from a job, gamer may lose it all for their virtual life & pleasure.

4 . Buying on Credit Card

If left unnoticed, excessive buying on Credit Card with no full payment by end of every month, can definitely leave you in debt trap. People can easily get from 1 to 5 credit cards, with a limit of around 5000 dollars, thinking they have enough money to buy that extra refrigerator, or that big TV on sale, without realizing the Interest they would be charged if they don’t pay back their credit. Well, gradually this Interest piles up (not to mention some credit cards can charge you up to 25%) leaving you broke!

Now I am not saying its not good to have Credit Card, off course credit card has some great perks but you have to know how to use it. If you want to know more about some benefits read here.

5 . Investing in Penny Stocks

Now you might be wondering, but Salrite you say Invest, Invest, Invest!, well I do!, but not in just random penny stock…

Investing has risk, and in Penny stocks the risk is akin to gambling. With no proper financials to check, not so transparent Business practices, no proper corporate governance, Penny stocks can lead you broke in just few months!

6 . Look Good, Feel Good

All that Glitter is not Gold, all that Plastic Surgery is not worth. Well, its one thing to be in shape, and take good care of your body, and completely other thing to have a cosmetic surgery just to appeal to the larger audience!, or buy that Lambo, designer clothes, that Gucci scarf, those shoes, that no one except you care about! The complete show off.

Thank you for reading. If you want to know What the Rich way truly is, check out – The Rich Way. Have a great day.

The Rich Way

7 Things that Rich do different than Poor. Welcome on-board, lets help you put that extra buck in your pocket.

  • Passive Income – Rich earn even in their sleep. Yes, they have a source of Income that puts Money constantly into their pocket even when they are not working. Passive Income of 1000 INR is worth more than 10,000 INR, how?, just imagine the time saved and the freedom gained. After all wealth is for ones Financial Freedom. One source of passive Income is by buying stocks that pays you dividends regularly (after every quarter or so). You can start with a small investment, all you need to do is open a Demat account with a brokerage like Zerodha and take it from there (check out our blog post on how to avoid investment mistake before investing, also follow this space for more tips and tricks)

  • Keeping money is harder than making – Money management is not easy. The expenditure for majority of people grow proportionally with their Income. This is also the reason why almost all lottery winners end up spending what they have won. The urge to spend the money to show Rich than to be Rich is strong. Rich definitely know better Money Management than Poor. Once you made your first crore to make the second all you need to do is replicate. But how to save & invest and let your Money grow on its own is not something majority understands.

  • Focus on Increasing income not cutting the cost – Yes, you heard it right. Rich don’t try cut the cost in small things. Majority will walk an extra mile saving cost rather than focusing on earning more. Instead of cutting cost every now & than, we urge you to first think like Minority and Increase your Income, so that you can afford all the nice things in your life. How?, May be learn a new skill that pays you more, or do some side hustle that help put some extra cash in your pocket.

  • Over 50% of Rich earnings go to investments – Yes, Invest like crazy! If you want to be wealthy, you need to have a tight grasp on your savings & investments. You need to be able to park enough money (the more the better) in different assets. You may diversify your portfolio in assets like Gold, Real Estate and Stocks. If you want some quick tips on Investment do check out our very first blog here. Almost all wealthy people and brands invest more than 50% of their earnings. If you are beginner and don’t know where to start you may like to read our blog post here. To start Investing in Stock Market, you can open a demat account here.

  • Don’t borrow Money if it is not to make Money – This rule applies strictly for the elites. Rich don’t borrow unless the money helps them make more Money. They won’t pay bank the interest unless they make their cut. By borrowing money like majority to finance your new house or buy a new car your making the Bank & Bankers wealthy while putting yourself in debt. Debt not taken for the assets that put Money in your pocket is useless. So think whom you want to make rich, yourself? or them?

  • Multiple Streams of Income – To be wealthy you definitely need to have the money flowing in through multiple ways. A side hustle, a full time Business or job, a passive source of Income; you need to work hard to at least grow the 3 sources of Income. Multiple Source of Income also keeps you portfolio hedge against a Crisis. You are less likely to be victim of a Crisis, and more likely to be at peace. An Online side hustle, free lancing etc may come handy.

  • Invest in self – Investing in self is one of the most underrated advice. Ever wondered why Successful people read more than an average person?, the answer is simple your knowledge = future returns, the more skills you know the greater the opportunity to multiply your Money. This is the same reason why a Businessman earns more than an employee, they have figured out a solution, they know the full breadth of the System and not just a single piece of the puzzle like the employee who may be specialized on a single task. So learn a new skill, or grab a book, even better listen to two free books of your choice here at Audible.

Lastly but not the least, if you want to know more definitely check out this video by Alux.com. This article is inspired by the same. While the opinion above is completely ours, the primary source nevertheless remains this video.

Thank you for reading. Do follow us for more. Together lets be Financially Free.