Entrepreneur, Author, Content Creator with 9M+ followers across platforms. I share this newsletter every Friday around personal growth, books, quotes, pictures - it is the most personal version of me online.
Our (strange) relationship with money
warikoo Wanderings
Welcome to 2021! Hope all of you had a wonderful start to the year. And may this year bring peace, health and love to your life.
In this edition of Wanderings, I talk about money :)
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WHY DO WE HAVE SUCH A LOVE-HATE RELATIONSHIP WITH MONEY?
We as a family grew up without much money. It was always hand to mouth existence and perpetually in debt. So I remember growing up hating money, because I thought it was the reason for all our problems. I have written actively about money, shared the mistakes I made with it, and I have come to admire the way money makes people work and behave.
The biggest thing that fascinates me - is the relationship people have with money.
It oscillates between two extremes - be safe with it and let's make it fast! :)
Let's face it.
Our parents never really taught us anything about money, partly because they themselves knew little about it. And at the point they came to know something, the only thing they came to know was, "play it safe".
And that is why the national sport of India - Fixed Deposits!
It is the safest and if I would go a little ahead of me, also the dumbest way to park your money.
But that is what we were told - money should be safely kept in FD's.
Add to that, the other side, which is what was glamorized by movies and pop culture.
Get rich fast!
We all have stories of how people that we know got rich and got rich really fast.
Stocks, real estate, lottery, business.
Our parents hated those stories or looked at them with a mix of jealously and cynicism. While we all loved it. Who wouldn't like a really good rags to riches story!
So what ended up happening?
- Our parents taught us to play safe with money
- They hated the get rich fast method. And thus making money itself became a taboo. (They must have broken some rules. Else you can't make money.)
- We were attracted by money, but expressing it was not the right thing.
End result?
A disaster! Most of us, and I will be the first to include myself in it, know nothing about how to create, maintain and grow money.
Because of which, as ironic as it is, we have become slaves to money.
Because we do not understand it, but we know that we need it, we have no choice but to do whatever it takes to earn it.
That is why - poor jobs, miserable lives, low risk, unhappy careers, unfulfilled robotic lives.
Because if we knew how to create, maintain and grow money - we would be more powerful than it, wouldn't we?
Here is something that will shock you.
If you invested Rs. 2,000 every month (yes, that's it!), starting at the age of 20, all the way to 65 years of age. And you managed 10% returns. Do you know how much you would have at the age of 65 years?
3.6 Crores!
You read that right!
Even if inflation is 5%, this 3.6 Crores will be equal to 1 Crore, in today's value.
Just 2,000 rupees a month, but disciplined for 45 years, and earning 10% consistently!
If you instead of 20 started at 30, this 1 Crore would be 50L (in today's terms). You start at 40, it drops to 25L.
Every decade that you are late, you drop the value by 50%.
There is so much that we do not understand about money. And yet it remains one of the most fundamental and I would argue simple things to understand.
Take the time to make money your friend.
Here are 2 books to start with - Rich Dad Poor Dad and Psychology of Money
And if you want to start stock investing, then my personal recommendation would be to invest through smallcase (brilliant product). It is like a Mutual Fund, but better. You can start with All-weather investing (combination of stocks, gold and bonds)
BOOKS THAT I AM READING
Finished Being Mortal by Atul Gawande - quite an amazing read. If you are curious about mortality and old age, this is a great book to pick up.
Currently reading Non-obvious Mega Trends - a really easy to read and a quite powerful book on trends that are going to last for the next decade if not more and how they will change the world we live in.
I also shared the list of my top books of 2020 recently, here it is again, should you need any inspiration to start reading :)
Almanack of Naval Ravikant - Compilation of the writings of Naval! Brilliant book
Waking Up: Search for spirituality without religion - If you are into spirituality and meditation, this is a great read
Psychology of Money - BRILLIANT! Book of the year for me!
The Courage to be disliked - Unreal awesome book. Challenges a lot of our preconceived notions
One from many: VISA and the rise of chaordic organization - The story of how VISA came into being
What you do is who you are - A book on work culture. Must read for managers, leaders and founders
Siddhartha: An Indian Tale - Stunning book on the meaning of life
No Rules Rules - Book on Netflix's famous culture
Laws of human nature - Stunning book on why we behave the way we do
The moral animal: The new science of evolutionary psychology - Again explains why we are the way we are
Range: how generalists triumph in a specialized world - Beautiful book on how generalists are more important
Awareness: They key to living in balance - The first book of Osho that I read. Pretty good!
On the shortness of life - By Seneca. One of the best books on life's philosophy
CAN YOU HELP ME PLEASE?
I have started posting a lot of videos on Personal Finance on YouTube, in addition to videos on startups and personal growth and career. I would love to know what topics should I make videos on. Click here to let me know.
QUOTES FOR THIS WEEK
You can quit your current unhappy job/college/course and "waste" a year or two.
Or not quit and waste your life!
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As kids we didn't know many fears, we smiled at strangers, we played with anyone new, we smiled more often, we didn't worry about the future, didn't remember much about the past, we hugged, kissed, cuddled, didn't fear judgement. And then we became "adults"!
What a decline!
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If you have the courage to:
- know what you don’t know,
- accept the truth the way it is, and
- take risks,
you are set.
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ANSWER TO LAST WEEK'S QUESTION
Last week I asked all of you:
What would be a habit you would promise to build in 2021?
Not surprising, most of you replied - exercise more, read more, meditate more.
Some of the responses that I absolutely loved
Raghav mentioned that he would listen more than talk (brilliant!)
Sujata mentioned that she will wish every good morning until 11 am.
Poorva wants to build the habit of counting till ten whenever she feels anger coming through.
I am so glad all of you are setting habits. More power to all of you :)
THIS WEEK'S POLL
Which one will you chose and why?
- Die rich and famous
- Die rich but not famous
- Die famous but not rich
To participate, simply reply to this email. I read all my emails. ALL of them.
(aaj koi funny kasam yaad nahi aa rahi. Some ideas?)
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warikoo Wanderings
by Ankur Warikoo
Entrepreneur, Author, Content Creator with 9M+ followers across platforms. I share this newsletter every Friday around personal growth, books, quotes, pictures - it is the most personal version of me online.
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