Until now we have only partially covered the first aspect of life - HEALTH.
You must have read it in the posts-
3 Important Aspects of living - DIET
What do I do when I get ill?
No. 1 Misconception about great health
3 most important aspects of living
You must have also come to know that there are 3 pillars which support our life-
1) HEALTH
2) WEALTH
3) HAPPINESS
If all the 3 are strong then we can live a meaningful life, we will also take the human race a little forward, because if you have all 3 pillars strong then you will be perceived as a leader, an icon, as an inspiration to those who don't possess these strong pillars. Whether you notice or not but people will notice you. So automatically you spread the awareness. You touch many lives.
Until now we have discussed that Health, Wealth and Happiness are the supporting pillars of our life. All three have to be strong equally so as to live a balanced life. Also if one or more pillars are weak then we can't enjoy the benefits of the stronger pillar. (think about it practically.) Together they compound the strengths of each other. Therefore we have to work on all three to live a meaningful life.
Well I have said at the starting that we just partially covered the first aspect of life, yes it is true, just partially, there are so much to learn. But don't worry, learning is the way of life. So enjoy the process. Take it easy and visit samanyabuddhi.blogspot.com often to learn something more. Get yourself thinking. Get answers to your questions. Never keep any question unanswered.
Let's start with the basics of WEALTH-
Definition-
Wealth is the abundance of valuable resources.
Valuable resources can be anything- money, land, buildings, vehicles, machinery, goodwill, skill, knowledge, personal relations etc.
But as far as the blog- samanyabuddhi.blogspot.com is concerned, we will focus on the wealth which will give us financial independence. Financial independence is the basic thing which one should achieve to become a great wealth creator to the society. Financially independent people are the people who perform the best work in the society, simply because they are not doing the work for the sake of doing it, but as a hobby or as a passion. Financially independent people change the course of humanity towards better, they make the marvels of the world. For example as Mr. Warren E Buffett and his business partner Mr. Charles T. Munger have built the Berkshire Hathaway, Similarly in India Mr. Narayan Murthy have created the Tech behemoth Infosys, or Mr. Siddharth Lal is shaping up Eicher Motors (The maker of Royal Enfield motorbikes), or look at the TATA group, there are many many examples all over the world.
Therefore we will discuss about the financial aspect of the wealth for now.
So let's start with the basics-
Our belongings can be divided in to ASSETS and LIABILITIES.
People gets confused in the two, because as per general commerce practice there are many assets which actually act like liabilities.
To cure this problem we will adapt to the definition made by best selling author Mr. Robert Kiyosaki in his best selling book 'Rich Dad, Poor Dad'. These definitions are very practical and easy to understand. I couldn't find anything more simple or more practical.
The ASSETS are the things which put money in your pocket.
And the LIABILITIES are the things which take money out of your pocket.
So the simple thing is you have to accumulate ASSETS and reduce LIABILITIES.
With this definition, most of our beloved possessions becomes liabilities, for example, our car, as there are fuel costs, maintenance costs, depreciation, takes out money from our pocket, even if we don't use it, it's value goes on reducing as time goes by. Our tech gadgets also lose their value very fast, for example your smart phone, After just a couple of months there comes a new model and the price of the old model falls drastically.
But hold on, you don't have to give up your love for automobiles or tech gadgets or beauty treatment or other luxury items to become wealthy. Then how to do it?
A two word answer will be DELAYED GRATIFICATION.
What is DELAYED GRATIFICATION?
First let's understand what is GRATIFICATION- when any act triggers your feeling of pleasure is known as gratification. For example when you feel thirsty, you drink water and experience some pleasure. Whenever we want something and get it, we experience pleasure. Our brain quickly recognises the pattern because of close association of an act with the feeling of pleasure and then tries to repeat this pattern.
Now what is DELAYED GRATIFICATION?
Delayed gratification is when you perform certain acts which gives you pleasure long after the act is performed. At such times our subconscious have difficulty in noticing the pattern, seeing the connection between the act and the pleasure. Because so much time is elapsed after the act. For example, you have the money to purchase a car, but instead of purchasing a car you invest the money in purchasing shares of a good company growing at the rate of 20% per year, and then after 6 years your money get tripled, you sell one third of your shares and buy a car for the same amount, but what you have now is, a car plus double the money which you originally had plus this money is growing at 20% per annum more than enough to pay for the gasoline and maintenance of your car. Only catch is you have to wait for 6 years for the gratification, but you have gained much more. The pleasure is much more.
You may consciously enjoy the process of delayed gratification until it becomes an AUTOPILOT.
Mr. Charles T. Munger, Mr. Warren E. Buffett's business partner at Berkshire Hathaway says that,
I just need to know where I am going to die, so I won't go there.
So how did instant gratification kills your chances of becoming rich and financially independent?
Generally we get instant gratification through the purchase of liabilities.
Think about it, how did you felt when you bought your first phone, car, big flat screen LED TV, professional camera etc. You probably have felt so much pleasure that you might have forgot about maintenance cost or the finance costs, 'just get that thing' was your focus. You made a permanent damage to your future, but still you felt good.
Now if this instant gratification thing is compromising our future then how did it became permanently programmed in to our brains?
The answer lies in the caveman era, when our ancestors were living in jungle. At that time instant gratification was a boon, instant gratification meant better health and future. Sounds controversial right? But it is true, let me tell you how..
In the caveman era, instant gratification was linked to the basic things necessary for survival and reproduction. We felt instant gratification when we hunted for food and got it. We felt instant gratification when we felt thirsty and drank water. Or having sexual intercourse. Now what happened to those cavemen who didn't felt instant gratification? They might have starved to death or died because of dehydration as they wouldn't have consumed water or food because there was no reward (pleasure). So their capacity to hunt for food or water must have been diminished because of malnourished body. So, you must have to thank instant gratification for your existence. ๐
But now our basic needs are easily fulfilled. The task now a days is to achieve higher status. We struggle to achieve wealth. (you are reading this post is the proof). There is nothing bad in it, but this instant gratification acts like a villain as far as wealth creation is concerned.
To increase our wealth we have to concentrate on accumulating assets, increasing our income, spending less.
But again is it contradicting the whole purpose? Spending less?
Absolutely not, you just have to reduce the ratio of spending to income.
Now this is a really big topic. So I think it is enough for now. Digest what you have just read, think about it. We will get to the ratio spending to income in the next post.
Till then have a great time...
Sumit
The POWER is when,
You use ODDS,
To get EVEN.
You must have read it in the posts-
3 Important Aspects of living - DIET
What do I do when I get ill?
No. 1 Misconception about great health
3 most important aspects of living
You must have also come to know that there are 3 pillars which support our life-
1) HEALTH
2) WEALTH
3) HAPPINESS
If all the 3 are strong then we can live a meaningful life, we will also take the human race a little forward, because if you have all 3 pillars strong then you will be perceived as a leader, an icon, as an inspiration to those who don't possess these strong pillars. Whether you notice or not but people will notice you. So automatically you spread the awareness. You touch many lives.
Until now we have discussed that Health, Wealth and Happiness are the supporting pillars of our life. All three have to be strong equally so as to live a balanced life. Also if one or more pillars are weak then we can't enjoy the benefits of the stronger pillar. (think about it practically.) Together they compound the strengths of each other. Therefore we have to work on all three to live a meaningful life.
Well I have said at the starting that we just partially covered the first aspect of life, yes it is true, just partially, there are so much to learn. But don't worry, learning is the way of life. So enjoy the process. Take it easy and visit samanyabuddhi.blogspot.com often to learn something more. Get yourself thinking. Get answers to your questions. Never keep any question unanswered.
Let's start with the basics of WEALTH-
Definition-
Wealth is the abundance of valuable resources.
Valuable resources can be anything- money, land, buildings, vehicles, machinery, goodwill, skill, knowledge, personal relations etc.
But as far as the blog- samanyabuddhi.blogspot.com is concerned, we will focus on the wealth which will give us financial independence. Financial independence is the basic thing which one should achieve to become a great wealth creator to the society. Financially independent people are the people who perform the best work in the society, simply because they are not doing the work for the sake of doing it, but as a hobby or as a passion. Financially independent people change the course of humanity towards better, they make the marvels of the world. For example as Mr. Warren E Buffett and his business partner Mr. Charles T. Munger have built the Berkshire Hathaway, Similarly in India Mr. Narayan Murthy have created the Tech behemoth Infosys, or Mr. Siddharth Lal is shaping up Eicher Motors (The maker of Royal Enfield motorbikes), or look at the TATA group, there are many many examples all over the world.
Therefore we will discuss about the financial aspect of the wealth for now.
So let's start with the basics-
Our belongings can be divided in to ASSETS and LIABILITIES.
People gets confused in the two, because as per general commerce practice there are many assets which actually act like liabilities.
To cure this problem we will adapt to the definition made by best selling author Mr. Robert Kiyosaki in his best selling book 'Rich Dad, Poor Dad'. These definitions are very practical and easy to understand. I couldn't find anything more simple or more practical.
The ASSETS are the things which put money in your pocket.
And the LIABILITIES are the things which take money out of your pocket.
So the simple thing is you have to accumulate ASSETS and reduce LIABILITIES.
With this definition, most of our beloved possessions becomes liabilities, for example, our car, as there are fuel costs, maintenance costs, depreciation, takes out money from our pocket, even if we don't use it, it's value goes on reducing as time goes by. Our tech gadgets also lose their value very fast, for example your smart phone, After just a couple of months there comes a new model and the price of the old model falls drastically.
But hold on, you don't have to give up your love for automobiles or tech gadgets or beauty treatment or other luxury items to become wealthy. Then how to do it?
A two word answer will be DELAYED GRATIFICATION.
What is DELAYED GRATIFICATION?
First let's understand what is GRATIFICATION- when any act triggers your feeling of pleasure is known as gratification. For example when you feel thirsty, you drink water and experience some pleasure. Whenever we want something and get it, we experience pleasure. Our brain quickly recognises the pattern because of close association of an act with the feeling of pleasure and then tries to repeat this pattern.
Now what is DELAYED GRATIFICATION?
Delayed gratification is when you perform certain acts which gives you pleasure long after the act is performed. At such times our subconscious have difficulty in noticing the pattern, seeing the connection between the act and the pleasure. Because so much time is elapsed after the act. For example, you have the money to purchase a car, but instead of purchasing a car you invest the money in purchasing shares of a good company growing at the rate of 20% per year, and then after 6 years your money get tripled, you sell one third of your shares and buy a car for the same amount, but what you have now is, a car plus double the money which you originally had plus this money is growing at 20% per annum more than enough to pay for the gasoline and maintenance of your car. Only catch is you have to wait for 6 years for the gratification, but you have gained much more. The pleasure is much more.
You may consciously enjoy the process of delayed gratification until it becomes an AUTOPILOT.
Mr. Charles T. Munger, Mr. Warren E. Buffett's business partner at Berkshire Hathaway says that,
I just need to know where I am going to die, so I won't go there.
So how did instant gratification kills your chances of becoming rich and financially independent?
Generally we get instant gratification through the purchase of liabilities.
Think about it, how did you felt when you bought your first phone, car, big flat screen LED TV, professional camera etc. You probably have felt so much pleasure that you might have forgot about maintenance cost or the finance costs, 'just get that thing' was your focus. You made a permanent damage to your future, but still you felt good.
Now if this instant gratification thing is compromising our future then how did it became permanently programmed in to our brains?
The answer lies in the caveman era, when our ancestors were living in jungle. At that time instant gratification was a boon, instant gratification meant better health and future. Sounds controversial right? But it is true, let me tell you how..
In the caveman era, instant gratification was linked to the basic things necessary for survival and reproduction. We felt instant gratification when we hunted for food and got it. We felt instant gratification when we felt thirsty and drank water. Or having sexual intercourse. Now what happened to those cavemen who didn't felt instant gratification? They might have starved to death or died because of dehydration as they wouldn't have consumed water or food because there was no reward (pleasure). So their capacity to hunt for food or water must have been diminished because of malnourished body. So, you must have to thank instant gratification for your existence. ๐
But now our basic needs are easily fulfilled. The task now a days is to achieve higher status. We struggle to achieve wealth. (you are reading this post is the proof). There is nothing bad in it, but this instant gratification acts like a villain as far as wealth creation is concerned.
To increase our wealth we have to concentrate on accumulating assets, increasing our income, spending less.
But again is it contradicting the whole purpose? Spending less?
Absolutely not, you just have to reduce the ratio of spending to income.
Now this is a really big topic. So I think it is enough for now. Digest what you have just read, think about it. We will get to the ratio spending to income in the next post.
Till then have a great time...
Sumit
The POWER is when,
You use ODDS,
To get EVEN.
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