How the Rich get Richer – Particularly in the Afterlife

It is said that most people don’t get serious about wealth-building until they are in their ’30s. But this is where most rich people are different. They start early in their ’20s.

I used the term ‘rich’ rather loosely here. I don’t mean ultra-rich like Elon Musk, Mukesh Ambani, or Jeff Bezos, I mean anyone who has created wealth that allows them to be monthly-salary-independent.

So when you are working on your financial plans, you should consider how you can continue building wealth – even after you are six feet under – for your descendants. Many of the richest people in the world, living and dead do this and it just seems like even past their death, they continue to build and give wealth. How?

Today, I am going to share six ways the rich use to keep getting richer – even after they have left this plane of existence. 

Continue reading “How the Rich get Richer – Particularly in the Afterlife”

Is It Possible to Achieve Financial Freedom in 5 Years?

Financial freedom means different things to different people.

Most people want to become financially independent to pursue their lifelong interests. Whatever those interests are – traveling, writing, cooking, woodworking, birdwatching, skydiving, underwater diving, teaching calligraphy, composing music, and so on. Others want to turn their hobbies into a business – big or small – in order to live freely.

Everybody desires something they want to pursue with all seriousness.

But to get there, you have to rid yourself of that millstone around your neck – the company ID you wear to work every day.

And, this is where most people screech to halt.

The mere thought of having to do without monthly salary forces you into hard contemplation. Finally, you conscious brain convinces you to not do anything stupid and rather stay the course.

You comply.

Trust me when I say this:

Contemplation alone kills more dreams than fear and failure combined ever do.

I understand that to give up on the comfort of monthly salary is not easy. This is also the reason why, there are so few entrepreneurs and so many employees in this world.

You must be wondering, can I not hit the milestone of financial freedom without having to give up on my job?

Yes, you can.

But look around you. What does the evidence suggest?

How many people in your knowledge created wealth while they were working? How many of them sauntered to the workplace every day with a reassuring calm and bliss as if they had a romantic date with Kylie Jenner? J

Not many, right?

Look I am not saying that you can’t create a corpus while you are on job. You very well can. However, that corpus, 9 out of 10 times, won’t be enought to inject in you the confidence to quit your job.

What’s the big deal about financial freedom?

Nothing, to many people. If the thought of financial freedom or living without a boss has never crossed your mind, then you have nothing to lose. You would stay happy in your day job.

For others like you who eat, drink and sleep financial freedom and early retirement, this is a terrifying scenario.

What’s terrifying? It’s the scenario where you are 65, pacing up and down your living room and thinking – I should have given it a shot while I was young.

Financial Freedom sounds cool, but achieving it is a daunting task.

I am 40 right now. Yes, I am starting late, but you don’t have to. I have set myself a goal to retire from my job in the next 5 years or before.

I know it’s not going to be easy. I know it would require me to make many sacrificies, especially, on the discretionary spending front.

I also know that I might have also to annoy my wife and daughter at times. But this is the price one must pay. So much so that when the time comes, I don’t think twice to quit.

A rude awakening in my life has turned my attention to a new goal in my life. I will post about it soon.

I only wish this enlightenment should have happened a little early. Nonetheless, better now than never.

I want to achieve the coveted Financial Freedom. 5 years from now, I want to retire.

Let me reiterate, it’s not that I want to stop working.

  • I want to work on my own terms.
  • I want the free time whenever I wish, not at somebody else’s behest.
  • I want the freedom to travel at any time of the year and not wait for the summers to arrive.
  • It’s been my dream to check out the most beautiful libraries across the world. And, if I have to write them about, too, I’d better start now.
  • I want freedom to pick up a book and read like there is nothing else to do. You know, reading while lying on my couch on a lazy afternoon.
  • I want to hit the gym twice a day – something that is not possible with when you are a systemic slave.
  • I want freedom from staying late in the office, putting out fires that drain your energy.
  • I want to hit the bed early and get rid of those vicious mails that creep into your mailbox at 11 PM and say – this can’t wait until tomorrow. Really?

I want freedom from all that.

I want to spend time with my family and friends.

That means, flying out to see them whenever I want and not having to ask for a 3 day leave from my boss and getting that raised scowl and wry smile in return.

Additional Notes and Thoughts

Monthly salary is the worst of addictions. It’s worse than saccharine. But I will address this topic in a separate post.

You are systemic slaves, just that you don’t realise it. And when you do, it will be late.

A research by Ashley Whillans of Harvard Business School shows that money can buy happiness—if it is used to buy more free time. (It isn’t the fancy lawn mower that makes you happy—it’s paying someone else to use it.)

To be rich isn’t a goal. To retire from the 9 to 6 in 5 years with $275K (₹ 2 Crore) in bank account is.

Always remember, money chases performance. That is why most of the money never makes further money. Only the money which chases opportunities ends up making further money.

Nothing wrong with 9-5 job as long as you use it as a stepping stone.

Should you pay someone else to manage your finances?

Should You Pay Someone Else to Manage Your Finances?

Whenever people are unsure about something, want a second opinion, or just want clarification that they’re right, they tend to go to others for advice. This is such a common occurrence that there are jobs in the world specifically just for giving advice! 

Perhaps one of the most common subjects that advice is sought for is finances. 

When it comes to improving personal finances, many people either have somewhat of an idea but want guidance, or they have no idea where to start. If you feel this way, you are definitely not alone – there are enough people in the world that feel this way that a job had to be created to cater to them.

A financial advisor is a great person to go to when you’re unsure about what the next step is for your financial situation. For a long time, the idea of having a financial advisor would be to go to their office twice a year, sit down with them for about an hour, and go over your finances together. Now, the phrase has evolved to so much more – websites, phone apps, people, entire firms – these can all be considered financial advisors.

So, how do you know what type of financial advisor is right for you? Well, let’s first tackle the topic of whether a financial advisor is even something you need. Here are the pros and cons of hiring someone to manage your finances, along with alternatives. 


When you hire a financial advisor, you can be confident in the fact that you are hiring a tried and true professional. This person has trained for a good portion of their adult life to be able to give advice and manage finances, and they have a broad understanding of how investing works. This definitely a good ally to have on your side.

They can essentially take on the grunt work for you – if you don’t have time to, or if you just don’t want to manage your investment portfolio, your financial advisor can do it for you. As long as they follow fiduciary guidelines, any decisions they make will be to your benefit, meaning that you can be assured you’re in good hands. If they are also a licensed broker, they can even make trades for you. 

If you’re unsure what insurance policies you need at any given moment in your life, guess what? Your financial advisor can help you with that as well. You don’t want to buy home insurance if you’re renting – your advisor will help you avoid mistakes like that. If you’re the captain of the ship, your financial advisor is your map cartographer, painting the way for you. 

One aspect that may deter you from an advisor is the cost. How could spending money to improve your finances be a good idea? Investing in preventing mistakes now will help you build more wealth in the future, and your financial advisor is a prime example of this. 


If and when you decide to look for a financial advisor, you want to be sure they follow fiduciary guidelines. Many times, the advisor will unfortunately not be giving advice that may particularly be in your best interest. Fee-based advisors tend to be better in this case than advisors who earn a commission off investments; the fee-based advisors won’t have anything to lose or gain by giving you advice, whereas commission-based advisors will increase their commission if they get a good investment off of you. 

For beginning investors, using an advisor may be a huge cut in your finances, which sounds counterintuitive. This can discourage a lot of newbies from using a financial advisor – but, if you stick with it and they bring you success, soon the fee amount will barely be a blip on your radar. You could start building your portfolio on your own until you feel comfortable enough paying an advisor, but by using this method, you could run the risk of making mistakes and losing short-term money that an advisor could have helped you avoid. 

Lastly, if your financial advisor is also an investor, the idea of letting them take the reigns on your investments can be a bit much for the more control-freak side of you. You have to contact them every time you want to make a trade, or you have to trust them completely to make the right decisions in the heat of the moment. While some people prefer this hands-off approach, others may not be too comfortable not having as much of a say in regards to where their money is going. 

Other Options

As mentioned earlier, there is always the option of managing your own finances. If you already have a strong financial or accounting background, this may seem like a no-brainer. For newbies, however, learning as you go can be incredibly overwhelming and stressful – and if anything goes wrong, you’ll only have yourself to blame. If this is the route you intend to take, be sure you are constantly researching, monitoring your finances, and adjusting as necessary. You will have to take extra time out of your day to do this, so make sure you have the time available, along with the mindset to commit.

If you’re a bit on the more introverted side, or you want your finances to be automated, online financial service or a Robo-advisor may be the way to go. Betterment, Wealthfront, and Ellevest are three examples of top-tier Robo-advisors that can offer you advice and monitor your investments literally on the go. Personal Capital is another great tool that can help you track your investments, debts, and accounts all in one place, giving you a real-time update of your net worth.

All in all, it really depends on your personal preference and situation. Younger people are turning more and more to Robo-advisors, while older generations tend to stick with the real deal. Perhaps neither is an option and you’d rather go it alone. As long as you do the research and choose the best option that won’t hurt your finances in the short or long term, you can’t go wrong.

Do you use a financial advisor? What Robo-advisors have you tried in the past? Let me know in the comments! 

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Eternal Conflict: Short-term vs Long-term

The other day I was speaking with a senior academician who teaches finance in a leading B-school and also plies his skills in the stock market. He proclaims to be a long-term investor whose mantra is: buy and forget. He says he is immune to the everyday insanity that plagues so many investors.

After skirting around politics and sports, I got down to brass-tacks and asked him to share a tip or two behind his success in stocks and career per se.

He counter-questioned me, “what do you like – a sprint or an ultra-marathon?” I said I try to be an ultra-marathoner, but I get distracted too often.

He replied, if you want to be a long-term investor, the first thing you need to is shut out all the noise. Sever all the distractions – financial news, app, twitter experts and even broker friends – who can make you think otherwise.

He told me that you would never be able to reason with someone who is gunning only for short-term goals. The perspective of a long-term investor can’t ever align with that of a day trader or a speculator or that of someone who buys today only to sell tomorrow for a few bucks in profit.

A long-term view is like a steel armour. It’s like an immunity dose that protects you from all daily madness and noise.

It’s like that blue bucket story, he said.

You drop one drop of blue hue in a bucket of water and nothing changes. You add one drop daily and still, after a week, nothing changes. You continue for a month, you see a change in the color of water. You continue for a few months more and the water is distinctly blue.

The same analogy applies to a long-term investing, too. You have to do your thing daily and not expect instant results because they won’t come.

How You Can Also Create a Multi-Variate Portfolio of Investments Like Rich People

Lately, in online culture and the real-life work world, there’s been this idea of hustling touted by entrepreneurs and growth hackers.

A lot of people have woken up to the fact that depending financially on your day job is akin to committing harakiri. That’s why, everybody seems to have an increasing awareness to develop a second stream of income.

I understand the temptation of monthly salary is hard to resist. But the idea of your monthly salary being the only income route is a dangerous one.

The central idea behind this article is to figure out and build different ways of alternate income that when combined could replace your monthly salary, if such circustances ever arise.

While it sounds attractive to have an alternate income stream, developing it requires hard work. And, before you come down to developing it, you must know what kind of income options there are.

It’s an established fact that rich people don’t rely on a single revenue source. Take any business, any industry, any promoter – if you deep dive into their modus operandi, you’d find more than one source of income.

I am not saying you can be that rich person tomorrow. But you certainly can simulate what they have done, that is, curate and cultivate the alternate income streams.

Many people expand their hobbies or interests into their side hustles, many choose the more passive route and invest in fixed income instruments.

These are healthy options to consider to supplement your monthly income, but let there be no confusion, none of them is a risk-free option. Ideally, you should have at least three of the following in your portfolio.

So before I explain the six different ways of creating an alternate income stream, please assume hard work as an underlying factor in all of them:

1. Side Hustle Income

You may already be familiar with this type of income. For the uninitiated, it is the income you get when you engage in part-time jobs or take up freelancing gigs while keeping your day job.

A lot of people have started online businesses capitalizing on their experience of working in a domain for a long time. I know someone who was a copywriter for an ad agency for a long time.

A couple of years ago, he started a blogging website and slowly got into making short videos. Once he got the response, he expanded into teaching copywriting. He built digital products, got an initial set of subscribers, reinvested the money from those subscribers into improving the products and just kept the cycle going.

Don’t be dismayed if you don’t have a blog. Creating one is easy, you can find the details here. However, turning it into a money-making machine needs consistent efforts and perseverance.

If your blog can generate 25000+ pageviews every month, you can turn on the ad income faucet. The monies may not be huge, but the recurring consistency could alleviate your stress.

As your blog grows, you can add affiliate income and income from selling digital products to the list. Not just that, slowly, your currency amongst your community would also grow. You would attract right kind of people. This could be your ticket to speaking opportunities. More opportunities, more side income.

2. Fixed Interest Income

The fixed interest income is reliable and boring. Yes. It guarrantees peace of mind, but not the excitement that could make you jump in your bed.

If your risk appetite is thin, you are better off investing in the PPF (public providend fund) – a small savings instrument. It can give you a passive income (as I write, interest rate stands at 7.1% per annum) without you taking a massive risk.

Keep adding small amounts to your PPF account and watch it grow into a reliable source of income. The bigger your corpus gets, the fatter your yearly interest gets.

Even if you are unable to add more money after a time, the annual compounding will keep working in the background, inflating your purse.

The best part is that both partial and complete withdrawls are tax-free. For more about PPF, read here.

3. Rental Income

Rents can give you a steady, income stream while your property appreciates in value. Rental income is also a great instrument for passive investors. You can reap sustainable income at much lesser risk.

In India, you can claim a deduction of 30% towards home repairs and improvements from the gross rent.

While an investment in real estate is a solid idea, it does have a few pitfalls. As a landlord, you can unwittingly become host to a whimsical tenant. This can hamper monthly cashflows and create other issues especially if you are dependent only on rental income.

4. Dividend Income

They say, if you want to be rich, invest for capital gains and if you want to be free, invest for income. This is where dividend income becomes focal to your future plans.

Dividend income comes from the distribution of company earnings to stock owners and shareholders.

Unlike rental income, however, dividend income is a slow starter. If you are a small investor or you are new to dividend investing, it will take some perseverance to build it all up.

To create a sound pipeline of regular dividends, you will have to do some digging and look for companies that have a solid track record of giving dividends. If you are in India, you can do you number-crunching at trendlyne.com and if you are in the US, you can deep-dive into dividend.com

Sometimes, however, a company is legally required to pay out the income as dividends to the stockholders. In the US, examples of these include real estate investment trusts (REITs) and business development companies – they are legally required to pay out 90% of their taxable income to shareholders.

As long as you’ve owned the stock for at least 60 days (90 for preferred stock), you are qualified to get yourself some dividend income.

5. Capital gains

When you own an investment or a piece of real estate, you’ll come across the scenario that involves the value of either of these increasing – and many times, it will end up being worth more than what you purchased it for. This is where capital gains come into play.

While you can’t access the capital gain until you sell your investment or real estate, it’s a good idea to keep an eye on the prices as they fluctuate and see if there will be an increase in the future worthy enough of having that investment be sold.

Be cautious – capital gains have to be claimed on income taxes. 

6. Royalties

If you’re looking to literally make money in your sleep, this is definitely the best option for you – as long as you don’t mind putting in work at the forefront.

Royalties are earned when a person or company purchases something you helped create and sells it for profit. Examples of this are if you created a piece of artwork, wrote a book, produced a song, or have a copyright or patent for something.

Owning a franchise is another way to earn royalties – all businesses under your franchise will be giving you a cut of their profits.

Again – a lot of legwork has to be done in the beginning to make that art or build that business, but once you get to the point of success, just sit back and watch the money roll in.

Do you use any of these techniques to give yourself a little extra cash every month? Are there any techniques you use that we may have missed? Let us know in the comments!