Best Way to get Financial Freedom early, Summary from "WHY DIDN’T THEY TEACH ME THIS IN SCHOOL " book by Cary Siegel
Now see the matter is that almost everyone wants that he should be a millionaire. In fact, you can say that 99% people of India want to be a millionaire. But, they want this to be overnight; Means they want to be rich and millionaire overnight. But, on the other side 99% who actually becomes millionaire, they do not become millionaire suddenly. There is a hard work of lots of years to become a millionaire. Many times most of the millionaires start from zero. They work hard for many years then they get a lucky break or their money start to compound and they become rich and millionaire. And the whole process of becoming a millionaire is very awesome. Now recently I have seen a video of Brian Tracy in which he was saying that the first million dollar is sometimes very difficult. But, if once you have earned 1 million dollar then it will be inevitable to earn second million dollar which means you will make it easily and why is it so? Because the type of person you will be in the process to make millionaire that will be the most important. If you want to be a millionaire then it is most important for you to learn that “If you want to enjoy being rich, then you have to enjoy the journey getting rich”. Remember, only becoming rich is not important but in the process of being rich, which type of person you are going to be is important and this things will only give you maximum enjoyment. And it helps in becoming rich for long term.
With the help pf the book “why didn’t they teach me this in school” of Carl Siegel, you will learn the lessons which will help you in becoming millionaire. Author “Carl Siegel” says that money is important. Author has completed his graduation from a small college in New York. Then he has done MBA from university of Chicago, took degree of marketing and finance. After that he did many different jobs – high paying jobs where he came out of finance world. And worked in brand management, general management, sales, marketing, and other different fields and he learned many lessons related to money. In facr, he have learned many more things related to money. That at the age of 45 only he ended his career as chief marketing officer and took retirement. See, author says that he has learned a lot of lessons in this process which has helped him a lot in becoming rich very fast. In the book, he has teach us that many times, maximum people think about earning money and then how to save them. But, the most important thing is to manage money to have literacy related to personal finance which he is teaching us through the book. In this book, he has told many different lessons, in fact he has taught 99 lessons which will help you in moving financially ahead. The author says that if you want to be a millionaire, then the first thing you should understand is that this is long term game and not a short term game. But to achieve this long term gain, you should focus on short term goals. Because the problem of most of the people is that they set long term goals which are very unrealistic. For example, if you replace 1 million seconds with 1 million dollar then how much will be 1 million seconds? It will be 11.5 days. 1 million dollar will be basically 11.5 days. 1 billion dollars or you can say 1 billion seconds will be 31.5 years. There is so much difference between millionaire and billionaire which people do not understand many times. In the same way when people set long term goals, they are not able to understand things. That is why author says, you should know to break your long term goals into short term goals. And this thing is only told by Brain Tracy in his book “Eat that Frog” and many other books in which he tells that you should first set your long term goals, and then convert them into yearly goals, then monthly, then weekly, then you should convert them into daily goals. So that you can actually understand, how much time you will take to complete your end goal and what all things you will have to do and how is that exactly possible. And when you will divide your long term goals into short term goals then whenever you will achieve short term goals, it will give you motivation. You will feel your progress which many times people do not feel when they set big goals due to which people feel demotivated and are not able to move ahead. So whatever are yours goals, start making them specific because in a TedX stock, it was told that the number one reason of procrastination, the biggest reason are that only lack of clarity and lots of confusion. If you want to purchase a new car, then you have to purchase it within how many years and you will have to collect how much money to purchase that car and how much money you will have to earn etc. You specify that you want to clear all your debts in 25 years, which is this much money, you want to purchase your own house by the age of 30, you want to become a millionaire by the age of 35; so you see and do reverse engineering, to earn 7.5 crore how much money you will have to earn every year, how much money you will need to earn every month. Then in the same way, monthly, weekly and daily goals can be set that you will have to earn this much money. Another lesson is, invest 50% of your increased income. This is simple but powerful principle which author says to follow.
In
investment people also get benefit of compound effect many times which people
are not able to understand. It is always told that, invest only where you have
proper knowledge and you have done research. Peter Thiel, who is a big investor
have said that, whatever products in day to day life, start investing in them
which is also fundamentally strong on which you as person can trust.
Warren
Buffet company, Berkshire Hathaway, through that only he holds 5.5% of the
apple company. But the interesting fact is that, Warren Buffet today also uses
a simple flip phone of Samsung whose cost is around 20$. In fact, when iphone
10 was launched, at that time apple had also gifted him an iphone X but till
date he has not used it. Simply because he tells that he does not feel any need
to use iphone so he does not use it, his work can be done with the small phone
of Samsung also. Now, see imagine this, a billionaire is using 20$ phone even
today and he is also happy, it is important that he is happy. And now you can
say that this mentality is somewhere the reason for his extreme wealth because
he understand a simple thing, he is not doing anything because the whole world
is doing. If the world is purchasing iphone that mean I also want to purchase,
he does not do like that. He is happy with his normal phone. But many times we
normal people are not able to do these things. When we see the other person is
purchasing a thing, then I should also purchase it. You can say, we start doing
a social battle, we start doing status battle which is never sustainable,
social status is always a zero sum game which means that, may be today are No.1
socially, if you are lucky you will be No.1. But you will come by removing
someone from No.1 position and always there will be a fight for that and
someone will win against you and come to No.1 position.
In
minimalism book, it is said that we can live happily in less things than we
think. But today a lot of marketing is done, many different things are done
that due to which we bombard and we start following those things that others
want us to do. So understand this important things, this thing will help you in
saving money. It will save you from useless expenses and obviously will help
you in growing your wealth.
---Article by Roshana Ghimire
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