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The Simple Path to Wealth One of the cornerstones of this blog is the fact that you need to achieve financial peace so that financial worries can't rob your happiness. Everything we do is for one and only one reason -- to be free and to be happy. A street smart person knows how to... Read more

Why Trump Will Be the Next President After winning primary in the Hoosier State, Donald Trump has been declared the presumptive nominee of the Republican party. Pundits declared that he can't win against the Clinton political Juggernaut. May be. But I don't agree. While most polls show Clinton... Read more

The White Coat Investor: A Book Review I admire physicians. I am not a physician but I have been fortunate to work with several smart physicians. Physicians are naturally bright professionals as I have seen them learning technology and even programming even though that is not their core focus. On... Read more

Why Apple is still a good investment   You don't have to be a pro to understand why Apple is still a good investment; in fact, you are better off being a motley fool even if you watch CNBC. On Jan 28, 2015 Jim Cramer called it an investment of lifetime; a stock that will rise again this... Read more

Diversify...Really?   It's OK to have your eggs in one basket as long as you control what happens to that basket. -- Elon Musk It sounds oxymoronic but the fad in the personal finance industry is to promote diversification. Ironically, most of us are really bad at diversification... Read more

Wela: An Interview with Wes Moss With the advent of the Internet, our lives have changed forever. Amazon is redefining how we buy anything including pencils to power tools. Whether you like it or not, wealth management has also begun its inroads on the Internet. The brilliant idea that you... Read more

How to Invest in Stocks like a Pro   Let's face it -- most of us, mere mortals, consider investing ourselves in a stock market akin to playing Roulette in Las Vegas! If you have similar thoughts then you are not alone! According to Henry Blodget, one time super star Internet stock expert,... Read more

Why I still Invest in Apple   Let's face it -- most of us are Apple investors. If you deny, look at top ten holdings of any mutual fund that you own. Unlike old superstar stocks of the past -- Intel, Microsoft or Dell to name a few -- there is something unique about Apple. It has... Read more

lnvestment Lessons from Warren Buffett Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard. If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays. -- Warren Buffett While Warren Buffett... Read more

Is Tesla Still a Worthy Investment?   "Is Tesla still a worthy investment?," asked a friend of mine who read my article which I wrote back in June of last year. A lot has happened since then. Tesla stock has doubled in price and Elon's presence in the media is omnipresent. This guy is... Read more

Year 2013: My Favorite Personal Finance Articles It is hard to believe but, indeed, year 2013 is in the box. For stock investors, it was a banner year. Nasdaq finally climbed back to its old highs and other indices performed brilliantly as well. While pundits on the Street may have tried their best to... Read more

That Mutual Fund is Robbing Your Retirement "I don't take risk, so I invest in a mutual fund," said a friend with a smirk. He is not alone. I have known many friends who take pride in handing their hard-earned money to the Wall Street gang. If you are one of the proud mutual fund investors, I am about... Read more

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How to Become Rich

Wealth after all is a relative thing since he that has little and wants less is richer than he that has much and wants more. – Charles Caleb Colton

As this difficult year winds down, many of us think about how to become rich in this seemingly lifeless economy. It’s difficult feat to meet for most people for the simple reason that our role models are those who merely act rich in life.

Our society admires those who wear fancy suits and drive expensive cars simply because of the glamour and excitement. These role models teach us to spend our way into oblivion.  Sadly enough, those of us who chase possessions end up being possessed by worries to keep the lifestyle going when rainy day comes.

There is no surefire way to become rich; it requires common sense thinking and discipline. The good news is that millionaires think alike. All we need to do is to make commitment to learn from these glamour-less people who have become rich and not from those who we idolize in our society.

I don’t work for money, money works for me.

Millionaires seek unrealized income. Unrealized income comes from sources other than regular pay. The secret about unrealized income is in its power to defer taxes; and it grows faster due to law of compounding returns. There is no income tax on asset that appreciates yet has no earned income. Wealthy people invest in income producing real estate and mutual funds. Unrealized income is one of the greatest investment tools to become rich.

I’m passionate about what I do.

Millionaires have passion for what they do. They don’t have to think how to become rich as wealth comes as by-product of what they love to do.  I remember, when I worked as an Engineer for GE, my superior defined goals for the year that weren’t mine. I worked for the rest of the year struggling to meet those goals. These goals were mine only for the sake of earning paycheck. Once I realized that fact, I knew deep inside that, I had to transform my career from wage earner to wealth earner. When you work for yourself, you have goals that you are passionate about.

After all, it is my money.

Millionaires are frugal at heart. They are masters of budgeting and planning. They master the art of haggling. They won’t buy what they cannot afford. They spend based on their  “needs”  not  by “wants”. They do not buy brand name shoes or suits. They do not buy anything on impulse. They do not drive BMW and drink coffee at Starbucks just for the sake of status symbol. They plan for their monthly need and only buy what they have on their list. They are not in business of pleasing others; they are in business of pleasing their inner self.

Pay yourself first. 

Millionaires save regularly. They live life way below their means by avoiding debt and spending wisely.  They understand that the way to riches is a long road of financial discipline. Their secret of wealth is that they start saving and investing early on in their lives  into mutual funds and other tax deferred investments.

Those who have achieved wealth have uncanny ability to find a role model whereas we, the mere mortals, often lost half of our battle to become rich simply by not having the role model who can shape our financial destiny.

It is the heart that makes a man rich. He is rich according to what he is, not according to what he has.
– Henry Ward Beecher

 

 

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