Thoda Aur

Where did my money go before investing?

As an entrepreneur I always had expenses. There is more expense than income. I prioritised the expenses first so that nobody can question me. I don’t like when I keep balance and let people question me. So I paid up first. This left me with no savings to make an investment. My investment depends on savings and for the past three years, I could not save one paise. 

I thought that business is hard. It’s difficult to make money initially. So I made myself invest in my business more and kept less for me. My business sure grew with time when more people came to my store. But my bank balance remained next to zero. All the people who I had to pay were happy except me. Looking at the bank balance in two digits become normal to me.

All this changed when I read the book – Rich Dad Poor Dad. In this book, Robert Kiyosaki tells that it is important to first take money for yourself. He says that this is important if one has to become rich. Satisfy oneself financially first! Does this means we default on payments? Does it mean don’t pay the bills? Nope. It means save first before making expenses. When I take out the savings there is less money to spend. And if there are more payments, then the thought that people would scream for not being paid would drive us to earn more. Meaning the thought of paying the lenders will make us search for opportunities to earn while we keep saving first. Less money to spend also means we make less expense.

After reading the book I put it into action. I took a look at all my expense after I saved the minimum 20% of my income. In my case, the income came only from my wife. Still, we managed to save first and then pay others the rest. To pay our loans with a limited income, we cut down on costs. We did the following. Please read by clicking on the links.

  1. Made a budget.
  2. Cut down on digital expenses
  3. Travelled by economical means reducing fuel cost
  4. Started buying only what was necessary
  5. Made investment into stocks

I am glad to report that this method had paid off. With the help of mutual funds and stocks, I saved up even ten rupees that I found lying around. I just did not let money lay around. I put the money to work. This money if not saved, it would have been spent in food, recreational activities and bills for items which I did not need in the first place. I invested with these savings. Investment is the only way to grow wealth which is required to become Financially free.

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