Hi friends and
welcome to Life Lessons.
As soon as we fall on earth our first challenge is to live. Then, the challenge is to grow up. Later studies and so on. Thus as we grow up the challenges change. Despite of all these challenges there is a common challenge for everyone among us. This is none other than finance. Increasing finance has turned to be the ultimate goal for many people. I have elucidated about the same in one of the previous episodes. The important aspect we need to remember is that we should never love money, but we should respect it.
In the course of this topic (finance), I came across an interesting story which taught me a mind blowing lesson. I would like to share it with you all and give out the lessons (interpretations) of the same.
The Chronicle:
There were two friends named Ram and Kumar. Both were friends and classmates right from childhood. Both were good students in their career. And incidentally, they both got job in the same company in the same discipline. They both worked hard from 2 years and saved a reasonable amount of money.
Impressed by the work of these friends the company offered OT (over time) with extra pay to both of them. One evening, Ram and Kumar met at a coffee shop and discussed about the same. Ram stated that he was happy for the job as he was getting enough for his living and luxuries. Thus he was not interested to do any OT. But Kumar has something else in mind, and thus he was into the OT.
Years passed and both were happy with their job and the incentives offered by the company. 20 years later they turned 50. One day, they had a casual meeting. Kumar announced that he is going to get retired by the end of the financial year. Ram said that it was next to impossible for him to retire because he had no idea of how to make money after retirement. But Kumar had enough money.
Observations:
You may have wondered how come there be such a great financial difference between Ram and Kumar. The answer is simple- The over time performed by Kumar.
Kumar had a future plan. He calculated the finance for the future too. He percepted that the money he was getting for OT when saved can give a return equal to his income in the next few years. And the same was happening now. The savings that Kumar had is ready to give interests equal to the salary. This is one of the best example and formula of financial planning.
Here there are few observations that we can look into in case of Kumar:
1. He saved the money he earned
2. He made use of his time
3. The interest from the savings brought about the stress less income for him for his life time
Interpretation:
The story of ram and Kumar gave us an important finance lesson- The art of saving and building passive income. This is the formula that lets us to come out of the rat race and become financially independent. No doubt the OT done by Kumar had made his work easier but the important aspect to notice here is the concept of saving money.
The money saved ads up to giving the desired income one day. There can be multiple perceptions at which this can be observed. For example, there may be a query about how can the saved money provide the required interest? The interpretation is important here. The savings implies investing. It may be in form of bank balance or investing somewhere.
Financial planning is thus important to get financial freedom in our life- may be not today but one day. I hope the formula I tried to elucidate is useful for you all. It seems to be working for me, thus I’m expecting for you too.
Hope
you like this Episode.
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ajiteshippili.blogspot.com
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S financial planning is one main step for success in life👍
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