You keep on adding water in a bucket, but it is not getting full.
The obvious answer must be “Its a leaky bucket”.
Consider in real life, you keep on earning money like anything and still you feel that money is not enough. What can you call this is “Money leaks” ?
Yes, only when you identify the money leaks you will be able to maintain a healthy and wealthy lifestyle.
India is an emerging economy and in the last 2 decades, there was a considerable increase in the individual earnings. General perception is that only the rich are getting richer and the poor are getting poorer.
No one is born rich and if you consider the lifestyle of rich people they do certain things diligently and consistently. For example, warren Buffet will read 500 pages of book on daily basis. He never stopped learning and he never took his money lightly even now while investing in any new companies. He learnt the art of investing from the age of 11. It is not the money which is really needed to make money.
Being in comfort zone makes everyone happy. All these spendings and products you buy makes you in this comfort zone. Just think of the consequences over period of time. Automatically you will start spending more.
The ultimate reason for most of you to go behind lifestyle is looking into peers rather that looking it as. “Is this really essential for my life ?”. In the last decade only this had changed just because of increase in income. In the previous decades they automatically saved a lot and they don’t want to be millionaires, they just wanted to be happy in their retirement life.
Money leaks can happen in savings stage or during improper Insurance or incorrect investment choices or mainly with outstanding loans or if you directly focus on improving your lifestyle.Once you identify in which of these five money leaks is happening, then it is easy to fix.
Better choice would be, Just look into each of these stages, by focussing on Saving first and this is the first step towards financial freedom in your life. Some of you might have to cut down your expenses and then start this saving. Then you need to protect yourself and your dependents from any risks happening in your life, so you need to have required Insurances. Then focus on investments slowly which can make you rich and wealthy. Wealth can be created only in the long term. Only if needed get loans to create assets. Focus on lifestyle as the last step, by now you will have everything in order in your life.
You can find more on all these five areas in my upcoming book “Money leaks”.My mission is to educate millions of people in attaining their financial freedom.
I am also conducting workshops or events in the name of “Money leaks” in Chennai. Below is a video on one of the events.