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One conventional saying in Italy is - "There are three ways to make money. You can inherit it. You can marry it. You can steal it." You can marry the rupaiah to distinguish yourself from a poor man and the secret is a secret indeed, that rich people will never tell you. We will show you here the five lessons and we bet, you can implement them in your personal life to become rich if you are tired of competing with others, for success.

Lesson 1:
Cut down your monthly unnecessary expenditure by Rs 500 only and get Rs 11 lakh in 30 years.

Consideration:
Investment option- Monthly
Rate of interest: 9.5 percent

Lesson 2:
If you think, stock market is a place for gambling, then you are wrong. There is nothing called free lunch in the market place and if you want to become rich, take a little risk and start investing in stock market. You can start investment with as low as Rs 2000 and educate yourself with the ins-n-outs of the market before jumping into this place. Take 10-12 months to understand the market pulse and broker operation and always look for the best advice available at free of cost to select the stocks. Take a long breadth and plan a nominal investment at the beginning of your ‘become rich’ operation.

According to the RBI report on Currency & Finance (1980- 1998) cumulative annualized returns for the period for equities is the highest at 20.16%, followed by the returns of company FDs at 14.47%, bank FDs at 9.22% and gold at 7.62%. So, you can earn maximum from stock market provided you play cautiously and intelligently.

Lesson 3:
Use less branded items in every segment of your life and save Rs 3.33 per day to get Rs 2 lakh after 30 years.

Think twice before you purchase any branded garments. The price of these garments are sky-high now, after the budget imposed an additional 16 percent surcharge on these products. You need to prioritize now between your dream of becoming rich and using less branded items. There is a scope of cutting down at least Rs 300 every month from your monthly budget expenditure starting from sugar to stainless steel, shoes to toothpaste, in every necessary item. And if you are unable to save Rs 300 in a month, plan to squeeze your monthly household budget by 10 percent, which would give you an additional Rs 100 minimum in your hand.

Consideration:
Investment option- Monthly
Rate of interest: 9.5 percent

Lesson 4:
Plan your dream house worth of Rs 15 lakhs after 5 years and start investing Rs 1665 per month from now.

We are not showing you the way to becoming rich overnight, but we believe that one can become rich over a period of time, in a disciplined manner. Our definition of rich includes not only the generation of monetary wealth, but also the generation of valuable fixed assets in your life - your own house too. If you want to be rich, you should plan for your own house (if you do not have your own one now). The main reason behind this argument is that, a fixed asset like your house will always appreciate in value over a period of time.

We suggest you become capable of clearing an EMI (equated monthly installment) of Rs 12,000 approximately first. It does not matter if you are unable to meet this EMI requirement now, but aim at meeting this EMI requirement after 5 years. If you start investing Rs 1665 every month (monthly investment) with an initial investment of Rs 10,000 now, you get Rs 1.44 lakhs (rate of interest is 9.5 percent) after 5 years. This will take care of your first year EMI requirement of your housing loans of total period of 20 years.

But, you need to become capable of clearing the EMI of Rs 12,000 approximately in these 5 years for next 19 years and start reducing your spending as much as possible to meet this requirement.

Consideration:
Loan requirement- Rs 10.5 lakhs (70% of the property value)
Tenure: 20 years
Interest: 13 percent
EMI: Rs 12,456

Condition: The finance company/ Bank will finance maximum of 85
percent of the value of your dream house and thus, in the above case,
you need to be ready with Rs 4.5 lakhs approximately after 5 years to
acquire your dream house.

If this is a lesson very difficult to implement, then take the last one.

Lesson 5:
Drive in your own and enjoy Rs 10 lakh in 15 years.

Do not plan a new car at the beginning of your ‘become rich operation’. The best option is ‘no car’ or the ‘second-hand car’. And, if you already own a car, never employ a driver. Save the amount that you would incur by employing a driver and check the magic of compound interest. When your present investment is Rs 30,000 (Rs 2500 * 12 months) and afterwards, monthly investment is Rs 2212, you get Rs 10 lakh in a period of 15 years. The choice of second hand car over a first-hand can save you at least Rs 1 lakh at any point of time in any city in India and you can invest your savings in any one of the above options.

All the above rules are easier said than done. These rules are not new to many, but hardly few implement them in their daily lives. The road to becoming rich is not an easy one. It has lot of speed breakers, ups and downs. But can be crossed with a disciplined and a cautious driving. Once this road is crossed, the ones ahead are smooth and safe. Committed to become rich in your life now? 

Deepanjan Banerjee

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