What is the Real Financial Education? And Why Schools Don’t Teach you this?

Do you know that Schools, our parents, governments, financial planners and so called finance gurus don’t give us the true financial knowledge.

For the most of the people around the world the following is the financial education.

- Save Money

- Invest in Mutual Funds & Diversify

- Invest for the long term for the Capital Gains

- Your House is your Asset

- Work hard and save money in the Pension Plans

- Invest in the Savings schemes

- Do a Fixed Deposits in the Bank

- Business is Risky

- Live below your means

- Retire on Pension Plans

- And so on and on…!!!

But do you know that all of the above financial advises are the financial advises to give your hard earned money in the hands of rich who own the banks, mutual funds and the pension plans.

The above are the financial advises which are propagated by the rich people and fixed in your minds since your childhood by your parents and financial advisors so that you give your hard earned money to the rich.

Say for Example, Saving money and putting it in the bank means you are making the owner of the banks rich. The Banks will print 10 times more money from your savings and give it as a loan and earn 100% profits from your savings (Fractional Reserve Banking).

Investing your money in the mutual funds means you are making the owners of the mutual funds rich. This is because you are taking 100% risk and put your money in the mutual funds. Now even if the mutual funds will perform bad, you will lose your money but the mutual fund owners will still make money by charging the fund management fees from your invested money.

Investing in Pension plans means making the pension plan owners rich. Because they will charge various kind of charges from you and divert your money towards the stock market. Now, weather the stock market will perform good or bad, the pension plan owners will still make money.

When you buy a stock from the stock market, you are investing for the Capital gains which is the most risky type of investment. It is just like a gamble. You will have only one control over your stocks and that is when to sell?

While the owners of the company who have listed their company on the stock exchanges and sell you the stocks will still make money because they have the management control over these companies so they can anytime withdraw and enjoy any amount of money from these publicallly listed companies no matter the stock price goes up or down.

Thus, the above financial advises are propagated by the rich people only in the middle class community. These advises are not the true financial education.

The true financial education is one which teach you to think in the financial statements. The true financial education is one which teach you to analyze the financial statements and understand the difference between the Assets, liabilities, Active & Passive income, Cashflow and many other things.

If you want to take this true financial education than Download my FREE eBook My Journey To Billionaire Club: What Rich Teach their Kids about Money that Poor & Middle Class Don’t?

Just Click on the above link and without any annoying registrations, start downloading my eBook about basic lessons and commonest myths about Money. I have worked very hard to gather and manage this information. There are around 50+ hand drawn (My own) diagrams in this eBook, 6 lessons on money and 10 Commonest Myths about money in this eBook and all these I am giving to you for FREE.

Just spread this Financial Education and Awareness to as many people as possible. Also teach the lessons in this eBook to your children. The Information given inside this eBook is the real financial knowledge that the rich teach their kids but the poor and middle class don’t.

The Difference Between Rich and Middle Class

Do You know that What is the basic difference between the Rich & Middle class?

Well, it is the Difference of Mindset.

Rich are rich and the middle class are middle class because both of them have the different mindset. And from the Rich and Middle Class both develop this specific kind of mindset?

Well, Middle class develop the middle class mindset mainly from SCHOOL and Parents while the rich develop the rich mindset from their rich parents.

Well, Yes. Schools. Schools are the major sources in the world to generate a middle class mindset in the young children. So What is the difference between these two mindsets?

Well, Middle Class mindset is the mind which thinks about following Keywords.

- Go to School

- Work Hard

- Get Good Grades

- Get a Job

- Invest in Pension Plans

- Save Money

- Get Out of Debt

- Do it Yourself

- Never Think of Money

- Business is Risky

- Investment is Risky

The Schools and the middle class parents impart the above keywords in the mind of young children since their childhood and that’s why when these children grow older they can’t think anything other than the above keywords in their mind. And this is the reason why the highly intelligent specialist doctors also search for the jobs when they finish their medical school education.

This is because these doctors are very intelligent but in their sub-conscious minds the above keywords are carved by the school system and the parents. And that’s why even after becoming a specialist doctor they search for the jobs and think to live paycheck to paycheck.

While the Rich mindset is the mind which thinks all the time about the following keywords.

- Financial Statements

- Assets

- Liabilities

- Cashflow

- Good Debt

- Create Jobs

- Business

- Investments

- Leverage

The Rich mind thinks in the above keywords and that’s why over the time they become rich. This is because to understand the game of money, the understanding of the above keywords is very necessary. And without understanding the above keywords, you can’t even think about money.

Unfortunately, the keywords to understand money have been strategically removed from our entire education system by the rich people of the industrial age.

So that the people who attend schools commitedly can’t become rich and work hard to get good grades and find safe secure jobs and live paycheck to paycheck to make the owners of those businesses rich.

Unfortunately, the keywords which are extremely useful to understand money are never ever been taught in schools and by the middle class parents. While Rich people teach their kids the above keywords since their childhood and that’s why the kids of rich people and of course the rich people themselves always think in the financial statements.

So How to learn the keywords of Rich? Well, Believe me if you will never understand and learn the keywords of rich than you will never ever think in the financial statements which is extremely important thing to get rich.

You Can download my FREE eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

This 162 Page eBook is in the PDF Form having 50+ hand drawn diagrams by me. This Information rich eBook contains all the required information and the real financial education to get rich.

I have divided everything that you need to know about money in 6 lessons and 10 Myths. The language is so much simple to understand that even a school going kid can also understand these basic financial lessons.

My eBook is the Education about Money that Schools and most of the parents don’t give their kids while the Rich give. And I am giving it to you for FREE. This is Because I want to spread the Financial Awareness.

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Is Your House really an Asset?

Today most of the people believe that their house is their biggest asset. In fact, many people say proudly that my house is my biggest asset.

And well, the governments, banks and finance gurus will also teach you that your house is your asset so buy a bigger house. They will give you the logical explanation that the price of real estate on which your house is built will go up and up in the future making you rich.

But well, the truth is that if you know that how to read the financial statements and understand the cashflow pattern of the financial statements than you will understand that your house is not your asset but the biggest liability.

This is because the Asset is something which generates positive cashflow means the passive income towards your financial statement while the liability is something which will make you expenses and takes money away from your financial statement.

Your House in which you live will make you lots of expenses every month and that’s why it is your liability and not the Asset. But well, the governments, banks and finance gurus will tell you that but the real estate of your house will appreciate in the future and make you Capital Gain income.

But well, just tell me that if you own a house worth Rs.1 Crore and in 5 years if it will become worth of Rs. 5 Crores than will you sell it? …Nope…Why?…Well, because you are now emotionally attached with your house.

But well, if your stocks portfolio worth of Rs.1 crore doubles in just 2 years than you will sell it right? Because you don’t have any emotional attachment towards your stocks right?

Just remember that the investment is something towards which you should not have any emotional attachments. If you become emotionally attached with your investments, than its no longer your investment.

Many people proudly argue that but I have taken a huge housing loan to save lots of tax. This is because the smart people do this. Well, Smart people don’t do this. Smart people know the power of the corporate structure to save lots of taxes.

Basically your house is the asset of your bank (If you have taken the Housing Loan) and the Government (Because you have to pay tax to the government every year) and not yours.

While the Rental property is your Asset because every month after deducting all the expenses, it puts money into your bank accounts.

Well, I am not against buying a big and expensive house. After all, rich buy luxurious homes. But the thing is that don’t call it Asset.

If you want to know more about such kind of Myths about money than Download my FREE eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money that Poor & Middle Class Don’t?

In my eBook, I have revealed 10 such commonest myths about money and also given 6 lessons on money that everybody should learn and teach their kids also. The Information inside my eBook is the real Financial Knowledge that is not being taught in the Schools.

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Rich Print Shares While Middle Class Buy it to Get Rich

The Age old Financial Advise is, Live Below Your Means, Save Money invest in Stocks or Mutual Funds, Diversify and stay invested for the long time horizon say more than 10 years and become financially free.

Unfortunately, This Financial advise doesn’t work for the most of the people and even if it works what about those 10,15 or 20 long years? I mean here you are depending on only one form of Profit and that is Capital Gains and unfortunately, these Capital Gains remain ‘On Paper’ for the most of the parts of your life.

And this form of investing is the risky investing. Rich Invest for Cashflow and Capital Gains both.

So How the Rich play the game of money? Well, by developing a successful business out of scratch, later on taking that business to the public and selling the shares of their companies to literally millions of people, they print their own money in the economy legally.

Now, they are the owners of the publically listed companies so these shares in their own listed companies give them the management control over the company and not only this but also give several other types of income such as Dividends, Bonuses, Remuneration, Salary and many others.

Investing in Mutual Funds & Stocks and holding those stocks and mutual funds for decades is not a bad idea. But What I don’t like about this idea is, these are just the Capital Gains profits so you can’t enjoy it unless you sell your stocks and mutual fund units.

While Rich can enjoy their investments because they invest for both the capital gains and cashflow. So as long as they own the asset, they will have a steady cashflow income which they can spend like anything.

In my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?, I have explained in a great and accurate detail that how rich take their businesses to the public and selling the shares of their companies become billionaires.

My eBook is 100% FREE for Download and without any annoying registrations. You just have to click the above link and you will be redirected to the Download page.

Read my eBook and take the Real Financial Education. Learn from my eBook that How rich people think about money and play the game of Money?

And yes, If you like my eBook, spread this financial awareness to as many people as possible.

Why To Build Passive Income Rather Than Working Hard for Active Income?

Do You know that Rich & Middle Class both work hard. In fact, everybody in this world work hard. Even Warren Buffet the legendary Investor and World’s Third Richest person according to Forbes also works hard at his 80 years of age (As of 2010).

But there is a huge difference in working hard between rich and middle class. Basically Middle class work hard for the Hard Earned Income also known as Active Income while the Rich work hard for the Passive Income.

Understanding the basic difference between the Active and Passive income makes all the difference.

Active Income means income generated from your hard work. It is the income generated from trading your time in exchange of money such as a job income, second job, over time, part time…etc…

Passive Income means the income generated from your Assets such as the interest income, business income, dividends, royalties…etc..

The main problem with the active income is that you will have to work hard for your entire life to earn that income and the day you stop working behind your that income, you will suddenly loss that income stream.

While the main advantage of the passive income is that, you will have to work hard at once only to develop that income stream and once you do that hard work, your job is over. After that weather you work or not, the money will keep flowing into your bank accounts.

Rich and Middle class both work hard for money but the middle class work hard for the active income while the rich work hard for the passive income.

This is the basic difference between the rich and middle class hard work. This is one of the most important financial lesson that rich teach their kids but the poor and middle class don’t.

You can Download my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids about Money but the Poor and Middle class don’t? right now by clicking this link for FREE without any annoying registrations.

I have given 6 lessons and 10 myths about money that rich teach their kids but the poor and middle class don’t and this is the reason why the kids who receive this financial education become rich ultimately. So download my eBook right now and financially educate yourself right now.

Pension Plans are diverting Your Money Towards Stock Market

Do you know that the Pension plans on which you are betting your retirement are not safe anymore? Well, yes. The modern pension plans are not the defined benefit pension plans but they are defined contribution pension plans.

Means after 1974, they become defined contribution pension plans means you will get after your retirement what you will contribute during your active life span.

So Why Pension Plans are no longer safe and you should not bet your retirement on these pension plans?

Well, This is because to generate returns via Capital gains these pension plans divert your money towards the stock market. Thus, ultimately these pension plans divert your hard earned money in the hands of rich people from which rich run their businesses to get richer.

Than why not start your own business, taking it to the public and use the money from pension plans to become more richer?

This is what the kids of rich people are learning right now from their rich parents. The Financial Education that the kids of rich and the kids of poor and middle class are taking is entirely different.

The Middle class teach their kids to save money in pension plans for the safe retirement while the rich teach their kids that how to develop a successful business by using the power of the corporate structure and taking it to public and use the money from pension plans to fund the growth of their businesses to grow richer.

This is the basic difference between the rich and everyone else. Unfortunately, This real financial education that rich give their kids was not available to the middle class people up to now.

But Now, You can take this education for FREE. Yes, FREE. Just Download my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

Just click the above link and download my 162 page eBook for FREE right now without any annoying registrations.

I want you to sit back and read and understand each and every word of my eBook in detail. This is because I have worked hard for almost 2 years to develop this Information rich eBook.

All the Diagrams (50+) in this eBook are drawn by me. These hand drawn diagrams will teach you exactly that how the rich play the game of money to get richer?

Don’t rely on the Pension Plans for the peaceful retirement. Rather than that increase your Financial IQ and become rich and financially free by your own way.

And yes, Don’t forget to spread this Financial Awareness to People around the World.

What School Doesn’t Teach You About Money?

Have you ever noticed that during the entire school life your school has never taught you about about money? In fact, many of you may not even know the fact that the money is the entirely different subject just like any other subject and without learning this subject, you can not master the game of money and become rich and financially free.

Well, Yes. This is true. To understand the game of money you MUST be familiar with the terminology of the Money which is used to understand money very well such as Financial Statements, Assets, Liabilities, Cashflow, Good Debt, Bad Debt, Passive Income, Active Income, The Corporate Structure…etc..

These are the terminologies of money that you must understand before you play the game of money. But unfortunately, our school doesn’t teach us this terminologies that rich teach their kids since their childhood.

And Why School teach you these terminologies?

After all, our entire Education System is designed by the rich people of the Industrial age to create employees and self-employees who can work hard and run the businesses owned by rich.

Well, Yes. This is true. Our Entire Education System was designed by the Industrialists of the Industrial Age who have strategically removed the terminologies to understand money from our school system and that’s why we can’t understand or even think of money.

Whenever somebody discuss about money, Business & Investments most of the people have blank face. This is because they simply can’t understand these words.

So What I want to tell you here is that, if you want to become rich in your life than first of all install these terminology in your mind. So that your mind starts thinking about money.

You can Download my eBook My Journey To Billionaire Club: What Rich Teach Their Kids About Money that Poor & Middle Class Don’t? for FREE right now from this link.

In my book, I have given 6 basic lessons about Money that you have to master to understand the terminology of money. In my eBook, I have explained all the terminologies about money that the school won’t teach you. So Download this eBook and learn the lessons on Money that rich teach their kids about money but the poor and middle class don’t?

True Versus False Financial Education

There are basically two types of Financial Education – True & False. The Financial Education that you take from your parents, school and so called financial experts, gurus and bloggers is a false financial education. Let me explain you how?

- Save Money

- Teach Children to Open Savings Account with the Bank

- Invest in Mutual Funds, Diversify & Invest for Long Term

- Invest in Stocks for Capital Gains

- Invest in Pension Plans

- Your House is your Asset

- Get more and more Educational Degrees & Get a Good Job

- Get out of Debt

- Live below your means

The above are the most commonly propagated financial advises. But well, these financial advises are not the true financial education. The truth is that, if you follow the above financial advises than you will never be financially free and rich.

In fact, the above financial advises are designed in such a manner that they will simply pass on your money in the hands of rich and nothing else.

The most common age old financial advise is ‘Save Money’. But well, this is the most dangerous financial advise in the modern world. This is because savers are losers today. If you will save money, you are saving something which is going down in its value over the time because of the inflation and hyperinflation. Saving money is the fool’s plan and not the real financial education. This is because the central banks and governments from all around the world are printing literally billions and trillions of new money out of thin air right now when you are reading this article and this newly printed money is diluting the purchasing power of the money in your pocket and bank savings accounts.

When you invest in mutual funds, pension plans and stocks – you are making the owners of these mutual funds and pension plans rich. This is because all you depend on one type of income and that is Capital gain when you invest in mutual funds, stocks and pension plans. While the owners of the mutual funds and pension plans are generating a steady cashflow from your money by charging you various kind of fees every year. The owners of publically listed companies will still make money even if the stock price of their businesses go down. This is because they are the owners of these businesses and they can take out any amount of money from their businesses.

The Governments, Banks and your financial advisors will tell you that your house is your biggest asset so buy a bigger home and take a tax break from the government. But well, if you know how to read financial statement and cashflow pattern than you will realize that your house is your biggest liability because every month it takes money out of your pocket.

Getting out of Debt and stay away from new debt is also a financial advise for the financially illiterate people. This is because there are two types of debts – Good & Bad. And to get rich, you will have to keep taking more and more good debt to acquire more assets.

Thus, everything that you learn from so called financial experts, bloggers and gurus is a false financial education. This financial education teach you to give your money in the hands of rich to make them richer.

So What is the True Financial Education? What Rich people teach their kids about money? Do you know that rich give their children the different financial education – The True Financial Education.

If you want to take this true financial education that rich give their kids than Download my FREE eBook – My Journey To Billionaire Club: What Rich teach Their Kids About Money That Poor & Middle Class Don’t?

Just click the above link and download my eBook for FREE without any annoying registrations. My eBook is the real financial education that rich people from all around the world are right now giving their kids but the poor and middle class don’t? So don’t wait anymore and take this real financial education.

And yes, Don’t forget to spread this real financial education to your friends and family.

Get a Job: Why To Trade Time for Money?

Get a Safe & Secure high paying job was the Industrial Age idea. This is the Information age and there is not any kind of job security anywhere in the world. Business & Investments are risky – This was the Industrial age thought. But the modern reality is that, not having your own business and investments is the most risky thing in the current world.

Today still most of the people in this world believe in this idea – Get a Job and unfortunately they teach their children also the same thing. But well, the truth is that when you do a job, you trade your time in exchange of money.

You work hard for one full month at your job place, grow that business and for that at the end of the month, you receive a small paycheck and nothing else. And by using your time, that business develops its permanent brand, assets and reputation.

So What is the problem with trading your time in exchange of money? Well, the only problem of trading your time in exchange of money is that, The modern money is worthless now. The modern money is nothing but a piece of paper without any intrinsic value in it.

It means that the central banks and the governments can print as much money as they want according to the need of economy. Previously working hard at your workplace to earn money was the good financial advise because before 1971, the money was backed by Gold.

But in 1971, the US Government had removed the Gold Standard followed by all the other countries and the modern money is nothing but a printed bank note without any value in it.

So now the problem is that, before 1971 if you earn money it meant that you were earning and saving that much amount of gold. But today if you work hard for money than it means that you are working for a paper money which don’t have any intrinsic value in it.

And the every time the governments print new money, the purchasing power of your hard earned money in your pocket and in bank savings accounts go down. Because the newly printed money dilutes the purchasing power of the existing money in the economy.

This, today trading time in exchange of money (Doing a Job in simple words) is a Fool’s Plan.

So How the Rich Play the Game of Money? How You can also be Real Rich? Well, Recently I have published my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

You can download this eBook for FREE right now without any annoying registrations. In my eBook, I have explained the modern rules of money. I have also given 6 lessons very briefly and accurately that what the rich teach their kids about money. Which kind of financial education and lessons the kids of rich people are taking right now around the world that you and your children are not taking.

So Download my eBook, read it carefully and understand its each and every lesson carefully and if you have any queries than don’t hesitate to ask me on my forum – Investta.com

Why Printing Money Won’t Solve the US Recession Problem?

All of you know that the US Economy, the largest economy in the world is right now in trouble. It is going into the phase of Double dip (W-Shaped) recession means the short period of recover it is again slipping back into the deep recession.

But do you know that how the US Government is tying to solve this problem? Well, by printing more money (Dollars) out of thin air. To get out of this recession (And probably the Depression), the US Government is printing money out of thin air like hell.

Since 2007, the USA has doubled its monetary base (Money Supply / Money in the Circulation). before 2007, the US Monetary base was just $ 800 Billion and today it is $ 2000 Billion ($ 2 Trillion). This, US Government has printed literally new $ 1200 Billion ($ 1.2 Trillion) out of thin air to recover from the recession.

And not only this but it is going to print still more $ 1 Trillion out of thin air in the near future (Probably in 2011).

But well, Do you know that printing money like this won’t solve the real problem? In fact, it will worsen the recession. Here is how?

Well, Right now most of this printed money is in the Bank reserves. But when this money will enter into the circulation, it will markedly dilute the purchasing power of the existing dollars by causing the hyperinflation.

Well, yes. Once this much money will be in the circulation, it will cause hyperinflation and the prices of all the assets, goods and services will go up to the sky high levels.

And unfortunately, the salaries of people working in the companies won’t hike at this much sky high levels. Not only this but because of this money printing activity of the US Government, the people who are living on the Pension Plans income won’t be able to live on their pension income.

And on the top of this, people who are in their fifties and waiting for the financially peaceful retirement won’t be able to retire peacefully on their pension plans and retirement savings.

Saving money will be worthless very soon. This is because money will lose its purchasing power very soon.

So How to Become Rich in such kind of Conditions? Well, by creating and acquiring assets. An Asset is something which puts money into your pocket weather you work or not.

And that’s why the basic understanding of the words like Assets, Liabilities, Financial Statement & Cashflow is very very important. Unfortunately, Schools don’t teach us these words and that’s why we remain financially struggling and middle class for the rest of our lives.

You can Download my eBook My Journey To Billionaire Club: What Rich Teach Their Kids about Money but Poor and Middle Class Don’t? for FREE without any annoying registrations and get this real financial knowledge that rich people from all around the world are giving to their kids but poor and middle class don’t.

I have worked very hard to write this eBook to spread the real financial education that is not being taught in our schools. In my Book, I have explained in detail that how you can print your own money legally and what you should do rather than saving money.

So Download my FREE eBook and yes, don’t forget to spread this Financial Awareness.

Pension Plans are Worthless in the Modern Economy

Pension Plans are becoming worthless day by day. This is because the world economy is changing in such a bad manner right now that within few years the pension plans will be worthless.

Very soon people living on the Pension Plans won’t able to live on their pension income alone. Thus in the near future, the people who are planning to live on the pension income will be in financial trouble.

This is because the US Government and many central banks from all around the world are right now printing literally billions and trillions of dollars out of thin air and this newly printed money is diluting the purchasing power of the existing money.

Right now this money is sitting in the bank reserves but when this money will enter into the circulation, it will cause the hyperinflation and erode the world economy.

It will erode the purchasing power of your money in your pockets, savings account, PPF, Pension Plans, EPS, FDs, Post office Savings schemes and any other form of fixed income saving product.

Today the rules of money have been changed and the rich play the game of money in different ways. The Rich give their kids the entirely different kind of financial education right now that the poor and middle class are not giving.

This is because for the poor and middle class, going to school, get good grades, work hard, find a good job and retire on the pension plans or invest in mutual funds and diversify is the only form of financial education.

Unfortunately, most of the personal finance advisors, bloggers and gurus also spread this false personal finance educational messages to the new generations.

If you really want to learn these new rules of money to become and stay rich than read my eBook. Recently I have published my own eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor and Middle Class Don’t?

You can download this eBook for FREE right now by clicking the above link and without any annoying registrations. In my eBook, I have explained the new rules of money. I have explained very clearly and briefly that how rich play the game of money. What rich think about money that the poor and middle class don’t?

If you want to teach your kids something about money than you should teach the lessons given in my eBook. So Don’t wait and start learning the new rules and lessons on money to get rich.

Rather than depending on the pension plans and the governments after your retirement, build your own Assets and become financially free.

How Rich Print Their Own Money Legally?

Do you know that Billionaires (Ultra-Rich) print their own money and that is also legally?

Well, yes. All the Forbes Billionaires are not the billionaires because they have earned billions of dollars. But they are billionaires because they have print billions of dollars out of thin air in the economy and that is also legally.

Thus, you can not become ultra-rich without printing your own money legally.

So How these Billionaires print their own money in the economy and that is also 100% Legally?

Well, by developing a successful business and later on taking that business to the public. By taking their business to the public and listing their business on the various stock exchanges and selling the shares of their business to literally millions of people, they print this much amount of new wealth in the economy legally.

In short, the Billionaires are not just the wealth builders but they are the wealth creators also. They Create new wealth in the economy by using the power of the corporate structure.

The Billionaires have different set of mindset. They are financially well educated even though they are school or college drop outs. And that’s why they play the game of money by using the power of the corporate structure.

Unfortunately, this power of the corporate structure is not being taught to us in the school or colleges. But well, This is the real financial education that anyone needs to become financially free and ultra-rich.

So Why Schools don’t teach us the real Financial Education?

Well, This is because the Schools want you to become employees and self-employees only who work hard in the businesses of the rich people to make them richer and that’s why strategically this kind of real financial education is not being taught in the schools and colleges.

If you want to take this real financial knowledge about money that the rich teach their kids only than Download my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money that Poor & Middle Class Don’t?

Don’t Worry. It’s 100% FREE. I won’t ask you for any type of credit card or paypal payments or annoying registrations. Just click the above link and you will be redirected to the Download link page. I am in the Business of spreading Financial Awareness and not in the business of selling you something.

In my eBook, I have given 6 basic lessons on money that rich teach only to their kids and nobody else and 10 Commonest Myths about Money. One of the lesson (Lesson 6) is the power of the corporate structure. So Download my eBook and get the real financial education.

An yes, Don’t forget to spread the financial awareness and if you like my eBook than let me know…!!!

Mutual Fund Investing For Capital Gains – Loser’s Bet

Recently I have published my own written eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

You can download this eBook for FREE by clicking the above link without any annoying registrations. In the Book I have mentioned the new Rules of Money. Basically the rules of money have been changed and that’s why the financial advises also.

Since our past generations we are being taught that invest for the long term, diversify and build the wealth. Well, The only problem with such kind of investin is that, here you are investing for the Capital Gains.

Investing for the Capital gains means you are investing for the price of something (Stocks, Gold, Real Estate, Mutual Funds) going up in the future. You don’t have any other control over that investment except selling.

Say for Example, Mutual Funds. Most of the Personal Finance Advisors, Bloggers & Financial planners advise us that invest in equity diversified mutual funds for the long run via SIP, stay invested for 10, 15, 20 years, the compound interest will work in favour of you and you will make a big corpus after 15-20 years.

Well, This financial advise is very true. If you hold some asset for more than 10 years than that asset will appreciate so much that it will give you great appreciation of your money.

But my question is that, What about those long 10-20 years? I mean this is like living poor but dying rich. This is the main problem with the investing for Capital Gains only.

And today most of the people in this world invest for the capital gains only means they follow the ‘Buy, Hold & Pray’ Strategy.

Well, this strategy is good strategy rather than investing nothing and living paycheck to paycheck. But well, the true rich people don’t follow this strategy. Basically they Invest for both Cashflow and Capital Gains.

I mean they buy the assets which not only give them the Capital gains but also give them the cashflow so that they can enjoy their life as far as they own that asset.

Businesses and Real Estate (Rental Properties) are the Cashflow plus Capital Gain Assets. Of course, everyone should invest in Mutual Funds. They are professionally managed and outperform the Index.

But the basic difference between the Rich & Middle class is that, the Middle class invest their hard earned (Job Income, Salary, Second Job, Part time, Over time) money into the mutual funds while the Rich invest their hard earned money to buy cashflow (+Capital gain) Assets first and from the passive income of their assets they buy the capital gain assets like mutual funds. So this is the basic difference between the rich and middle class.

I have explained several other new rules of money and basic lessons on money in my eBook. So Download it Right away and boost your Financial IQ.

How Rich Protect Their Assets?

Middle class and High Income Individuals (Doctors & Lawyers) own everything in their own names and that’s why during the time of divorce, sue & other lawsuits they lose the control over their assets.

While Rich Don’t own any assets in their own name and that’s why the rich are protected from such kind of lawsuits.

The basic difference between the rich and everyone else is that the rich are financially sound. The rich have high level of TRUE Financial knowledge that the poor and middle class don’t have.

So How Rich own something by not having it in their own names? Well, it’s simple. They own everything in the name of their companies.

Rich own their all the assets in the name of their companies and that’s why during the time of lawsuits, their companies stand as a separate entity and protect all of the assets of rich.

While Middle class and High Income individuals don’t have any knowledge of the power of the corporate structure. This is because such kind of financial knowledge is no where available in the schools.

This is the true financial education that only rich give their kids mouth to mouth during their school time while poor and middle class don’t.

But to understand the power of the corporate structure, you will need to understand the basic words like financial statement, assets, liabilities, passive income, active income, cashflow and many other things.

Unfortunately, the real financial education is nowhere available on the internet or in the real world and that’s why I have write my own eBook on this.

You can download my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids about money that Poor & Middle class Don’t?

Don’t Worry. My eBook is 100% FREE. You won’t be ask to make any kind of payments or annoying registrations to download my eBook. Just follow the above link and within a split of seconds you will be able to download my eBook.

In my eBook, I have given 6 basic lessons and 10 Commonest Myths about money that the rich teach their kids but the poor and middle class don’t. So learn these lessons on money and also teach your children these lessons.

And yes, Don’t forget to spread this Financial Awareness…!!!

PPF Saving Scheme is Worthless Now – Savers are Losers Now

PPF is one of the most widely used saving scheme in India which offers guaranteed 8.5% annual returns and tax benefits. In fact, there is a common propaganda that everyone should invest up to Rs.70k every year in the PPF Scheme because of its long term benefits and returns after several years.

In fact, Saving your Money in PPF is the most widely used financial advise by the financial planners, bloggers and finance gurus in India.

But Do you know that, the Rules of Money have been changed now?

Today, the reality is that, Investing in PPF can actually hurt your money? Well, Yes. Today if you invest your money in the PPF than after 1 year you will be poorer than today and not rich even if you earn 8.5% interest on your invested money.

This is because the inflation rate is 14% in India (In July 2010) right now and the average annual inflation rate in India is 10.50%. Thus, actually you are earning – 2% returns on your PPF returns.

Thus, if you invest 100 rupees in PPF than it means that you are actually loosing 2 rupees annually on it even though you are earning 8.5 rupees of interest on it. Because the average inflation is 10.5% which is eroding the purchasing power of your money.

The Government assures us that, it will control the Inflation very soon. But well, its not possible because the US Government is printing dollars like hell which is diluting the purchasing power of the existing money in the circulation by causing uncontrolled inflation affecting the developing economies also.

Thus, Today Investing in PPF is the Most Dangerous Personal Finance advise that anyone can give you.

This is because investing in PPF today means investing your money to reduce its purchasing power and nothing else.

So How the Rich play the Game of Money? Well, the Rules of Money have been changed now and the Rich plat the game of money differently. In fact, the rich teach their kids different things about money that the poor and middle class don’t.

Recently I have published an eBook about these new rules of money. You can Download it right now for FREE and learn these new lessons on Money. Here is the Download Link.

My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

How Rich Save Taxes that Poor & Middle Class Don’t?

For Middle class people in India there is only one kind of Tax break and that is Section 80C under which you can save up to MAXIMUM Rs.1 lakh of tax per year by investing it in PPF, Insurance plans and Pension plans. And if you have taken a housing loan than you can save up to Rs.75,000 of tax annually on interest.

That’s it. These are the only tax breaks for the middle class people in India. But well, Do you know that there are literally hundreds of tax breaks for Rich who own their own Business?

Well, Yes, Hundreds of tax breaks.

Do you know that rich earn literally crores of rupees every year and pay less tax than the middle class and that is also 100% Legally.

Well, Yes. I am talking about the power of the corporate structure. The Rich have the financial knowledge of the power of the corporate structure and they use this power in their favour to save more taxes than the middle class who work hard for the money.

For the Middle class the first expense is the tax means the first expense from your salary is a tax while for the rich the last expense is a tax.

Rich buy their new BMW from the pre-tax money of their company and show it as a Business vehicle.

They travel the world with the pre-tax money of their company and show it as a business travel.

The new Laptop bought from the pre-tax money is shown as the Business equipment and so on…!!!!

Rich literally have hundreds of tax laws in their favour to save tax legally. This is because the rich are financially well educated. The financial knowledge that the schools don’t teach us. It is the knowledge that only rich people give their kids during their school age.

It is the real financial education that the rich people give their kids but the poor and middle class don’t because this type of education is nowhere available in the entire education or in private coaching programs.

If you want to take this basic and real financial education about money than Download my eBook – My Journey To Billionaire Club: What Rich Teach their Kids about Money but Poor & Middle Class don’t?

Don’t worry. My eBook is 100% FREE. You will just have to click the above link and you will be redirected to the Download page directly without any annoying registrations. In one Single click only you will be able to download this eBook on your Desktop in the PDF form.

In my eBook I have explained the power of corporate structure and various other lessons and myths on money in a great detail. I am sure that the information inside my eBook will help you to boost your Financial IQ by several folds.

Public Provident Fund (PPF) Offered by ICICI in India

PPF also known as Public Provident Fund is one of the most widely used saving scheme for small investors in India. This Scheme gives option to invest Maximum Rs.70,000 per annum tax free and with 8.5% annual returns.

In the 2005, ICICI Bank has announced that it will launch the PPF Scheme opening facility online for their customers. Here is the Announcement PDF.

ICICI Bank had claimed that it will give this facility in the online form so it will be hassle free for the customers. And it also started this facility in selected cities like Mumbai.

And many people had also joined this scheme also.

But well, According to the Mouthshut, ICICI Bank has silently withdrawn this facility and stopped providing the online support and even the customer support for their existing customers.

When the new customers started calling about the Online PPF Scheme, the Customer care is now telling that the facility is withdrawn. So Why ICICI Bank has withdrawn this facility is really a Mystery.

Anyways, Do you know that what’s going on the current world? Do you know that PPF Investment which was once upon a time considered to be one of the best investment in the country is now worthless?

Well, Yes. This is true. In fact, today Investing your money in PPF means actually losing it. Because the Inflation rate in India is 14% (July 2010) and the returns offered by PPF is just 8.5% annually. So actually you are losing money.

You need a Financial Knowledge and the knowledge about the new rules of money to win the game of money. Recently I have published my new eBook which contains all the new rules of money. The book contains what the rich teach their kids about money that poor and middle class don’t?

And you can Download this eBook for FREE right now from the following Download Link.

My Journey To Billionaire Club: What Rich Teach Their Kids About Money That the Middle class Don’t?

So Download this eBook in the PDF form right now and shoot up your financial IQ by several folds.

Getting Out of Debt is Always not a Good Thing

The age old financial advise is – Get out of Debt, Cut Down your Credit cards and Never borrow money if you want to become financially free and rich.

Well, This advise was really true advise once upon a time (Before 1971) when the world was following the Gold Standard means when the money was backed by gold.

But well, today the money is no longer the derivative of gold but it is a derivative of the debt and that’s why the rules of money have been changed.

There are basically two types of debt – Good & Bad.

If you can understand the basic difference between the Assets and Liabilities than you will understand that any debt that is used to acquire assets is known as a good debt while any debt that is used to acquire liabilities is a bad debt.

The above financial advise is effective for the bad debt only. In reality, the rich take more and more good debt to become richer and richer. But well, unfortunately the financial planners and gurus from all around the world develop the mindset in people that debt is bad and you should get out of it as early as possible and you should never borrow money.

This financial advise generates a false mindset in people which prevent them to take a good debt. While rich teach their kids about good and bad debt and its importance and that’s why the kids of rich people grow younger they take more and more good debt to acquire assets and get richer and richer.

Remember that, Getting out of debt is the financial advise of middle class people. This advise creates a false mindset in your mind which will prevent you to take a good debt which is very necessary to become very rich in your life.

Unfortunately, our schools don’t give us any kind of financial knowledge about good and bad debt. And yes, believe me getting out of debt and stay away from the new debt is not a real financial education that the financial advisors from all around the world give you.

You should get out of only bad debt as early as possible and stay away from it but you should take more and more good debt to acquire more and more assets to grow the asset column of your financial statement.

If you want take such kind of real financial knowledge about money than Download my FREE eBook – My Journey To Billionaire Club: What Rich Teach Their Kids about Money that Poor & Middle Class don’t?

My eBook is FREE to download and by following the above link you can instantly download my eBook without any annoying registrations. Just read my eBook and learn the 6 basic lessons on money and 10 commonest Myths about money. And yes, Don’t forget to spread this Financial Awareness…!!!

Is it Right Time to Invest in Gold?

The Gold price is crossing new and new heights. Right now When I am writing this article, the Gold price is US $ 1277 per Ounce means roughly Rs.19500 per 10 grams of Gold in India.

Many of my friends, relatives and readers of this blog ask me that, Should they buy the gold at this price or should they wait to cool down the price of the Gold?

Well, in my opinion, if you love this asset class and want to invest in this Asset class than go and buy at this level. This is because the Gold price may go even high from this level means $ 1500, $ 2000 or even more.

This is because the gold price has direct relation with the US Dollar. It has the direct relationship with the money supply (Money in the Circulation). So whenever the US Government will print more dollars, it will weaken the dollar by diluting the purchasing power of the existing dollars in the economy.

Since 2007, the US Government has printed well over $ 1.2 Trillion ($ 1200 Billion) and that’s why now the US Monetary Base (Money Supply) has swelled to more than $ 2 Trillion ($ 2000 Billion) from just $ 800 Billion before 2007.

And still the US Government want to print more money by giving economic stimulus packages in the economy. Right now the most of this newly created money is in the Bank Reserves. But when it will come out into the economic circulation, it will dilute the purchasing power of the existing money in the economy and thus driving the gold and other assets prices to the sky high.

So Buy Gold now if you want to invest in this Asset Class. No need to wait to cool down the gold prices.

Problem with Investing in the Gold

Well, If you ask my personal opinion than I will advise you to invest in Business (Online or Offline) or Real Estate. This is because the only problem with the Gold is that, it is the non-productive asset class. The only problem with investing in the gold is that, it doesn’t provide you any kind of cashflow as long as you hold it. So you will have to depend only on one kind of profit and that is Capital Gains.

This form of investing is little bit risky in my opinion because anytime the US Government can absorb the liquidity from the market and that eventually strengthen the dollar and causing the crash of the gold price.

So it is advisable to invest in cashflow + Capital gain assets rather than only Capital gain assets.

But well, it will require lots of Financial Knowledge to invest in the cashflow assets. So What I advise you is that Download my Free eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money that Poor & Middle Class Don’t and increase your Financial IQ by several folds. And do the Investments like Rich.

The New Rules of Money – Play the Game like Rich

Do You know that the rules of Money have been changed in 1971 by the US Government? Well, yes the old financial advises like Go to School, Work hard, Find a Safe & Secure job, Save Money, Live below your means, invest in mutual funds and diversify and retire on the pension plans are no longer effective to ensure any kind of financial success.

In fact, if you today follow these age old financial advises, you will surely meet the great financial disaster in your life and remain middle class or even become poorer.

So How the Rules of Money have been changed in 1971?

Well, the rules of money have been changed in 1971 when the US Government has removed the Gold Standard and the US Dollar no longer backed by Gold anymore and became a free float currency (Fiat Money).

And followed by this historical change in 1971 by President Nixon of United States, all the other countries have subsequently removed the gold standard.

So it means that now any government of this world can print any amount of new money out of thin air according to the need of the economy.

Since 2007, the US Government has printed literally US $ 1.2 Trillion out of thin air only and pushed it into the economy which is right now diluting the purchasing power of the existing money in the economy.

So How these new rules of money affect the old Financial Advises?

Well, the old financial advises are based on the Gold Standard money means the money which was backed by Gold. Thus, Saving money in the Gold standard means you are actually saving some amount of gold.

But today if you save money, you will be loser in the long run because the money is just a printed piece of paper without having any intrinsic value in it. Today if you save money, the purchasing power of your money will be severely reduced over the time because of the inflation and you will remain middle class or even become poor.

The Modern Financial Advise is – Save & Invest. It means that don’t keep money with you but buy some assets out of your money. Assets are something which appreciate in its value over the time as well as put money into your bank accounts weather you work or not.

And rich do the same thing with their money. They don’t save their money but buy assets out of their money (Stocks, Bonds, Gold, Real Estate, Businesses, Art, Web Properties…etc…).

Not only this but the rich don’t depend on the pension plans income to live in the retirement but rather than that they work hard during their young life to build their own Businesses and Assets so that even if someday they stop working behind their business, the money will still keep flowing into their bank accounts .

Thus, these are the modern new rules of money by which the rich play the game of money. You can Download my FREE eBook – My Journey To Billionaire Club – What Rich Teach Their Kids About Money that Poor & Middle Class don’t? and learn the new rules of money by which the rich play the game of money.

I have myself analyze several things and write this information rich 162 page eBook about the new rules and lessons on Money that you can download right now for FREE from the above link without any annoying registrations and following the principles of this eBook, you can play the game of money like rich.

I also suggest you to spread these new rules of money to as many people as possible so that they can also educate themselves financially and become rich and financially free.

Is Business Really a Risky?

I have learned only one thing about business from my school and parents and that is – It is Risky so Don’t do it.

This is all our parents and the entire education system teach us about the businesses. But well, Do you really think that having a business is risky?

Well, I don’t think so. This is because today my schoolmates who had received business from their family are financially more safe and secure than those who have received the knowledge of getting a job from their parents and of course from the school.

In fact, just tell me that today who are more financially safe and secure? – People who own a job or people who own their own business? – Of course the people who own their own business.

Than why our parents and school teach us that business is risky? Well, it is because the school system has been designed in such a manner that it only motivate us and train our minds to do a job. The schools are designed by the rich people of the industrial age in such a manner that it motivates people to do a job so that these employees can run the businesses owned by rich people.

Strategically the financial vocabulary has been removed from the entire education system and that’s why when we hear the words Financial Statement, Assets, Liabilities, Cashflow, Active-Passive Income…etc.., we can’t think or discuss anything about it.

And to play the game of money like rich and to understand the game of money, understanding of these words is very very important. But schools never impart these words in our minds and that’s why our minds can’t think of money.

And Business is a game of money and financial statements. But when we leave our school, we don’t even know that what is financial statement and that’s why for most of us business is risky.

The truth is that – Not having your own Business is Risky.

This is because when you do a job, you have only one client and that is your boss but when you do a business you have thousands of clients – your customers so even one or two clients fire you than also you will make money.

Depending on a job is the extremely risky thing in the modern world. And that’s why I advise people to increase their financial IQ and start their own business.

If you want to start your own business than you will need a right business mindset. You will need to understand the words of money by which you can play the game of money.

Download my FREE eBook My Journey To Billionaire Club: What Rich Teach Their Kids about Money that Poor & Middle Class Don’t?

I am sure that my eBook will boost your financial IQ by several folds and after reading my eBook your mind will start thinking like rich people. I have given 6 basic lessons and 10 Myths about money that rich teach their kids but the poor and middle class don’t. I am sure that the information inside my eBook will surely help you to increase your financial IQ so download it now and learn the basic lessons on money.

And yes, Don’t forget to spread this Financial Awareness to as many people as possible.

Why Live Below Your Means Won’t Work For You?

The age old and widely acceptable personal finance advise is – Live Below Your Means. It means spend less than you earn. This is the personal finance advise that is widely propagated by the personal finance advisors, gurus and bloggers from all around the world.

But well, Unfortunately, this personal finance advise is no longer effective to ensure financial success. This is because the governments and central banks from all around the world are printing new and new money like hell out of thin air which is causing inflation and hyperinflation and diluting the purchasing power of the existing money in the economy.

Thus, living below your means won’t be practically possible. Once upon a time (Before 1971), this advise was really effective because our money was backed by gold (The Gold Standard). Thus, living below your means and saving money was really worth.

This is because before 1971, saving money means saving gold. But in 1971, the US Government has removed the gold standard and the dollar became the free float currency and after that other countries of the world also removed the gold standard from their money.

Thus, today living below your means and saving money means saving printed paper (Paper money/Modern Money) only which will going down in its value because of the inflation.

Since 1971, the US Dollar has lost almost 90% of its value. And recently in 2007-08, the US Government has printed literally US $ 1.2 Trillion out of thin air. Thus, sooner or later the world will experience the hyperinflation. Your money in your pocket, bank savings accounts, Fixed deposits and Pension plans will become worthless. It will shrink in its purchasing power making you poor.

Living on the pension plan income is now just a dream. Unfortunately (For the Middle class), the rules of money have been changed in 1971. But Fortunately (For the Rich), you can learn the new rules of money very easily and play the game of money like rich and become rich.

Today Living below your means and saving money is one of the most dangerous financial advise that can make you middle class or even poor.

This is because you are saving something (Modern money which is not backed by gold) which is going down in value while to become rich, you will have to save something (Assets) which will go up in its value weather you work or not?

I have recently published my eBook – My Journey To Billionaire Club: What Rich Teach their Kids about Money that Poor & Middle Class Don’t?

You can click the above link and download my eBook FREE right now and learn the new rules of money. I have given 6 lessons and 10 Myths about money that rich teach their kids but the poor and middle class don’t. If you want to become rich and financially free than simply learn and teach these new lessons and rules on money to your kids. I am giving you this eBook for FREE. There is not any annoying registration required to download the book.

Simply click the above link and Download my eBook on new rules of money right now with just single click on your desktop. And yes, also don’t forget to spread this new financial awareness to as many people as possible.

How Billionaires Create New Money in the Economy Legally?

Do you know that How Billionaires become Billionaires? You may be surprised by knowing that the Billionaires become billionaires not by earning billions of dollars via their businesses but the billionaires become billionaires by printing billions of new dollars in the economy out of thin air legally….!!!

Surprised????

But well, This is the Truth. All the Forbes Billionaires in this world are basically not the wealth builders but they are in reality the wealth creators.

Bill Gates, the world’s Second Richest Person (Forbes 2010) and the Founder of the Microsoft is a Wealth Creator. He created more than $ 50 Billion by taking his Business Microsoft corporation to the public.

So How the Billionaires create new wealth in the Economy Legally? How Billionaires print their own Money Legally?

Well, It’s easy. By developing a successful business out of scratch and later on taking that business to the public. By selling the shares of their companies to literally millions of people they become billionaires.

To become a billionaire, you will require a different kind of financial education – The Financial education about the power of the Corporate Structure.

The Power of corporate structure is the financial education that only rich people teach their kids but the poor and middle class don’t because they don’t know this type of financial education. For the middle class there is a different kind of financial education and that is – Save Money, Work hard, Live below your means, invest in mutual funds and diversify and retire on the pension plans.

While Ultra-rich (Billionaires) give their children the entirely different type of financial education – The financial education about the Corporate structure.

If properly used, the corporate structure can save lots of tax for you, protect your assets and create new wealth in the economy and make you a billionaire or even multi-billionaire.

So how you can take this financial knowledge of the corporate structure that the rich teach their kids but the middle class don’t?

Well, it’s simple. You can download my FREE eBook – My Journey To Billionaire Club: What Rich Teach Their Kids about Money that Poor & Middle Class Don’t?

Simply click the above download link and download my 162 page eBook having 50+ hand drawn diagrams for FREE without any annoying registrations.

In my eBook, I have given 6 lessons and 10 myths on money and one of the lesson on money (Lesson 6) is the Power of the Corporate Structure. You can learn this and other lessons on money and literally boost your financial IQ by several folds.

All the lessons in my eBook are carefully crafted in such a manner that you will understand the game of money very well. I strongly advise you to teach these financial lessons to your kids so that they can become financially free when they grow young.

The Second Successful Week of My eBook

This is the Second Successful Week of my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids About Money That Poor & Middle Class Don’t?

During the First Week, The Download Count was 133. And Today at the end of the Second week this Download Count is 442 when I am writing this Article.

I have launched this FREE eBook on 4th September 2010 to spread the real financial awareness to the Society.

Here is the Download Link.

Download Link [PDF – File Size: 13.23 MB]

I have gone through several blogs, books and literature on Personal Finance and I have found that the Financial Education that these books, blogs and literature is spreading is not the true financial education.

In fact, these are the financial advises for the middle class to stay and remain middle class.

Examples of Such Financial Advises for the Middle class are – Save Money, Live below your means, get out of debt, get a job, depend on pension plans, your house is your assets and many more…!!!

And that’s why I was working on this eBook since past almost a year. The main purpose to publish this eBook is to spread the REAL Financial Awareness in the people from all around the world in any age group.

The eBook is written in so much simple language that even a school going kid can read and understand it and follow its principles.

And all the diagrams (Around 50+ Diagrams) in this eBook are drawn by me with colored Sketch pens so that even a school going kid can understand and learn the real financial education by reading this eBook.

The Rules of Money have been changed and the rich are playing the game of money with these new rules of money. And that’s why I recommend you to download and read my eBook.

My eBook is 100% FREE to download and its in the PDF form so you can spread it with just a click of your mouse.

If you like my eBook and think that this is the real financial knowledge than spread this financial awareness to as many people as possible so that more and more people can take this financial knowledge.

By Spreading this Real Financial Education to as many people as possible, be the part of the history of the Future Generation Financial Education…!!!!

How To Become Rich By Working Hard?

Well, Of course it is the common belief among the people that they will become rich by working hard. Well, it is true that anyone can become rich by working hard but unfortunately, the rules of money have been changed now.

So the people who work hard to earn more money (Job, Second Job, Part Time, Over time) can’t become rich and financially free anymore. This is because the modern money is not backed by any gold. And that’s why whenever the government prints new money, it dilutes the purchasing power of your hard earned money by causing inflation. And that’s why trading your time to earn money (Job) won’t make you rich any more.

In fact, if you will work hard to earn more and more money than you will definitely remain middle class or even become poor. After 2007, The US Government has printed literally $ 1.2 Trillion ($ 1200 Billion) out of thin air and pushed it into the economy. Before that the US Monetary base (Money Supply) was just $ 800 Billion.

Right now most of this money is in the bank reserves but when it will enter into the circulation, it will dilute the purchasing power of the existing money in the circulation.

But Do You know that, the Rich also work hard to get rich but not for earning money but something else?

Well, Yes. Rich & Middle class both work hard to get rich. But the Middle class work hard to increase their income while the rich work hard to create and acquire assets and these assets ultimately generate passive income for that.

So once the rich acquire or create the asset (Businesses, Real Estate, Stocks, Bonds..etc..) , after that weather they work or not, the money will keep flowing into their bank accounts.

This is the advantage of having Financial Knowledge. The basic difference between the rich and everyone else is that, the rich think in different way about the money. The rich are more financially educated than everyone else.

If you want to become rich than Download my eBook – My Journey To Billionaire Club: What Rich Teach Their Kids about Money that Poor & Middle Class Don’t?

Don’t worry. The book is FREE for the readers of MJ2BC and you can download it right away by following the above link without any annoying registrations.

In my eBook, I have mentioned in very accurate and brief manner that which are the lessons about money that rich teach their kids but the poor and middle class don’t?

So Download my eBook and shoot up your Financial IQ right now.

Pension Plans: Is it Really Possible to Retire on your Pension Plan?

Pension Plans also known as Retirement plans are the most favourite financial instrument of the employees who are working at Government or at some private corporation since decades.

In fact, parents and grand parents advise their children to invest some amount every month in Pension Plans. In the USA the most widely used pension plan is the 401(k) and in India, it is Employees Provident Fund Scheme (EPS) and in every other country, they have their own pension plans.

Most of the Employees in India & USA are depending on their pension plans so that after their retirement, their pension plans can provide them regular and steady income.

But unfortunately, the Truth is that if you are in your fifties today or already retired and living on the pension income today than very soon (Within less than a decade), it will be impossible for you to retire only on your pension plans and pension plan income.

This is because the Central banks and governments from all around the world are printing literally billions and trillions of new money out of thin air and pushing it into the economy and diluting the purchasing power of the existing money in the economy by causing uncontrolled inflation.

So very soon, thee money in your pocket, bank savings accounts, saving schemes and Pension Plans will be worthless. The newly printed money will literally drive the price of all the goods and services in the economy so much high that you won’t be able to retire on your pension plans or saved money.

Thus, people who are right now investing in the pension plans regularly every month hoping for the financially peaceful retirement will become fool.

Unless the governments from all around the world stop printing money out of thin air like hell, you can’t be retire peacefully on your pension plans.

So if you are in your twenties, thirties and even forties today than simply forget the idea of retiring on your pension plans. This is because in the next decade only, you won’t be able to afford anything from your pension plan income.

This is because the rules of money have been changed. The modern money is not money in the true sense. It is just a psychological feeling of being money. But in reality it’s just a printed piece of paper without having any intrinsic value in it.

I have recently published my new eBook in which I have given 6 basic lessons on money. These are actually the new rules of money by which the rich play the game of money.

You Can download my eBook right now for FREE and learn these basic 6 lessons on money and 10 commonest Myths about Money.  These are the lessons about money that rich people teach their kids but the poor and middle class don’t and that’s why they remain poor.

So if you have not taken such kind of financial education from your parents or you want to impart the new generation financial education to your children than simple download my FREE eBook and learn these new lessons on Money.

And yes, Don’t forget to give me a Feedback…!!!

I am waiting for your Feedback.

Digg is Down: What Happened to Digg?

Today when I visited Digg.com, I found that the site is down. I really don’t know that why it happened?

Some of my friends from other social networks told me that the Digg is down because the Digg is launching the new version of it.

When I visited the website, it has shown the above graphic.

“Digg Has Broken an Axle”

“We Might have to sell some oxen but we’ll be back on the trail soon.”

This is what the home page of Digg has written as a message.

Digg is a great social media website for bloggers and Internet Entrepreneurs. This is because with the help of the Digg, one can reach the wider audience for their internet business.

Let’s hope that Digg will be back as soon as possible…!!!

Terms (Terminologies) used in the Stock Market, Investing, Finance, Tax & Insurance

There are several financial products available in the market. In this article, I will summarize most common terms used in the stock market, finance, investing, tax and insurance field.

Stock/Share: A Stock is not just a piece of paper or the ticker symbol on trader’s desktop computer but it is the ownership interest of the company. Say for Example if one company has total 100 shares and you have 10 shares of that company than you are 10% owner of that company. So whenever you buy a stock of some company, think that you are buying some part of the ownership of that company.

Entry & Exit Load: These are now obsolete in India as SEBI has banned mutual funds charging entry loads. Let me tell you that what it means. Well, it is the commission/fee that the mutual funds in India used to charge from the investors from their initial investment. It used to be 2.5%. But now the Entry load is 0%.

NAV (Net Asset Value): It is the price of one unit of the mutual fund. Suppose if you have 100 units of some mutual fund and its NAV is Rs.200 than your investment value is Rs.20,000.

NFO (New Fund Offer): Whenever a mutual fund house declares and launch the new scheme, it is known as NFO. It is also known as the public issue of the mutual funds. There are many NFO lovers in India who primarily invest in NFOs and later on after few months sell it.

Open & Closed Ended Mutual Funds: Open Ended mutual funds means there is not any restriction of buying and selling. Means you can any time enter into that mutual fund and any time exit from that mutual fund. While the close ended mutual funds means they will have the lock-in period of minimum 3 years. Means once invested, you can not exit from it before completion of the lock-in period.

Growth Option in Mutual Funds: It means that all the dividends and profits of your invested money in the mutual funds will keep investing again and again to build even larger corpus.

Dividend Option in Mutual Funds: It means that the fund will declare dividends to you from the profits generated by your invested money thus each time when the fund house declares the dividends, the NAV price will drop by that much percent.

Fund House: It is the Company which manages all the mutual fund schemes under one roof say for Example, Reliance fund house, SBI Fund House…etc..

Equity Fund: These are the mutual funds which invest most of their money in the equities and very little to nothing in the debt instruments. The primary goal of the equity funds is to generate profits by investing in the stocks.

Debt Funds: These are the funds which invest most or all of their money in the debt instruments.

Balanced Fund: A balanced fund is one which invest the part of your money in the equity and the part of it in the debt. The allocation can be anything. It can be 50:50, 60:40. 70:30 or anything else.

Monthly Income Funds (Plans): These are the types of balanced funds only whose primary goal is to generate steady and regular monthly income from your money by investing 70% in Debt and 30% in Equity for the growth of your Capital.

Sectoral (Thematic) Fund: It is a fund which invest in particular sector of the economy. Say for Example, Power, Banking, Pharma, IT…etc..

Equity Diversified Mutual Fund: It is a fund which invest in all the economy sectors and thus it has a diversified portfolio of stocks under it.

Fund Managers: It is a person who is in charge of your mutual fund. The Fund manager and his team of research analysts analyze the market trends and use their expertise and experience to invest your money in such a manner that it generates maximum returns.

Mutual Fund Benchmark: It is the underlying index to which the mutual funds compare their returns. Say for example, if the benchmark of some mutual fund is Sensex than it will compare its returns with the Sensex.

SIP (Systematic Investment Plan): SIP is a method of investing in the mutual funds at regular fixed intervals say every month, every quarterly or every half-yearly. The main purpose of SIP is that, when the market will be up, you will end up buying less units and when the market will be down, you will end up buying more units and thus in the long run your overall entry price will markedly reduce and generates descent profits.

Stock Market: It is the market which facilitates the buying and selling of the securities (Stocks & Bonds) among the investors. It is just like the Vegetable market, Fish market or any other market.

Sensex & Nifty: These are the broad indices to monitor the over all performance of the stock market. They contain the stocks of the leading companies from each and every economic sectors of India. The Sensex is made up of 30 stocks while the Nifty is made up of 50 stocks. In Layman’s language they are the barometers of the stock markets.

Market Capitalisation: It means total number of shares from all the companies listed on the stock exchange multiplied by the current market price. Currently the Indian Economy is of US $ 1 Trillion size while the US Economy is of $ 12 Trillion size by this method.

IPO (Initial Public Offer): It means Public Issue of the Company. Whenever any company first time goes to public for the listing on the stock exchange, it publish IPO so that the investors can buy the shares of these companies during IPO and later on sell it into the secondary market to other investors once the company is listed on the stock exchange.

Endowment & Money Back Insurance Plans: In these kind of Insurance plans if you survive on maturity, the company will give you lump sum amount back. However, these policies charge much more premiums than the traditional term insurance plans.

Term Insurance: Well, in Simple language, you put a bet on your life. Means you put a bet of Rs.5000 every year to cover Rs.50 Lakhs. So suppose if you survive at the end of the year, you will lose your 5000 bet (Premium). But if you win (Means if you Die…!!!) than your nominee will receive Rs.50 lakhs of some for your just Rs.5000 of annual bet.

ULIP (Unit Linked Insurance Plans): These are the Insurance cum Investment plans. Means they charge you higher premiums and the part of your premium will go towards buying the life insurance cover while the part of the premium will go towards long term investing to generate returns for you. These are costly and should be avoided. In other words, these are the opaque mutual funds which will charge you lots of fees.

Short Term & Long Term Capital Gains & Loss: In case of Equity & Mutual Funds (Paper Assets) the short term capital gain/loss means any gain/loss within less than 1 year and long term capital gain/loss means any gain/loss after 1 year.

While in case of the Real Estate, House and Jewellery, the Short term capital gain/loss is less than 3 years and long term capital gain/loss is more than 3 years,

Portfolio: Portfolio means baskets of several things. It can be a basket of vegetables, Fish, Stocks, Bonds, Mutual Funds, Real Estate or anything.

Commodity: A Commodity is some good for which there is demand in the economy such as gold, silver, sugar, grains, or anything else….

Power of Compounding and Early Investing To Get Rich

Many people ask me that, Which is the best investment advise that you would like to give the start-up investors? Well, it is the – Start Early.

Well, Yes. Starting early is the 95% investment advise that anyone needs. This is because the investment is not only the game of money but it is the game of money and time both.

This is because of the power of compound interest. The compound interest is the greatest force in the universe according to the Albert Einstein.

The more time you invest, the more your money will grow and the more rich you will become. Over the time, the compound interest increases in the geometric proportion and making you very rich.

Read the Articles on The Power of Compound Interest

The Compound interest is so powerful that over the time it multiplies your money in a breath taking manner. The simple interest increases in the linear proportion but the compound interest increases in the geometric proportion and make you extremely rich over the time.

But to make the compound interest work in favour of you, you will have to start investing as early as possible in your life probably in your early twenties or even before.

What most of the people argue is that, they will earn a lots of money later on in their lives but well this is not the truth. The truth is that, even if you invest very small amount of money early in your life in the asset which gives you returns higher than the inflation, than over the time your this small amount of money will multiply like hell.

The people who are rich today have either acquired their fortune from their past generations or started investing very early in their life. Starting your own business is also a form of investment of your time and money both. The earlier you will start the more your business will grow in its valuations over the period of time and make you rich.

All the Self-made first generation billionaires have started building their businesses very early in their lives probably in their teen age or in early twenties and that’s why they are extremely rich today.

So Understand the power of compounding and start investing as early as possible in your life means now.

Is the Price of Gold Really Going Up?

Since 2005, the price of gold is going up and up. Since 2007, the price of gold has been doubled and hitting the new heights. Most of the people say that, it is the price of the gold that is going up.

But well, Have you ever think according to the point of economy that, Is it really the price of gold which is going up and up or it is the value of money that is going down day by day?

Well, the reality is that, it is not the price of the gold which is going up and up day by day but it is the price of the money which is going down day by day because of the inflation from all around the world?

So why the price of the money in your pocket is going down day by day?

Well, it is because the US Government is printing literally billions and trillions of dollars since 2007 out of thin air and pushing this money into the circulation. And this newly printed money is diluting the purchasing power of the existing dollars in the economy and that’s why now the more money is in the circulation to chase the same amount of goods and services and that’s why now you can buy the same amount of goods and services in the economy from more money.

Can’t understand? Well, let me explain you by telling you one example. Just think for a while that there is one island in the world on which nothing except 5 gold coins and 5 dollars and few people. So How much one gold coin costs? Well, $ 1 per gold coin right?

Ok. Now after few years the island people print more 5 dollars and push it into the circulation. So now the island has 10 dollars in the circulation and 5 gold coins and few people. So how much one gold coin costs? Well, of course $ 2 per gold coin.

And people of that island think that the price of the gold coin goes up. But well, it is not the price of the gold coin that is going up but actually it is the price of the money (dollars) that is going down.

The same thing is happening in our world economy right now at very large scale. The Central banks and governments from all around the world are printing money out of thin air like hell and this newly printed money is diluting the purchasing power of your money in your pocket, bank savings accounts and bank fixed deposits.

And because of this the people who are living on the fixed income and retirement plans will be most affected. So How to become rich and maintain your purchasing power in such kind of economic environment? Well, recently I have published my new eBook – My Journey To Billionaire Club: What Rich Teach their kids about Money that Poor & Middle Class Don’t?

You can download this book right away in the PDF form from the above link without any annoying registrations for FREE and learn the 6 lessons and 10 Myths about money that the rich teach their kids but the poor and middle class don’t.

Different Types and Categories of Mutual Funds

There are several varieties of mutual funds available in the market. In this Article, I will give you the basic idea about the different types and categories of mutual funds. Read and understand them carefully so that you can take the informed decision while buying the mutual funds.

The Mutual Funds can be classified in two ways. One is

01) Open Ended Mutual Funds – It means the funds from which you can exit any time you want. They don’t have any lock-in period.

02) Close Ended Mutual Funds – These are the funds which have a minimum of 3 years of lock-in period. Means you can not exit from that fund before completion of the lock-in period.

The Other Classification is more important which is based on the classification according to the underlying assets.

01) Equity funds -

These are the mutual funds which invest in equities (Stocks). These funds primarily invest in the stock markets and generate returns for you. The are divided into following types.

a) Index Funds, Exchange Traded Funds (ETFs) – These are the funds which have portfolios which is the mirror image of the underlying Index. Say for Example, if the underlying index is Sensex than these funds will have 30 stocks portfolio in the same proportion as that of the Sensex. And that’s why these funds will closely track the performance of the underlying Index.

Exchange Traded Funds also known as ETFs are the cousins of the Index Funds. Means they also have the underlying index as the benchmark. But the only difference between the two is that, Index fund units can be bought and sold from the fund house only while the ETFs are listed on the stock exchange just like any other stock and you can buy and sell ETFs on the stock market directly at real time prices. In other words, ETF trading means trading the entire Index at a time.

b) Equity Diversified Funds – These are the funds which have diversified stocks portfolio. Means these funds can invest your money in all the economic sectors.

c) Sector Funds – These are the funds which invest mainly in some specific sector of the economy as per defined in their objectives.

d) Equity Linked Savings Schemes (ELSS) – These are the Tax Saving mutual funds (Equity) having 3 years of lock-in period and tax benefits.

02) Debt Funds -

These are the mutual funds which mainly invest in the debt securities. These are the safer funds than the equity funds because they invest in the debt securities. The debt funds mainly invest in the Corporate bonds, Government securities, Treasury bills, Commercial paper, certificate of deposit and call money market, Here are the various types of debt funds.

a) Income Funds – The main purpose of these kind of debt funds is to generate a regular and steady income for the investors.

b) GILT Funds – Gilt funds invest only in the government securities (T-Bills) and nothing else. And that’s why they are safest of all. This is because it is believed that the government never defaults in its payments.

c) Liquid Funds – The Income & Gilt funds are the options for the medium to long term. While the Liquid funds cater to short term – an Investment horizon of up to one year. These are the funds to generate some short term returns from your surplus money.

d) Short-term Funds – Short term funds are open ended income funds but with a medium term focus. They achieve an average maturity of about two years, by investing mainly in the money market instruments. In addition they take some exposure to long term Government Securities (10-35%).

e) Flexible Funds – All the above types of debt funds are bound to invest primarily in the Government and corporate securities. However, if you seek extra returns from the debt funds and have faith in your fund manager’s ability to take the right calss than go for flexibility funds.

03) Balanced Funds (Hybrid Funds) -

These Funds are also known as Hybrid Funds. This is because they invest both in Equity and Debt. The main purpose of the balanced funds is that, the equity will ensure the high returns and the debt will ensure the safety of your principle.

Monthly Income Plans (MIPs) – There are several variants of the Balanced funds according to the composition of equity and debt. However, the Monthly Income plans are the most commonly used plans. The main purpose of these monthly income plans is to generate a regular and fixed monthly income from your money.

04) Fund of Funds (FoF) -

These are the funds which don’t directly invest in the equity or debt directly but these are the funds which invest in other mutual funds. The fund manager of these funds build a portfolio of other reputed mutual funds and generate returns for you.

05) Dynamic Funds -

All the mutual funds schemes have to spell out in their offer documents that how much money they are going to invest in equity or debt. Say for Example, Equity funds have to spell out that minimum 65% of your money will be invested in the equities and like that.

However, Dynamic funds don’t need to do this. Dynamic funds can invest and adjust the equity:debt ratio of your money to any level. It can invest any amount of money in any proportion in equity and debt according to the market conditions.

06) Gold Funds -

They are also known as Gold ETFs. These funds invest your money in physical gold and store it in their store houses. And you can buy and sell the units of these funds on the stock exchange according to the real time price of the gold in the international markets.

07) Real Estate Funds -

These are the funds which invest either in the real estate projects, open lands or in the rental properties. And buy selling the real estate for the huge profits or generating rental income from their real estate properties portfolio, they provide the returns to the investors.

08) Art Funds -

These funds invest your money to buy the art. Keep that art for few years and later on sell that art by auction and generate profits for you.

09) Global Funds (Funds Investing in International Securities) -

These are the mutual funds which mainly invest in the international securities. Means they invest in the stocks and debt papers of the various countries from all around the world.