Among the many frustrations of life, perhaps the most frustrating is ‘When our investments do not give us returns commensurate with our Expectations’. People keep on slogging emotionally & fearfully, making money mistakes & perpetually keep on wondering how to get rich. Seldom do they with discipline act on the REAL STUFF; decisions which can actually create a lot of real wealth for them. You want to make your financial investments give you multi-bagger returns?- Read on!

Your investments could be Emotional-

– Spent so much emotional energy into a romantic relationship for years (or even months) & the relationship fell apart or turned out to be bad.

– Parents raising their kids with all their heart & then kids (when they grow up) shouting at parents or hurting them with their random ways & words.

– Marrying a child with all your heart & wallet and then that marriage falling apart

– Dropping a year to prepare very hard for an entrance exam and then the results going awry.

– A cheating by a friend / confidante.

– A bad business decision.

Or any else place- where our huge Emotional investments do not give us returns commensurate with our Expectations.

Investments could be also be Monetary

– You invested into Stock Market with all your wisdom & studies & then the stocks do not do well at all or give average returns.

– You bought a Flat / Piece of Land thinking it will appreciate but it doesn’t. Worse- it depreciates.

– You spent so much Fee into studying a course (An MBA/ Graduation from Abroad etc) and the placements turn out to be displacements 🙂

– Your parents spent their lifetime savings into building a home in their hometown and when it came to finally living in there- one of them passes away or worse- children do not feel much like visiting that home (as they have their own life).

I have been writing about Emotions, Relationships, and Career investments & decision making very regularly. Not today. But why would you read from a Motivational Speaker about Money & Finance? My Answer- ‘This is ALL that i learnt and so very wish to SHARE with you? I receive hundreds of emails from people who planned their money wrong’. It feels bad when people make basic MONEY mistakes, especially when ‘how to get rich’ is not really a rocket science!

Here is all that I learned (Nine subtle secrets) about monetary investments, expectations & returns. Basically – ‘How to become wise about money & how to get rich (early in your life):-

The fastest way to lose money is to try to make fast money

Your ROI gets decided with the quality of your investment decisions (the biggest factor after Luck). So, take a lot of time, yes- I say- a lot of careful, intelligent, well researched time before making that investment. In 4 out of 5 cases- a delayed decision turns out to be good than a rushed up, emotional decision (data from many discussions).

Delay that marriage, delay that buying decision, delay falling in love (yes, it is possible), delay your anger or reactions. Basically, you are likely to help yourself whenever you delay (slightly) taking important decisions. (Do Def Read – Why marriages are failing)


(Image courtesy: MoveMe Quotes)

What do you do in that delay time? : Talk it out.

Discuss the things- not with one or two people but with a dozen or more. Especially with the ones who already have taken similar decisions (How do they feel, Why did they prefer this over that). Take expert, professional help (if need be). (Do Read- Choose your advisors carefully)  The hard work that you put in becoming informed about your choices is what will increase your ROI (Return on Investment) & prevent you from getting frustrated with lower or poor returns later.

Some smart research can help you assess the futuristic choices – the places where growth & money are lying. Did you hear about the Bitcoin story and how by just being aware you could have made good money? It could be stocks, it could be a commodity or it could be that awesome small plot of land which has the potential to become 5x in 10 years.

Stock Market- Look at Inherent Value (& not Apparent Value)

You are young? And want to invest directly into Stocks? You definitely must invest- considering where India is right now. Salaries never made anyone rich. Wise investments did. Warren Buffet’s approach of Value Investing is something which shall stay valid for the next 1000 yrs or more. It says- invest your money, emotions or energies into stocks, people and aspects which are trading low (for some reason) but have a huge embedded/ inherent value. Then have the patience to stick with them for a lot of time. They ARE the multi-baggers (which everyone wants). Stock recommendations on TV / Newspapers by (paid) experts are usually Apparent Value. If you see these experts closely, they change their statements more frequently than the number of times Virat Kohli abuses during a cricket match. Learn to how to research for your own self. This hard work of yours is what will pay you in long run.

The trick is to identify stocks with embedded value early and invest in when almost no one is looking at them. As they say- ‘Buy right, Hold tight’. A very reputed fund manager gave a brilliant analogy of Ramayana. Lanka became ‘Gold ki Lanka’ because those guys had the patience to invest into the long sleep durations of Kumbhakarna 🙂 . So, if you have bought right, then have the patience. It is like boxing. You cannot enter the boxing ring thinking that you will just not receive any blow. You will receive blows. If you run away with the fear of blows- the referee will announce you a loser. So, your investment might come down but saying it again- ‘If they are right, over a period of time- they will grow many fold’.

Another solid benefit of investing into stocks is that if you hold your investments for more than one year in equity market; the returns are tax free. Is not this brilliant?. These awesome companies as Tata Motors, ICICI Bank, SBI, L&T etc will never run away with your money. They are proven leaders. You can trust them for not only growth but also tax free returns. Lastly, liquidity is a zero issue in stocks or MFs. One click of mouse, your grown money shall return into your savings bank account in not even hours (Unlike Real Estate or physical assets etc).

All top quality stocks fall down (for whatever reasons) over a period of time and give you your window of entering them. Wait for that fall and then lap onto them. Your timing may not turn out to be perfect but then if the stock is top quality- you need not worry.

You want to invest directly into stocks but do not have the time & temperament (as you are too busy to track them daily)? Use the PMS (Portfolio Management Services) of top Brokers (pls avoid your local desi brokers).

Do not operate out of Emotions (in Money aspects)

Emotional decisions (which lack patience) & decisions which spring out of sheer comfort zone (familiarity) are likely to turn up bad mostly. E.g. Your fondness for a particular asset class e.g. Equity (same comfort zone, familiar stocks) or only Real Estate or Gold or same traditional choices. It is like ‘I know how to ride a scooter. So, I will ride a scooter only (inspite of cars or SUVs available for ride at home)’. Diversify! That is what most Asset Managers will advise you. Do not just be emotional about ONE thing only. Be loyal to one lady only (your wife) 🙂 . But be promiscuous about investments. Educate yourself about things which you do not know about. Then diversify and keep patience.


(Image courtesy: Keyword Suggest)

Impressing People = Depressing Yourself

Do not play for an audience. I mean do not spend your hard earned income to impress people, relatives and friends by doing things which have a higher GQ (Gallery Quotient) than IQ. Spend primarily for your comfort and for your future than for anything else. No point buying an Audi or a Mercedes on a 70%+ loan when the back ups are not very well defined.

Do not bring JUNK home

Bunk the Junk. And most of the stuff around is JUNK only. By junk, I mean that glossy, tantalizing garbage which is very attractive but has very low embedded value. A lot of people make emotional, random, hushed up decisions based on equally random pieces of advice by friends / media etc. E.g. buying a flat or a property seeing an advt in newspaper or a hoarding.

Your returns could get extremely low because you miserably failed to check the inherent value and maybe went by the facade value. Pay a little more but buy that A+ thing instead of a C+ thing (which is available at a sexy, attractive discount). Bad times or worst market conditions will prove that your A+ investment was a very valid decision. C+ investments look fun like a one night stand but usually bring with them the next morning guilt.

Research also shows that in the last decade buying a flat or a commercial property (for rental value) has yielded much less returns than buying a small, plot of land at a good location (not a rule, but this premise wins 9 out of 10 times).

Get these three Insurances

Let me get this thing straight- ‘Insurances are not a waste of money at all’. They are the price you pay for your peace of mind in a world where stressors and risks are strewn like landmines. Simply buy the right Insurances and buy them as early as possible. Three Insurances which one must compulsorily have are:- a) A very good, comprehensive Health Insurance (for self and for the family too) b) A plain vanilla Term Insurance (Cover -as high as possible) & c) Motor Insurances (there are funny people who drive without insurances).


(Image courtesy: Value Research Online)

To get a Dengue treated in a good private hospital costs greater than INR 80,000. And mosquitoes bite irrespective of your Age, Gender or Political party or sexual orientation. Huge Reason- why you must have your Insurances right & prevent yourself from that bad feeling of diverting your savings onto doctors or else.

Two caveats while buying Insurances – 1) do not lie while buying. Furnish honest information. 2) Buy them direct online. Agents are not required in today’s world.

If you do not have these insurances and are living in today’s world – you are BRAVE. But such a bravery is not required as it borders foolishness.

Start Saving as Early as possible. Compounding will be MAGICAL

Start saving very early. And if you are young and do not want to invest directly into Stocks on your own- religiously invest into this India Growth Story through Equity (Mutual Funds SIP / STP). Just keep on doing that for 10-15 or if possible more years and see what magic is possible through the power of compounding. It is like someone else will start earning for you after a few years of such investments.

Choose good, reputed fund houses (and not just any). Here too build a portfolio – Large caps, Midcaps, Small caps or better quality Multi-caps (Invest into a minimum of 2 & a maximum of 4 Funds). You wish to take very less risk- try Debt Funds or Liquid Funds.

You will be able to SAVE only when you get this equation right in your mind.  It is not Savings = Income – Spending. It is Spending = Income – Saving.

Take a Home Loan

The rate of borrowings is near 8%+ (Home loans) and if you invest your savings right (as in above mentioned points, you can expect a minimum of 17-20% returns over a period). So, net you are growing 10% plus while the asset becomes yours (& it grows too). As a bonus you also receive Income Tax benefits with the Loan (The effective rate of interest comes to be 6-6.5% with IT benefits for a particular slab). Cool na !

A large section of young junta writes to me that they prefer travelling the world over building a house. Nothing wrong with that too. But I will prefer doing both (by taking wise money decisions early).

Don’t become a Bank to Friends/ Relatives

Lastly, avoid loaning your money to any friend / relative. You are very likely to lose both – the friend as well as the money. I did this mistake very recently. Had done it out of love. But then 90% people who ask money from you are like a falling knife. They will not only bring you down but might just wound you along. The anxiety of following up with them for your own money is not warranted. People change colors and trust me they do it faster when money is involved.

How to get rich is entirely a function of your right decision making & patience. The sooner you begin to get into a lifestyle which suits you- the better it will be. This will require some solid planning and the bad news is that no one will do that wisdom planning for you. Only you will have to do it for your own self. Why not begin doing it- from this day itself?

Rise & Shine!

Akash Gautam

About Author

World’s Top Corporate Organizations including 30+ of the NIFTY-50 companies in India trust Akash as their Keynote Motivational Speaker. India’s premier colleges like IIMs, IITs, SRCC too go to him whenever they need a refreshing, big bang impact. Write to us to know how he can transform your Team.

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