Unconventional laws about Money
Today we talk about money that is not spoken about in most of the houses but every individual desire. It is kind of paradoxical on one hand this topic is not spoken over the dining table but on the other hand, it is what each individual works throughout life to earn for.In this piece, we are trying to uncover not the conventional but the unconventional laws about money that we generally don’t people or experts talk about.
Sometimes your Job is your side hustle
At times some of us have highly paid jobs. Doing some extra shift of work makes a viable option than compared to just starting a business from the scratch. Especially this makes more sense when you are working in the job that you love. These days also big bonuses are being paid out by the companies.
These new times have provided flexibility for the people to move in the job roles they like. Not everyone needs to be an entrepreneur and we even see social media calling out the jobs as the rat race.
If you enjoy your job that is the biggest deal and that should matter the most irrespective of what is trending in social media. Jobs can be also considered as a silent partner which provide funding for your business without asking for equity for your business if building business is your passion.
There are three ways of financial freedom
- The path of Entrepreneurship
- Real Estate investing
- Lean Living and investing ( bonds, shares, gold)
Financial freedom can also be achieved if one has a high paying job.
Perks and Benefits also Equals to Salary
Second unconventional laws about money is that perks and benefits of job equals to salary. Negotiating along the lines of perks and benefits can help a long way in reducing expenses. Perks and benefits give access to financial coaching, gyms, childcare, free food, or concession on its education.
Food concession or free food helps in effectively reducing the expense. Having education also helps in career progression and development.Employees have mentioned that food expenses have increased in COVID-19 because before the lock-down the company used to provide the food subsidy in form of perks.
In this Covid-19 some tech companies helped its engineers in setting up workplaces at homes.Hence negotiating on perks and benefits can help a long way.
Not All money made is Equal
“Find a way to earn money while you sleep”.Warren Buffet
Let us consider that money earned compared to magically appeared (passive income) and the question to ask is which money you can spend easily. The simple answer that pops up is the money earned passively.
If you try to understand this dilemma is that for actively earned money needs effort capital and then when you are deciding for purchases you weigh in the effort made to earn the money compared to passive income.
While when you earn first passive income even if it is a small amount of 10 $ or 500 Rs has a different level of excitement. But considering that there are different skills and efforts required to make the systems created to make passive income.
On the other side actively earned income is much easier to start.
Buying is not always better
A few decades ago the mindset was always to own the asset or the product. But in this day and age, the escalating price of the product or asset does not make sense and has the potential to make us bankrupt.
As a growing trend, millennial renting makes a more viable option considering the cost and also provides the flexibility to move around. Millennials are considered also renting generation as this generation prefers renting.
Considering an example of buying a new house through loans and you rent out the property, the rent should at least generate enough cash flow that it can balance the property expenses. This opportunity makes sense. If any opportunity which needs additional capital over the rents generated makes the capital stuck rather than other opportunities to invest.
Hence it is not necessary to always to buy when renting is viable option and should be considered according to situation
Best financial Tip is not the best one for you.
The personal finance terms its self have personal to it meaning the personal financial planning will be unique to each individual. The best financial advice made by the expert may not be suitable for you considering the dreams and goals.
Like the life long discussion to make a loan payment with a salary bonus or spend this bonus at different places. But the question boils down to the peace of mind if purchasing a product or service gives you a peace mind you should do that irrespective of the best financial advice.
Like on other some people hate the monthly EMI getting deducted from their salaries hence prefer to payout loans faster.
In short, give your peace of mind equally important as to financial advice. Having peace of mind will allow you to create new opportunities.
Luxury does not have to expensive
When you travelling with your friends and family it is not always necessary to stay in 5-star hotels. The fun in these types of vacation is all about the luxury of a hotel but the people you are staying in. Vacation with family in a decent hotel gives the same joy and fun if not more compared to stay in a five stay alone.
But this doesn’t mean the splurging on inexpensive things wrong but one does not need to spend heavily just for luxuries as there are other ways around this.
Free is good but convenience is better
At times we try to do things ourselves were there an expert in the market who can do the things for free. This can be good if you want to get experience or learn a skill but this should not be a case where you try to save the money. Experts can do the same job in 30-45 mins if you take 2 hrs to do that same job.
In the process of saving money, we forget that we are spending our most valuable resource that is time. If you are starting out business at an initial stage this can be done, but once the business is established the main aim of the agenda of CEO should be freeing up the time.
This free time can be invested in other critical aspects of the business.
Saving will not make you Wealthy
The last but not the least unconventional laws about money says saving does not necessarily means generation of wealth. At the time people end up buying things that have a sale on it making people think that have saved money. Consider an example if a product of 450 Rs has a sale on it which mentions a discount of 50 Rs and you end up buying it thinking that you saved 50 RS. If you think hard about it actually you ended up spending about 400 Rs on the products.
This is the marketing psychology that the advertiser uses to lure people to make purchases. Also on the other end of the spectrum living very frugally just to save money destroys the fun of enjoying life.
Saving is not the answer but increasing your income is the actual answer and this is the one you should be working upon. Creating multiple sources of income or continuously increasing your hourly rates at work.
The drawback of savings is that you can squeeze a certain amount of money into saving. Compare this earning there is no limit to earning the only limit is your skill. More skilful or expertise you have more probability to earn more money.
To end these are certain unconventional laws about money that are not mostly talked about but hold true even in this day and age. Do let us know your thoughts on this