Lets break the Rat-race

You come to the U.S.A...study hard... Graduate... Start a new job.

New job translates to earning money (dollars at that)... and for once you think that you are in control. You are earning and so you are in a position to spend.
And so your spending starts:

1. The dream car that you just ogled at in the showroom for hours...can now be yours.
2. That funky little gadget that did a 100 little things, can now be yours.
3. Your wardrobe can now only boast of Banana Republic and all the designer stuff.
4. You boast of a flat-screen 50 inch HDTV which has crystal clear clarity and a 5.1 surround sound system, with subwoofer.

Life is going on smoothly...or so you think, until you check your bank balances and realize that there is nothing left inside it...nothing but pennies. That's not a problem. You earned, you spent.

Every problem has a solution...and the solution that you think of, is a better paying job. So if you were earning X dollars now...a job that gives you 1.5X dollars would give you enough to save and support your family. You change jobs only to realize, that's not to be!!! A higher paying job only means higher expenses on your end.

Another problem....not a problem. Another solution. Lets go in for an another degree. An MBA maybe. That for one doesn't seem a really good option. For one, it will eat into any and every little saving that you had. But it gives you hope, that once you have a MBA degree added to your name, you will get a really awesome job, that will clear out all your problems. Sure enough, you enter the market with a MBA degree and you get a 2.5X dollars job.
Yippeeeeeeeeeeeeee!!! You are rich now... you can spend more. You go out and buy that amazing property you had your eyes on all this while.

Net effect... instead of the savings going up... it starts going down!! The mortgage really starts eating into your savings (if you had any)

I wont go on and on with this.... but the moral of the story is...
You are not going to earn (save) a lot with just a 9 to 5 job.

It's a rat race out there. The more you earn...the more you spend. Your explanation on this would be... I am earning to live a luxurious life and luxury comes at a price. Fair enough and no one will deny that.

Lets compare two people who started around the same time...and are now at the fag end of their career. One of them is filthy rich now...and the other although in a stable condition cant say the same about himself. Both of them have the same luxuries (car, house etc.) but one has a savings that can take care of even his grandchildren...While the other...........!!! So, if this was the situation that everyone went through...How did this difference happened?
The answer to this anomaly is: savings. d'ooooooooh!!! as if you didn't know about it.

don't get me wrong... I am not saying, save all your money and don't have the luxuries in life. I am not advocating being stingy, so that you have a big bank balance. Compare the two guys, and both at this point in life, have the same luxuries...Just that the time in life, when the luxuries were bought, has made a difference.

Robert Kiyosaki, the author of the acclaimed book, RICH DAD, POOR DAD, explains all this in a really good manner. He categorizes things you have into two categories: ASSETS and LIABILITIES and a way to get rich (richer) is to convert all your liabilities into your assets.

So, for example... Buy a house, when you have enough savings...so that the interest that you are earning on the savings, can be used to pay the monthly installment of the mortgage. With this, you are not losing out any money. Everything that you earn goes into your savings. Your savings increase, your interest increases and when it crosses a limit, you can spend the newly earned interest into buying a Mercedes that you longed for. You end up having all what you wanted and you save a lot.

Ofcourse, these are things that we can read and ponder about. Everyone will say, that its easier written than done but for me this is definitely do-able. We are starting from scratch, but 5-10-15 years down the line, when you look back, you wont be disappointed. I guess, everyone of us have started with an Online Savings Account. This gives us an average of 4% rate. Imagine, if you have $20,000 in it, you will earn approx. $ 800 per year. That for you is an off-peak return-fare to India. A free India ticket every year. That is one motivation, that no one can deny. A Savings account is a really trivial kind of investment that we are doing, but with guaranteed returns. If we invest in something (like shares etc.), the returns might be 10 times what we are getting from this measly 4% interest.

At this moment, I will criticize all my maharashtrian friends...coz each one of them (including me) will think, that it's not worth the risk. What if instead of earning, we lose a lot of money...and that is a typical maharashtrian mentality. We need to learn from our gujju, madu, sindhi friends, who have build palaces by taking that risk.

There is no gain without pain!!!

You are now at a crossroad, where you have two paths to select from...Decide to take the one you have never traveled, try some stunts, face some downfalls, get up strong from them and 15 years down the line, you will be a RICH DAD.(MOM)
Follow 90% of the other people...and take the path that will leave you to a safe guaranteed destination...and you will end up a POOR DAD (MOM)

Let us all come out of the rat race...Let us all make all our liabilities into our assets. Let us all spend and save in sync. Let us all have luxuries (fun) in life. Let us all make our 5-10-15 year plans. Let us all pledge...That 15 years down the line..We will all be RICH DADS (MOMS)

(inspired in parts by the book Rich Dad, Poor Dad)