My Aim Of Writing This Blog

The reason, i started to write this blog is to pen-down my thoughts..

My  clear aim is to become financially free as soon as possible so that i can enjoy life ( of course i will work then too) with peace and sense of accomplishment and also worry-free.

I think everybody wants to live like that..

What i have understood that there is two aspects of human life...first is social and second is self or spiritual.....becoming financially free will take care of your social aspects....and at the same time you should be properly spiritual to enjoy life fully..meditation, yoga along with moral values and developing a strong character will take care of that....believe  me, only lucky few have both of them. Highly rich people lacks moral values, that is why they remain unsatisfied...and on the other hand, morally good and character people lacks money, so they do not get the respect they deserve.

Human life is a balance between those two...only one can not give you full inner -peace.

So, in this blog, in the start, i will write only about social aspects, that also only about financial freedom, which is very essential.  I will try to understand the answer of this question both philosophically and practically..

1) How much wealth is required to give me financial freedom.

2) How i can accumulate the wealth through right path.

so, keep tuned and suggest me to improve myself...and i will touch other issues as we move on..

About Inflation

 Inflation is just a process where too much currency is chasing few goods. That is the growth of currency is higher than the growth of the production of goods.

Let’s suppose you are shipwrecked at an island with two friends. Now one friend has 50 breads, you have a million rupees and the third person has lighter. Who is the worst-off? You will be worst off since they can just start exchanging goods with each other. Why they need your money, they can light a fire out of wooden logs rather than from your paper currency. So what I am trying to say is never just go on the amount of money someone has. But how much goods that amount can buy. This is a simple concept but this concept lies at the heart of inflation, foreign exchanges, investments etc. Many people just don’t understand why some countries have 1, 00,000 unit currency notes and some have only 100. It is just because overtime higher unit currency went through the shipwreck type conditions more than the other currency. Thus value of currency dropped and they have to increase the denominations of currency as it is awkward to give 100 hundred unit notes to buy bread. This is called inflation in modern terms.  

  what happened at the island of course is an extreme condition and something which we call hyperinflation, where the faith over currency just vanishes. 

When there are limited goods and increasing money supply. What happens to the value of the money? It takes a dip. That is Inflation for you. 

How the recent inflation is affecting you ??

Why to Look For Financial Freedom

  Your financial choices do not stand in isolation. They have a cumulative effect. As you pay off debt, as you save for retirement, as you reduce your spending, you are creating a snowball of right action.
Or, to use a better metaphor, each smart choice you make creates ripples throughout your life. As you work toward financial freedom, you make it easier for yourself to accomplish other goals.
 I’ve drafted a list of several ways that financial freedom makes it easier to accomplish other goals. Financial freedom means:

• Freedom to choose your work. “Financial Freedom means choosing a job or career I want to work at,” “I don’t need money to be the sole deciding factor.” I think this is huge. For sixteen years, I worked at a job I hated: I sold boxes for the family business. I couldn’t leave because I felt trapped by debt. Once I repaid my debt, I could consider other opportunities — like becoming a professional blogger.
• Freedom to live where you want. Do you like where you live? Would you rather live elsewhere? Mumbai?  Delhi?  Venis ? There are other considerations than money, of course, but when you are financially secure, you’re better suited to practice “geographic arbitrage”, to explore location-independent living. In other words, if you have the money, you can live where you  please.
• Freedom to do what you want. Wealth doesn’t just open doors with work and housing. It also gives you freedom with your time.  “For me, financial freedom = The freedom to choose how I spend my time: wake when rested, play when playful, work when/if I want.” My friend Anurag had financial freedom, if only for a little while, and it let him travel the world.
• Freedom to seize opportunities.  people will know how being out of debt and financially secure allowed them to refinance their mortgage when the opportunity came along. they was financially prepared, so they could act. One of My friend  practices what she calls “predatory shopping”. She can afford to delay purchases until she finds what she wants at rock-bottom prices.  “Financial freedom means no worry about paying everyday bills. Means able to give back, able to invest when opportunities arise.”
• Freedom from worry. Most of all, financial freedom means freedom from worry. When you’ve eliminated debt, when you have money in the bank, you can sleep more soundly. “Financial freedom means freedom from worry to me. It means knowing I’ve done the best I can to spend and save wisely.”

I think  the best summary of financial freedom is : “For me, it means never having to work to further someone else’s goals instead of my own. It means options and more opportunities.” Financial freedom means options and opportunities. I like that. I believe it’s true. Debt is slavery because it limits your options and prevents you from seizing opportunities. But financial freedom allows you to pursue your own goals, to build the life you’ve dreamed of.
What does financial freedom mean to you? Have you reached it yet? Do you have a plan to do so? Or do you think the notion of “financial freedom” is just a marketing ploy?

How Money is Created

How money is created.? So we start with an example straight away. Lets take the example of Google and a writer. Lets take 2 universe. Universe 1- there is no Google. Universe – 2 there is Google.
Universe-1 – if there was no Google. How a writer can research his book? He will have to go to the library. Take a cab of 30 Rs each and lets assume he takes 50 trips. That’s 1500 Rs. He will then have to find out the books he need to research from and then search through the contents and indexes and then retrieve what all material he needs. A time consuming process.

Universe-2 – There is Google. Now a writer can research about his books on internet only. He doesn’t have to take a cab. And so he can cut short his number of trips by say 25. So he saves 750 Rs. He pays 500 for internet. And overall he saves 250 and of course ‘Time’ than the first case.

Now in both the Universe we get the book (Forget, the time saved for now, we will come back to it later). But in 2nd universe we have 250 Rs more. So in other words Google created 250 Rs. Now our intelligent readers will point out that hey 250 Rs is currency so currency was created not money. Okk now we convert it into money. We go and buy 25 breads for that. Google created the purchasing power (which is same as money) to buy 25 breads extra. Don’t go into trivialities that what happened to cab driver and all. Here we are focusing on the product called book alone. We get that in the second universe with 25 breads worth of purchasing power extra. So :

Extra purchasing power created while producing the same good = money created.

Money Saved while producing a good = money created.

So if on Monday you produced 10 breads at cost of 10 Rs and on Tuesday you produced the same quantity and quality at the cost of 9 Rs, then you created 1 Rs on Tuesday. And O fcourse if you produce it at 11 Rs you destroyed 1 Rs. Assuming you sold the bread at the same price on both day.

Now don’t think that money saved is money created. I never said that. In that case she could have saved whole 1500Rs by just not writing the book. But that is not money created because we never got the good called Book. It’s the amalgamation of production and saving at the same time is what is called creation of money. You must notice that I have taken only production side and I am assuming that you are able to sell a product at a constant price. There is money creation at the selling side also. Something we call a brand. Something called profit.


so, My conclusion is we have to use our brain to create money out of scratch...then only we will free from financial anxiety...as money can buy most of service.