"If you are born middle class, its not your problem, if you die middle class, its your fault"
I'm VJ, welcome you all for the wonderful journey!!
In case you missed the article #1, click here.
Nearly 20 years back, one sunday evening, we were all sitting in our living room and watching television, we got a phone call in our land line phone. My dad attended the call, he started sounding very upset and worried -
He was inquiring in a hurried voice - "What happened? When? Oh really? I spoke to him yesterday"
I became more curious to know what's happening.
Dad - "Oh my god, what's the reason? but why did he do that?? He shouldn't have done that? I will come now immediately."
He hung up the phone and within few minutes, he left the house with tension in his face.
I was a school going young kid and was curious to know what's happening, realized something bad had happened to someone close to my dad. But my family didn't inform me that day. I got to know only after few days & this is what it is -
A person along with his wife committed suicide by falling in railway track. They are newly married couples. That person is working in my father's business.
Reason behind suicide - As they couldn't repay the debt and debt collectors humiliated them.
This incident shook me and first time, i'm hearing someone close to me who did such a stupid act.
Human life is the most precious thing one can get and people sacrificing their lives for money issues. OMG!!
You would have noticed or read in newspapers, similar incidents happening because of debts and financial crisis, right? Many well known personalities and well educated people also do the same.
First of all, if money is not that important in life. Why people end up killing themselves?
(Of course I'm not supporting those decisions, that is the worst thing one can do in life.)
Second, why they ended up in that crisis situation and how to avoid that situation?
If money is that important in life why not MASTER it instead of being a SLAVE to it?
One of the fundamental problem is our education system. Yes, you read it right -
Our education system is created in such a way which teaches us to earn money and teaches us so good to become slave to it.
We would have heard our teachers and parents saying - "Study well, get good grades, get good job, earn good money and get your life settled."
However, nobody ever taught us how to manage money?
All our lives, people handle money everyday but they rely on trial and error methods and whatever they knew it, they just apply it.
"Why not a formal education on how to manage money in our schools or colleges?90% of the people doesn't have financial literacy and that is also one of the root cause for all money problems that people face.
Why not they include that subject right from our school days?"
Let me give you an example,
When a middle class person gets a new job after his studies, he/ she feels awesome when he starts earning, he is somehow lured to the EMI (monthly payments) concepts, very soon buys latest iphone or latest mobile to show off to his friends. He takes another loan and buys a new sports bike and post pics in facebook/ Instagram.
People want to have everything, NOW. They just can't wait until they can afford it.
It continues - within few months, he starts using credit card, he knew that credit card company charges more if we doesn't repay on time, still doesn't repay on time, pays late payment charges. After few years realise that he paid too much for credit card. Now he applies a personal loan to pay off the credit card and thinks that as a smart move.
Then he gets into Home loan debt for 20 - 25 years just to impress the friends, relatives and society. Now by this time, he would have found his girl, will get married, apply for more personal loan and spends lavishly for the marriage and honeymoon, again to impress the newly wed girl, their friends and relatives.
"The world pressures us to buy things we don't need, with money we don't have, to impress people we don't like. Rick Warren"
By 30, his expenses exceed the income. Now he will try to desperately switch the job to get more salary. If he does that, eventually he will get new loans and ensure that he stays in that debt trap.
Now he is officially qualified for the Rat Race for the rest of his life. If you speak to a middle aged person, he would say, I wish to come out of the rat race."
If you think, its actually YOU who created all the problems for yourself because of not knowing how to manage money. Its lack of money handling skills.
"Bad debt is sacrificing your future day needs for your present day desires - Suze Orman"
Only humans need money of all God's creation. Birds or animal doesn't require cash. (Oh well, it doesn't use cards either)
As I said, managing money is just a skill, not a art of god's gift. Any skill can be learnt if we focus and invest time on it.
We just can't blame our education system alone, we should initiate and learn that skill for ourselves and for our loved ones. If you still find somebody else to blame, read this article's first line.
We are going to mastermind and educate ourselves through this blog.
Can I tell you a secret as a final note, I learnt this after so much of mistakes and finally figured out this -
"Rich people are good in managing money" - Anonymous middle class personRemember this,
"If you refuse to educate yourself, marketplace will educate you. - Jim Rohn"Let's get into some real action this weekend-
Its important to understand where we are, before we begin our journey? Write down the following-
- What's your net worth? Difference between your asset and liability is your networth.
- What are your assets? Include your bank balance, savings, FDs, House and Vehicles if you own.
- What are your liabilities? Credit card outstanding, home loans, vehicle or personal loans.
I will write on how to manage money, passive income options and how to achieve financial freedom?
(Excited for our journey)
Thank you for your encouraging comments for article 1, Love your responses!!
Pour in your thoughts, feedback and suggestions to improve myself, bare with me, I'm working on myself to serve you better!!
Love you all!!