I graduated in 2007 with an Engineering Degree in Ceramic Engineering from one of India's Top 15 Engineering Institutes. The institute is globally recognized, and students are often placed with a job by their 6th-8th Semesters.
With an assurance of a job in hand before leaving college, you can imagine how assured of the future we were.
Between the 6th-7th semesters, our youthfulness takes hold of our brain and drives us into a self-destructive lifestyle. At any given point, we made sure we had the best experiences of our lives.
Unfortunately, with every push, there is a pull. There are consequences for actions. Yes, we were young, and after all, how much damage could we do? Little to none, right? Wrong.
When most of us left college, we were already in debt. How?
We often borrow monies from the nerds to live up to the daises. Nerds always seemed to have a lot of money, thanks to their inability to have fun. They neither drink, party, nor were they promiscuous.
Some of our seniors took things further in showing us how to live life. They stole money from their parents and relatives. These individuals stood out as our motivation, our knights in shining armor.
So, most of us graduate school broke and broken, thanks to how we lived.
We were young adults with little or no idea about money: how to make or invest it.
We went by the term "BECHARA" which meant poor dudes.
And for many of us, this continues even after getting the so-called job, getting married, and throughout our lives.
So, is there a way out of this path? Of course, there is. Lets us see.
Myth 1: Job Security
I have established that most of us felt financially secure because we were assured that we would get a job right out of institute. In essence, even before graduating, we were already at the mercy of the myth called “Job Security.”
Big names like Sundar Pichai of Google, Or Satya Nadella of Microsoft, are often mentioned when people preach job security. And my response is usually, “Really?”
Think about it, how many people working a job are as rich as these guys? What’s the percentage? And somehow, some people believe they can achieve the wealth of these guys by working 9 to 7.
In India, the salary of IAS officers ranges from Rs.56,100 to Rs.2,500,00 and the job profile is considered one of the best in the world.
However, the salary of Satya Nadella is rumored to be about 2.5 million dollars, with more than 50 million dollars in the benefits. Men like these are an exception to the rule.
You see, working 9 to 7 alone is insufficient to build wealth, nor sufficient to sustain you in old age. You have no time to develop other skills, learn new things, pursue other options, or even do simple things like dancing!
So, as young graduates who have little or no idea what the labor market is, you can imagine the rude awakening most of us get. Some get a job thinking they are on their way to living life, only to wake up years later to realize they have successfully done a good job of being in debt and locked in a job they have grown to hate.
Meanwhile, the bad habit picked up in college are still in full swing. Where a 9 to 7 job might not allow you time to get a second degree or even watch youtube videos on how to be better, you miraculously have time to drink and watch free porn!
What's the way out of this gloriously painful circle? The answer is simple.
Start investing when you are in school or before you were born(if your parent is Sundar Pichai)
Learn to Invest Early In Life
Robert Kiyosaki is considered a legend for pulling the wool off a generation’s eyes on job security. His argument was simple; schools do not teach people to be rich, it only empowers people to be slaves.
Would you ever take any serious money advice from any of your lecturers? I doubt it. Lecturers are often broke, and that explains why many are passive-aggressive. The advice Kiyosaki gives is, it is better to learn about money from an early age as possible.
Do you know Warren Buffet? If you don’t, perhaps you have lived under a rock all your life. He emphasizes never waiting for money to be saved to invest; instead, do just the opposite, invest before you spend it on other things. This is terrific advice that can make you rich.
Often people spend when they get their salaries. And if anything is left, they think about investing for the future. Unfortunately, if you are like the 90% of those who work a job, you know that by the second week, your salary is often gone, with nothing left to buy a bottle of Fanta, let alone invest.
I am fortunate I learned this very early. This excellent advice has changed my life; I am doing far better financially than my colleagues.
So, no matter how much you get a salary every month, this month, set aside just 10% or anything which you can and invest that money. You might not believe it, but it will change your life.
Myth2: Debt Will Act As Cushion When Equity Does not Perform
I will come out right and say this. Run away from anyone who tells you there is a risk-free investment.
Guess what? There is no risk-free investment. The least risky thing you can do is to keep your money locked in a box, buried under your bed. But guess what, inflation will destroy the value of that money in years. Its not appreciating but losing its value over the time below the bed.
Also, unfriend anyone who tries to convince you to invest in anything HOT! Guess what? Fire is hot, and it burns.
Your goal here is to invest for at least 20 years. I am talking about long-term investment. This means you need to build a portfolio. And what will be around forever? Yes, the stock market. Buy Equity. Invest in the stock market and play the long game.
You want to put in money monthly over a long period, and your money will go through so much inflation, rise, crash, bull, and bear, but guess what?
Your money will be safe in the long run. The best option is, therefore, to buy an Index fund.
Other risk-free investments are putting your money in government securities or fixed deposits in a bank. Your principal amount is safe, and you will also get some fixed returns.
But you cannot amass wealth for your retirement this way? Inflation will destroy the value of your money.
Start Investing Early In Equities
So, how soon should you begin investing in Equity? Again, I say from your mother’s womb!
According to Equitable, stocks have outperformed all the other asset classes. I have truly enjoyed the benefits of investing in equities. I have no debt or government securities investment where I may get fixed returns.
So, what are you waiting for? Today is the best time to start investing.
Start by doing your due diligence in understanding the stock market. Do not fall prey to money managers and frauds who claim to have in-depth knowledge. This is not rocket science. You, too, can learn and forge a path to your financial success. Start doing now.