Remember – the less stuff, the happier life

In my youthful days, I used to enjoy visiting the fairs, all kind of exhibitions, art and culture shows and various markets in the city. This is what happens to almost everyone in the first few years of starting the career or business. In the colourful stalls that are set up in the fairs, innovative and exciting items are available at attractive prices. Music, lights and unbelievable offers are so well combined that a person buys a lot of things even if s/he does not want to. Who does not like free things under the buy one get one or buy this and get that free. Gradually I realised that many such things bought quickly from the expos were getting accumulated in the house, which were not needed but had to be kept safe. Since a good amount of money is involved in buying such things, they need to be taken care of, even if they don’t work or are almost useless. Giving such things to the kabadiwala is also not possible.
While shopping, if people give a thought to the item that what they are buying will be helpful in earning money or will become a burden on them. US based Japanese author and financial consultant, Robert Kiyosaki’s world famous bestseller book – Rich Dad Poor Dad explains this funda very well. In the book, the author uses the words ‘asset’ and ‘liability’ very often. According to Robert, an asset is something that puts money in our pocket, whereas a liability is something that keeps money out of our pocket or becomes a headache to keep or maintain. That is, while buying anything from anywhere, one must keep this in mind that the thing which is being bought will increase the income or will increase expenses. This basic financial wisdom can help you become rich in life. Someone has rightly said that you can be considered rich if your money is making more money without your effort. If you have to work hard every time to earn money, it means you are not rich.
Financial literacy can make you rich. Financial literacy is the right way to budget, save money and invest. The first step is to earn money, which is the most important, and when you have a lot of money or enough income, the second step is to use that money appropriately. Warren Buffett, the world’s most successful investor once said, “Never invest in a business you don’t know well.” It is also wise to maintain an emergency fund for future unforeseen needs. Keep 10 percent of your income aside for future needs. To run your life at least for six months  without doing any work, this much money must be kept in this emergency fund. New and innovative things keep coming in the market, but before buying them, first think that will your life be better by taking it and will your income increase by buying it. Wait before buying brand new stuff and don’t buy at all by paying a premium. After some time the same item becomes available at an affordable price. It often happens with mobile phones and similar electronic items that after some time their price starts falling.