Becoming rich is not merely a twist of fate, but rather a very brave and intelligent choice one needs to take in life. Most of the people who had been among the richest men club in the world today, all have this common characteristic trait in them.
The problem one faces initially because of the humble beginnings is that there is neither money nor the skill a times to be rich. What rich people do is use others’ time and money to be rich themselves.
Getting rich with other people’s time
The money reserve of most of the rich men in India is because of the financial manager or adviser they have. Constantly talking and consulting with financial advisers is the key to your future wealth. It is due to this reason that today those who are eligible to be Financial Advisers draw extremely high salaries, excluding the bonus and incentives they get. The more the experience the more the salaries. Risk managers also offer similar solutions to your money.
It is crucial to be in constant communication with rich people around you. Even if they don’t invest money in your business, they unknowingly end up investing time. To become rich it is always better to have such people as silent partners in your business as the prospects of growth are more than investment from brokers.
Getting rich with other people’s money
You cannot invest all your current assets to begin a start-up as an entrepreneur because the risks of failure are huge. The smartest way of this is obviously a debt from the bank. But the Debt would be such they there is possible to increase your money.
For instance I have Rs 100,000 and want to invest. Here rather than investing my money I take a loan of Rs 100,000 from the bank and invest in a property. For down payments in the bank, I decide to pay Rs 20,000 every time. If I assume that the bank lends me Rs 80,000 for the property and takes a charge of around 5 percent interest on the loan amount, then it would be Rs 500. So if I draw the rent of Rs 800 each month, then my constant cash inflow every month would be Rs 300 (Rs 800 Rent – Rs 500 bank interest). This Rs 300 would be added to my wealth. This is just a small example of using other people’s money to generate more money.
Another way of making more money is making other investors invest in your property or rather multiple properties along with you. Despite their investments and even with a fifty percent sharing of the rent of the properties you still make a lot of money. This is because after you finish paying back the investors you are the owner of all the properties you have which can bring recurring cash inflow to your bank account.
Most Indian start-ups in the last two years have shown how investments in the initial phases of the business – both using other people’s time and money have proved to be essential pillars of success- be it Grofers, PayTm or Bankbazar. But it must be noted that the success also depends on the idea of the start-up you are working on because major investors would be involved only when they believe in the success of the business.