We all are working hard to build our dream life and making our best effort to achieve it.
Dreaming about life is not wrong, but we have to look at other aspect of life which is reality. Reality means in which country we are living in, what are the job availability or income opportunities, what will be the future growth, quality life can be lived or not, how much life is struggling, how much we can mentally & financially secured, etc.
This initial assessment will help us to build something very important parallel to pursuing dreams which will like a support pillar of our life that helps us to protect from any collapse in worst situation.
We are living in India and if we fall into middle class (income bracket which from Rs 15,000/- to 5 lakhs per month) then it is a fact that we have to take own responsibility of our life and of our family as there is no government policy which supports us financially or morally during any distress time.
Let’s understand the economic history of India during past 35 years especially after globalization which started in the year 1991.
What changed happened after globalization?
After globalization, the economic condition became more volatile as it is now linked to the global economy. Many times global economies are facing challenges which lead to recessions that impact Indian economy especially impacts jobs or income opportunities.
Why have global recessions not impacted India much?
Till date, many recessions have hit India due to global uncertainty but India has not impacted much due to traditional behaviour of Indians. The culture & practices are protecting from such recessions. These culture & practices are….
1. Traditional way of purchasing-
In India, before purchasing any high value good, people are using their saved money first and balance they are borrowing from the financial institutions/ banks. In this situation, banks are investing part money as loan against which bank mortgage the asset of full value. In case of the default of the payment, the bank can recover their loan amount easily as now they are getting full value of the asset. Sometime banks are getting benefited in case of loan default.
Let’s understand with this example.
As person has purchased a house worth of rupees 50 Lakhs. While purchasing, he paid Rs 20 Lakhs from his savings and the remaining 30 Lakhs he borrowed from the bank as a loan. Now this property worth of Rs 50 Lakhs has fully mortgaged with the bank. In case of any default the bank can recover full amount Rs 50 lakhs against loan Rs 30 Lakhs. This makes condition of banks stronger.
Financial institutions/ Banks are the backbone of the economy of any country. If the condition of financial institutions/ banks remain good then the country can resist any recessions strongly.
This culture of purchasing, where using a major chunk of savings is indirectly protecting financial institutions/ banks. So indirectly it is protecting money of the citizens too those have kept money in the banks in form of savings/ fixed deposit/any investment instruments.
2. Saving habit –
In general, Indians have good habit of savings. In India, people are saving money to take care of future exigencies and liabilities. This culture of saving is protecting families in their bad times which is indirectly strengthening individuals too.
3. Purchasing Valuable assets –
People have good habit of buying valuable assets like gold, silver, real estate, etc. which can be realised in case of any emergency or to dispose of the responsibility. These assets also works as future security. This habit is strengthening an individual’s financial capacity.
If you see all three habits, it is largely helping and strengthening the economy of the country but what about an individual citizen? These habits are partially helping but not fully protecting an individual citizen.
So what will protect an individual citizen financially?
First we should understand why we need money?
We need money first for basis necessity expenses like food, shelter, utility bills, education fee, medical expenses, etc. This money we require every month without fail to sustain the livelihood for self & family. As job/income opportunity are limited and uncertain so it is very important that this money for basic necessities should come every month without fail even if we do not have any job or income source.
So here “Income Security” comes into picture. This plays a vital role for living financial stress-free life.
What is Income Security or Financial Security?
Income Security means, you should get an amount every month which take care of your basic necessities like food, shelter, utility bills, education fee, medical expenses, etc. and this monthly amount should come to you every month without doing any job or active work. In case of job loss, this money should come to you every month.
This monthly amount is your Income Security and it should come lifelong parallel to your active salary/Income.
How you can build Income Security?
Building income security is related to your personal finance so you should first learn your personal finance rightly.
When we talk about personal finance most of the people miss-understand that personal finance is saving and investing in fixed deposit, share market, SIP, Mutual fund, buying real estate, gold etc. but in reality it is a part of personal finance. Only saving & investing will not give you the right direction to your financial goals.
What you must learn about personal finance?
You must learn your personal finance in such a way which can give you a stress free life. So learn few important things which about your personal finance.
- How to handle money
- How to build Income Security
- How to set financial goals for stress-free life
- What are your monthly necessity expenses
- How to design saving targets
- How to get updated about money corpus
- How to calculate monthly income from investment
- How to monitor Income Security status
- User ID & password management
- Investment documents management
If you learn all that, you can become almost an expert in your personal finance. It looks difficult but it is not. Leaning this will transform your life financially.
What benefit you get if you learn managing your personal finance?
If you learn to manage your finance then you can….
- Build lifelong effortless monthly income
- Make 3X your income
- Increase your affordability
- Upgrade lifestyle
- Find likable work for a happy life
- Create income security
- Transform your life
- Live a good life
Learning managing your personal finance is must if you are keen to transform your life and wanted to live financially stress-free life.
Hi I am Vivek Rai…….I have designed a Course on Income Security/ Financial Security which is helpful to transform your life. This is very useful for people who are Indians, not of accounting background and not able to calculate things. You can learn only in 7 days and start working to transform your life.
Please explore my course details and for any query or questions, I am an educator and teaching people to manage personal finance without sharing any financial details.
Please connect with me on WhatsApp Chat – 7842260834 without hesitation.
