Hi Friendz,
Majority of Us always dreams to become financially free on one day or want to make it big and become Extremely rich. Becoming wealthy is having different meanings for different people.
Some may want millions or billions, with luxurious bungalow and cars etc. So the upper bound we cannot measure. Any how the lower level or middle class variant can be measured as amenities for the minimum requirements.
How much it will cost and how we can define a person is wealthy or not? By different terms, I am choosing one of the best. Majority of us depends on our salaries or daily job or business (explicitly means personal business with involving our physical presence to a great extend) income for our monthly expenses. What happens if we stop working (or ding business) from today? Majority of us will find it difficult to survive.
And now wealth can be defined pretty well as “a person’s ability to survive so many number of days forward with his passive income or bank balance".
Majority of Us always dreams to become financially free on one day or want to make it big and become Extremely rich. Becoming wealthy is having different meanings for different people.
Some may want millions or billions, with luxurious bungalow and cars etc. So the upper bound we cannot measure. Any how the lower level or middle class variant can be measured as amenities for the minimum requirements.
How much it will cost and how we can define a person is wealthy or not? By different terms, I am choosing one of the best. Majority of us depends on our salaries or daily job or business (explicitly means personal business with involving our physical presence to a great extend) income for our monthly expenses. What happens if we stop working (or ding business) from today? Majority of us will find it difficult to survive.
And now wealth can be defined pretty well as “a person’s ability to survive so many number of days forward with his passive income or bank balance".
So if you are generating passive income to cope with your total monthly expense you are literally wealthy!!
[Let us take an example, if your monthly expense from all source is 20000/-, then your annual expense will be 2.4 Lakhs. Now suppose you have an after tax FD with 7% return, then An investment of 34.28 Lakhs will make you wealthy by producing 20K per month!]
Assumption: So now let us analysis how we can term a person wealthy on our Indian background. For a small family, I am assuming it at present with Rs. 30,000/- per month. If your investment producing you a 9% assured (interest or any other possibility) return then you will need 3.6 Lakhs annually to survive your expenses. So you require to have Rs. 40 Lakhs exclusively as investment which generates passive income for your monthly expenses.
[All these are based n present day calculation, and inflation will be having an effect on the specified amount going forward]
So the Trigger amount is Rs. 40 Lakhs to declare you as wealthy person!. And you are financially free and you works only because you love to work!! and NOT because of any financial obligation. So that means financial freedom!
So in this financial freedom series, we are looking in to single investment opportunities existed in past ( in last 10 - 15 years ) and a mere nominal amount of investment on that single share will make you financially free, provided you still hold the shares.
Some may be wondering why I am making such a study, since its past data and past history. We cannot do anything for that investment decisions today. But my point is to MOTIVATE ALL, AND MAKE THEM UNDERSTAND THE IMPORTANCE OF HOLDING SOUND COMPANIES LONG, irrespective of short fluctuations.
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