HOW TO BECOME POOR

1. Using credit cards or debit cards:

The card has become such an important part of our

lives we cannot live without it. I have always argued
that the card dramatically reduces our need to print
notes, etc…however if you wish to reduce your
expenses, stop using the card, shift to cash.
2. Emotional Shopping:
Stop and think why you are buying things. Is it because
you had a fight? an argument with your boss? time-
pass? as entertainment? you have been waiting for a
friend and you were supposed to meet in a mall? Or do
you really need the things that you are staring at in a
shop? Instant gratification is great – so what if it creates
debt in the long run?
3. Entitlement shopping:

Amazing how many people think ‘this much is basic’

how can I not travel by air, taxi, auto…or ‘it is my
wedding anniversary, I MUST BUY HER a diamond
ring’ or ‘sir we just need an I pad’ . Amusing to see kids
buying a mobike, car, house, …all on such ‘sir
 everybody borrows to buy a house’ theory. Entitlement
based on dad’s earnings is even funnier to watch.
4. Peer pressure:

where you live, what you buy, where you eat out, what
you do – all this is decided by colleagues, classmates,
etc. who are actually chasing you. Funny situation is it
not? No clue who is chasing whom – seem to be running
in circles and wondering where have they reached!
5. Addictions can be expensive:

shopping, tobacco, eating at fancy joints, buying

expensive things, alcohol, travel – anything which
becomes an obsession or addiction sucks money out of
your system, and fast!
6. A victim of the media:

today your entertainment has to be going to a mall,

bowling, playing other games, movies or eating out. To
imagine that reading a book, carrom, going for a walk,
cycling around, etc – those which you can do together
but does not cost money have been so beautifully killed
as entertainment thoughts! Wow media, you have
achieved your goals!
 7. Self worth is completely dependent on what you have.

So all ‘show off ‘ assets HAVE to be branded. There is a

whole gen out there which has been beautifully told that
Brand = Value. Excellent for me as a shareholder of cos.
where I am a shareholder…but it is hurting you like
mad, wake up!
8. No plan:

no plan of expenditure, career, savings, retirement, …so

it hardly matters.
9. No understanding of investment concepts

like start early, compounding, power of small numbers

– leading to fatalistic statements like – what will I be
able to do saving Rs. 4000 a month? or I will never be
able to buy a house in Mumbai, so let me live it up!
10. One more loan won’t matter

I anyway have X amount of student debt, x amount of

car debt, y amount of personal debt…so what if I added
another small amount