"Building Wealth" - How can I say this in Tamil?
Can we call it "Building Assets"?
It does not sound right.
Can we call it "Disproportionate Assets" ?
No. That will lead to visiting jail.
Lets just simplly refer it as "Building Wealth" in English.
For me, Building Wealth is an art.
If we learn that art and execute it with a good plan,
We can definitely go to the next level in our life.
Infact, if we plan and execute it right,
we can definitely achieve that coveted "Top 1%".
So in this "Building Wealth" series, we are going to see
How we can plan and execute this successfully
in next few episodes.
Today, we are going to see the first episode in the series,
"Developing Financial Knowledge".
That is, we are going to see why it is important to
develop our financial knowledge in detail.
Financial Knowledge is something very important that we should
definitely develop in our life.
We need that knowledge to build wealth.
And also to protect and grow the wealth that we already have.
We are seeing this in daily news.
Many successful actors and sportsmen
would have earned a lot.
But, many file for bankruptcy with no money.
Why? Leave them. How about us?
Lets say that we have won a huge big amount in lottery ticket
How many of us know how to manage that big money
and invest it successfully?
What do most of us do? We buy a big mansion.
We buy an expensive car.
After that, not knowing how to manage that luxury life
we would have filed for bankruptcy.
If we look closely into the reason for this,
it would be because of not learning about
money management thru financial knowledge.
When we were growing up, all our focus was in
studying well and getting settled in a good job.
We never thought about developing Financial Knowledge.
Because we do not know the importance of it.
If you ask me, regardless of getting a professional degree,
we should have definitely developed our financial knowledge.
Because the benefit that comes out of financial knowledge is
lot bigger than the benefit that comes from a professional degree.
As we did not know its importance,
we did not develop our financial knowledge.
Because of that, even if we are settled in a
very good job and making good money,
we were not able to build wealth and move on to next level.
Either we try to mimic "Next door Jones" life and
would have spent all our earnings without any savings.
Or we would have saved a lot by living a simple life, but
would have stuck without knowing anything about investments other than Real Estate.
Because of this, we are stuck in Middle class for ever.
If you ask whether we have moved out of this and moved up to next level
Definitely No.
We should remember one thing.
A professional job like a Doctor or an Engineer alone
cannot build wealth.
For that, we definitely need Financial Knowledge.
We will not be able to learn it overnight.
We have to develop little by little.
This is also same as we saw in "Power of Compounding" video.
If we learn one thing, we get two questions from that.
When we find answers for those two,
we get four more questions.
When we try to find answers for those questions,
our financial knowledge keeps expanding.
This is a big ocean.
How much we learn on that depends on our eagerness.
We should not stop at learning.
We should teach our kids as well and give
them the "Early Beginner" advantage.
Things we know now at 40, imagine what
if we know all these at 18?
We have to give that advantage to our kids.
"Wealth Building" is like a marathon race.
Just in case, because we started late,
even if we were not able to reach our destination
by passing this knowledge to our kids,
we can convert this to a relay race.
Based on the knowledge from us, they would
build further upon it.
If we miss passing this to next generation,
the following generation will start again from "Zero".
They would have missed that "Accumulative Advantage"
I can hear you asking, "What is that Accumulative Advantage?".
James Clear has explained about it really well.
I have included the link in the description.
Please check it out.
The Following is the highlight of that article.
There are 16,000 species of plants and trees in Amazon forest.
Among those 16,000, only 225
that is just 1.5% of the species
is occupying 50% of the total forest.
Lets look at this example to understand the reason.
Lets say there are two small plants.
Both are of same size.
But one of them has little bit more power than the other in growing faster.
First day, they look the same.
But on the second day, the one that can grow faster
would have grown little bit more than the other one.
Because this has grown a little bit bigger,
it is getting the advantage of getting more
sunlight, water and nutrients compared to the other.
So everyday, this power is accumulating and growing.
And so its growth is lot more than the other plant.
Even though the original difference was very little between these two,
because of the accumulative power, it has achieved significant growth.
This powerful growth will eventually lead to
the bigger plant taking over all the sunlight, water, and nutrients
leaving nothing to the small plant and eventually killing it.
This is how that plant has taken over a significant part of
the Amazon forest.
That is "Power of Accumulation".
Financial Knowledge is very similar to that.
By extending our financial knowledge to the kids,
we are passing this "Accumulative power" from generation to generation.
Even if we do not leave any assets to next generation,
we should have definitely passed on our knowledge to them.
We should remember that.
Today we have plenty of opportunities to develop our financial knowledge.
There are many You Tube channels.
Many online forums are there.
Subscribe to them.
Expand your financial knowledge starting from basics.
I am including some of the online forums links in the description.
Check it out.
The next topic in this series of "Building Wealth" is "Delayed Gratification".
Share your opinions on this topic in comments.
Another important note.
We are watching many videos in YoutTube.
We like many of the content.
Though we appreciate that in our mind, we do not express that in "Like" button.
YouTube is recommending any content to other
viewers based on the likes.
For that reason, not just for this video,
for any video you watch, if you like the content, definitely give it a "like".
That is the appreciation we can show to the content creators.
Whats the big deal in clicking a "Like" button?
Does not cost anything. Also we are liking only good content.
So, don't be shy. Show your generosity in "Like".
We will soon meet again in the next Video. Thank You.