Thursday, December 29, 2022

The Hidden Gems of Investing

 

The Hidden Gems of Investing


1) Say you earn Rs 1 lac salary as an Employee
2) You are dependent on your employer and hence obey orders and work in keeping with what your employer wants you to do
3) If the employer is a good soul, you can expect to be happy. Otherwise you can have a miserable time
4) So basically ‘Salary Income’ has external dependency
5) You can earn the same Salary of Rs 1 lac as an Freelancer
6) How is this different from the first example?
7) As a Practitioner or a Freelancer, you earn Rs 1 lac without any external dependency on an entity like an Employer
8) You realise the value of your core skill
9) You feel independent and experience more freedom
10) You feel more secured
11) There is a sense of realisation of self worth
12) You also start working harder to increase your income
13) So if you were working for 5 hours, you try to work for 10 hours to double your income
14) This is known as Practice Mindset. While it is liberating, it is also limited and hence gives birth to a Scarcity Mindset in the long run. Therefore may Practitioners like Doctors, Architects etc. go through a mid life crisis
15) In System 2 (Practitioner), you are on your own
16) In the first case you were like an employee in a large ship but now you are sailing a small boat all by yourself
17) The Boat may be small but it is yours and you need not listen to orders from within and experience Freedom like you never did in the past
18) Now let us look at a third case
19) You still make Rs 1 lac per month
20) But now you have built an organisation
21) You have hired employees, you have other business partners, you have built assets like an office, brand, systems and processes
22) You are now the owner of an Asset
23) The main difference in this stage is the opportunity to scale up your freedom which was limited in System 2 (Practitioner)
24) In the previous two stages, your income would have got adversely affected had you not gone to work
25) But in System 3, your Income continues to flow irrespective of whether you go to work or not

**Disclaimer: This Article is only for information Purpose and should not be treated as Financial Advice.

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