Smart ways to invest and attain early financial freedom

Every now and then I meet people who tell me with a sense of pride that “I have never taken any loans and never will.” And on the other side of the spectrum, there are people in IT industry who have taken such large loans (for buying a premium apartment) that the EMI load is creating tensions in home, now that most IT companies are slowly downsizing. So here are my thoughts on taking loans. Loan by itself is not a good or bad loan. It becomes a good or bad loan based on: 1. Your ability to pay the EMI’s after taking the loans. A good loan is one where you can repay it without too much of liquidity issues. Your repayment capacity defines whether a loan is a good or

Dear Friends - here are two good articles (here and here) in Capital mind that I would like to share with you. Incidentally Capital mind is a great source of unbiased data based analysis for those who do direct stocks - I subscribe to this and it has surely helped me with better decisions in the past two years.

  Here is a nice post that I would like share - agree with it fully. May be this list is not complete - but all fourteen are habits of people who accumulate wealth.

Friends - I read a lot of blogs daily and I would like to share this story that I liked today. But before that - The easiest and surest way to build wealth is to have a mind set of investing for long periods - typically ten years and above. Out of experience I can say that it is very easy to make 20% plus ROI compounded in India, if you look at a ten year time frame. As the time frame goes down to 2-3 years, it becomes more and more difficult to make 20% ROI consistently. Also, the power of compounding kicks in over longer periods and that truly builds wealth ( as you will read in the story below). Let me give you an example - here is the HDFC Bank share price for the last ten years ( I know, you may not be investing through shares - but this is just an example).The light blue line is the HDFC Bank share price and the dark blue line is the BSE Sensex. You can click on the image to enlarge it.

  I am sharing some “very less known” quotes from Warren Buffet. Hope you enjoy these quotes.   When I was sixteen, I had just two things on my mind -girls and cars. I wasn’t very good with girls. So I thought about cars. I thought about girls too, but I had more luck with cars. Let’s say that when I turned sixteen, a genie had appeared to me. And that genie said, “Warren, I am going to give you the car of your choice. It will be here tomorrow with a big bow tied on it. Brand new. And it’s all yours.” Having heard all the genie stories, I would say, “What’s the catch?” An