Financial Stability for Ever till you Die

I'm giving you my view & how I achieved financial stability in my Life within 6 years. Here is my story.

I was struggling hard for my entire life till I was 37 for earning money. Whatever I earn, could go in for daily bread & butter and for something slightly extra like picnic, hotels, movies etc.

I was not able to save anything out of my earnings (which were handsome when I look back now. By the way, I'm 53 now).

In the age of 37, I got severe blow in my Business and ended up in huge loan amount. The only positive was I had a home with me; but the loan was amounting double of the cost of the home.

I was in frustration for almost one year when the situation got worst.

Then one fine day, I decided to go further in my life and started planning for it.

The first thing I stuck in my mind is that I had no savings of whatsoever in my life. I decided at the first moment, that I'll save 5% (yes, only five percent) of whatever I'll earn.

This idea itself changed my life.

I shifted to a smaller rented house and given my home on rent. (I saved nearly 80% here which I used for repaying the loan). I sold my car, bike and repaid fraction amount of my loan.

I changed my business (as the first one was not making enough money even for bread & butter) and started earning. I repaid every penny of income to the loan amount except keeping myself for bread/butter and saving of 5%.

At very first, I had very little saving. But within few months, I started getting interest on what I deposited in the Bank as FD. The amount was not any big, but it paid for my little expenses like newspapers, laundry, telephhone bills etc.

Within two years, I finished my loan entirely. Here I took a decision that I'll raise the saving to 25% of my income.

Within years together, my regular expenses were covered by interest itself and my saving rose to more than 50% of my income.

Now I had a steady income.

(Here I purchased a plot my from my part of saving, which I sold after 2 years and got 5 time return).

Within 6 years (from the blow point), I could save so much, that my entire expenses were covered by the interest itself (thanks to Indian Banks for interest of 12 to 15% in the years 1997 to 2001).

And my entire income goes to saving.

Now I'm in a position that out of interest on savings, I save 50% and my entire income (100%).

If you think that 5% doesn't matter to you of your income, try to save it from today and you'll remember me after 10 years.

 

Truly inspiring! Thanks for sharing. I think I'll give the 5% trick a go and let's hope that things will go as well for me as they did for you! What kind of business are you in if I may ask?

 

Thanks for you comment djromanof. This certainly works where you get at least 8% p.a. return on your saving. (In Bank FD or anywhere safe). Before the loss I made, I was in manufacturing of household items and marketing in the same product. After deciding to come out from loss, I choose real estate as my market as there is money to come out of loan in the segment. After doing this for 5 years (as this is subgraded business in India), I learned computer in 2002 and started home based business on freelancer websites like scriptlance (My first order gave me $200) and GAF. I prefer to do article writing and the ongoing rate at that time were around $3 per 500 words. Now I created few blogs and making money out of it as also I teach SEO. I have purchased 100 million sq. ft. land surrounded by a dam in Kokan (Western Maharashtra, India) and planning to sell the same in pieces of 5000 sq.ft. after developing it.

So, all the best for your future.

 

Amazing, any way I could keep my money in Indian Banks?

 

NRI (non-resident Indians) can keep their money in Indian banks. Now the interest rates are between 8% to 9.5% p.a. You can ask your financial consultant for depositing money into Indian banks.

 

This is still huge, I believe here they maybe give you 1% if they are nice.

 

Yes. It is huge. This is mainly because of the inflation rate. Many manage to live on interest on their F.D. in banks. These are mostly elderly people above 60 and retired.

 

You are truly an inspiration for me. From the story of yours i have learnt a lot.It will be an honour for me to keep learning from you. Please keep sharing.

 

Thanks. I'll do it.