Since childhood, we are taught and constantly reminded to study well to earn money when we grow up. Of course, there are other prominent factors besides money, but it is still the pivot around everything we do. Be it one's own business or a job; the strive is always to earn more profit and more salary in the process alongside other qualitative factors. But it's funny how people overlook the potential of making passive income out of existing money and just focus on getting more.
Notwithstanding your educational background and work profile, ignoring money management can sabotage your financial health. It's like exercising intensely and eating junk afterward. While you will get the workout benefits, your diet will negate all the positives. Similarly, when it comes to money, managing it is as important as working hard to earn it. Some mistakes and all your hard work goes in vain! However, following some concrete steps can help you achieve your goals easily. Don't believe us? Well, this real-life story should be enough to make our point loud and clear.
From a janitor to a philanthropist
Born in 1921, Ronald James Read lived in a small house in Vermont, US. He was the first high school graduate in his family and served as a military policeman during World War II. After that, he worked as a gas station attendant and mechanic for 25 years. With a small retirement break of a year, he took up a part-time job as a janitor for 17 years until 1997. Ronald Read died in 2014 at the age of 92, and this was when he made headlines. Why, you might think.
Well, do you expect a janitor to leave $1.2 million to a library and $4.8 million to a hospital in his will? This philanthropy accounted for 75% of Read's accumulated wealth. His fortune of $8 million, which meant roughly Rs 50 crores in 2014, was not a lottery. It was a simple, consistent investment in a diversified portfolio of largely blue-chip stocks (large reputed companies with a stable financial record and credibility). But none of his friends, family, or neighbours got wind of his scale of wealth until they found stock certificates stacking up to five inches in his bank deposit when he died.
Despite the limited salary from his employment, he was able to amass such a substantial fortune through purchasing equities. If a man of modest means could do it, so can you. You just need the right direction, consistency, and patience with your investments. That's it. Investing is not rocket science unless you make it so.
But wait, are you wondering if you are too young to start thinking about all this? Or you have too many things on your plate, so investing can wait? Well, we bet you would change your mind after reading the next chapter.