I must cite two learning in recent days.
The first one is a TEDx talk by Mr Dhaval Bhatia, something that I came across accidentally. He explained about the difference between Active income vs Passive income and the 7 'R' formula which is described as below:
1. Rate- For example, any shirt , pant has a rate
2. Remuneration - for service, example - salary
3. Replication- mainly in production line, example- Xerox machine, theater vs movies
4. Rent- Property, Vehicle, equipment
5. Royalty- Any mobile app, Any author gets royalty for book, any video in Youtube, blog etc
6. Rights- Franchise right, harry potter author gets rights for film/merchandise
7. Returns- Stock investments, Bank interest etc
The second one is the teaching of Mr. Robert Kiyosaki, the writer of 'Rich Dad, Poor Dad' and founder of Rich Dad network. He makes a diagram as follows:
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Income
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Expenditure
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Asset
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Liability
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As per Mr. Kiyosaki, poor people (read as middle class in India) cares about Income & Expenditure. Hence, they try saving, cut expenses, but those people can never become rich. The focus area should be creating asset and how liabilities can be reduced or converted into assets (eg- home is a liability, rented house is an asset).
The above two lessons are accompanied by many other similar readings and videos. It is not that those two are extra ordinary learning (none of the great learning are extra ordinary, they are very basic). But those has entered into my brain nicely and I have been thinking about that day and night these days.
Now, let's come to what I have done with the two lessons:
1. Thinking from the rent/asset angle, I concentrated on the land that Deuta bought long back. The issues with the land near Agia college, near Kalitapara and the one in Guwahati. While gathering more information, I contacted mondol, discovered Assam land management system (Dharitri) etc. Each piece of land is having issues. I am trying to find a solution to convert these land into assets. After that, the rent component will come. One thing is sure, it is not possible to buy asset (eg land by side of road) now with my limited income. But we can always streamline what Deuta has done years ago. I must appreciate his wisdom at that time. If he were alive, we might have some other 'asset'. The piece of land that Maa bought with Deuta's pension money might prove to be a good resource later. At this point of time, it needs investment.Final thought- one of the reasons for me getting attracted to land thing is the astrology thing by Dibakar and his friend that I would be successful as a land dealer. lol!
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| The Kalitapara land that needs an approach road |
2. I question myself - is this a good passion I am possessing now. I have already missed the bus for earning money. In Microsoft, when Akash told me his aim in life is to double his income in every ten years, I thought that was weird. I never had the money making mentality. After Oxford, I wasted 1.3 years earning zero, at the peak of my career. Can you imagine the cost? In addition, I spent more than 12 lacs in home construction. Should I have been focused in this direction, I could have planned my career in a different way. I am not repenting because I think whatever I have done that is for the best. I am just worried about this new found thought process of creating wealth. I need to find balance between the two. Also, from a different angle (as Mr. Kiyosaki said), my brain has been conditioned with that middle class thinking. At least with this exercise, I would plant different thought process into my head. And any new thought process is always welcome. Moreover, my current lifestyle is providing me enough opportunity to save some real money. Not owning a car, not living in an expensive locality is costing me nothing, but giving some more perks. Although, this (saving a few bucks) is a typical middle class, I could not help mentioning it.
3. How about the other R's? I am glad that we are getting 7500/- per month from the house where we invested a huge amount, although nobody is exactly living there. Rest, as mentioned earlier, needs streamlining. For royalty, I need to write a book. Even not from the royalty point of view, I have completed lot of activities in the last 3 months about the proposed book. I can also do some YouTube videos. OLQ did not give any return- there might be ways to monetize that as well. Should I start a channel and start doing some periodic?
4. Doing Business or entrepreneurship, I have no intention (read as courage) as of now. However, I keep getting good ideas. This is one reason why I am pushing Xomidhan registration renewal thing, MNM trust registration confirmation thing etc. Maybe I can register one pvt ltd/ think tank company and if possible (later) get some contracts. I look at Ashish Bhave(RSS) or Aparajita(BSG) - they have a registered entity and get projects by networking. One day, I am sure, my network will also get stronger. I had hopes when Dada used to talk about doing business before retiring from Navy. However, his luck didn't accompany and looking at his spending pattern, I think that was good decision. Next, I am looking forward to catch up with Moina's future husband. If he has real entrepreneur skills and that can be leveraged, there might be opening for my brain to do activities in this area.5. I believe this thought process to be inculcated into the children as well. Dada and Moina must know, as well as our children. Whether we take action is a different thing, but knowledge is most powerful. The last 'R' i.e. investment is something everyone should do from very early age as possible. Also, I bought 'Rich Dad, poor Dad' and asked Moina to read first.
Lastly, I am getting kicks by this new thought process every day. When I make 3 min to go through Sharekhan everyday, I feel good. When I spend 4 min thinking about the land, I get going. When I spend 5 min looking at the MF/NPS/PPF things, my brain starts giving vibes. It has something 'kicking' definitely.
