Simple Money Principles That Will Make You Rich

Welcome to the Freedom Business Podcast. Your host, Siddharth Rajshekhar here. Great to have you here. This is where we are going to be talking about how we can redefine our education system by building vibrant learning communities. Take your knowledge out to the world and be awesome. Let's get in.

Today is day number 14 of my 90 day podcast challenge. And I thought I'll talk about some money principles that can actually make you rich. And I just want to say that I started from the middle class background. I was able to work my way up, changing my beliefs about money, changing my habits about money. I'm going to make it as simple as possible. There are many, you know, different kinds of courses, different kinds of ideologies. When it comes to money, I'm going to share something that's really simple and easy for everybody to understand. Okay, first, when it comes to money, you need to understand that there are three aspects, three aspects of it. Number one is how do you make money? Two is how do you manage money? And three is how do you multiply money? Okay, so when it comes to making money, again, there are two categories. You can have active income and you can generate passive income in terms of earning money and making money. Now, active income is, for example, in my case, I run webinars, I sell my products. And those of you who are working in a job or, you know, you're doing consulting and stuff like that, the time and energy that you're putting into to generate the income is active income. And passive income is what you create by taking the active income and making it work for you, either in the form of investments or you have residual income streams. Let's say in the case of, you know, affiliate marketing, where you're referring tools to people, and as long people are subscribing to those tools, you're going to be making commissions coming in, which gives you a recurring cash flow and income. So that's the make money part. And when it comes to manage money, there are five categories where your money needs to go. Okay, the first category is tax. You have to allocate your money towards tax. So for every one rupee that come, or say every ten rupees that comes into my account, I move aside three to four rupees just to pay the taxes, which includes the GST and the itr, the income tax, then you have wealth. Second category, then charity, then general and operations. So tax wealth. Now, wealth is used for multiplying your wealth. So you want to buy gold, silver, stocks, invest into markets, all of that come under the wealth category, charity. Normally in my case, 10% after paying all my taxes and after deducting, you know, what was my net profit on that? 10% goes towards charity. General, if you see, is for your general stuff like rent, food, outings, mobile children, fuel and all that come in a general. And under operations I have some other categories like ads, tools, cost team, cost partners, vendors, all the payouts that we do. So when it comes to managing money, there has to be a proper money management system. Most people are poor money managers, that's why they're not able to make money. And when it comes to the third category, which is multiplying money, there are four kinds of multiplication that you can do. You can put your money into short term assets. So basically whatever is there in your wealth bucket, you can put that into short term assets, or you can put them into financial investments, or you can put them into fixed assets like real estate and others. And you have intangible assets like intellectual property, music book royalties and many others. So overall, I want to help you understand that.

If you truly want to make a lot of money, you, it all starts with the way that you manage your money. And I give this example before, and I heard this example at Million Intensive, which is a highly recommended program for those of you who are having, you know, money issues or money beliefs which are not conducive there they give an example of a child going into a carnival looking to have an ice cream. The child asks its father, dad, daddy, can you please take me and give me an ice cream? So the father goes, takes, the child gets a single scoop ice cream. And the child takes single scoop ice cream and is walking and coming back and then the scoop falls down on the floor and the child starts to cry and the child says, daddy, daddy, please, I want one more ice cream. Let's, I want another one. And the father says, okay, fine, let's go to the ice cream shop and get another ice cream. And as they're going towards the ice cream shop, the little child sees a triple scoop cone. And the child asked the dad, please can you get me the triple scoops cone? Now the question is, is the dad going to buy it? No, right? If the child can't even handle one scoop of ice cream, how can it handle three scoops of ice cream? Now that's the same thing with how the world works. That's how the universe works. So if you cannot handle the small amounts of money, you will never be able to receive larger amounts of money. So when you're able to manage whatever money that you have, allocate that into the five buckets. Tax, wealth, charity, general operations. And you start to get diligent with every single rupee that's going in and going out. And you build your skills to create active income and passive income. Only then you'll be able to multiply your money. Now it's easier said than done because if you look at the way that, you know, I had built my business from scratch where I was, you know, I was in the point where I was making 60,000 to 1 lakh rupees per month salary. I was drawing from my agency when I was running it and then from there taking to 15, 20 lakhs per month and even beyond. We have done multiple crores in revenues in the last five years. Now what was the. The change that happened were two things. Number one is my own beliefs about money. Before I used to think money is it's very difficult. You need to have hard earned money. It's not about hard earned money. It's about working smart and adding value to the marketplace. If there is not much money in your bank account right now, you just need to ask this one question. What am I doing to add value to the market and does the market see the value in me? Because you may have all the right intentions, but the money in your bank is only the representation of the value exchange that is there. So if you are not adding value to the marketplace, then the market will not give you money. Now let's go deeper into that. Now how do you add value to the marketplace? Number one is you got to build skills. Like in my case I built multiple skills so I could teach these skills to others and I could help others get results with these particular skills. And the results that they were getting is what, you know, compounded my income growth. So ultimately people need to get what they are looking for and it has, you have to help them grow and stuff. Okay, so build skills is on one side and also build your ability to sell.

If you're not able to sell, then you will not have control over your active income. Your active income will go up and down. It all comes down to your sales process. In the beginning I had a lot of tough time when it comes to sales. But then over time I started to get good at it. Because now I look at sales as a form of service. So now whenever anyone pays me money, I know that they're paying attention. I know that they're going to take action and know that they're going to get results. Even though I give a lot of free information outside, but still when anyone transacts and come into my structured learning community, the game is totally different. They are the people who are coming in, they're more serious and they want to really, you know, move forward. So this value exchange of creating active and passive income happens by building skills, by getting good at sales and by looking at sales, the form of service. And this combined with managing your money really well, looking at every single rupee that is coming in and going out and being prudent about things is what's going to help you completely change your financial future. And last but not the least, money beliefs you need to look at. Where else in your life from the past do you have any kind of belief systems about money where you're either looking at rich people as bad or making more money is not good or whatever, right? If you have any of these beliefs, you got to shift those beliefs internally so that you can start to respect money, you can start to use money as a form of energy and not look at it as bad or good. And in fact I believe that more and more people who have money, the world will become much better. You know, we need more rich people who are having the right intentions and that's what's going to, you know, help you make progress financially. It's going to help you make a difference in the world. So for me, my vision is to create the richest community of givers. Internet Lifestyle Hub has given close to 6 crores in charity from the time we've been able to document it as a community. And we've been giving anywhere between 15, 20 lakhs per month as a tribe of all the members giving charities that they believe in and so on. So it's really fulfilling to run a business like this and I truly want to, you know, thank every member who's listening to this. If you've been in the community for a long time, I really want to appreciate you for that magical action that you're doing every single month of giving money. And that is what I want to leave all of you with. If you want to make a lot of money, you need to first give it. Because when you're tight fisted with money, there'll be a stop or flow of the money. So once you start giving without expecting and just serve others, even for 10 rupees, 100 rupees, 1000 rupees, whatever may be the case, once you start giving every single month regularly without expectations, you'll start to see the miracles and magic happen when it comes to the flow of money. For me, when I'm paying anybody money, my vendors, I thank them. When I receive money, I thank. So there's a book called Happy Money by Ken Honda. He has interviewed some of the top Japanese billionaires and he talks about the concept of arigato money. Arigato in Japanese means thank you. So before you pay anybody, just say thank you, thank you, thank you. And you receive also. Thank you, thank you, thank you. So your whole response to giving and receiving should be the same because most people like to receive money, but they don't like to give money to others. So when you have an equilibrium when it comes to your flow of money, then things are going to be much, much better. Okay, so I hope you found this podcast useful. Share your thoughts. You know, if you're on social media or you're hearing it anywhere, please make sure you subscribe to this podcast on Apple and Spotify if you have not done so, and catch you in the next episode.

Sam.