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These 5 simple strategies will make you WEALTHY! | How to get Rich | Akshat Shrivastava - YouTube
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that is not the goal with which i
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operate i am operating simply with the
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viewpoint of creating more and more
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freedom for me hi everyone welcome to
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today's video so on today's video i am
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going to have a very honest discussion
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with you about building wealth i am
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going to talk about five specific
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practical strategies to build wealth
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these are same principles that i have
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adopted in my life so hopefully you will
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find these to be insightful so let us
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get the discussion started but before
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doing that there is a very important
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question that i have to ask you
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and please comment and let me know in
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the comment box what do you think about
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it and which of these two following
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choices will you pick
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choice one you are 25 years old you are
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making one lakh rupees a month but the
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problem is that you are only getting one
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hour of free time every day your option
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2 is that you're 25 years old you are
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making 50 000 rupees a month and you are
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getting four hours of free time every
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day so which of these two options will
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you pick and why i will also detail my
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answer somewhere along the video so
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please stay tuned till the end so let us
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get the discussion started and the first
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key strategy that you must know about
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building wealth is that please don't do
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goal based investing now many of you
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might be new to the stock market or to
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the finance world so to them very quick
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input on what goal based investing is so
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many a times people save money in order
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to take certain expenditure for example
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they will save 5000 rupees every month
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for four months to take a shimla trip or
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they might save 5000 rupees every month
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for almost one year to buy an iphone so
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this is called as goal based investing
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now almost the entire subset of
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investors are encouraged to do goal
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based investing if you go speak with a
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mutual fund manager they will tell you
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that hey do goal-based investing if a
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mutual fund advisor comes to you they
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will say do goal based investing if you
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go to a random website and if they help
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you generate a investment plan they will
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ask you what your goals are now my
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viewpoint on this entire goal based
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investing scenario is that you should
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not do goal-based investing to begin
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with why is that let me explain you one
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by one so first and foremost whenever
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you are doing goal based investing
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majority of us end up picking wrong
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goals to begin with there are
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essentially three types of assets in
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which goal based investing is done
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first is an appreciating asset for
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example i'm using an iphone to shoot
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this video this is a type of an
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appreciating asset for me because i'm
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making productive use out of it
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similarly you might do an mba so that
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might be an appreciating asset for you
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because every year your mba might allow
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you to earn more or more money or
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probably if you do it from a really
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random bad college then an mba becomes a
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liability but i hope you get the
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understanding of what appreciating
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assets are problem is that we do goal
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based investing in depreciating assets
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we would have no productive use of
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iphone but we will save money every
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month to go buy an iphone similarly we
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might not have any productive use of the
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car by i say productive use i mean that
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you use that car to make money otherwise
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a lot of people in the comment section
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will start arguing with me that akshat
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productive use of my car is that i go on
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a drive to eat ice cream or i go on a
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drive to my office okay fine that is
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productive use also but in my definition
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of being productive means that it allows
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you to make money sustainably now the
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third type of asset where goal based
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investing is done are critical assets so
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critical asset means that for example if
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you want to get married now is it an
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appreciating asset no is it a
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depreciating asset i cannot say if i say
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yes to it then my wife will get really
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mad at me and also please don't tell to
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your husband or wife that akshay taught
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us that marriage is a depreciating asset
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your gharwali might kick you out so the
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bottom line is that first and foremost
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when we start doing goal based investing
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we get the definition of the goal
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incorrect to begin with we end up doing
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goal-based investing for depreciating
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assets which we should completely
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completely avoid this is the first
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critical point about goal-based
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investing second critical point about
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goal-based investing is that goal based
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investing is really really really really
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complex to do
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why is that so imagine it in this way
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that when you are 22 23 you start
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working you get your first paycheck and
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you set out a goal that after 10 years i
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want to buy my own house so that is the
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goal with which you have started your
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investment journey you are 22 23. now
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what will happen is that in the early
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part of your life you should be taking
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riskier bets you might have often heard
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that when you are young you should
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allocate more of your funds to equity
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over debt but when you grow old for
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example in case of your parents they are
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usually advised what they are advised
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the complete opposite that you should be
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taking more positions in debt or bonds
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fixed deposits over equities why is that
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because with age you should start
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transferring your risky money into safer
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heavens like fixed deposit bonds etc so
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when you are 22 23 you start saving
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money in order to buy a house after 10
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years but along the way your age has
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also increased so you should have
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rebalance your portfolio and allocated
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more of your money towards debt but
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majority of us fail to make these type
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of asset allocations and move from
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riskier to slightly risk-free assets so
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this is a critical mistake that we make
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as retail investors and we need to be
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cognizant about it so here you have a
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couple of options one is that with every
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passing year you should allocate a
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little bit more money to your rate so
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this is point one point two or option
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two is that you can check a list of
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small cases i am putting it in the
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description box those kind of small
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cases you could consider investing in
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and as your goal based time horizon
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comes near these small cases will give
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you timely reminders to rebalance your
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portfolio now many of you might ask me
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that akshat how do you personally do it
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and why now very very genuinely speaking
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i don't do goal based investing now why
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is that allow me to explain so first and
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foremost over the years i have built a
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big corpus whatever emergency fund i had
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to allocate i have already allocated it
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whatever money i make now i am a
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slightly risky investor i invest in
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growth assets i do not have a defensive
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portfolio at all is that sensible it
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really depends on the type of a person
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you are what work you are doing what
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your income streams are etc etc but in
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my case my primary goal is freedom in
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life i have been a staunch advocate
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about having freedom in your life and
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for that i need to be an aggressive
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growth investor therefore i invest
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aggressively in different set of assets
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is that strategy for everyone the answer
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is no but if you want more clarity on my
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strategy here it goes whatever money i
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make i try to invest maximum amount of
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it now why is that the case because i
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feel that i can convert the money that i
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have into more free time and the more
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free time i have the more freedom i will
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have so that is the perspective with
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which i am approaching the entire
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investment journey for myself i am not
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saving and investing to go take a trip
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to europe or go take a trip to bali all
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that stuff no that is not the goal with
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which i operate i am operating simply
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with the viewpoint of creating more and
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more freedom for me so this brings me to
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my second strategy that you need to
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understand the assets that you have and
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you need to truly optimize those assets
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so according to my understanding there
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are three types of assets that you have
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one is that you have time this is a
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critical asset and a finite asset that
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all of us own second is the money
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because if you have money you can pour
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in that money put in that money make
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more money out of it and third is your
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skills because if you have skill then
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you can improve your per hourly rate or
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your earning potential or create more
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income streams so there is a strong
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confluence between these three different
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assets let me explain by using a couple
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of examples so imagine if you're a
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college student what will you have a lot
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you will have a lot of free time if you
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are in college or school please don't
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tell me that you know in college i'm
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like super busy organizing like tech
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fest this that no colleges are
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completely villa at least majority of
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the colleges students are completely
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willing in college so please don't tell
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me that hey you know what i'm like time
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poor while i'm in college no one is
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everyone has crazy amount of time in
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college if you are time poor in college
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then it probably means that you are
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wasting time let me know this is a very
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very honest conversation but yes you are
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time rich but in college or school you
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are money poor so you don't have a lot
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of money in school
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but if you are skilled for example if
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you pick up certain skills like video
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editing or if you learn how to do
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graphic designing then you can use your
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free time to make money so what you have
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essentially done is that you have
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utilized your free time use your skill
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to make money an asset where you are
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poor now juxtapose this with when you
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are working in a corporate world so the
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word of the day today is juxtapose let
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me know what does that mean so when you
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are in the corporate world what happens
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is that probably you are money rich i am
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using the word probably so probably you
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are money rich but most likely you are
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time poor so what can you do you can
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again upskill you can become very
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efficient in the work that you are doing
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and if you are efficient that would
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allow you to create more free time so
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that way you will become time rich also
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and money rich also so if you understand
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all these three different ecosystem
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which is the time ecosystem money
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ecosystem and scale ecosystem and become
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really good at it then it leads to
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something called as having more freedom
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because you need to step back and ask
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yourself that hey why am i going to
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office like from morning to evening why
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am i upskilling why am i watching
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aksha's video the end goal has to be
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freedom the end goal cannot be that you
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know what i just need like more money or
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i just need more free time it has to be
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a combination of all these three
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different skill sets that i talked about
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because if you have all these three key
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things sitting more time more money more
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skills that is when it leads to more
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confidence and freedom now comes a third
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common sensical point which you must
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follow in order to preserve your wealth
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or grow your wealth this third point is
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that please do not invest in get rich
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quick schemes and to prove this i will
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give you two examples one from stock
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market and one from crypto market yes so
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we are going to talk about cryptos also
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so from the stock market there was a
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share called as bright com group i had
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talked about this share made a video a
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few months ago warning people that hey
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this looks like a manipulated stock why
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did i say it here's an entire video you
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can go watch the link and understand it
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more but essentially according to me the
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company was not clear with accounting
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there was no reason for such a massive
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price rise in the stock but nevertheless
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people jumped on board they jacked up
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the prizes in fact sebi very recently
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ordered a forensic audit of that company
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and after that interestingly the share
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prices rose again and now they are
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falling so the point is that why do
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people get into these type of stocks the
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reason is that people want to make very
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quick money please do not invest in any
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asset class any particular stock to get
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rich quick the most sensible way of
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getting rich is understand business
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analysis understand stock and crypto
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analysis and only the assets in which
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you have confidence which you can
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understand please take positions in them
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only which brings us to the second
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example that akshat crypto seems like a
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get rich quick scheme why do you keep
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talking about cryptos crypto is like
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voldemort currency crypto is bad this
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that okay so let us quickly discuss
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cryptos also i myself have advocated the
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viewpoint that 99 of cryptos are bad
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cryptos in fact 80 85 percent of stocks
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are also bad our job as investor is just
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to invest in good asset classes stay
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diversified and within those asset
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classes we need to pick the best assets
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possible so that is the goal with which
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you should go and take positions in
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every asset class that you are bullish
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about so bottom line here is that please
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don't invest in get rich quick schemes
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your job should be to identify good
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asset classes whichever asset classes
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you feel are good i don't need to tell
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you that whichever you are comfortable
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with please take positions in those
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asset classes and within those asset
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classes identify good assets please
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don't try to identify the next big
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multibaggers and all that stuff it might
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not help now the fourth strategy or the
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fourth key piece of advice that i will
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have for you in order to become wealthy
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is
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think long term think sustainable let me
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help you understand that point from a
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more physiological perspective so do you
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know the difference between insects and
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humans there are many differences but
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one key difference is that humans can do
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something called as next string so next
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thing simply means that we have that
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second layer of thinking that is
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available to us we can think imagine the
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future we can do prognosis of things so
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that is what next thing means and no
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other insect or no other mammal is able
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to do that so therefore it is very
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important for us to use this human power
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to think long term now you might say
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akshat this looks like very pravachani
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you are giving traverchans now and can
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you give an example of when people do
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not think long term i can give you 100
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examples but let me give you an example
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with which all of us can relate it is
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about mba education for example if you
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go on linkedin or if you go on twitter
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people will keep talking about that you
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know what college education is useless
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mba is like so expensive or i did my mba
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from this particular business school and
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my fees was 25 000 and i got a package
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of 25 lakhs so look at how great the roi
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of my mba was yes and this is the exact
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same discussion that you will keep on
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hearing from people and this analysis is
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completely wrong why because whenever
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you are investing in any skill it's not
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as if that it will give you immediate
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returns it takes time for that skill to
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compound you becoming better at it you
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gathering more experiences and then it
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starts giving you returns for example i
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left my management consulting job in
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2018 and i started my youtube channel in
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2021 now the skills that i use in terms
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of running this youtube channel they are
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all management consulting driven be it
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business analysis be it structured
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thinking be it bucket oriented framework
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speaking these are skills that have
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compounded over time and have given me
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more returns now compared to the returns
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that i was making in 2018 so whenever
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you are investing in any skill please
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think about it from a long term
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perspective think about a skill that you
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are going to use in the long term if you
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are making a study abroad decision or if
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you are making a decision to drop out of
[802]
college or not drop out of college think
[804]
about from a long-term perspective yes
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your decision might be right in order to
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drop out of college or not pursuing an
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mba or pursuing some other degree but
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all these decisions are long-term driven
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another example is short-term thinking
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when it comes to running a startup many
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vcs that i have spoken with and many of
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them reach out to me also that akshat is
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there a way we can invest in your
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company etc etc i say no because i want
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to have the flexibility freedom to build
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my businesses my goal is not to build a
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unicorn if i want i can raise crazy
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amount of funding for the ventures that
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i'm building i'm not saying this to
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boast i'm genuinely telling you i can
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raise crazy amount of funding for the
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ventures and beat around that you know
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what i have raised this amount of fun
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that amount of fun but that impacts my
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long-term sustainability that is the
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viewpoint with which i am operating i am
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telling you these points because many a
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time students reach out they are running
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their startups their only goal is to
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raise funding as fast as possible please
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do not fall into that trap please think
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long term that will allow you to build
[862]
wealth now comes the fifth and final
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trick in order to get wealthy which is
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called as generating visual cues what
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does that mean this is very interesting
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so i will use an example here so when it
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comes to saving for example if i earn
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let's say one lakh rupee a month and if
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that money is sitting into my bank
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account i will feel very happy that hey
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money is sitting into my bank account
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i'll feel super related i will feel rich
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and probably then i will have less
[887]
incentive to work why because imagine a
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scenario where that one lack rupee keeps
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on hitting my bank account it has been
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24 months now i have aggregated like 24
[895]
lakhs i feel very very confident about
[897]
my skills everything good good is
[899]
happening so what would i do i will get
[901]
complacent i'll get lazy so therefore
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it's very important for me to generate a
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visual queue by not keeping that money
[908]
in my bank account at all so i would
[910]
pick up that money and i would invest it
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month after month month after month and
[914]
create a separation between me and my
[915]
money in the form of investments in the
[917]
middle for example if i'm investing in
[919]
commercial properties or if i'm invested
[921]
in some stocks or mutual funds it's not
[923]
as if that i will keep on tracking that
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portfolio so the goal of investing for
[927]
me become to create a space between me
[929]
and my money so please don't joke and
[930]
put a comment below that hey if you want
[932]
to separate you from your money how
[934]
about you give us your money right so
[936]
yeah funny joke but i'm not going to do
[937]
that but i hope you get the picture that
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if you create a distance between you and
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your money in the form of investments
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then it gives you more incentive to work
[946]
now the same visual cues also apply to
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spending for example there is a reason
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why i do not like spending money in
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plastic form very rarely i will use
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debit card and i don't even own a credit
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card so very rarely i will spend plastic
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money or even do transactions via upi
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why because try doing this exercise so
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go to a random city whenever you get a
[966]
chance to travel if you are traveling to
[968]
goa for vacation do this exercise take
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10 000 rupee out from an atm and try to
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spend that money vis-a-vis try spending
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plastic money you yourself will see the
[978]
difference that you will feel a lot of
[979]
pain spending this 10 000 rupee here
[981]
vis-a-vis here by a plastic money why
[983]
does that happen because it creates a
[985]
visual stimulus so in essence five rules
[988]
that we studied today number one please
[990]
don't go crazy about goal-based
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investing you need to be super careful
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whenever you're doing goal-based
[995]
investing second key point you have time
[997]
money and skills as your three prime
[1000]
assets optimize it utilize it really
[1002]
well third don't invest in get rich
[1004]
quick scheme please always focus on
[1007]
growing your wealth sustainably and in
[1009]
the long term fourth think long term
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that is the competitive advantage that
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we have as humans fifth and finally
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generate visual cues it will help you
[1017]
get better with your investments and
[1018]
also your spending so coming back to the
[1020]
initial question that i asked that which
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option will i pick option a where i'm
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earning one lakh rupees but only getting
[1026]
one hour of free time wizard is earning
[1028]
50 000 but getting four hours of free
[1030]
time what do you think so my answer
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there will be obvious that i will go
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with option b why because i will value
[1036]
that four hour more i will utilize it to
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create more skill set and utilize those
[1041]
skill sets to generate more money in the
[1043]
long term i hope you enjoyed the video
[1045]
please press the like button and also
[1046]
share it with your friends and i will
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see you the next time
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you
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