By: Tarun Prakash Srivastava, Sr. Executive Editor-ICN Group
You can make your financial map according to your circumstances and interests, but for success, marking financial goals and achieving them are extremely important.
While studying this episode, there may be some questions raised in your mind. There are some such questions in my mind from the very beginning also, and I find it necessary to present the answers to those questions for you. Let’s also meet those questions here:
Tax obligation is not shown in the presentation:
It is true that whenever Saksham shall receive his income, he will have to pay the fixed income tax on that income and also the capital gains tax will be levied on the benefits received from the real estate. I have just presented a straightforward picture with the purpose of simplification and to protect you from unnecessary complexity. If you talk to your tax consultant, you will know that there are many options to save tax on income, but my advice is that such an opportunity should not be for having exemptions from income tax only, but at the same time, it should be favorable to the long-term use of that investment and also helpful to your future financial plan also.
There is also a provision to avoid the payment of tax on Capital Gain up to a reasonable extent if such sale-price is kept in the capital gain account in banks and within a certain period, this money is used to invest in real estate. Even then, my advice is that it is necessary to take advantage of the services of qualified consultants on such occasions, as the provisions related to tax vary from time to time according to the economic system of the country.
The cost of yearly maintenance of Saksham is not included in the presentation:
It is also true that responsibilities of maintenance of Saksham and his family shall be met out of this income. In the first fifteen years, Saksham is achieving its goal only from the saving fraction of its salary.
About financial illustrations after fifteen years, I again argue that the above presentations have been created only for the purpose of emancipating complications and expressing the potential for money acquisition. However, if you wish, at every level of goal achievement, you have seen that the percentage of goal achievement is more than the expected percentage and after completing 100% of this additional amount, other obligations can be met easily.
In the presentation, only the real property is included for the additional source of income:
I do not accept this allegation a prudent charge. Every person uses different means of investment and investing in real estate is also a good and probably safe medium, although, I have also opted for other suitable beneficial investment in all the above maps, but when in the stock market, the changes are seen very swiftly, the real estate market seems to be moving in a steady but upward way. Although many options for investment will be in front of you, my advice is to use the services of qualified consultants in the area so that you can reduce the possibility of insecurity and loss.
Finally, I say that all the above presentations are just directional and it introduces you to the art of building your path to reach your financial goals only. You can make your financial map according to your circumstances and interests, but for success, marking financial goals and achieving them are extremely important.
There is an important and well-known rule of the world of wealth – How much time is taken to make Twenty rupees from Ten rupees; it does not take as much time to make two million rupees from one million rupees. The direct reason for this is that after a limit, your money becomes self-contained in the ability to earn money and then your money starts generating money even without your active help. When the benefit of forty percent on ten rupees means only four rupees, at the same time, the benefit of forty percent of ten Lac rupees is the construction of new property worth four Lac rupees.
When I prepared my financial map, I also added a one-time futuristic plan to successfully deal with the financial hurdle of the future, and after that, also ensure the security of the financial success of those schemes.
Perhaps the phrase “security of success” is not only just new to you but it is very curious also to understand its true meaning. This is a very important principle, and I will open the pages of this principle in the next halt for you. Hopefully, you will be meeting soon at the next stop because you have been a friend of mine now and you will also enjoy learning about important lessons of life with a friend.
Tarun Prakash Srivastava
From my book ‘Science of Money’ available on Amazon.com in English at http://bit.ly/Science-Of-Money and in Hindi at http://bit.ly
