DON'T RETIRE RICH

Monday, 28 November 2022

DO REVERSE EMI TO BUY YOUR MERCEDES




The New Mercedes Sales Head
STOP SIP AND BUY MERCEDES IN EMI!!
He wants to bring the American Culture of living in DEBT (EMI) throughout out and then slog day and day

What matters is WEALTH first

Luxury comes by default

Investors should focus on Creating Wealth

Not showing Luxury by buying a Merc on EMI and keep slogging for the next 5-10 years paying off the EMI

 

And why should a layman buy a depreciating asset to just show off rather than CREATING Assets and Getting himself Financially secure with an Equity Mutual fund where his wealth is growing.

 

And an EMI into a Mercedes is not only bringing my asset price DOWN but also has OTHER expenses like the Annual Maintenance, Insurance, etc

 

DEPRECIATING ASSET:

Mercedes people don’t even know that a 50k EMI will give

 

At 12% returns, this is what a Rs 50,000 monthly in SIP can do over the years –

5 years of Rs 50,000 monthly SIP = Rs 42 lakh

10 years of Rs 50,000 monthly SIP = Rs 1.1 Cr

15 years of Rs 50,000 monthly SIP = Rs 2.5 Cr

20 years of Rs 50,000 monthly SIP = Rs 4.8 Cr

 

The cheapest Mercedes comes at a cost of 50 lakhs and with all accompaniments will easily cost Rs.60 lakhs when it lands at your doorstep.
Moreover, its huge annual Maintenance and Insurance costs mean you need a backup of Rs.2 lakhs annually

So, 7 years of SIP will get you Mercedes (and this is the cost of Mercedes SAME at that point in time!!)



If Mercedes is indeed getting affected by Mutual Fund SIPs, they are knocking at the wrong door

Actually, only 4.5% of India's population invests in Mutual Funds, whereas nearly 50% of the money is actually going into the MOST ILLIQUID ASSETS .... Property

and 15% is into FDs

Let the Mercedes team tackle the EMI in property, they will be much better off

Maybe the Mercedes MD will say Your HOME EMI is our competition.... please stay under the flyovers and roam around in a Merc!!!

 

EMI HAS BECOME AN HABIT


EMI, especially the Home Loan EMI has become an HABIT engrained deep into the Indian Middle Class DNA
The thinking (obviously, wrong thinking) is that EMI for a Home is good and gets respect from Friends and Relatives

Breaking this Home Loan EMI for Mercedes is proving next to impossible so he is looking for Low Hanging Fruits which is obviously is Mutual Fund Sips

 

JIM CRAMER EXAMPLE


Host of the popular CNBC shows in America "MAD MONEY" and "INVESTING CLUB", Jim Cramer lived in his 2nd hand small car Ford, stayed disciplined with his investment and Jim says, his investment in Equities via Mutual funds made him a Multi-Millionaire and NOT BUYING LUXURIES TO SHOW OFF.

His advice which he himself religiously followed was 

"Your first $10,000 (approx. Rs.8 lakhs) must compulsorily go into Equity Mutual funds and only AFTER THIS wherever you want!”

 

Our Indian Mutual Fund Investors focus is on BUILDING WEALTH not SHOWING OFF UNWANTED LUXURY WITH BORROWED MONEY!

They are not #PaisaWiseRupeeFoolish

Indian Investors have decided that they "DONT RETIRE RICH"

Indian Investors are now guided by "WOW=WEALTH OF WISDOM"

 

We believe that Happiness is not in roaming around in Mercedes but in having an EMI-FREE LIFE!

The peace of a Debt free life is heavenly and irreplaceable

BEING FRUGAL is one of the secrets of Wealthy People. It’s a vital #WealthyHabits

Mark Zuckerberg worth $33 billion drives a $30k Volkswagen GTI car

Google co-founder, Sergey Brin still shops at Costco

Wipro Chairman, Azim Premji still drives an inexpensive car.

No need to impress people with your richness. What matters is YOUR COMFORT.

Period

We MFDs are the AMG to our investors

AMG = Advisor / Mentor / Guide

 

Just because we make them save doesn’t mean we ask them to LIVE POOR AND DIE RICH

We definitely make sure that they enjoy life, and have all the luxuries but all this with PEACE OF MIND

And this Peace of Mind comes NOT WITH ANY EMI but 100% this Peace of Mind comes when you have a DEBT FREE LIFE AND OWN ASSETS WITH YOUR MONEY

 

That’s exactly what we educate
That’s exactly what we aim
That’s exactly what we help our investors achieve!!
SIP IS WEALTH CREATION
EMI IS WEALTH DESTRUCTION

 

 

EMI kills
SIP thrills

Do REVERSE EMI by investing in SIP

WHY SIP and why not an EMI....
Lets see the points...


1.
By investing in SIP...you are actually CREATING a corpus wherein you can buy ASSETS with your own instead of BORROWED future earnings which can be hugely stressful.
Know what....SIP will also help you benefit from COMPOUNDING and actually create WEALTH
An EMI will do the reverse......your money is GONE....the asset you bought is depreciating and the all the future earnings are not being enjoyed by you but going to service the EMI.


2.
One of the worst decisions that many make is
TAKING A VEHICLE ON EMI
By the time your EMI ends (normally 3-5 years), the price of the vehicle would have become more or less ZERO due to depreciation and you need to go for an EMI again!!

3. A Sip can always be STOPPED in between in case of any financial difficulties you may have but an EMI cannot be stopped. If you skip paying any EMI...the charges and penalty are levied and you are burdened even more!!

Think TWICE before going for an EMI

Which is better?
EMI or SIP?

What kind of person you are, determines which to choose.


Is it?
You :
Save, only where there is a forced liability-EMI
Save, with a purpose and goal in mind-SIP

Save, only to meet a Lifestyle-EMI
Save, to meet Your Life Goals-SIP

Asset depreciating, in Value-EMI
Asset appreciating, in value-SIP

There are many.
You decide.
You choose.
EMI or SIP :-)

SIP IS A GOOD EMI

Do not stop your SIPs during times when market comes down. 

Keep continuing your SIP. You get allocated max units when market comes down. 

Which, in turn, gives you the highest return when market goes up, which it eventually does.

 


SIP helps you
1. in Developing Financial Discipline by inculcating the habit of SAVING.

2. Your Financial dreams can be achieved with your OWN money and not borrowed money

3. NO STRESS!!!!!!!!!!!!
EMI results in DEBT

4. NO need to worry about Market Levels as SIP buy MORE at lower levels and buys less at Higher levels.

5. Helps you to enjoy POWER OF COMPOUNDING


6. VERY IMPORTANT - WITH AN EMI, YOUR COST IS ALWAYS HIGHER. WITH A SIP, YOUR COST OF A PRODUCT THAT YOU PURCHASE IS ALWAYS AT ACTUALS and sometimes even at a Discount as a Seller always prefers Immediate Money and Later Money (like an EMI).

7. In an EMI....you PAY interest...
    In a SIP........you EARN Interest

8. You have NO control once you take the EMI....
For every little change in your life like changing a job, changing your residence, or buying another asset....you will have to think so many times due to your unavoidable, must-pay EMI

9. Control over Asset Allocation.
Once you have taken EMI...you cannot change the Asset and the debt outgo will be there
With a SIP, you can always control where to invest (Equity, Debt funds, Gold funds, International Funds, etc)

EMI is PRISON 

 

SIP is FREEDOM.

 

Indians have now learnt and understood that its better to invest in APPRECIATING ASSETS (Equities) and not DEPRECIATING ASSETS (Cars) !

There is a saying

"WHEN YOU HAVE THE MONEY TO BUY 7 CARES, THEN YOU BUY YOUR FIRST CAR”!!

I have a simpler version of this
“WHEN YOU HAVE CASH (SURPLUS MONEY) TO BUY DOUBLE THE COST OF WHAT YOU ARE BUYING…THEN YOU CAN GO FOR IT”

 

A Luxury car like a Mercedes comes only AFTER you have bought (or provided for) important financial goals like Children’s Education, Children’s Marriage, Own Home, Retirement Corpus, your Healthcare Corpus, etc. You need a car to transport from 1 place to other and if a simple Maruti/TATA car do, why do you need a Mercedes Benz unless you want to show off?

MERCEDES, PLEASE KNOW THIS…
 It’s only the SIP investments that create wealth and later lead them to buy more Mercedes. So, stop barking at the wrong door!!

Don’t cut down the tree giving you fruits!


Remember the above image
Again its an EMI but the Real Estate Developer cunningly uses the word SIP
So...friends, beware SIP is under eyes of Destroyers of your Wealth
SIP is the panacea for your financial goals. 
You only get stress, fear, and false pride by Showing Off.

Don't Retire Rich, Retire Wealthy by adapting Wealthy Habits and Wealth Of Wisdom



All the best

Srikanth Matrubai

Author - Dont Retire Rich

and

WOW-WealthOfWisdom
















 





All the best,
Regards,
Srikanth Matrubai
MUTUAL FUND DISTRIBUTOR
REBALANCE VOLATILITY CERTIFIED COACH
Srikanth Matrubai, Author of the Amazon Best Seller DON'T RETIRE RICH


You are strongly encouraged to consult your financial planner before making any decision regarding this investment. The views expressed here are the author's personal views and should not be interpreted as a recommendation to invest/avoid.

 
Srikanth Matrubai Author of the Amazon Best Seller DON'T RETIRE RICH

Do read the book and give your valuable feedback and request you to post positive comments on Amazon. https://amzn.to/3cHUM6M/ 

You can purchase the book on Amazon and Flipkart 

For the best of ideas on where to invest to create Mountains of Wealth 
join my TELEGRAM channel
WEALTH ARCHITECT
    https://t.me/joinchat/AAAAAELl4KUnaJzi-JJlDg/

No comments:

Post a Comment

BOOKS BY AUTHOR

Recent Most Popular Posts

SAY NO FILL IT-SHUT IT-FORGET IT POLICY

Regular Portfolio Reviews Essential for Your Financial Success Just like a plant in Garden need regular care to flourish, our portfolio and ...