Thread by @SandeepMall

Why creating wealth is not that difficult.

I used to live in a small town in W Bengal. There were no professional opportunities there those days. I tried my hand in couple of things and those failed. My family was reasonably well to do but career to banana tha

Through a family connect I got an opportunity to set up a manufacturing unit in Faridabad. Grandpa was never in favour of leaving the safety of home and risking capital in a new venture and in a new city. Dad was with me on this and we decided to try out.

I took an initial capital of 10L and moved here. That was a huge chunk of money and I couldn’t afford to fail. I moved alone with Mrs and elder son living with my parents back in Bengal. I rented a small 800 sq ft apartment and for first two years we had just one mattress,

no furniture, few utensils. The first principle I stuck to was live within my means here. I used to get 2200 salary and 1000 Rs was rental expense so was left with just 1200 a month for everything else. My Dad could have easily sent me more money but then the need to make

this industry survive would not have been there. We still maintain the same system. Boys having joined me also get salary and everyone leads their life in the salary they get. The four plants we have today are from the same capital I started with. Everything built with that.

Second point I learnt from grandpa was to write every expense with hand. So even if I purchased 250 gms aloo would write it. Mrs and Mom still write every expense they do. While these days everything comes in cc or bank statement but it does not effect mentally.

Every money spent even today is written even if paid by cheque/ cash or CC. That way we have a fair idea of where the outflow is and helps control expense. With living within means and controlling expenses, I started saving from day 1 into safe investments.

Within 8 years of moving here we built our home. Basic structure. And slowly and gradually adding what we could afford and what we needed. Never took a home loan because I am somehow not comfortable with loans. So maybe the dining table came in after 6-7 years of moving in.

Mrs joined after son was the age where he could live with his grandparents. Minoo really was my backbone and sacrificed a lot. Zero luxury and also leaving our son back home. We did spend lot of hungry nights but kept to the rule 1 to leave always within salary.

We never shopped anything because there was a deal or discount. It was always need based. If we needed at 165 ltr fridge and 210 ltr was just 2000 Rs more we would never go for it as the need was 165 and 2000 Rs saved us money going for future needs.

With rising income,I made another rule for myself to spend less than Itax I pay.That ensures I save 2/3rd &that goes into building wealth. I am yet to reach a stage where I can buy Rolex from my salary keeping these rules and that dream still remains to be fulfilled. Maybe soon.