If you are not born rich or if you do not possess the extraordinary talent or super intelligence that can make you rich, then welcome to the real world. Like most people in the world, money comes to you through certain other qualities, some you are born with and some that you can develop.
Do you have what it takes to become rich? Do you have the qualities that can take you to that goal? Take this test and find out. Answer each point in 'Yes' or 'No'. Count how many answers are in 'Yes' and how many in 'No'.
1. You have a broad financial road map defining you assets, liabilities and financial goals till say the age of 80-85.
2. Your first priority is save at least 10-15% of your income every month, without fail.
3. Your second priority is pay off credit card bills on the due date and not carry forward any outstanding balance.
4. You believe that investing is not a 100m race, but a marathon.
5. As they say death and taxes are inevitable; so is risk. Thus you learnt to proactively deal with risk rather than try to run away from it.
6. Term Policy and/or Mediclaim are the only insurance policies you have ever bought and are extremely allergic to Endowment, Moneyback, ULIP kind of policies.
7. You have never had to borrow money for any emergency.
8. Home Loan is the only loan you have ever availed.
9. You are as comfortable with interest rate jargon such as flat rate, monthly-reducing, zero-interest, advance EMIs etc., as you are say with slip, gully, mid-wicket, cover and so on.
10. You would rather give Rs.100 to a beggar, than to go and buy a lottery ticket.
11. You are a fair-weather friend of your investments - you dump them if they fail to meet your expectations.
12. You do not lose sleep when you lose money.
13. You do not get carried away by media hype about some investment opportunity; but first.read the fine print - the so-called 'Conditions Apply'.
14. You would have your weekend dinner outing in a small and decent joint rather than in a 5-star hotel; you don't splurge cash and are always on lookout for a discount/bargain offer.
15. You never invest in something you do not understand or are not comfortable with.
16. You buy your luxuries out of the returns from your investments and never from your current income.
17. You believe that hot tips, more often than not, burn a hole in your investments.
18. Budget for you is not just what our Finance Minister presents every year.
19. The allocation of your investments across various assets such as equity, debt, savings a/c, etc. is a true reflection of your financial profile.
20. You are not planning to go to Europe this summer, just because your neighbor Mrs. Showoff went for one last year.
21. You have never paid any penalty for not maintaining the minimum balance in your bank account.
22. Just as you don't like to sit idle, you don't let your money also sit idle for long in your bank account.
23. You feel sorry when you see thousands of investors naively putting thousands in the New Fund Offers.
24. You laugh every time you see a Mutual Fund proudly announcing a huge dividend payout.
25. Just as Sachin began his cricketing career at 16, you too began your investing programme when you were in your teens/early twenties.
If you have answered 'Yes' for 20 or more of the above, congratulations. You have a very bright chance of becoming a crorepati (millionaire).
But if the 'Yes' answers are less, then the road ahead is tough for you. Study the points where you said 'No'. These are not just statements. They carry a very important financial meaning. Try to understand these and convert them into Yes - through financial discipline.
So don't just dream - act - and you could also become a part of the rich elite. After all, patience, persistence and commitment are what it takes to get there.
The author is an investment advisor. He can be reached at sanjay.matai@moneycontrol.com.
For more on financial planning, log on to click here.
