Stock Market will Make you Wealthy

We informed our readers last week that Stock market won't make you rich in any way. Now, let's put another Truth on the Table  - 

Stock market wont make you rich but over time it will make you wealthy!

Before we proceed lets understand what Wealth is and what being Wealthy means. For that, once more, we will turn our attention to Mr. Housel and see how he defines "Being Wealthy" - 

"..and being wealthy is having the freedom to choose not to spend money"

Lets decipher this one by one, when being rich means having source of Income and spending it to show to people around us, Being Wealthy too means that we should have a regular source of income but not under undue pressure to spend it off to show others that you are Rich! 

Further lets look at some of the Characters of Wealthy people -

Wealthy people have incomes only as much as Rich do, sometimes they earn less than Rich do but they focus on saving  % of Income by living below their means and buying appreciating assets that help build long term wealth. 

So if you are someone, who has the above qualities, then Welcome to Stock Market, Well come to "Being wealthy".  Next, lets how in long term Stock Markets makes such disciplined people wealthy. Let's take an example of little known company called - Havells India and see how it has generated wealth for Long Term Investors. 
Just by staying invested in a stock, we would earn a monthly income of around 1 lac and this is on top of a 3.26 Crores corpus that you have. But this would have been possible only if you were disciplined enough to hold the stock for such a long time. 

Some of you might think that We have taken Havells as example with hindsight data... more on that in our next blog...

For financial planning and investment-related queries, write to us at dropletadvisory@gmail.com or call us at 9962399924 / 9551373455. Visit our website - www.dropletwealth.com




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