Middle Class to Money Class

Ben Graham, my friend, and teacher, long ago described the mental attitude toward market fluctuations that I believe to be most conducive to investment success. He said that you should imagine market quotations as coming from a remarkably accommodating fellow named Mr. Market who is your partner in a private business. Without fail, Mr. Market appears daily and names a price at which he will either buy your interest or sell you his.”
– Warren Buffett

Why another blog on stock market investing, that too from a normal couple like us you may ask? We are not Dalal Street elite and certainly far from seeing success like Rakesh Jhunjunwala or Parag Parikh. Why even bother?

We started this blog to show that average investors are making a big mistake by shying away from equities, and our experience proves that success in the stock market is not really out of one’s reach.

Equity investing was our ticket to financial freedom. The stock market is your friend if you understand the rules and play a smart game taking a long-term view.

At the time we started investing, we gravitated to FDs like most fellow Indians. Fixed deposits are easy to understand, are risk-free, they come with expected returns, and they were the only investments that our parents had ever made. Boy! That did not consider Mr. Inflation, chipping away at the value of money. We dabbled in precious metals, real estate with mixed results and finally met Mr. Market.

Investing in equities was by no means easy. We had to learn a lot and burnt our fingers on some bad investments, luckily not too much. In the end, it was worth it, and we continue to have a significant equity bias.

Equity investing is not just about facts and numbers. It is equally about conquering your fears and emotions. There is no gain without pain, and the stock market is a great teacher. It is easy to be glib about the benefits of stocks when they are going up, but having the same belief when the stock you just bought is down twenty percent is the real test of your investing mettle.

It is crystal clear that with the vagaries of the job market, scrimping and saving is not enough. In these days of rapid change, building wealth and working towards financial independence is imperative. We must learn to make money work for us and not the other way around. In this blog, we will describe why the Indian middle class should invest in equities and generate good returns. We will describe our stock market philosophy built on a few simple rules. You can create a system too that works for you using these tips.

We must develop good money habits to secure our financial future. In this blog, we will write about money habits that have worked for us, and we are confident that they will work for you. The middle class has lived a lifestyle of living from pay-check to pay-check with little freedom to enjoy the life that they want for too long. True financial freedom is the way to achieve your dreams and pursue your passions. As Robert Kiyosaki said in his classic Rich Dad Poor Dad, “It’s more important to grow your income than cut your expenses. It’s more important to grow your spirit than cut your dreams.” Now get out there and achieve your dreams. Enjoy the journey Middle Class to Money Class!


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