Make money with a strong foundation
As the procedure of making a building, first of all, a solid foundation is made as per requirement. Strength depends on how many floors will be made. Strength of foundation is increase for 2 storeys to 100 storeys. Because it faces a high burden of loads and different kind of risks. For example, for 2 storey building, there is no need to calculate wind load but it becomes very important for 20 to 100 storey buildings. So higher risks are involved in skyscrapers. It doesn’t mean that one should not build a tall building but it should be made with strong foundation and safety factors.
It is also true in case of making money. Most of the people run towards money in whole life. They become a collector of money. There is no problem in it, if it is their a passion or hobby. But the real problem is that they do this without making a strong foundation. And one day because of different kind of risks, the building of money collapse.
Why it is happening? It is happening because of time and risks. First of all, one should remember that circumstances will be never same as like today. If one looks into the past 100 years. It is seen that in every five years conditions become different. In the long run like 15 to 20 year, each kind of condition (economic, political, social, and environmental) became totally changed. Therefore time is the biggest threat to your building of money.
The second thing which is important to understand is risks. As your build building of money as high your risk factors are increased. It means threats increase less as go 1 lakh to 1 crore but high as you go 1 crore to 1 lakh crore. For example, up to 1 crore asset value, there is less tax burden on you, but when the value & income of your assets go beyond 1 crore your tax burden increase. It means management of tax liability is much difficult for high rise building of money.
Therefore if one wants to make the building of money, then he should make its foundation as strong as required. Its strength should be increased as high as high rise building of money. It means one should go through the legal and right system to collect money. For example, maximum doctor earns 1 to 10 lakh per month from their private clinic O.P.D. but they show less amount of income in an income tax return and they save service and income tax both. Because of this their whole hard earned money become black money. But in a storm like demonetization (8-11-16) whole money vanishes. While if they give full taxes, they at least save 50-60% of the money. So what is more important money 100% black money or 50% white money. That is the weakness of swallow foundation of the building of money. This is not only true for doctors but also for all individuals, NGO, companies, etc.
Therefore as one goes higher and higher in making money of building. He should keep his accounts cleaner. And also follow norms and rules and regulation which are required. This may your money building may have some storey less but it will never be a collapse.
As per money makes thought, they collect money for themselves and for their future generations but they can use whole life if it is collected with solid foundations. A good solid money building is made with regulatory and social responsibility only. There is no short cut of it.
Strong money building has secondary benefits also like. If money is seen in a balance sheet. It becomes mentally and morally more supportive of him. And second, he can raise more fund from the market and take benefit from leverage ratio. Third in social status will be high. Forth he can live relax and tension free life. Fifth he can become mere relax for the future generation if they can handle it or not. And at last his and his future generation’s future will be always bright.
Therefore make money building, but the first good foundation of it. Always pat your strong foot with following all rules and regulations. Beside this fulfill your social responsibilities also, so that good wishes also included in strong foundations.
