Aravind Arul

Ambani draws 0 salary from Reliance. Many billionaires follow the same route, the reason being: Smart Understanding of Money. The Rich are Rich not just because they know how to make money. They know how to use that as leverage. PS: I have posted another note covering all key doubts on this. Check it out if you have more questions :) Let me break it down: [1] Every big founder owns a major stake in their company. And this is through equity in that company. Now as we all know these are not liquid until you sell off the stocks (except for dividends). But if you do, there are 2 issues: - You pay capital gains and income tax on it. - It looks bad for the company if the owner sells the stake continuously. [2] But they have one option. To borrow against their shares. This simply means using these shares as collateral. This way you are not taxed. Since you are working with Debt. [3] In an ideal situation. Their stock price can go up, even faster than the loan rates. Plus they have easier access to debt (at better rates). So they can always use more Debt to pay off these loans. [4] The core principle is that they will always be remunerated through shares and stocks. And this is NOT WRONG. It's just being smart with the cards you have been dealt. [5] On top of this, almost everything can be offset as expenses for them. Businesses have the leeway to offset their revenue before they declare profits. Whereas Individual Salaried Class pays Tax Deducted at Source (so we have no such exceptions). Note: I am not saying that Ambani does this. Just highlighting that this is a commonly known process that large businessmen employ to make smarter use of their income. Debt leveraged smartly can help you massively. But if you use it for unproductive spending (Bad EMIs), that could have repercussions. What are your thoughts? What other smart use of money have you noticed? PS: If you found this post valuable, please consider reposting ♻️! 🔗 For more content like this, explore my LinkedIn page: Aravind Arul

Educational Expense in India is Soaring! Half the fees don't even make sense: → Parent Orientation Charges → Annual Charges (Beyond Tuition) → Caution Money (For Nursery and Jr KG) Education now starts at 1.5-2 Lakhs a year. Is this a one-off case? Not really. And the only rebuttal is that: You don't have to send your kids to such fancy schools. (Which is somewhat correct). However, as folks become successful, their goal becomes to share this with their kids by giving them the best opportunities. But looking at how the fees are growing, No one outside the Top 0.1% will be able to afford such high expenses so early in their career. And that seems like the harsh reality in India! What are your thoughts? PS: If you found this post valuable, please consider reposting ♻️! 🔗 Follow Aravind Arul for more such insights.

Less than 5% of India's Population invests in Equities. But: E-commerce Users: 55.5%; OTT Subscribers: 35%. The lack of disposable income is not the only issue. It's the lack of Financial Literacy. Good news? → In terms of GDP, we are ranked 5th globally. → Our markets have outperformed over the last few years,  → The number of retail investors in the Stock Market has gone up. As per ICICI Direct, Demat Accounts (Accounts used to manage Stocks) have gone up from: → 36 million in 2020 → 160 million in 2024 However: [1] These are not Unique Demat Accounts. Most big investors have multiple accounts that they use. So, the number of unique investors would be much lower. [2] Short Term Investors Most users are here for quick money. (FnO, Trading). And because of the Euphoria. Most (70%) would be accounts with holdings under INR 10,000. All this will result in the total number of active investors in India being less than 3-4% of the population. Which is very low compared to: → US: >55% → UK: >33% → China: >13% What needs to happen? We need more Youth to focus on long-term money-making, And less on Debt and EMIs. What are your thoughts on this trend? PS: If you found this post valuable, please consider reposting ♻! 🔗 Follow Aravind Arul for more such insights.