Table of Contents of the Book: 8170948762



Chapter 1: Introduction: The Road to Financial Freedom

Why You Should Read This Book

Purpose of the Book

Why Do You Want to Stay Poor?

What is Stopping You from Earning Money and Growing

How to Grow and Stay Rich

Am I Qualified to Write Such a Book?

My Mission in Writing This Book

No Retirement Planning in This Book

Money Cannot Solve Your Problems

Chapter 2: Commandment 1: Thou Shall Make a Proper
Asset Allocation Plan

Importance of Asset Allocation

Take Charge of What is in Your Control

Understanding Economic and Business Cycles

Take the First Step — Resolve to Make a Plan

The Different Asset Classes

Asset Allocation is Successful When You Invest in
Non-Correlated Assets

Determining Your Ideal Asset Allocation Plan

Model Asset Allocation Plans

Some Other Considerations in Asset Allocation

Reviewing and Rebalancing Your Asset Allocation

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 3: Commandment 2:Thou Shall Earn the Right Category
of Income and Protect Your Money from Predators

Income Earning Categories: All Incomes Are Not Equal

Legal Financial Predators

Legal Financial Predator 1: The Government

Legal Financial Predator 2: Bankers

Legal Financial Predator 3: Brokers

Legal Financial Predator 4: Corporate Retailers

Legal Financial Predator 5: Residual Category

Level 1 Protection: Your Income Earning Category

Level 2 Protection: Your Income Earning Vehicle

Mutual Funds: Protections from All Investment Robbers

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 4: Commandment 3: Thou Shall Do Proper Budgeting

What Exactly is Budgeting?

Surplus and Deficit Budgets

Achieving Budget Surplus

Reviewing Your Financial Status

Budget Deficit or Surplus — The Choice is Yours

Rules for Creating a Budget Surplus

Measure Saving as Percentage and Expense in Absolute
Rupee Terms

Spending Your Way to Riches

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 5: Commandment 4: Thou Shall Not Commit These
Financial Mistakes

Common Financial Mistake 1: Sunk Cost Fallacy —
Throwing Good Money After Bad

Common Financial Mistake 2: Dealing Differently With
Profits and Losses

Common Financial Mistake 3: Loss Avoidance

Common Financial Mistake 4: Mental Accounting

Common Financial Mistake 5: Decision Paralysis

Common Financial Mistake 6: Selective Thinking

Common Financial Mistake 7: Endowment Effect

Common Financial Mistake 8: Buyer's Remorse

Common Financial Mistake 9: Confusing Saving with

Common Financial Mistake 10: Bigness Bias

Common Financial Mistake 11: Believing that Experts
Can Consistently Beat Normal Market Returns

Common Financial Mistake 12: Over Confidence

Common Financial Mistake 13: Under Confidence

Other Common Financial Mistakes

Lessons From This Commandment

Self-Understanding Questionnaire

Appendix 5.1: The Incredible Human Brain

Chapter 6: Commandment 5: Thou Shall Remember These
Principles While Investing in Equities and Fixed Income Securities

Determinants of Equity Returns

While You Buy Stocks, Businesses Sell Stocks

Factors That Drive Stock Prices

Investor versus Speculator

The Investment Cycle

Are Equities Risky? Understanding the Difference
Between Risk and Volatility

Equities Help You Beat the Biggest Risk of All —

Equities and High Interest Rates

Different Techniques of Equity Investing

Equity Investing Lessons from History

Bear Market Bottoms

Lessons from Bear Market Bottoms

Different Market Phases

11 Common Mistakes in Equity Investing

Characteristics of Successful Equity Investors

Classic Equity Investment Principles

The Determining Factor — Psychology of Equity

Investing in Fixed Income Securities

Lessons From This Commandment

Self-Understanding Questionnaire

Appendix 6.1:The Madness of Crowds

Chapter 7: Commandment 6: Thou Shall Use the Power of
Positive Leverage


The Magic of Positive Leverage

Is Leverage Risky?

Positive and Negative Leverage

Characteristics of Positive Leverage

More Cash Flow, Positive Leverage, Higher Returns —
Money From Nothing

Never Leverage for Portfolio Income

Never Leverage with Margin Money

Inflation is Your Partner With Positive Leverage

Unleashing the Ultimate Power of Positive Leverage

Create Your Own Investment Assets

Rental Real Estate Has the Highest Leverage Factor

Know the Difference Between Cheap and Costly

The Most important Leverage of All — Your Financial

Are You Caught in a Debt Trap?

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 8: Commandment 7: Thou Shall Buy Your Own House
for Self Occupation

Is Your Own House An Investment Asset?

You Own House Is a Bad Capital Asset

Your House — Whose Investment Asset?

How Should You Finance Your House?

Fixed or Floating Interest Rates?

The Best Time to Buy Your House

Who Should Own Your House?

Should You Consider Shifting to a Bigger House?

The Break-Even Price of Your House

Will Your House Appreciate in Value?

Factors Influencing Real Estate Prices

Factors Influencing the Price of Your House

Rental Real Estate

Brokers and Property Managers

Avoid the Wealth Effect Trap of Your Owned House

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 9: Commandment 8: Thou Shall Not Over-Invest in
Speculative Items

What Is a Speculative Item?

Different Types of Investments

Speculative Items


Determinants of the Price of Gold





Self Occupied House / Non-Rental Real Estate / Land

Club Membership

What Do You Invest For?

Should You Invest in Speculative Items At All?

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 10: Commandment 9: Thou Shall Take Proper
Financial Insurance

We are Constantly Insuring Ourselves Against Every
Possible Catastrophe

Financial Insurance

Other Important Categories of Financial Insurance

Insurance is Either Getting Everything Or Nothing for

Never Confuse or Combine investment with Insurance

What To Do With Your New-found "Wealth" — the
Insurance Claim Money?

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 11: Commandment 10: Thou Shall Learn the Rules of

Money Rule Number 1: Money is Not the Solution to the
Problem of Money, Financial Knowledge is

Money Rule Number 2: Be the Master of Money

Money Rule Number 3: Don't Run After Money

Money Rule Number 4: Invest Time Before You Invest

Money Rule Number 5: Be In Control of Your Money

Money Rule Number 6: Don't Work for Money; Make Your
Money Work for You

Money Rule Number 7: Understand the Nature of Your
Incomes and Expenses

Money Rule Number 8: Spend Money and Grow Rich

Money Rule Number 9: Recognize the Actual Money
You are Dealing With

Money Rule Number 10: Invite Good Money and Drive Out
Bad Money

Money Rule Number 11: Don't Be Afraid of Money

Money Rule Number 12: Money is Unfair

Money Rule Number 13: Print Your Own Money from
Nothing — It's Available In Abundance

Money Rule Number 14: Learn How to Deal With Money

Lessons From This Commandment

Self-Understanding Questionnaire

Chapter 12: Financial Freedom: Putting All the Commandments

Stage 1: Earning Money

Stage 2: Protecting Your Money

Stage 3: Budgeting Your Money

Stage 4: Saving Your Money

Stage 5: Spending Your Money

Stage 6: Leveraging Your Money

Stage 7: Investing Your Money

Stage 8: Insuring Your Money

Chapter 13: Battling Against Yourself

Why Do We Battle Against Ourselves?

The Psychological Battleground

The Enemy's Troops

Your Troops

Failing Forward — Journey from Initial Failures to Final

Inspirational Success Stories of People

What Is Holding You Back?

Winners versus Losers

Steps to Become a Winner


Chapter 14: If You Can't Give, You Won't Be Able to Receive

If You Can't Give, You Will Not Be Able to Receive

You Owe It Back

Even If You Don't Willingly Give, It Will Be Taken
From You

Our Mission on Earth

Don't Feel Great, Be Grateful

So Poor That Their Only Possession is Money

Don't Just Give a Fish, Teach Fishing

Succession Planning

It's Cool to Give Back

What Will You Permanently Take With You?


Personal Spiritual Mission

All the Best

Glossary for the Financially Free