From the Rat Race to Financial Freedom. A Common Mans Journey.
Kumar, Jitender
From the Rat Race to Financial Freedom. A Common Mans Journey,
Manoj Arora, Jaico Publishing House, New Delhi, 2013, Price Rs. 299,
Pages 288.
The book Rat Race to Financial Freedom. A Common Mans Journey is
not only describing theoretical concepts but it narrates the common man
life's practical and endless journey for earning money and then
spending this money for better car, better house and better furniture
etc. By quoting his own examples and experiences author has described
that how one can achieve financial freedom. The first section of the
book "Wealth Myths discusses money fundamentals, financial terms
and phrases with numerical examples. It should be remembered that
investment in saving bank account may erode the wealth of the investor
due to the presence of inflation in the economy. Further, second part
entitled Technical concepts in Financial Independence defined financial
independence as a state where person is free from all liabilities and
has created sufficient wealth that can generate a constant stream of
income that allows one to maintain moderate lifestyle without having to
work for it. He has given a formula by which any common man may know
whether he has sufficient wealth or not i.e. (Annual Income x Age/10).
Author has also discussed a general rule of thumb for the proportion of
equity in your portfolio should be hundred minus your age (Proportion of
equity in the portfolio = 100 - your age). Further, he has described how
two enemies (inflation and taxes) of the investments are eating the
return of the investor. The third portion Financial Investment Tools
revolves around some of the investment opportunities available in India.
Moreover, fourth chapter "Principles of Wealth Accumulation
outlined eighteen fundamental financial principles that if applied, can
result in serious wealth accumulation over time.
The fifth section Financial Freedom Planning and Tracking describes
through eight steps that how a person can create his own financial
independence plan, which may be practical, achievable and challenging.
Further, sixth division Saving on Taxes throws light on safeguarding
income & cash flows from the teeth of taxes, through 300 odd
sections and 14 schedules which can benefit ordinary taxpayers.
Moreover, seventh chapter Before Calling it a Day explores that real
enjoyment of life come from helping others, spending every day with your
children and seeing them grow up, it could be very simple if you are
financially independent. The last part of the book "Go F or it
stimulates that financial terms and jargon can appear to be complex and
unapproachable at times, but you have to apply logical mind to figure
out current financial events and then take appropriate decisions of your
own to learn & earn. Finally, the book consist moderate doses of
philosophy, legend busters on wealth creation tools and honest ways of
tax savings etc. with relevant examples. But, some titles of the
different segments of this book are not so catchy and not able to
reflect what author wants to describe in the particular section.
Jitender Kumar
Assistant Professor, Department of Management Studies, Deenbandhu
Chhotu Ram U niversity of Science & Technology, Sonepat, Haryana.
