My Story of Achieving Financial Freedom

If I say that my journey to financial freedom started with a spiritual awakening, it will not be an exaggeration. I faced a few challenging situations at an early stage in life. These events taught me important life lessons. And with time, I kept on applying these lessons to every aspect of my life including investments. The dots got connected automatically and weaved a wonderful life.

While I was studying at Engineering college, my mother passed away suddenly. I was about nineteen then. It was a shock for me. I never thought Mother too can disappear in a splash of the moment. But she did. The next two years were hell, to say the least.

I was surrounded by friends, but still lonely.

I was moving, but no direction.

I was living, but no life.

I knew that I was getting trapped in psychological doldrums. There was no guidance, no mentor. It was my battle. I had to fight alone. I decided to work on my mind. It took me almost two years to move on. At this early age, life had thrown me the biggest lesson, “everything is in mind.” And I was destined to grab it with both hands. My awakening journey started from that day. It was the dawning of wisdom. This was the first life-changing moment for me.

During the same period, one more important event happened in India. Harshad Mehta scam revealed. This news was on the front page of every newspaper. This was the only talking point of the town. Due to the loud noise created by this news, I too became curious. That was the first time when I encountered the stock market. I was just twenty then. It somehow dawned on me that the market has huge potential for everyone to create wealth. Since then I got hooked on the market.

After passing out from Engineering college, I wanted to join Indian Air Force. It was always a dream service for me. I was determined to succeed. And I did. The first lesson of life, “everything is in mind” helped me to achieve this success. I was fortunate that I learned from my mistakes, and improved at each stage.

However, just like everyone, my journey into the stock market started with many mistakes. In the initial days, I bought equities by listening to cheap advice from friends and neighbors. I too was lured by instant gratification. I too bet on cheap stocks thinking that they will become multi-baggers. But very soon, I realized that this is not the correct approach to investing.

I hit a pause button and kept on reading books on investing, and economics. I was lucky to chance upon two wise men i.e. Warren Buffet and Charlie Munger. They taught me the interdisciplinary approach to investing. I started connecting the dots. I started correlating psychology and daily life lessons with investing.

In 1995 Charlie delivered a visionary speech to Harward students titled, “The Psychology of human misjudgment.” This preaching was a path-breaking one and way ahead of time. I was fortunate to somehow lay my hands on this. And this speech has opened me to a new subject called “behavioral finance.” Since then, my approach to investing transformed completely. This awakening also helped me to overcome my vices and become a good human being.

Due to an extremely busy schedule, I was unable to devote much time to equity investing. Hence I divided my portfolio into equity and mutual funds. I kept on investing in quality companies and simultaneously kept on pumping money into mutual funds through SIP. Being good at mathematics, I was aware of the wonder that the formula of compounding can do. And it worked well. Really well.

Meanwhile, I was also enjoying my service. Everything was going on picture-perfect. However, a few more disasters were destined to happen. In a few years, I lost two brothers and a sister. However, due to my previous experience of my mother’s demise, my mind was prepared this time. The past learning helped me recover quickly. I succeeded in not getting entangled.

But these untimely demises opened a new chapter in my life. I started contemplating profound questions like:-

"What is the purpose of life? And Why do we live?”

In quest of these questions, I read all scriptures right from Budha to Osho. Undergone many mediation techniques right from Brahmakumaris to Vipassana.

In one of his preachings, Osho spoke at length about this philosophia perennis, “What is the purpose of life?”

Osho said:-

“ Raise this question, ‘What is the purpose?’ and everything is destroyed. Let me tell you, there is no purpose in life. Life is its purpose. The bird on the wing, the rose in the wind, the sun rising in the morning, the stars in the night, a man falling in love with a woman, a child playing on the street - there is no purpose. Life is simply enjoying itself; delighting in itself.

Life is a love affair. Life is music. Life is poetry.

Don’t ask ugly questions like, “What is the purpose?” Because the moment you ask it, you disconnect yourself from life. Life cannot be bridged by philosophical questions. The whole existence is non-philosophical. If you are philosophical, then a gap arises between you and existence.”

Through all these readings and meditation I learned the biggest lesson of life, “the purpose of life is to live each moment full of joy and happiness.”

And I realized that if I have to live happily in each moment, then I need to have complete independence. And if I want to have complete independence, I must achieve financial freedom.

This was the second dawning of wisdom. I was lucky to know this at an early age.

Hence, in the quest for ultimate independence, I opted for voluntary retirement from Indian Air Force. Taking such a bold decision at the age of forty-five needs a lot of courage, conviction, and mental and financial abilities. But I was determined.

When I took this decision, everyone thought that I am an idiot, I am a big fool. But I always knew what I was doing. Way early in my life, my mother’s demise taught me that life is too short. There is no time. And hence there is nothing more precious than complete independence. That is what I aspire for and took a plunge.

Today, when my friends ask me, “How did you pass your day?” I laugh at them. I do not have excess time to pass because I enjoy every moment of my life. I wake up at 5 AM and go to bed by 9 PM. In between this, I read, write, invest, exercise and many a time do nothing, just sit looking at the sky, stars, and trees.

I live only for happiness. That is my ultimate objective. I have planned my life in such a way that I have true independence. I chose freedom over rank, designation, promotion, and rat race. It was my life choice.

And I could do this only because I had achieved financial freedom.

The foundation of my financial freedom is based on a strong spiritual awakening.

Charlie Munger summarises my investing philosophy very succinctly. He said:-

“Like Warren, I had a considerable passion to get rich, not because I wanted to buy Feraris … I wanted Independence, I desperately wanted it.”

How true!!!