Break-even

Break-even point is something that a lot of us have used in lives. It is the revenue required in order to outweigh the costs during a particular period of time.

Considering our own lives, I have always considered the break-even point to be when I have zero debts. Hence my net value would be zero and it is all positive from there on.

  1. During the initial years of my working life, I still had to undertake additional investments – a life policy, a house and some essential liabilities such as a car.

Essentially, my break-even point was pushed by several years as a result of these actions.

  1. The last few years have been kind to me and I have been able to make serious inroads in my repayment schedules. I have now moved much closer to achieving zero debts. However, being a more mature person, and a family man, I now do not think my break-even point to be when I am at zero debt. It has got to factor in savings for my child’s education, my wife’s well-being as well as all our sustenance.

Although I have reached the break-even point of my twenties self, I am nowhere close to that figure for thirties self.

Hence my question. Is break-even a number or rather a state of mind? Are we just looking for new goals to stay the course with our lives rather than have the heart and mind to stop accumulating wealth and live with what we have?

 

Altruism

I have been toying with the idea of making donations to funds that help the world….. Noble thought indeed.

However, I have been struck with a realization – I am happy to do the act but very reluctant to write about it. I would appreciate your opinions on whether my thoughts are justified.

Do we help ourselves?
I believe it is more of our ‘savings’ mentality that people expect us to build and save wealth. This might be for our future, followed by buffer for contingencies and if that is achieved, continue building for the future generations to come.

I do get the logic about why we should adhere to these principles. According to me, these guidelines are exactly what they are meant to be – guidelines. Once they take up a shape bigger than being just guidelines and becoming a norm or even worse, a fixation, there is little or no room to live life.

Economic freedom is a great feeling to have. Achieving this should enable one to explore options. This could be in the form of indulgences, following an alternate career path or passion, venturing out into a new business or risky deals or even altruism.

As per our ‘savings’ mentality, every penny out must fetch an ROI. Anything else is a wasted opportunity or a loss. All indulgences are frowned upon and we are branded as a show-off. Business ventures that carry risk are tolerated at best as there is an outside chance of returns.

Altruism scores the least as there is no personal gain. Any wealth that goes down the route of altruism is considered equivalent to wealth down the drains.

Is it just me that feels that our thinking is flawed or is it the norm? How many of you have embraced altruism and what was the reaction you faced when you discussed about this topic?

Keen to know your thoughts.