Immediately tie the knot with these 5 rules of Chanakya Niti, the world believes in iron; The real secret of becoming permanently wealthy is hidden in this financial discipline.

New Delhi. Whenever there is talk of precise principles of diplomacy, politics and economics, the name of India’s great scholar Acharya Chanakya is taken first. Chanakya had clearly said in his world famous texts ‘Arthashastra’ and ‘Niti Shastra’ that “Arthasya Moolam Karyaam” – that is, the basic foundation of all worldly works is money. But Acharya Chanakya’s money related philosophy was not limited to just earning money, but focused on keeping it safe, increasing it and using it properly in adverse circumstances. Chanakya had laid the solid foundation of today’s modern personal finance, which we call budgeting, emergency fund, portfolio diversification and risk management, centuries ago. The person who understands and implements these 5 eternal rules in his life never has to face financial crisis.

According to Chanakya Niti, rich is not the one who earns a lot, but the one who knows how to save and accumulate the earned money. Chanakya had warned that a person who spends all or more of his income on consumption and show-off is certain to fall.

In the language of modern finance it is called ‘Living Below Your Means’. The golden rule of wealth accumulation is that whenever you get income, first set aside a part from savings and investments, and then meet your monthly expenses with the remaining money. Chanakya says that just as when new water comes into the pond, the old water is slowly taken out safely so that the pond remains clean, similarly the flow of money should also be controlled and disciplined.

The most famous verse of Acharya Chanakya is – “Apadarthe Dhanam Rakshet” i.e. wealth should be protected first of all for the coming calamities and crisis days. Man’s life is full of uncertainties; Disease, famine, war or livelihood crisis can strike at any time. In such times, only that person can survive with self-respect who has accumulated capital.

Today, financial advisors recommend keeping an emergency fund (in liquid funds or fixed deposits) equal to at least 6 to 12 months of expenses. Chanakya had clearly said that even relatives and friends can leave you in times of crisis, but your secured money stands with you as your biggest shield.

This principle of Chanakya Niti is considered the backbone of success in both business and investment. According to Chanakya, any important work, big investment or financial plan should not be discussed in front of anyone until that work is completely completed.

When you announce your plans ahead of time, jealous people or competitors may create obstacles. Moreover, excessive discussion diverts one’s attention from the original work. Even in the modern corporate world, the importance of strategic confidentiality and insider information is linked to this principle. Remain calm and implement your investment and future financial strategy and let success make the noise.

By simply keeping money locked in a safe, it never increases, rather its value decreases with time. Chanakya had given three major directions for investment and distribution of wealth:

1. Knowledge and Skills (Skill Enhancement): The biggest and never-failing investment is in your own knowledge and skills. A skilled person can rebuild an empire from scratch.

2. Profitable Business (Productive Capital): Money should be invested in legitimate businesses and assets that generate passive income on a regular basis.

3. Religion and Social Welfare (Philanthropy): According to Chanakya, to maintain the purity of money and prestige in the society, one should donate to the deserving people as per one’s capacity, which increases social security and respect.

Chanakya Niti makes it clear that money earned through injustice, fraud or by hurting someone never lasts. Chanakya has written that wealth acquired unjustly lasts only for a maximum of ten years, and in the eleventh year it gets destroyed along with the principal amount.

Ponzi schemes to get rich overnight, unethical deals or speculation in the stock market often put a person on the streets. Building lasting wealth is possible only with patience, honesty and long-term discipline (compounding). When you earn money through morality and hard work, it not only makes your life happy but also becomes a strong support for your future generations.