Over Rs 1 crore! This mutual fund SIP trick will help you double your maturity amount - here is calculation

While making any investment, an investor's major goal is to become rich as soon as possible. Some of them do achieve their investment goal with the available limited investment tools.

"Successful investors don't do different things, but they do things differently."

Let's take mutual fund investments. A person who is in the nascent phase of career generally chooses a systematic investment plan (SIP), which is one of the most popular parts of mutual fund investment. According to my experience over last 30 years, a mutual fund investment will give at least 10 to 12 per cent return if the investment is for long-term. 

However, I am with opinion that after one begins an SIP, one should think of increasing the SIP amount annually in sync with one's salary hike. It will help him or her maximise returns.

Speaking on the mutual fund SIP investments, "Mutual Fund is subject to market risk and one should have the appetite to take risk."

In the long-term Equity market linked mutual fund sip will give at least 12 per cent return but when I say long-term, then it should be an investment for not less then 15 years."

let's assume that we starts a mutual fund SIP of Rs 6,000 for 25 years and return for the same period is 12 per cent. Then as per the mutual fund calculator,  future estimated amount will be Rs 1,13,85,811.

However, we should increase SIP amount annually as salary or income grows. In that case it will be able to maximise money's worth.

Let's see how mutual funds SIP step-up plan will impact future estimated amount after 25 years if the same Rs 6,000 SIP is increased 10 per cent per annum. As per the mutual fund calculator, future estimated amount after 25 years at 12 per cent returns will be Rs 2,36,92,246.

Out of these Rs Rs 2,36,92,246 future estimated amount, net investment will be Rs 70,80,988 and rest Rs 1,66,11,258 is gain earned throughout the investment period of 25 years.

So, this 10 per cent step up in the Mutual Funds SIP will jump from Rs 1,13,85,811 to Rs 2,36,92,246, which is more than double from the normal mutual funds SIP investment.

Call me for detailed discussion and information about schemes for achieving such future values.

Ritesh Sheth

Chartered Wealth manager CWM®

9930444099

E-mail: riteshdsheth@gmail.com

10 Reasons You’re Not Rich Yet

10 Reasons You’re Not Rich Yet

As a Investment and insurance agent, I have spent many years helping other people overcome financial stumbling blocks so they can become rich. Ironically, the one person I have had the most trouble helping is myself.

Being “rich” can mean different things to different people, but I believe it means having the financial freedom to achieve your goals and live the life you want. 

I am great at giving advice; I am not always so great at taking my own advice (know anyone like that?). So, when it came to helping my clients understand why they weren’t rich yet, the easy part was explaining the culprits, because I was all too familiar with most of them.

Regardless of our upbringing, education, profession or lifestyle, most of us are not where we want to be financially and our reasons are probably more similar than different. The good news is that it is never too late to become rich if you, like me, are ready to own up to the reasons you’re not and do something about it.

Want to know why you aren’t rich yet? Keep reading.

#1: You spend money like you’re already rich.

Sure, it feels good to buy expensive things, whether it’s a luxury car, designer clothes, a big house in the burbs, or a tropical vacation. Even if you don’t necessarily buy pricey items, if you consistently buy stuff you really don’t need, it still adds up fast (Rs.30000 trip to Target for toothpaste?). But the shopping high only lasts until the guilt and regret set in or the credit card bill arrives. Most of us are guilty of living beyond our means and using credit cards more than we should. The problem is that as long as we continue to spend more than we have, we can’t start building wealth. Chronic overspending and high-interest, revolving credit card debt are your worst enemies when it comes to financial success. Spend like you’re poor and you are much more likely to become rich.

#2: You don’t have a plan.

Without clearly defined short, mid and long-term goals, becoming rich will just seem like an unattainable fantasy. And that turns into your go-to excuse for why you shouldn’t bother saving or stop overspending. As we say in the financial industry: those who fail to plan, plan to fail. Creating a financial plan may seem overwhelming or intimidating, but it doesn’t have to be. Whether you do-it-yourself or decide to work with a financial professional, the process simply starts with prioritizing your goals and writing them down. Put that list where you can see it on a regular basis. Visual reminders go a long way in helping us stay on track.

#3: You don’t have an emergency fund.

I know, you’ve heard it a hundred times: you need to have at least six months of income saved in an emergency fund. And yes, it’s much easier said than done. However, I’ve seen too many people (including myself) get hit with a major unplanned expense, whether it’s a car or home repair or a medical bill, or an unexpected job loss, accident or illness that’s led to a drastic reduction in income. When these things happen–and they do, more often than you might think–not having a financial safety cushion can make the situation much, much worse. If you’re forced to rely on credit cards, you’ll end up sinking deeper into debt instead of, yes, saving to become rich.

#4: You started late.

With every year or month that goes by without saving, your chances of becoming rich decrease. Time and compounding interest are your two best friends when it comes to growing money, so wasting them really hurts. Just like exercising, the hardest part of saving is starting. Even if you’re in debt, making little money or have a lot of expenses, you can still always save something — even if it is a small amount. The sooner you get yourself into the habit of saving — regardless of how much — the easier it will be for you to continue and eventually increase those savings. I like to think of saving as a muscle you have to work out and build with practice. Even if you start saving late, you can still become rich if you’re committed enough. But you need to start. Now.

#5: You’d rather complain than commit.

“Life is too expensive.” “I’ll never get out of debt.” “I don’t make enough money.” “Investing is too risky.” I’ve probably heard every excuse for why someone isn’t saving, investing or planning in general, and I’ll admit I’ve used a few of them myself from time to time. It’s easier to be lazy and let bad habits fester than to commit to –and follow through on — changing them. It’s no wonder obesity and debt are epidemics in our country, and that millions of Americans have had to push off retirement. As long as the complaining, excuses and finger-pointing persist, so too will not becoming rich. Instead, take responsibility for your bad habits and focus on what you can do to change them. Then do it.

#6: You live for today in spite of tomorrow.

I get it. It is really hard to think about retirement and other distant fantasies when we have needs and plenty of wants now. The bills have to get paid, the family must be fed, momma needs a vacation — and a new wardrobe to go along with it. The problem is that impulsive and overly-indulgent behavior commonly lead to credit card debt, spending money you might have otherwise saved and, yes, not becoming rich. Do yourself a favor: Ditch the “buy now, worry later” mindset and instead, adopt a “save now, get rich later” mindset.

#7: You’re a one-trick investor.

You might be lucky enough to become rich by betting all your money on one type of investment. Just like you might be lucky enough to win the lottery. But that’s not a strategy for getting rich (at least, not one I’d ever recommend).

One of the worst financial mistakes you can make is putting all your money eggs in one basket. Doing so puts you at too much risk, whether it is being too conservative or too aggressive. Sure, the stock market is on a run and real estate is on an upswing again, but are you prepared for when the tides turn? Because they will. And if you are invested in all fixed-income securities like CDs, bonds and annuities and think you’re safe, inflation should make you think again. Your investment portfolio needs to include a good mix of investments with varied levels of risk and return potential and liquidity (so you can get your money when you need it).

#8: You don’t automate.

Here’s the secret to saving: Automation. Saving is seamless when it’s automatic. Unfortunately, we are not born to be savers. We are impulsive and greedy by nature. Being responsible requires much more discipline. However, automation forces us to be responsible without too much effort. And all it requires is setting up regular transfers from a salary or bank account to a savings or Mutual investment account. Without it, we are much more likely to spend money we could be saving. Even if it is a seemingly small amount that you automate, those steady investments can make a big difference over time. Automate whatever you can whenever you can; just be careful to avoid overdrafting your account and try to increase your savings amount periodically.

#9: You have no sense of urgency.

You might think you don’t need to worry about getting out of debt or saving because someone, or something else will save you. Maybe it’s a pay raise, a new job, an inheritance, a rich spouse, or the lottery you’re counting on. Whatever “it” is, you use it as an excuse to put off taking steps on your own to become rich. The problem is that very little in life is certain. Who knows what will actually happen, or not happen, so why not focus on what you can control now? Save now and save yourself — just in case something, or someone, else won’t.

#10: You’re easily influenced.

Maybe you live with a chronic overspender or a typical day out with your girlfriends involves shopping. Or maybe it’s your inner “Real Housewife” that you sometimes can’t control. We all have negative influences in our lives that threaten our chances of becoming rich. The superficial, materialistic, sensational culture in which we live is probably the biggest one. The suffocating swirl of media that goes along with it makes it ten times worse. The trick is not giving in to temptation. How? Some of it is making conscious choices to avoid putting yourself in vulnerable positions. But most of it is having the willpower to keep the goal of becoming rich in the front of your mind, especially when you are tempted to sabotage yourself.

How to choose the right health insurance policy

Most financial planners say that having a health insurance plan is the starting point of all financial plans.

Even before one starts investing towards one's goals, getting an adequate health insurance cover for self and family helps.

Here, I look at the various important features and factors of a health insurance policy that may help you zero-in on the right policy.

Why you should get health cover

According to few studies done in the past, the medical inflation in India is around 17 per cent annually, much above the general inflation level. The need for adequate health insurance is increasingly becoming important and so is choosing the right health insurance plan.

Now, at the moment you might be in the pink of health, however, health insurance is not only about illnesses and diseases. It's a universal truth that accidents may occur anytime and at any age. A health cover could come handy in such an event.

Further, at times, certain ailments remain unknown to us until their symptoms are visible later on in life. Although, not a mandate, a policy bought at an early age and renewed for quite some years without any claim, may help in better claim experience as and when it arises.

See what kind of health cover is required

Health insurance plans are broadly categorised as 'indemnity plans' and 'defined-benefit plans'. While, indemnity plans reimburse the hospital expense, defined-benefit plans pay a lump sum amount irrespective of the actual hospital expense.

The 'indemnity' plans, which could be an individual health insurance (popularly known as mediclaim or family floater policy), should form the core of one's health insurance portfolio. Top it up with a critical illness plan which is a defined-benefit plan and thereafter one may add Hospital Daily Cash plan to meet incidental costs during hospitalisation.

See which indemnity cover suits you

Once someone gets convinced that a health insurance plan is a must-have even before starting to invest for life goals, the conundrum to either go for an 'individual health plan' or a 'Family Floater' (FF) arises. "One should consider an individual plan over a family floater cover if one wants an extensive coverage. This also ensures that adverse experience in one policy does not affect others in the family. Balance sum insured for other members may not be adequate at time in case of a family floater policy," 

The 'individual health plan' has to be bought in the name of each individual spouse, children, parents etc. This means, the premium will be as per each individual's age and respective sum insured. Insurer's, however, provide a 10 percent discount on the total premium if more than one member of the family is insured simultaneously. In case of a claim by one member, the sum insured of other members remains intact.

In a 'Family floater' health insurance plan, more than one member can be covered under the same plan. For instance, both parents and their children can be covered together and only one single premium is to be paid. Under an FF health plan, the entire sum insured can be availed by any or all members and is not restricted to one individual, as is the case in an individual health plan. An FF plan takes advantage of the fact that the possibility of all members of a family falling ill at the same time or within the same year is low.

Estimate how much of cover is required

Although there is no fixed rule as to how much health insurance you should have; the coverage should ideally depend on one's residential city, history of family illnesses etc. "For people living in Class A cities (cities like Mumbai), the cover amount should at least be Rs 10 lakh given the high cost of living in metro cities. Not only standard of living, medical treatment is also quite expensive in metro cities compared with smaller towns. For people living in Class B and C cities, the sum insured should be at least Rs 4- 5 lakh," says Mondal.

Check sub-limit in the plan

Nowadays, most health insurance plans have sub-limits in them. Sub-limit refers to capping the re-imbursement limit under each or some of such cost-heads. For example, the room-rent may be capped at 1 per cent of the sum insured. So, irrespective of the total sum insured of the policy, one may have to pay out-of-pocket hospital bills unless one sticks to the limit. Some health plans do not have any such sub-limits while few others offer an option to add sub-limits at the time of buying the plan.

See from when pre-existing ailments are covered

All health insurance plans cover pre-existing ailments but after a period of 48 months. Few cover them even after 36 months or lesser. However, at the time of buying, it is equally important to disclose the pre-existing ailment, for a smooth claims settlement process. Further, coverage of certain defined and specific ailments have a 'waiting period' of 12 or 24 months, post which they are covered for claim.

Check for co-payment feature

It's not necessary that there will be a co-payment feature in all plans but in a senior citizen health insurance plan it could be a mandatory feature. In higher age groups as the premium rates are higher, a co-payment may provide some relief in terms of affordability, as it helps to keep the premium low. Some plans, however, ask for as much as 20 per cent co-payment if the treatment is done at a non-network provider or in a city different from where the plan was bought.

What you should do

While choosing a health cover, one should ideally start by comparing plans from 2-3 preferred insurers. Have a close look at the inclusions and exclusions in the most basic plan being offered by them. Do not base your decision solely on the premium, instead prefer simple plans with fewer conditions and restrictions. And remember, every member of the family, irrespective of the age, needs health insurance cover to tide over unforeseen medical exigencies anytime in the future.

I believe that every family should be financially prepared for medical emergencies.

Getting yourself and your family insured for medical emergencies is the first step toward building your financial future. 

*Bajaj Allianz GIC New Health guard is just Click Away*

Download Boucher for undustanding terms of coverage: 

https://www.bajajallianz.com/download-documents/health-insurance/health-guard/Health-Guard-Brochure-print.pdf

*Buy health plan Protect your family today. Just click on below link fill the details and pay the amount and get Health insurance covered*

https://general.bajajallianz.com/Insurance/healthGuard/loadHgDtls.do?src=CBM_0534909

For detail discussion you can call or chat any time on 9930444099 Ritesh Sheth CWM®

How to control our emotions when investing in mutual funds

Every time the market hits an all-time high, many investors get jittery. 

Questions like “should I book profits now?” “Should I stop investing now?” start doing the rounds in social media. This article discusses a simple way to handle our emotions when investing in mutual funds or any capital market-linked product.

The adage, “show me your friends and I will tell you who you are” can easily be modified to suit investors who ask seek counsel on social media: “ask your question, and I will tell you how well planned you are”. Yes, most people who ask questions in personal finance forums on Facebook want to manage money without a plan (and often get angry when we point out the obvious).

Members of this group admitted in a poll (held months before the March 2020 crash) that 1st-time investors would never buy MFs if they knew about risks! So poor understanding about the product and unrealistic expectations are the most common reason investors abandon mutual funds, buy every shiny fund they come across etc. 

This lot is beyond redemption and is not the subject of this article.

Let us focus on investors’ who appreciate 

(1) why they need equity in their long-term portfolio; 

(2) the importance of goal-based investing and asset allocation. 

Many such investors find it hard to stay focused after investing and worry about doing the right thing.

 We shall consider an idea which appears to be an oxymoron at first sight: emotional logic. It is only an idea, and like all ideas hard to implement, however, my hope is at least a few reading this would appreciate its value the next time they think of deviating from their investment plan.

‘I believe equities remain the best asset class for long-term wealth creation’

1.      Why are stock markets hitting new peaks at a time when the GDP is in contraction mode? Is the rally for real?

Stock markets are forward looking. They work on anticipation of the current and future economic outlook. The Covid impact on the economy was predicted in March and hence the markets corrected. As we stand today, the recovery theme has played out well as markets saw renewed interest for domestic equities from all market participants, including FPIs and portfolio investors. Earnings have backed investor expectations and we believe markets are poised to remain positive sans Covid.

 

2.      Why are foreign investors pumping money (over Rs 1,60,000 crore in 2020) into Indian markets?

India has been a standout economy in the global context. Especially in the emerging market world, strong political stability and a robust recovery cycle has been a beacon for international investors. In the post-Covid world, where the world is awash with central bank liquidity, India has been getting a disproportionate share. As an opportunity, India continues to remain an attractive destination for global growth investors since they are increasingly comfortable with the structure of the economy, policy and regulatory framework. The government over the last five years has actively worked to make India more business friendly and this is now paying dividends.

 

3.      My assessment on the debt market? Have interest rates bottomed out?

Domestic bond yields have followed the operative rate downwards as the RBI and the government have emphasised bringing rates lower through policy action and accommodative monetary policy in an attempt to spur growth. While the money market curve and the 3/5-year space have broadly followed suit, longer dated papers especially corporate bonds have remained somewhat anchored. The recent RBI commentary is a clear indication that the RBI intends to keep rates range bound. Unless we see a huge fiscal consolidation or downward growth or inflation shock, rate cuts look unlikely.

For 2021, I believe investors will be best suited to go up the duration curve which would serve investor needs of a higher risk reward. We anticipate the RBI will maintain rates at current levels over the course of the next year at minimum, post which I believe a gradual rising rate environtent will ensue on the back of a recovery in the economy.

 

4.       The market, Which is at a record high, safe for us (small investors/Retail investors)?

From a grim March to a euphoric November, equity markets have been on a rollercoaster ride, a reminder that equities are a volatile yet rewarding asset class. Small investors have increasingly participated in equity markets through the mutual fund route and through direct stock investing.

The value of the Sensex and the Nifty is just a number. We have seen this time and time again. As India grows, financial markets will rise commensurately to reflect this growth.

As I always say why investing regularly is important. Timing the market rarely works and hence investing is a continuous process which when followed diligently has rewarded investors over the long term regardless of when they entered the market.

 SIP flows have been a testament to this understanding. For the better half of three years now, I have seen unwavering SIP flows.

One must remember that markets have been volatile during this phase. Investors who stick with their investment commitments have reaped the rewards of staying patient. I believe equities remain the best asset class for long-term wealth creation and should form some part of every investor’s portfolio.

Way ahead

The month of January 2021 witnessed considerable easing of momentum in equity markets as investors resorted to profit booking after an unprecedented rally in the latter months of 2020. The Nifty 50 index fell by 2.5% to 13,634. Meanwhile, the Nifty MidCap 100 and Nifty SmallCap 100 index rose marginally by 0.8% and 1.6% respectively.

FIIs scaled back their aggressive investment strategy into the Indian equity markets pouring in Rs. 14,512 crs, the lowest since October 2020. Meanwhile, MFs continued their selling spree removing Rs. 12,980 from the equity markets.

FIIs scaled back their aggressive investment strategy into the Indian equity markets pouring in Rs. 14,512 crs, the lowest since October 2020. Meanwhile, MFs continued their selling spree removing Rs. 12,980 from the equity markets.

The union budget announced on Feb 1st 2021, brought with it extreme euphoria as the finance minister chose to take The Path Less Trodden. The budget gave a clear indication of the government's focus on growth through capital expenditure without worrying about the fiscal deficit in addition to adopting cleaner accounting methods.This Budget is historic in a way that breaks the shackles of fiscal constraints. By increasing capital expenditure, the multiplier effect on the economy will be significantly more impactful against the previous route of revenue expenditure which results in limited gains.With significantly lower Covid-19 cases, a well-executed vaccine drive, high level of liquidity in the markets and a pro-growth budget, it is not difficult to be optimistic for 2021. Also providing support were earnings upgrades that continue at an unprecedented pace as activity continues to normalize. Along with the earnings upgrades, India also experienced upgrades to GDP estimates. As per RBI, the GDP for FY22 is set to grow at 10.5%, albeit on a lower base.On the global front, While the UK is struggling to stay afloat due to the rapid spread of the new variant of the virus, the US economy is rejoicing due to the Biden administration coming to power. China remains the fastest growing economy in the world and is projected to be the only country to post a positive growth this fiscal. There are clear signs of economic progression as oil prices are nearing long term average levels and a slight retracement in gold prices, indicating revival of risk appetite among investors.The focus for us has been to deploy the remaining corpus, and we are in the process of actively evaluating opportunities for the same. Current equity market valuations at 41.4x look exorbitant and discount even the highest level of growth expectations. The current Quarter earnings YoY growth for Nifty is at 16.16%(34 out of 50 companies’ results are published).  Due to the lack of any margin of safety, we advise investors to remain cautious and take advantage of any correction from this point on for long term investments.On the Fixed Income front, a higher-than-expected fiscal deficit announced in the budget leading to a higher-than-expected borrowing program to the tune of 12 lac crores led to an uptick in the 10-year G-sec rate by 11 bps to 6.06%. Presently, we are of the opinion that the heightened borrowing by the government will not affect India’s credit rating or ability to service timely repayments of loans. Much depends on how the government engages with rating agencies and divests in a timely manner. With CPI inflation finally cooling to 4.59% after months of breaching its upper limit of 6%, the real returns to a foreign portfolio investor continues to look attractive.We believe that the yield curve is likely to remain steep this year. Due to the crash in yields for ultra-short term, we believe any investment for a period of 1-2 years should be made in Arbitrage funds due to the pickup of spreads in the category. Banking and PSU debt funds can be considered for a greater than 2-year investment period.

ULIPs now taxable like mutual funds!

Finance Bill 2021-22 has proposed to tax gains from ULIP with a premium of more than Rs. 2.5 lakh per year to remove the disparity relative to mutual funds. This means from Feb 1st 2021 if you buy a new  ULIP with a premium of more than Rs. 2.5 lakhs the maturity proceeds will be taxed identically to mutual funds. Death benefits continue to remain tax-free regardless less of the premium amount. This will reduce mis-selling of ULIPs.

This rule applies to the sum of the premium of the ULIPs purchased on or after 1st Feb 2021. For example, if you buy three ULIPs and the total premium is above Rs. 2.5 lakh then the gains from all the three ULIPs will be taxed like mutual funds.

Senior citizens 75 and above need not file IT returns subject to conditions!

Budget 2021 has only one offering for senior citizens. If some conditions are met, those aged 75 and above need not file income tax returns. They have to pay the necessary tax but need not file returns.

The conditions for exemption from filing ITR from 1st April 2021 are:

1. The senior citizen should be a resident and should be 75 years of age or more during the financial year for which tax has to be paid
2. He/She must receive a pension and interest income from the same bank! Different banks are negligible.
3. Only certain specified banks are allowed
4. A declaration should be given to the bank

Another interest income from any other source or any kind of capital gains would mean the person has to pay tax. Thus this benefit will not help many!

How employee contributions over 2.5 lakhs gets taxed like a FD

Finance Bill 2021 has proposed that employee contributions over 2.5 lakh will be taxed as per slab.

Assume that your EPF balance as on 31st March 2020 is Rs. 10,00,000. The employer contribution is, Rs. 20,000 a month; The employee contribution is Rs. 20,000 a month or Rs. 2,40,000 a year (FY).

In this case, there is no change in rule and nothing need to be done. Suppose the employee decided to invest via VPF Rs. 5000 a month. The total annual contribution by the employee is (5000 x 12) + 2,40,000 = 3,00,000.

If the EPF rate is say 8% then 8% of (3,00,000 – 2,50,000) = Rs. 4000 should be shown as income while filing ITR and this will be taxed as per slab rate.

WHY YOU HAVE HATERS, EVEN IF YOU’RE A NICE PERSON

WHY YOU HAVE HATERS, EVEN IF YOU’RE A NICE PERSON

Are you confused as to why you have haters – because you think you’re truly a nice person?

And YES, you ARE nice!

So, what motivates a hater to hate? And why are they choosing you to hate on?

Below I share many reasons why haters gonna hate – for no good reason at all!

Why nice people have haters?

1. You have haters because you’re popular.

Some people only hate you because of the way other people love you.

Another definition for a hater: “Someone who secretly wishes to be you.”

In a way having haters is a good thing. It’s means you are truly loved.

2. You have haters because you did the work to improve your life.

Your haters don’t want to put in the effort to improve their life. As a result, your success reminds them they are not willing to put in effort to succeed.

Plus, your presence reminds them about what’s wrong with them – and what’s missing in their life – so they hate you.

Basically, it’s the ones who are against you who believe in your power the most.

In many ways these people who hate you are (ironically) your biggest fans. They admire all you’ve accomplished – and are quite simply jealous.

3. You have haters because you have risen above them.People who try to pull you down often do so because they see you as above them.

Perhaps you used to be equals – at about the same level. They feel left behind and trapped at their level of existence – and just don’t like any change in their life.

They want to put you back in your place so that things remain status quo – instead of accepting your status improvements.

They’re hating on you to bring you down – to diminish your power and shine – so as to make themselves feel better.

This reminds me of a terrific Zig Ziglar says: “Don’t be distracted by criticism. Remember the only taste of success some people have is when they take a bite out of you.”

4. You have haters because you’re going through a bad time – and your uneasiness makes them uneasy.

They worry your bad luck is contagious. And/or they just don’t want to put in the effort needed to cheer you up and cheer you on.

Basically…If you want to find out who’s a true friend – screw up or go through a hard time – then see who sticks around.

5. You have haters because they feel they’re missing out on being around you.

Perhaps they once rejected you – in some way – for something. Or…in general, they used to feel you weren’t good enough for them. Then you had the audacity to improve yourself and your life! (How dare you! )

As a result, your haters now feel like they are missing out on the new improved you. They need to still dislike you  – so they don’t feel like they are missing out.

Or maybe you simply are choosing not to socialize with them as often as they want. Or work with them. Or maybe you don’t even know them – and they don’t know how to get to know you – and that bugs them – because they feel they’re missing out being around you.

6. You have haters because you overcame a shared problem.

You used to share a problem in common: overeating, or binge drinking, or toxic romantic partners.

You then found a way to leave the problem behind you – while they are still caught up in the chaos.

Your newfound peace causes them angst, regret and self loathing.

7. You have haters because they hate themselves.

These people are simply not capable of love and connection – with anybody.

Maybe they are a narcissist, sociopath or have some kind of personality disorder. Perhaps they had a terrible childhood – and thereby hurt people want to hurt people. Or they were raised with hateful, judgmental beliefs.

As adults, they never awakened to see the wrongness of these limiting beliefs.

Unfortunately, all of these types of people are mostly comfortable with resentment and drama.

Basically, happy people don’t hate. And people who walk around hating aren’t happy.

WE DON’T MEET PEOPLE BY ACCIDENT. WE MEET FOR A REASON.

WE DON’T MEET PEOPLE BY ACCIDENT. WE MEET FOR A REASON.

I believe you don’t meet people by accident – they come into your life for a reason.

Yes, even the crummy ones.

If a relationship doesn’t survive the test of time, it doesn’t mean it still wasn’t meant to be.

Not all encounters with people are supposed to last forever. 

Sometimes the “forever” is not the person – but what we gain from them.

There’s a synchronicity and purpose for each person you meet. Both our positive encounters with people and the negative, challenging encounters we suffer through.

Below are some insightful reasons why we don’t meet people by accident.

We meet people for a reason.

1.Some people are “bridges.”

These people are not meant to last for the long road ahead. They are an enjoyable pathway to get us to where we need to go.

These people are needed to arrive exactly at the time and place you met them – to transport you to the next level of your life journey.

You meet these people for a reason – even if they are only here for a season.

2.Some people are “roadblocks” and “re-directors.”

These people come into your life to delay you – for both little things and big things.

For example, you might have a conversation with someone – which then delays you and prevents you from getting into a bus accident.

Or you might spend time with someone – and this time spent creates a “time hiccup” which delays you – so you wind up meeting a new, amazing, romantic partner.

You might have heard the expression, “Sometimes rejection is a redirection to something better.” Well, that’s what these people do. They might show up as a rejector – but they are a redirector.

3. Some people are “assignments” and “teachers.”

Often your tormentors double duty as your mentors.

They are here to teach you important life lessons – via the process of pain – which helps you to grow who you are.

Their “crisis pain” creates the “crisis fuel” you need – to motivate a necessary change you didn’t want to put in the effort to make.

Plus, some people are just straight-up inspiring teachers – who teach you life lessons in a more loving manner.

4. Some people are “angels”

These people are here to protect you and remind you to stay safe and stay self loving.

They are “guardian angels” of some sort.

Their purpose: Make sure that you do not stray too far from the path you are meant to be on.

In times of need and desperation they help you – when others are not there for you.

5. Some people are “guideposts.”

They represent and symbolize something you want.

Their purpose: Motivate you to keep pursuing what you want – and stay on track.

Their presence helps to make sure you stay awake, energized and committed to moving forward on your soul’s true-to-you journey.

6. Some people are your “tribe.”

These are the ones who are here to stay the long haul.

These people are far and few between – but they are the ones who are loyally there for you during tough times and celebratory times.

They see you clearly and accept you as your “flawesome” self.

Tribe members support you when you are invisible to others.

Tribe members root for you with a pure heart – when others might feel competitive or jealous.