1. Kill your loans first. Car loan, Education loan, home loan, personal loan, credit cards, insurance, cashbacks, reward points - these are traps. Money is a myth and money is a trap.
2. Earnings - Expenses = Savings (Wrong)
Earnings - Savings = Expenses (Right).
3. Every month, pay yourself first. Reward yourself first. You are the first person who should get the reward for working hard. Make yourself happy first, make peace with yourself first.
4. Open a PPF account, keep dumping money whenever you have time. Trust me, you will thank me 10 years later. Money grows exponentially in the last few years.
5. Simplicity is the ultimate sophistication. Be simple, stay grounded and never take shortcuts when it comes to money. Showing off, lavish lifestyle and buying unnecessary crap will recoil back in time. What goes around, comes around.
7. Divide your income in 4 parts
1/4th = needs
1/4th = savings
1/4th = Contribution/Entertainmen
1/4th = Risks, ventures, investments.
8. Prepare some sort of buffer cash. If my survival is X per month, I have a buffer cash of 12X in my bank account as fixed deposits. This ensures I can do whatever the heck I want to in this one year, so money cannot kill the choices I want to make. Buffer cash will save you opportunity costs and time.
9. Do not work for free. Ever. Say no to free internships, say no to extra hours after work. If you are good in something, never do it for free.
3. Every month, pay yourself first. Reward yourself first. You are the first person who should get the reward for working hard. Make yourself happy first, make peace with yourself first.
4. Open a PPF account, keep dumping money whenever you have time. Trust me, you will thank me 10 years later. Money grows exponentially in the last few years.
5. Simplicity is the ultimate sophistication. Be simple, stay grounded and never take shortcuts when it comes to money. Showing off, lavish lifestyle and buying unnecessary crap will recoil back in time. What goes around, comes around.
6. Differentiate between needs and wants. Whenever you buy something, ask yourself - is this my need or is this my want? I generally follow a 3:1 ratio. I will buy 3 things I need and one thing I want. This ensures some kind of balance. No matter how much money I have, I will try not to break that balance.
1/4th = needs
1/4th = savings
1/4th = Contribution/Entertainmen
1/4th = Risks, ventures, investments.
8. Prepare some sort of buffer cash. If my survival is X per month, I have a buffer cash of 12X in my bank account as fixed deposits. This ensures I can do whatever the heck I want to in this one year, so money cannot kill the choices I want to make. Buffer cash will save you opportunity costs and time.
9. Do not work for free. Ever. Say no to free internships, say no to extra hours after work. If you are good in something, never do it for free.
10. There are some avenues which will always remain profitable no matter what happens. Example - land, medicines, alchohol, education. If you want to start a business, pick a secured industry, gain ground and then jump into a risky venture.
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