A few days ago I posted some money management rules which had changed…so here are a few more:

Most of the rules are what you have heard…or will hear.

1. A. Stay away from equity.

1.B. New Rule: Staying away from equity will ensure that your portfolio is well short of meeting your retirement requirements!

I am not elaborating on this, simply because, you all know my views on equity.

2.A. Buy a house as soon as possible

2.B. Stay in a rented house till you have the ability to committ about 50% of the cost of the house as your own contribution.

With the kind of insecurity in the job market, committing to a huge EMI based on the cash flow of husband and wife makes NO SENSE…So committ only when your cashflows are big and EMI small. Renting is still cheaper and makes sense only if you are going to stay in the same place for 10-15 years at least.

3. A. Buy one share and hold it for eternity.

3. B. Buy a share and monitor its quarterly results REGULARLY…how long to hold, how to create a portfolio….the process is dynamic, be careful.

4.A. Protect your job at any cost: the whole generation has spent on giving its life and effort to ONE company. They called it ‘loyalty’ . Of course this was only till they got their first heart attack at age 38.

4.B. Do your job well, be truthful, BUT protect your HEALTH: It hardly matters to who you decide to sell your time. Either full time or part time. Either from home or by going to office. Either 3 employers or one. Your health is yours. Being emotional about a job is pretty stupid. Companies are run for faceless shareholders, not for emotional employees 🙁 or emotional vendors.

 

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  1. Yes Nikhil. But for me it is rule number 1.
    Btw ” Renting is still cheaper and makes sense only if you are going to stay in the same place for 10-15 years at least”

    can i add buying makes sense if you are going to stay in the same place for 15 years?

  2. errata.
    ” Renting is still cheaper and BUYING makes sense only if you are going to stay in the same place for 10-15 years at least.”

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