It takes a complicated mind to understand that Simplicity is the Ultimate Sophistication.

If you go to an investment consultant ask simple questions. But hey, let us step one step back.

Do you know that getting rich is not rocket science? It is simple and straight forward?

You need to get a couple of equations into your head.

1. Spend less than what you Earn: Most, if not all confuse this issue. When you earn Rs. 100, please do not think you can spend Rs. 100. You cannot. About 20-30% goes off in income tax, then there are housing EMI, car EMI, and other EMIs that YOU have to pay. Then you need to INVEST to meet your short term and long term goals.

What is left after all this is what you can SPEND on current needs. Most people do nothing of this sort. They earn Rs. 100, spend about Rs. 60 and proudly say ‘I saved 40% of my income. Sorry, this is not SAVING, this is just an amount of money, NOT scientifically arrived at, and for which you did not get time to spend.

2. Invest the Money that you save: If you have done all that that is stated in the above and you still have money – go and blow it. You just earned it…but just think..if this was saved – or even better, invested it would grow at a REAL rate.

3. Understand and respect the law of compounding – money does not grow on trees…but once you have earned it, looking after it is as important…if not more..










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  1. Vanakkam Subra,

    Is life only about saving, saving, saving and for what (the rainy day !).

    I agree we need to save something for the future but not at the cost of not enjoing the present.



  2. Hi Subra,
    Is there any guideline that we have that this is the maximum limit(say 40% of take home) we can spend on us?

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