When I had met P (the person who wrote the post) I had no clue that he would become a raving fan of mine. Feels good, but let me tell you how the process happened.
Here, was P, a typical 32 year old..with a 8 year old kid and doing his family business. He was the only son and his business was booming. He was doing very well, and he had a good inheritance – 3 houses in Mumbai, a good equity portfolio, no mutual funds, obviously some PPF, bank balance, etc…
However, he was not very happy. The reasons were simple. His cousins were doing far, far better. More importantly he had no clue on how much he was making – he had some kind of an approximate idea based on the tax paid. He had no clue of whether his business was doing well, whether he was collecting properly, etc.
He knew he had shares (he and his family)…will you believe that they had not even seen the total net-worth figure of all their equity holdings. Now his alone would be about Rs. 12 crores..and his father’s, mother’s and his wife’s …it would be much more. It should double at least, if not more. His business income is also good and should be in 7 digits at the gross level before taxation.
Now he has a handle on all his business finance and personal finance. He has a dramatically reduced portfolio – in terms of length of portfolio.
His income and expenses are so faraway from each other that that they could be living separately.
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