After leaving school did you think you will use this word postulates again?
well when I say postulates you cannot accuse me of being original. Nor can you find out from where I have copied this. Almost all writers on personal finance (constantly looking for new stories) have written this in some form or the other…
- Start early
- Understand compounding – even if you don’t, it will work for you if you start early!
- take care of your health – illness is a huge money drain
- spend less than what you earn
- trading is not investing. repeat. trading is not investing.
- direct equity investing is not difficult, but see if you want to learn it at all.
- the only thing which matters is net return after inflation, costs, and taxes.
- avoid debt as far as possible. If you Must borrow, keep it to the minimum – time and amount.
- If you are an aggressive investor borrow for your house – maximum and maximum period – and invest the difference.
- avoid credit card debt
- have a credit card – and pay off the due amount 4 days in advance
- take free money when offered – coupons, govt, employer, scholarship
- Kids education? best when funded by scholarship..or pay partly ask them to borrow for the rest
- rupee cost averaging works – invest regularly, as often as possible, as much as possible
- remember equity investing creates wealth over decades and generations – the pace can’t be INCREASED.
- you can get rich quick, but you cannot get wealthy quick
- Being rich is nice, but being wealthy gives you far more peace of mind
- Personal finance is more personal and less finance
- What works for one person may not work for another
- Knowing whom to trust in personal finance is TOUGH Follow the money.
- the less you spend on adviser fees, the more you keep
- DIY does not work for most of the people I meet
- A good adviser is worth his weight in gold
- basic simple investing works
- One – index fund, term insurance, credit card, savings account, health insurance is what you need.
- Avoid spending to impress others
- Involve spouse and kids in money understanding and management
- Make a will
- stock market cycles will happen – you need to remain calm
- smart people lose money and dumb people get rich in the stock market – stop being judgemental
- share market is the only place where an unskilled idiot can get as lucky as the best fund managers
- Your education or even how much you earn is not important. It is your attitude.
- Markets will go down – that is no time to panic
no finance pro can do personal finance stories outside of this. Not in India, not even worldwide. I hope this is exhaustive….
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