Sunday, June 12, 2016

How much money we really need?

Over a casual phone conversation with my friend i asked "How much money do you need to live?" the answer really shocked me on lack of financial awareness amongst young earners.

Financial planning priority pyramid
To make the illustration simple i'll try to put myself into the shoes of average Indian.

Most of us think we need 25K or 50K or 1 lakh INR per month salary to live a happy life. If you are thinking that 25K INR is enough for now at the age of 25 then i fear you are in a very risky situation.
Mind voice: What do you mean my risky situation?
Me: It's simple, you will find it difficult to get financial freedom or early retirement.
Mind voice: Come'on you are talking about retirement to a 25yr old guy? Seems like theory class.
Me: Oops! need data to prove them the seriousness, okay read the below examples.

Monday, April 4, 2016

Migrating to Y generation savings bank account to make money work

I don't recollect when was the last time i booked my bus ticket purchased at an offline store. That's the important of RedBus and other's, who created the impact and convenience for this Y generation.

Y generation account opening style

It always pissed me when i want to reach out to a bank to open my saving account. I don't really understand why should i carry my photocopies and do self attested address and ID proof even in 2016 where at the other side we promote Go Green and eco friendly by eliminating physical statements.

It's so embracing to see that banks still depend on a photocopy instead of just going ahead and scan my original address and ID proof which is more reliable than a photocopy which could be easily forged.

Friday, February 12, 2016

Move away from your hometown to prove yourself

Do you want to be heard and experiment who you are? My kind advice will be just run away from your hometown for at-least first five years in your career.

We all love to get our job in our own hometown. Just get our paycheque so we know how and were to spend on our hometown. Also it comes with more comfort as our parents have built a beautiful house and pack a home food for lunch.

But when it comes to first five years of your career just move away from your hometown. When you are in your hometown your imaginations are limited and opportunity to do mistakes are very less. Always failures teaches us more than success. Just travel across, live in a new place, explore new culture, challenge your ideas and thought, give your thinking a life and present yourself in the crowd.

Monday, January 25, 2016

First step towards understand my family and personal finance management

The first step towards family and personal finance planning is to understand the financial situation. Because I live in India it's equally important to understand my CIBIL score too.

Bank account:
Opened a google sheet and started to enter the bank accounts with account numbers we had and then check if we had any internet banking enabled. To my surprise everyone had more than two bank accounts and had no purpose to hold. I then checked that these were paying very low interest for the savings.

It took few hours to sit with my parents and list down what are loans my family had and how much we were paying interest every month. Also it made sense to list down what are the future big functions we anticipate.

Being a middle class, salary was the only source of income we had. I wish we had multiple source of income like rent, interest, mutual fund and FD etc.