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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.