Hey, I thought about sharing a few lessons which I learned about finance:
Imagine you are given an offer:
a) I will give you 10 lakhs over 5 years b) I will give you 50 lakhs today
If you said option (a) like 90% of the people. You don’t understand the concept of Inflation. The reason is simple, the 10 lakhs of today will never be the same amount in 5 years, it’s going to be even lesser.
Let me talk about the 7 baby steps created by Dave Ramsey throughout his journey:
- Save $1,000 for your starter emergency fund.
- Pay off all debt (except the house) using the debt snowball.
- Save 3–6 months of expenses in a fully-funded emergency fund.
- Invest 15% of your household income in retirement.
- Save for your children’s college fund.
- Pay off your home early.
- Build wealth and give.
Kunal Shah recently talked about what every Indian need to know about finance in their 20s:
So this is my short rambling for this week. Stay safe and curious.
Three links for this week 👉:
- A talk about what do developers need to learn and work on as they are becoming older and don’t want to be a manager. The answer is provided by this awesome talk for developers who want to continue their adventurous path by Jesse Jiryu Davis, MongoDB
- How do Python Dictionaries work by Rahul Jha
- Difference between Amateurs and Professionals