Some Financial Lessons(not advisory)

Life
finance
Published

April 18, 2021

Hey, I thought about sharing a few lessons which I learned about finance:

Imagine you are given an offer:

  1. I will give you 10 lakhs over 5 years
  2. 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:

  1. Save $1,000 for your starter emergency fund.
  2. Pay off all debt (except the house) using the debt snowball.
  3. Save 3–6 months of expenses in a fully-funded emergency fund.
  4. Invest 15% of your household income in retirement.
  5. Save for your children’s college fund.
  6. Pay off your home early.
  7. 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 👉: