Life Changing Simple Finance Rules

Life changing simple finance rules. 


[1] Don't spend more than 90% of salary (save at least 10%)


- Be frugal 

- Or expand your salary 


[2] Income inflation > Lifestyle inflation 


- This way, you will end up saving more % of your salary with time. 


[3] Don't let your money die 


- Your total portfolio should beat inflation. 


[4] Build an income portfolio


- Like VCs invest across different firms. 

- You should "invest" across different money generating assets. 

- Active income (job), Passive income (digital product), Investment Income (stocks). Have at least 2. 


[5] Optimise your taxes


Your are going to spend most money not on your kids, but on your taxes. 


Basic things like: claiming 80C deductions, filing your tax on time etc are a must. 


[6] Manage risks, don't fear risk. 


Investing is risky. 

Not investing is riskier. 


Like it or not, our monetary system is designed to reward investors and hurt savers. There is a fancy word for this called "inflation".