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". 

 

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