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".