True Cost of Buying things

I used to make the mistake of looking at this price tag of an item and thinking that if the item was priced at Rs 10,000, It costs me Rs 10,000. Then I came across Warren Buffet’s Biography – The Snowball (a must read). Buffet basically calculates the future value of the money being spent…

Saving 1 Crore – 15*15*15 rule of mutual funds

  It’s a big dream for a lot of people in India to be able to save Rs 1 Crore. The 15x15x15 rule will make you realize that it’s possible for you to achieve this goal. If you invest Rs 15k per month in an equity mutual fund for 15 years which earns average 15%…

How to Invest a Bonus or a Sudden Cash Flow – STP

It’s hard to make an investment decision when you are dealing with a sudden large sum of money – a windfall gain, bonus, sale of an asset. Equity market is a great choice but it comes with a possibility that there may be a sudden crash in the market and you may see a sharp…

What are some lifestyle changes that save money?

  Read Books Rich Dad Poor Dad, The Millionaire Next Door, Snowball – Warren Buffet are all must reads. The best lesson I learned – assets are what put money into your pocket, liabilities are what take money out of your pocket. That said, your prestigious house and luxury car are not your assets. Some…

Top 10 Personal Finance Books

  For a few hundred rupees you get to learn from Steve Jobs, Warren Buffet, Elon Musk and other great people. That’s the beauty of reading books. There is a wealth of information and knowledge in books that can help you meet your goals. I started blogging about personal finance so that I could record…

Stock Markets are Stable in the long term – BSE Sensex CAGR

Do you worry about investing in the equity markets because you hear that it’s very volatile and that you could end up losing money? That’s true and very much possible. However, it is important to understand that the probability of losing money is high when you have a short term investment horizon. In reality the Equity markets…

Should you invest in Fixed Deposits (FDs) or Mutual Funds?

Unfortunately it’s taken me nearly 15 years to realize that investing in Bank or Company fixed deposits (FDs) is a terrible investment choice. If you have a long term horizon you should definitely choose investing in Equity Mutual Funds via SIPs or Lumpsum. The BSE Sensex has given an average year on year return of approx…

How to maximize the returns of your Mutual Funds

I am sure that a lot of you think that your financial advisor / manager / agent who recommends mutual funds to you are doing so free of charge and hardly benefit from this recommendation. This is a big misconception. You are in fact paying a really large amount without even realizing it. Let me…

10 Steps to Building Wealth

Try Saving 50% of your Income Save 50 percent (or more) of your after-tax income. At first glance, this might sound really hard. But the peace-of-mind and flexibility that this generates is worth the effort. Many people achieve this on middle-class incomes. The beauty of a high savings rate is twofold – You learn to live…