Bhaat Daal r Biriyani (Part 1/2)

The literal meaning of the title is:

Bhaat (in bengali) = Rice

Daal (in bengali) = Pulses

Biriyani… do I really need to? Now pull your tongue inside..

ohh..yummy yummy biriyani

First of all, thank you for all the love and support you people have shown towards my writing.

Well what does the title infer?

It short, it speaks about the necessity and the luxury of life. How?

In order to survive, you need to have 3 key essential things, ie food, clothing, shelter. Coming to food, you can survive with rice and pulses, thus that is necessity. But biriyani gives you pleasure and thus its luxury.

I will try to explain 2 crucial concepts in life keeping the above idea in mind.

  1. Financial Planning
  2. Asset Allocation

After my last blog (The sad story of today’s youth), lots of people misunderstood and thought that I m asking them to invest and invest only and not live their present life to the fullest. Well let me reassure you, I m a bigger spendthrift than you are probably. Eg below:

KTM RC 200 — gifted it to myself on my 24th birthday

But even after buying this, I managed to keep all my core financial values intact. But the question is how?

I try to follow a simple logic in life.

  1. Money spent per month < Money earned per month
  2. As soon as I get my salary, I clear all my monthly debts (like rent payable, credit card bills, EMI, etc) [48% of my in-hand salary PM]
  3. Be a good son. Send some money back home to my parents. [12% of my in-hand salary PM]
  4. Invest in myself, my future [30% of my in-hand salary PM]
  5. And then I have close to 10% of my in-hand salary left, out of which 5% goes towards my emergency funds, 5% I spend in luxury like dining out, going for movies, taking my gf out for a date (I hope she doesn’t kill me for calling this luxury).

Note: My monthly food and travel expenses are done using my credit card, the bill of which I settle next month paying no interest charges but gaining some good brownie points (CIBIL score) and some free cookies (cashbacks).

This is my financial planning. I m sure this will help you breakdown your monthly earning and expenditure in different categories and help you analyze your spends. Also note, the amount you allocate for each of the above heads depends on your financial situation, your spending habits, your salary, your risk appetite, etc.

PS: I have a high risk appetite.

For Bhaat Daal r Biriyani — (Part 2/2) which explains point #2 Asset Allocation, follow me on medium. Will be uploading soon.


Signing off,

Sandipan Mitra

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