The Money Matter
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The Money Matter

Get Finance Healthy

It’s a must and you should start ASAP.

As long as humans exist, the economy will and ergo you need money.

It is very essential to understand the WHY(s) of it before we explore the HOW(s). The same principles apply to the rich and the poor. The major reason why someone is rich today comes from being financial educated(life principles of money). This has enabled them to leverage money instead of toiling indefinitely.
Stay with me, we will deep dive into the HOW(s) too.

Hailing from a middle class Indian household where you are taught literature, culture, hard work, ethics(you know how this list goes on….), I was taught everything my parents felt just and they could afford in order to raise me well.
My father educated me on ideas like saving, investing and emergency planning. Again, that was limited to extremely old school methods like using Fixed Deposits and I cannot emphasize enough on what a waste that is. Well, I know better now.
This definitely got me started and I am grateful.

I am no financial advisor. I just have had some experience with my own money.

My Intent
Point out things that we, as a generation are collectively doing wrong.
Share the small changes that can help turn the tables in our favor and sustain it.

The WHY(s)

  • You needs you first. Be prepared to sustain yourself.
  • Future you is relying on you.
  • Your dependents need you.
  • Emergencies will hit you and when they do, it’s a hurricane.
  • Check out how much of your savings will get drained by that one hospital visit
  • You don’t want to do a job till your last breath. I know that I don’t.
  • COVID-19 and 20 and 21 and not even the good Lord knows how further…

The list could go on but I hope I have been able to give you at-least one reason to understand the importance of having some financial muscle and build some for yourself.

What does it mean to be financially healthy?

The definition can vary based on the goals and aspirations you have.
For some it could be saving for a big house, paying off an education loan or as simple as having enough to sustain their current lifestyle.
No goal is unachievable. You just need to add some time, money and income to it. In other words, you will have to make money and then allow your money to grow. Consistency, will be your best wing-man.

How do I get started?

To get started, you have to stick to the most fundamental rule: Do not spend more than you earn.
Then that’s what credit cards are for……
You cannot and will not be able to last long if you are living paycheck to paycheck with some added debt. Forget building a corpus.
Once you have contained your expenses to not exceed your income, the next step would be to start with the habit of saving.

How do I save money?

“I will cover all my expenses and save what I have leftover in the end.”
This is what comes to our minds first. It’s natural. It’s also the perfect recipe to set yourself up for failure.
Let me dive into the why. There is always going to be an unplanned trip, some medical emergency or that extra course you need to take. Not to forget the unaccounted for impulsive purchases.
There is a way out. We need to reverse engineer the process and adopt the idea of “pay yourself 1st”. Keep aside fixed amount that will get added to your corpus and then go about with your expenses. Once my salary gets credited, I feed my investments channels and then go about the month with the leftovers.
You will find more details on this here: https://qr.ae/pNELTB

What to do with the money saved?

DO NOT let it sit in your bank account. I will not get into the math right now but the banks are not keeping your money safe. Your money will get depleted. An idle mind loses it’s luster. Idle money in your bank account loses value.
DO → Pay off your debts(if you have any) & start investing the leftover. Always invest towards your future and then start accumulating money for any near term goals.
For example: Never plan for buying a car if you are not contributing some amount towards your retirement fund. That car and house can wait but the 40 years later you will not have the physical or mental strength to work as much as you are able to today.
My answer here will help you gain some more insights https://qr.ae/pNBJ1R

Am I financially healthy now?

Not really, but you got started! This in itself is a huge step.
People go about all their life thinking there is always time to do this later but there never will be.
When reality hits, YOLO-matras don’t work.

I am planning to create a step by step template that will enable you form the basic skeleton of personal finance. Once done, I’ll link it here.
Until then, I hope this was helpful and let me know if you would want me to write on a topic specific to personal finance.
Feedback and suggestions are always welcome!

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