I’m a big fan of the I Will Teach You To Be Rich blog. I’ve been following that blog since a couple of years mainly because the approach to money preached over there is very similar to my own thoughts and beliefs towards money. My policy on money is quite simple — “Don’t feel guilty […]
One of the key takeaways for me from the Art of Non-Conformity was to identify, to the extent possible, the motivation and agenda behind everyday transactions and especially so in virtual ones (such as what’s my motivation and agenda when you read what I write over here). I gave this some introspection and then thought […]
I’ve no idea when I signed-up for earning them, but my debit card is somehow linked to earning Payback-points. Out of the blue, one fine morning, I saw an email that said I had 6,800+ points linked to my Payback-account. Wow! I don’t know for how long the points had accumulated but I must have […]
I was looking at a colorful and eye-catching full-page ad for Videocon’s 3D-enabled d2h (direct-2-home) service when I caught this fine print: Standard cable length is 12 meters. Free Lifetime Warranty shall mean and be valid for 5-years from the date of activation. I wonder if that standard cable length measurement has some statistical backing […]
Here’s a recent conversation I had with an ex-colleague. How’s your job/work going? Pretty good. D’s also working right? Yeah. In fact, her division at Company L was recently taken over by Company N. [The conversation then revolved around family life…] Then both of you must be really busy with your careers? No. Not at […]
It’s irresistibly tempting. My head spins non-stop with how-can-I afford-this thoughts. Since the iPhone 4 launched [in India], I’ve had these financially-destructive thoughts: Dip — no, make that dive — into my emergency fund. In a weird way this does count as an emergency because my present phone, a Nokia E52, has had its share […]
This question’s been plaguing my mind from the past couple of months and especially after I wrote about how I make my budget work. Because, I don’t recollect a single month when I have managed to beat my budget — ever. I’ve always overspent but never underspent. I’ve always thought that when the chips are […]
To me, “inflation” is simple. If last year, I was spending Rs 25,000 per month on an average and this year, if I am spending Rs 30,000 per month on an average, then my expenses have inflated by 20 percent — and that’s my Personal Inflation Index. Simple. Then, it really doesn’t matter to you […]
At work, I have the option to opt for Sodexo Meal Coupons. The income-tax benefits on these food coupons are good enough a reason to opt for this facility. But the physical-voucher form of these coupons really needs to change — especially when you have card-based equivalents for competition. It’s a pain to use these […]
You already know that I’ve made an extremely stupid mistake due to which I’m now looking at an income tax liability in the upper five figures! This means I’ll simply be unable to meet all of my financial goals over the next three months (because I really won’t have much to call as a salary). […]
On my way to work, I was running my finances through my head and had this thought. Total up all your expenses (household expenses, personal expenses, EMIs, monthly savings for annual expenses, and anything else that you treat as an expense) in the past month. Divide this figure by the number of days in that […]
Continuing yesterday’s thoughts, Why does it cost thousands of rupees to simply allocate your premium amount? I can understand a one-time nominal fee, but why each year? Why does this fee change between years (in the example below, between Years 1 and 2)? You haven’t changed. The insurance company hasn’t changed. The policy hasn’t changed. […]
I wish I knew these rules out of college. Spend less than you earn. And don’t spend money that’s not yours to begin with (credit cards and consumption/lifestyle-oriented loans). The value of an emergency fund. How to set a financial goal. Compounding through debt (Public Provident Fund) and equity (rock solid index funds). The value […]
With a new financial year just around the corner, I thought I’d reflect back and list the financial mistakes that I made in the past year. 1. I let my independent health insurance lapse. I’ve written time and again about the importance of having independent health insurance — one that’s not provided by your employer. […]
Do you want to know what the impact on your income tax payable will be when the new income tax rules come into effect? Do you want to know what the impact on your home loan tenure will be if you decide to prepay a certain amount? Do you want to know what the EMI […]
A close friend and I were exchanging notes on our respective financial situations when we realized that almost everyone in our immediate circle of friends has a similar financial mindset. We listed some of the common financial principles found amongst this group and these include (in no particular order): Cash first; no credit — as […]
Adding two more to the list this January. Last-minute tax-saving investments. Return-guarantee funds — no matter how attractively packaged and/or presented. Unit Linked Insurance — of any kind — Policies (ULIPs). Financial products/services/agents/institutions which/who offer you “exclusive,†“privilege,†“priority,†“premium,†“premier,†or “another-similar-word,†access to some [usually useless] service. Insurance agents who offer “commission kickbacks.” […]
The more I read about and observe the economy, the stronger is my belief that you should, THINK hard about and then WORK on developing an alternate skill or two (something that’s not directly related to the type of work you’re doing right now). The skill that you value so much right now will be […]
Since I often ask you guys to run away from a lot of financial products/services/agents/institutions, I thought I’d make a quick list of items that I have so far asked you to run away from. Unit Linked Insurance — of any kind — Policies (ULIPs). Financial products/services/agents/institutions which/who offer you “exclusive,†“privilege,†“priority,†“premium,†“premier,†[…]
Of late, I have been thinking about working towards having a “single source of financial truth.” Let me explain what I mean. There are four financial categories which I would like to track every month. These are: Income, Expenses, Savings, and Investments More often than not, cash flows into and out of these categories happen […]