Make Epic Money : A practical Personal Finance Guide for Young Indians
Book Snippets from Make Epic Money and Ideas for Personal Finance Automation
Hello Curious Minds,
In this week's edition of Curiosity Logs, we will go through snippets from Make Epic Money by Ankur Warikoo. Its a great collection of wisdom on personal finance.
Practical money advance inline with Ramit Sethi
Aswell as money philosophy from Morgan Housal and Robert Kiyosaki.
Also I will share some strategies for automating finances which I use. Lets jump into the money talks
📚 Weekly Book Highlights
It was a page turner book experience after a long time. Completed book in 3 hours.
Recommend this to all who want to start and understand how personal finance work.
There is a lot of personal finance wisdom out there, please check the book if you want to absorb it in full. Here is some interesting highlights from the book.
The true purpose of money is NOT to help us buy things. The true purpose of money is to grant us freedom-over our time, our choices and the way we lead our lives.
'There's a limit to how much you can cut. There's no limit to how much you can earn.' -Ramit Sethi,
For everything else: Don't just look at the price tag. See the full cost of ownership. If it costs you money and loses value, it's a liability.
The trick is to: Try new things. Stay curious. It'll be tough to start, but, I promise you, it'll be so rewarding. Personally and financially!
Wealth is not a zero-sum game, where the winner takes it all. If someone won, it doesn't mean you will lose. And for you to win, no one else has to lose. There is space for everyone. There is wealth for everyone.
Build a limitless mindset. Wealth is not a zero-sum game. . One winner does not take it all. There's enough for everyone.
If you give 1 extra EMI every year + increase your original EMI by 10% every year, you pay off a 25-year loan in just 10 years!
If you don't build the habit of saving while your salary is small, You'll never be able to save when you begin to earn more.
No investment is worth it if it gives you returns while taking away your sleep. On the other hand, no investment is worth it if it just sleeps, while you do all the work.
Automate your investments. Create a separate account to park your savings (to invest!). Set up auto-transfers from your salary account to your investment accounts.
Risk can't be eliminated. It can only be understood and managed.
Your salary is not enough. Diversify your income. Just like your investments.
Anchoring bias is like having a financial GPS that's stuck on the wrong destination. You'll keep following its directions, even when you've long since missed the turn.
P.S. I’d love to know: What is the single snippet above that sounds most interesting or impactful to you? Share in comments or reply this email.
Weekly Curiosity Corner
This week we will discuss some musings on Automating your personal finance.
Do you automate Your Investments?
If you are doing your investments manually (like transferring to PPF account every month or buying mutual funds by looking at price every day), chances of doing it every month is less likely.
You will think twice every time.
All the noises about stock market can affect your decision to buy each month.
importantly you will be too lazy to login to bank account/app to do the transaction every month.
Who wants to go though the hastle of going though multiple security checks and OTPs in your banks site every time.
💡 Instead you can automate your Investments and let your system run automatically while you do the things you enjoy. These are the two underrated tools I use to automate my investments.
[1] Standing Instruction /Scheduled Transfer
This is most underrated tool which all banks provide for free. You can setup a standing instruction to transfer to another bank account every month on a specific day.
You can use this to automate all your transaction like transferring to PPF or NPS accounts, transferring rent to your land lord every month.
It is an incredible tool to automate most of your recurring transfer and and easy to implement as well.
[2] SIPs (Systematic Investment Plan) for mutual funds
This is a well known tool used for buying mutual funds. All the mutual fund apps/services support this feature.
This not only helps to automate Your investments, also helps to increase your returns by doller cost averaging.
Interestingly you can use a similar methods to by stocks/ETFs as well.
NOTE : If you use any other tools to automate Your investments please share in the comments or reply to me over email. #automation #investments