A Few Rules That Help Me Deal With My Money
511 بار بازدید -
2 سال پیش
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A few rules that help me deal with money.
10 Thoughts To Deal With Money
Niraj Dugar
Never lose your sleep behind money
Never lose your sleep over volatile investments. Ensure that you hold enough cash and insurance to protect yourself from any near term risks.
Debt to never exceed 10% of net worth
I do not like Debt. It does not let me sleep well. So I have decided that total outstanding debt should never exceed 10% of my total net worth. This debt could be a consumer loan or a business loan. I am absolutely ok with the kind of debt I take, does not matter. But I will personally not let it go above 10%.
Focus on growing income. Expenses can be reduced to an extent only.
I have always been of the frugal mindset. Frugality is great. Simple life is a better life. But there is an extent to which you can be frugal. If you earn 100 bucks, you can save 100 bucks. You cannot save more than that. But you can definitely earn more than 100 bucks. This mindset change has done wonders.
Never withdraw money from long term allocations
Do not interrupt compounding unnecessarily. Create financial goals and invest accordingly.
Don’t play with things you don’t know
Futures and options are not my cup of tea. I will trade with money I can afford to lose. I will not get into leverage unless I understand the methods completely.
Asset Allocation
My asset allocation is simple. Hold enough cash and never withdraw from equity. Now if equity goes up significantly and starts comprising a large part of my overall allocation, then I will not invest fresh money to equity instead invest fresh cash in debt instruments for re-balancing.
Use credit cards wisely
It's stupid to not travel for free. I try to pay my bills on time and not go overboard with my expenses.
Hold enough cash to last 10 plus years
Our emergency fund. Primary focus is always on sleeping well.
Create more income sources
Have more than one source of income. It reduces risk and dependency.
Pay for things that improve your life
If anything that costs money but improves my life, I am all in for it. It could be an app or a course. It could be paying a small fee for credit cards where I can get out sized benefits, I would pay. Like I said frugality mindset is good but finding more avenues to earn money will allow you to spend money on areas of growth.
Amex platinum travel -
Apply for an American Express Card with this link. We can both get rewarded if you're approved! https://americanexpress.com/en-in/ref...
Amex MRCC -
Apply for an American Express Card with this link. We can both get rewarded if you're approved! https://americanexpress.com/en-in/ref...
A few rules that help me deal with money.
10 Thoughts To Deal With Money
Niraj Dugar
Never lose your sleep behind money
Never lose your sleep over volatile investments. Ensure that you hold enough cash and insurance to protect yourself from any near term risks.
Debt to never exceed 10% of net worth
I do not like Debt. It does not let me sleep well. So I have decided that total outstanding debt should never exceed 10% of my total net worth. This debt could be a consumer loan or a business loan. I am absolutely ok with the kind of debt I take, does not matter. But I will personally not let it go above 10%.
Focus on growing income. Expenses can be reduced to an extent only.
I have always been of the frugal mindset. Frugality is great. Simple life is a better life. But there is an extent to which you can be frugal. If you earn 100 bucks, you can save 100 bucks. You cannot save more than that. But you can definitely earn more than 100 bucks. This mindset change has done wonders.
Never withdraw money from long term allocations
Do not interrupt compounding unnecessarily. Create financial goals and invest accordingly.
Don’t play with things you don’t know
Futures and options are not my cup of tea. I will trade with money I can afford to lose. I will not get into leverage unless I understand the methods completely.
Asset Allocation
My asset allocation is simple. Hold enough cash and never withdraw from equity. Now if equity goes up significantly and starts comprising a large part of my overall allocation, then I will not invest fresh money to equity instead invest fresh cash in debt instruments for re-balancing.
Use credit cards wisely
It's stupid to not travel for free. I try to pay my bills on time and not go overboard with my expenses.
Hold enough cash to last 10 plus years
Our emergency fund. Primary focus is always on sleeping well.
Create more income sources
Have more than one source of income. It reduces risk and dependency.
Pay for things that improve your life
If anything that costs money but improves my life, I am all in for it. It could be an app or a course. It could be paying a small fee for credit cards where I can get out sized benefits, I would pay. Like I said frugality mindset is good but finding more avenues to earn money will allow you to spend money on areas of growth.
2 سال پیش
در تاریخ 1401/09/30 منتشر شده
است.
511
بـار بازدید شده