Introduction:
Join me on a journey where I’ve experimented with breaking free from the relentless cycle of earning and spending that often leaves us chasing materialistic desires endlessly. Through my experiences, I’ve discovered the power of informed financial choices, leading to a more purposeful life. On this blog, I share my insights into the four essential pillars of financial well-being: Earning, Spending, Saving/Investing, and Retiring. My hope is that my journey and discoveries may inspire and assist others in their pursuit of financial freedom.
Earn:
I’ve acquired all my assets through ethical means, firmly believing that fast money tends to disappear just as swiftly and isn’t a worthwhile pursuit. Alongside my engineering career in an IT company, I ventured into various field to bolster my income. I delved into investments as an alternate source of income and embarked on a continuous journey of learning that is ensuring that I’ve never halted the growth of my earnings. I would try to write about my experiences / experiments to earn and learn in this category.
Spend:
Growing up in a lower middle-class family, I learned the true value of every rupee. There were times when I had to forgo certain things, like a better cricket bat during my school days, going on trips with friends in college, or even purchasing a motorcycle for myself. It wasn’t because we lacked the funds, but rather because we had choices to make. It was a matter of deciding between buying a motorcycle or using that money for something more beneficial, such as investing in courses to prepare for campus placements or saving instead of splurging with friends, perhaps buying additional books or upgrading my desktop’s RAM.
This experience taught me the importance of delayed gratification, a lesson I continue to apply in my life today. For example, when I started working, instead of immediately buying a car on EMI, I chose to stick with the motorcycle I had purchased in my initial months of earning. I used it for over five years and only bought a car when it became necessary due to marriage and a growing family.
I’ve steadily and consistently increased my lifestyle over the years while also saving for the future. Here are some instances and strategies I’d like to share in this regard.
Save/Invest:
It is evident that I learned the art of saving at an early age. As I continued to save, I initially invested in government bonds like Kisan Vikas Patra in the late 90s, which doubled the investment every five years. However, as the doubling period lengthened, I became curious about the mechanics behind this process. While it wasn’t entirely clear at the time, I began searching for better fixed deposit options that could expedite the growth of my savings.
I used to ask my grandfather about how banks managed to double the money, wondering why we couldn’t replicate it at home. It was during one of these discussions that he explained the role of banks. They borrow money from individuals like us at lower interest rates and then lend it to industries at higher rates. These industries, in turn, invest in their businesses, generate higher returns, keep a portion for themselves, pay back the interest or EMI to the bank, and the bank takes its share before returning the remaining sum to the lender, which in this case, would be me.
As my income grew, a significant portion of my savings was invested in gold and fixed deposits. However, I was gradually introduced to the stock market by a friend. As I began to grasp the essence of stock investing, I strategically shifted my funds from fixed deposits to equities, doing so gradually as I gained a better understanding of various companies and identified investment opportunities.
In this section, I would like to share the experiences I gained while investing in fixed deposits and my strategic transition into owning equities.
Retire :
Upon reaching the juncture where our accumulated corpus is capable of consistently generating the desired monthly revenue while also undergoing substantial compounding, a pivotal decision arises. This crossroads invites us to consider bidding farewell to the professions that evoke our disdain or the jobs that no longer kindle our interest. The financial security provided by the self-sustaining corpus can empower us to relinquish roles that once held us captive in the pursuit of monetary gains, paving the way for new chapters aligned with our genuine passions and aspirations. This transition signifies a transformative shift from obligation to choice, from the compulsion of necessity to the liberation of fulfillment.
While i am in the process of doing this i wish to record all the experiments that i try doing in this section.
Want to Brainstorm on your Personal Finance with me ?
Balancing my work and family commitments means I have limited time for this, so please understand that my responses may experience some delays. please follow the link below , select your choices and hang on , i would be happy to help you and your family as much as i can.