Starting your Personal Finance journey: Personal Finance 101
Hello Reader,
This is the 1st of many Personal Finance Journey articles/ Blogs.
We are going to follow the following content structure in this journey.
We will publish articles/ blogs mostly related to these topics in coming weeks and months.
The way we have structured this series on starting your Personal Finance is based on our personal experience and what we have observed in our friends and families, researched over the years by reading about and understanding different financial instruments one can use to create personal wealth.
Few points of wisdom which everyone should understand and make a note of:
- All good things in life take time
- Rome was not built in a day
- Power of compounding with right base: 1^0 =1; 1^365 = 1; 0.99^365 = 0.026; 1.01^365 = 37.78
- A debt of 100,000 at 10% Rate of Interest for 20 years results in an EMI of 1,000 and cumulative interest paid is 140% more than principal amount (140,000) – 100k@10%@20yrs:1k@140k
- It takes 7 years at 10% Rate of Interest for any amount to double – 7@10% or 10%@7
- Lower age, lower is the perceived risk; Higher age, higher is the perceived risk.
- F.I.R.E. is a journey not the destination
- Some decisions are emotional and some mathematical; Strike a balance
- Need vs Want differentiation is necessary
- Earn to Live; Don’t live to earn!
So let us not wait further, our next article on Basics of Personal Finance: What is wealth will be live by 21st May 2023.
Till then adios. Do share with us any other points of wisdom!
In the mean time we recommend to read this book: The Compound Effect. Click on the link to purchase the book on Amazon. Click here .
Cheers
Team Chilli Wealth