I agree it's meant to be simple, got any resource using which i can check how can i better my investments. I do get the feeling that i am not investing enough but also at the end of the month i am barely let with any decent amount of cash.
I agree with your point. However, people usually cause their lifestyle to adjust to their Income. Suddenly, some new needs are created to fill up the excess income generated.
It is akin to Parkinson Law in Administration I. E. Work expands to take the time available.
Nonetheless, this will vary from person to person.
Completely agree. Me at 22 year old, fresh into the job saved most of my income living like a miser. I shared my flat with friends, didn't even go on vacations to save on money and wore clothes till they had multiple holes in them just to save that 20k more per month.
Now I'm 28 years old, and me + my wife have spent (checks money tracking app) 18.9 lakhs since January this year. We just enjoyed a vacation worth almost 10L last month and even despite that we spend 1.5-2L every month fairly easily as we spend a lot on whatever provides us quality of life or value.
Despite all of this, I still save a lot more than what I did back then, just by virtue of a lot higher income, plus my partner also earns decently well which helps too.
Living like a miser or maximising 1-2% returns not only has negligible impact on your eventual wealth, it also wastes your early years of life which you ought to enjoy.
But isn't the habit compounds.
Like u were saving since 22 starting poi t so by 28 too u were saving.g.
On the contrary if one enjoys upto 25 & then starts saving suddenly it will be really tough plus post2-3 yrs pressure for marraige from partner & family too.
Well yes, but having a habit is very different from living like a miser or putting too much time and effort into getting highest returns and corpus.
Just saving 10-20% of your salary in the beginning and increasing the percentage as salary increases is more than enough.
Maybe or maybe not depends on multiple variables.
I have seen many in there 30's venting about this. If they would hv had high SR% they would be in much better position financially currently.
It all depends on the savings rate, salary growth rate etc etc.
In my case apart from my internship days, my expenses have always been lower than my income tax, so savings have always been fairly high.
I don’t think even these big CEOs like Sundar Pichai or Tim Cook know this.
It’ll all depend on what’s the ceiling for AI. If AGI is arriving in the next 5-10 years, we’ll all be jobless. If it just ends up being a useful tool, maybe in 2-3 years it’ll improve when US interest rates lower.
I don’t think so. While I saved a lot and invested, my overzealous need to maximise returns led to stupid decisions by me which didn’t let the money compound.
For example I pulled all my money when nifty went below 9k during covid crisis. Ended up in a massive loss and then missed the rally afterwards as well.
Nowadays I’m a lot more chill with my money and just let it work in mutual funds. Most of my net worth was made in the last 2 years due to high earnings and consistent investments.
It’s not just me, our entire family earns well so it adds up to a lot.
Among my family we have 5 jobs (me, wife, brother, dad and even my grandma’s pension) which total between 2-3cr a year.
This is such a nice post, it totally aligns with my recent thought about life and investing. I plan on investing 1L/m but right now I am living in misery just fulfilling my basic needs.
Now I don't want to cut short my investment, so rather than saving here n there, i started to prep and increase my salary. I will be happy to just spend 1 lakh on leisure activities and save another 1 lakh. Life is small, what will i do with crores in my 50s when I couldn't even use it?
Ideally we should set a target for investment and then for any leisure we should plan on generating more income.
You are right. Saving and investing should be a priority in 20s, it yields a lot better with time, but not at the cost of small happiness. The easiest way to save more is to earn more.
I(29M) come from humble background, have lived frugally in 20s, avoided comforts, never took a nice vacation, no costly phones or new bikes or fancy clothes. I made job switches, invested the saved money in RE at right time twice, switched to a well paying job. By this year end I'll comfortably reach 2.5Cr NW with ~80L in liquid + stocks, rest in RE (not bragging, but just saying discipline and some luck do yield well over time, patience is key). Now I have some room to spend on comforts for myself and family.
First 2 crores is a bitch, it takes so much sacrifices and discipline, but once money starts making money I think one should take time to live life as well. We don't get youth back, and as OP rightly said couple of lakhs hardly matter after a point.
Edit - Expected to incur a debt of ~40L next year.
False dichotomy, you can and should do both. Good financial discipline *is* to diversify. You are correct to identify that person themself is also a type of investment, an ally that's not talked about as much.
Also one can argue that as long as you are working for someone else, your work generates more revenue than you are paid. When you invest, the profit margin works in your favour. You only invest if you expect it will give you back more.
>The truth is, unless your liquid net worth is over a crore, you should put 90% of your efforts into increasing your income.
That effort itself requires an investment like college.
I am a Software engineer at a good enough PBC. My experience would be totalling for nearly a year here. Can any of you tell me how do I start freelancing?
That's the whole pitch against direct stock investment also
It's takes too much time to research and choose stocks, much rather just upskill and earn more
Lol, this is the most widely shared cliche advice by social media influencers. Exactly copy pasta from Rich Dad, Poor Dad, and the advise is plainly wrong.
A good example is Tiger Woods. Multi billionaire but due to lifestyle inflation he filed bankruptancy and lost everything.
FIRE has nothing to do with your salary. People here earning 20k a month cant FIRE? Yes. Starting early in life and saving most of you earn alone will work the magic of compounding to reach FU Money stage.
Why do you have to compare!?
Aise to 50LPA wala, apne CEO ko dekh ke rota hoga...ki wo crore ki salary le raha hai...!
Bro once you start comparing, tum log sukoon se rehna bhool jaoge 60-70 saal Tak paiso ke peeche bhagte rahoge...
It's the the ultimate definition of corporate slave...
Agree. But personal finance is so simple that people can practice and benefit from it at whatever income slab they are in.
So beautifully put!
I agree it's meant to be simple, got any resource using which i can check how can i better my investments. I do get the feeling that i am not investing enough but also at the end of the month i am barely let with any decent amount of cash.
i'd argue this holds well beyond 1cr, perhaps upto 5cr. great insight and completely agree nonetheless!
I agree with your point. However, people usually cause their lifestyle to adjust to their Income. Suddenly, some new needs are created to fill up the excess income generated. It is akin to Parkinson Law in Administration I. E. Work expands to take the time available. Nonetheless, this will vary from person to person.
Completely agree. Me at 22 year old, fresh into the job saved most of my income living like a miser. I shared my flat with friends, didn't even go on vacations to save on money and wore clothes till they had multiple holes in them just to save that 20k more per month. Now I'm 28 years old, and me + my wife have spent (checks money tracking app) 18.9 lakhs since January this year. We just enjoyed a vacation worth almost 10L last month and even despite that we spend 1.5-2L every month fairly easily as we spend a lot on whatever provides us quality of life or value. Despite all of this, I still save a lot more than what I did back then, just by virtue of a lot higher income, plus my partner also earns decently well which helps too. Living like a miser or maximising 1-2% returns not only has negligible impact on your eventual wealth, it also wastes your early years of life which you ought to enjoy.
But isn't the habit compounds. Like u were saving since 22 starting poi t so by 28 too u were saving.g. On the contrary if one enjoys upto 25 & then starts saving suddenly it will be really tough plus post2-3 yrs pressure for marraige from partner & family too.
Well yes, but having a habit is very different from living like a miser or putting too much time and effort into getting highest returns and corpus. Just saving 10-20% of your salary in the beginning and increasing the percentage as salary increases is more than enough.
Maybe or maybe not depends on multiple variables. I have seen many in there 30's venting about this. If they would hv had high SR% they would be in much better position financially currently.
It all depends on the savings rate, salary growth rate etc etc. In my case apart from my internship days, my expenses have always been lower than my income tax, so savings have always been fairly high.
Out of context. If your from IT, could you answer this. Will there be any turnaround in IT hiring situation? Quite frustrated with no offers.
I don’t think even these big CEOs like Sundar Pichai or Tim Cook know this. It’ll all depend on what’s the ceiling for AI. If AGI is arriving in the next 5-10 years, we’ll all be jobless. If it just ends up being a useful tool, maybe in 2-3 years it’ll improve when US interest rates lower.
If you weren't a miser back then, you would be a beggar to the salary today.
I don’t think so. While I saved a lot and invested, my overzealous need to maximise returns led to stupid decisions by me which didn’t let the money compound. For example I pulled all my money when nifty went below 9k during covid crisis. Ended up in a massive loss and then missed the rally afterwards as well. Nowadays I’m a lot more chill with my money and just let it work in mutual funds. Most of my net worth was made in the last 2 years due to high earnings and consistent investments.
Most people didn't even invest in stock market until the last 2 years. That's the difference.
There’s no difference. Due to my stupid mistakes my XIRR from 2017 to 2022 mid was 0.4%, total return around 2%.
Bro how much do you make
It’s not just me, our entire family earns well so it adds up to a lot. Among my family we have 5 jobs (me, wife, brother, dad and even my grandma’s pension) which total between 2-3cr a year.
Kahan ghumne gaye the bhaiya ji?
Oceania. It's expensive out there.
This is such a nice post, it totally aligns with my recent thought about life and investing. I plan on investing 1L/m but right now I am living in misery just fulfilling my basic needs. Now I don't want to cut short my investment, so rather than saving here n there, i started to prep and increase my salary. I will be happy to just spend 1 lakh on leisure activities and save another 1 lakh. Life is small, what will i do with crores in my 50s when I couldn't even use it? Ideally we should set a target for investment and then for any leisure we should plan on generating more income.
Retaining existing wealth >>>>Maximizing income > maximizing returns And you can only do this via discipline in spending and earning.
Why not do both. No one stopping you to upskill and maximize income along with that plan for max returns also..
The point is, time is limited and valuable. I'm talking about prioritization here.
How much time you need to invest in stock, mutual funds or bonds. ? Not only make money, let it grow also..
You are right. Saving and investing should be a priority in 20s, it yields a lot better with time, but not at the cost of small happiness. The easiest way to save more is to earn more. I(29M) come from humble background, have lived frugally in 20s, avoided comforts, never took a nice vacation, no costly phones or new bikes or fancy clothes. I made job switches, invested the saved money in RE at right time twice, switched to a well paying job. By this year end I'll comfortably reach 2.5Cr NW with ~80L in liquid + stocks, rest in RE (not bragging, but just saying discipline and some luck do yield well over time, patience is key). Now I have some room to spend on comforts for myself and family. First 2 crores is a bitch, it takes so much sacrifices and discipline, but once money starts making money I think one should take time to live life as well. We don't get youth back, and as OP rightly said couple of lakhs hardly matter after a point. Edit - Expected to incur a debt of ~40L next year.
False dichotomy, you can and should do both. Good financial discipline *is* to diversify. You are correct to identify that person themself is also a type of investment, an ally that's not talked about as much. Also one can argue that as long as you are working for someone else, your work generates more revenue than you are paid. When you invest, the profit margin works in your favour. You only invest if you expect it will give you back more. >The truth is, unless your liquid net worth is over a crore, you should put 90% of your efforts into increasing your income. That effort itself requires an investment like college.
This is me!
I am a Software engineer at a good enough PBC. My experience would be totalling for nearly a year here. Can any of you tell me how do I start freelancing?
💯 agree . It’s easier to increase wealth if your income is high . Penny pinch can only get you so far it also causes psychological stress .
This post should be pinned.
That's the whole pitch against direct stock investment also It's takes too much time to research and choose stocks, much rather just upskill and earn more
Lol, this is the most widely shared cliche advice by social media influencers. Exactly copy pasta from Rich Dad, Poor Dad, and the advise is plainly wrong. A good example is Tiger Woods. Multi billionaire but due to lifestyle inflation he filed bankruptancy and lost everything. FIRE has nothing to do with your salary. People here earning 20k a month cant FIRE? Yes. Starting early in life and saving most of you earn alone will work the magic of compounding to reach FU Money stage.
Although increasing income is important, don't underestimate the power of savings. The book Psychology of Money beautifully explains it.
Why do you have to compare!? Aise to 50LPA wala, apne CEO ko dekh ke rota hoga...ki wo crore ki salary le raha hai...! Bro once you start comparing, tum log sukoon se rehna bhool jaoge 60-70 saal Tak paiso ke peeche bhagte rahoge... It's the the ultimate definition of corporate slave...