Should I Make More Money or Spend Less?

If you had to choose between making more money and spending less, what would you choose? “Wait a minute, why should I choose?”, you ask? Good question! Let us find out if you have to make that choice (or do both) ! Now, I hate thumb rules because most of the popular ones are flawed (eg. rule of 72), but here is a thumb rule that is pretty effective but most people either ignorer or cannot follow. read more

Beware of incorrect assumptions while planning for early retirement (FIRE)

As mentioned earlier, I am running a series of posts on financial independence and early retirement (FIRE). In the first part, we considered a set of thumb rules for FIRE with a calculator and android app. In the second part, we shall consider some of the popular yet incorrect assumptions associated with early retirement. A new and simple retirement calculator is also included to highlight the problems. read more

How tracking investments instead of expenses changed my life!

In this post, I write about how I went from tracking expenses to tracking systematic investments and how it changed the way I look at money and has taken me to financial independence within a decade of regular employment starting from a net worth of minus three lakhs (I was in debt). This post was first published in Sep. 2015. After seeing the positive response from readers who have tried the same method, I thought of republishing it. read more

A thumb rule for financial independence and early retirement (FIRE) + Android App

I discuss a simple thumb rule for computing how much money do I require for financial independence and early retirement (FIRE). This also applies to normal retirement. You can also download an Excel sheet and an android app to answer questions like (1) what is the corpus required? (2) How long will a corpus last? (3) How much can I draw from a corpus each year? (4) What is the rate of return required for FIRE? This is the first part of a series of posts analyzing how robust FIRE or normal retirement strategies are. In this post, I shall present the tool and a set of thumb rules and from the next point out their serious limitations. read more

Want to be financially free? Do not count on frugality! Worry about sequence of returns risk!

If you are someone who desires early retirement or you just want to save up enough to ensure income for a few years while you get your startup off the ground, then you probably should have come across* terms like frugality, FIRE, safe withdrawal rate = 4%, savings rate etc. These are some of the lingo tossed about in the so-called financial independence and early retirement (FIRE) forums and communities. Useful as these groups are, I discuss why you should not take their enthusiasm about frugality too seriously else you may risk exhausting your retirement corpus quicker than expected. read more