When it comes to human relationships, I am fairly naive. It took me several years to understand that many people around us (friends, relatives, co-workers, neighbours, etc) respect us depending on our net worth. This accounts for how my relative’s behaviour towards me changed over the years. This guy was neither a close nor distant…

We have encountered these questions countless times over the past decade. “I have some surplus cash. Where should I park it?”; “Can I park my surplus cash in my SBI Max Gain account?”; “Is this market dip a good time to deploy my surplus cash?”. Almost always, digging deeper reveals it to be a case…

Often, readers email us saying, “I do not have enough to invest for my long-term goals. What should I do?” This is a fairly common situation; most of us start our investment journey this way. There is nothing to despair about. Here are some options to consider. 1. Consider clubbing all long-term goals together (greater…

“We do not know what to do with our salary minus expenses, so we just open FD after FD”. This is a common refrain from many employees I have met during my commonsense approach to money management corporate talks. I notice that many women in double-income households are guilty of letting unutilized salaries pile up in…

This is a compilation of frequently asked questions about the freefincal robo advisor tool. It allows you to plan from start to finish for retirement (early, normal, before and after), non-recurring financial goals (child education) and recurring financial goals (holidays, appliances, etc.). The tool would help anyone aged 18 to 80 plan for their retirement,…

This article explains how a simple cash flow projection can significantly impact our goal-based financial planning. When I started creating Excel sheets in 2010-11, I slowly realised that all goal-planning must culminate into a cash flow projection. The freefincal robo advisor tool automatically creates a cash flow projection with goal-planning results. If the user chooses…

In this article, we discuss two different questions on asset allocation. Reader (1) says, “I am 25 years old and in a well-paying IT job. After all my expenses, including supporting my family, I can comfortably invest around 100% of my monthly expenses. I am investing it purely in equity to catch up with my…

We recently did a Let’s Get Rich With Pattu podcast episode on buying cars, and one of the questions was, “What should be the budget for my first car?” A discussion. My answer was: Whether you buy with cash or via EMI, ensure the car cost does not exceed your annual income.  Admittedly, I am…

We have repeatedly emphasised the importance of asset allocation and its periodic rebalancing. A two-asset portfolio comprising equity and fixed income will do the job for all goals with minimal effort. However, what if the equity predominantly comprises a direct equity portfolio (stocks)? How can we rebalance such a portfolio? Those who wish to understand…

Having a clear goal can be a key differentiator to managing our finances. A discussion

I have tracked the amount invested in my goal portfolio for over 13 years. It has been a life and game changer for my family. Whether you track your spending or not, tracking your investment amount is crucial. Today, I can invest more for retirement than my target investment. That was not the case when…

My parents had a simple rule: If you cannot pay for it, you cannot afford it. This means avoiding debt at all costs. My father was 40 when he was urged to buy a two-wheeler on EMI. He reluctantly agreed because public transport to his workplace was a nightmare. That was the only item my…

Here are 16 personal finance resolutions and resources to help you start your wealth creation journey. In his 2013 Ted Talk, former Google search quality chief Matt Cutts discussed the power of trying something new for 30 days.  He says if you try something new for 30 days or stop doing something for 30 days,…

We discuss an efficient investment strategy for our financial goals without worrying about market conditions. This simple strategy will help you achieve your financial goals independent of market conditions. We have extensively backtested different variable asset allocation strategies, and the results are available in our goal-based portfolio management course. Be clear about when you need…

I was recently asked to share my thoughts on “How do you increase equity/bond market participation in India?”. I figured the best way to collect my thoughts was to write an article about it. Financial inclusion typically means enhancing the reach and deliverability of financial services to reduce inequality. So, by aiming for enhanced capital…