A reader asks, “How to perform a portfolio audit? What are the steps? What should be the frequency? How to achieve it without impacting your core day-to-day job/business? Ideally, how many goal-based portfolios an individual should have at max?” A portfolio audit comes after proper goal-based financial planning and implementation of the plan. We recommend…

We recently recorded an episode on women and investing for the Let’s Get Rich with Pattu podcast (it should be released when this article is published). As I prepared for it, I realised that it was my fault that my wife was not interested in personal finance. My wife says, “As long as I have…

A reader requested a discussion on instruments suitable for short-term goals. So let us do just that. The definition of what a short-term goal is is arbitrary. The unsubstantiated thumb rule is to avoid all equity for any “need” five years away or less.  “Wants” are typically flexible, and one can afford to include some…

Here are some investing mistakes that cost time which is a more significant loss than money. 1 Trying to make up for lost time in a hurry: We often don’t seriously consider personal finance until we reach our early to mid-thirties. Once we begin, it’s easy to feel pressured to make up for lost time and…

This article discusses how the salaried can build wealth across generations. I am passionate about this topic because I have witnessed wealth diminish within my family from generation to generation. I am determined to do everything I can to prevent this from happening in the future. My great-grandfather lived an upper-middle-class lifestyle during the 1940s…

A reader says, “I have invested in equity mutual funds for the last two years. Should I also invest in stocks?” This is a question that only the investor can answer, but we can provide some guidelines. Why do you want to invest in stocks? Is it because you heard multibagger stories on social media…

We discuss how investors can overcome analysis paralysis and confidently make investment decisions. Analysis paralysis is a frequently encountered issue in managing personal finances, impacting individuals in distinct ways. As an illustration, I can swiftly select a mutual fund and invest a substantial amount within 10 minutes. However, when choosing a health insurance policy, I…

For most of us, buying a house – defined here as a primary residence meant for immediate self-occupation – is an emotional decision. There is nothing wrong with that. However, there is no free lunch. To get something, we have to lose something. What is the true cost of buying a house? How many of…

A reader asks, “I’m looking to retire at 45 and currently, at 28 years old, my monthly expenses amount to around Rs. 40,000. Since I have just begun working, my net worth is currently negligible. I would like to know the approximate investment amount required to achieve my goal. It’s worth mentioning that I don’t…

A reader sent us the following question.  “I’m an aspiring DIY investor and frequently read your posts on freefincal. I have also attended the goal-based learning tutorials on freefincal and found them very useful”. “Most of the analysis and approach I have read is on systematic investment planning. My question is, “How to plan, monitor…

Over the years, many readers have asked us, “can I use X or Y investment for an emergency fund?”. Therefore it may be useful to list all such eligible investments and discuss which is suitable for whom. Perhaps if you have just started your career and your net worth is low, the following statement may…

A reader asks, “How can I calculate my safe withdrawal rate when I retire 25 years from now? I am 30”. What does the term “safe withdrawal rate” mean? The safe withdrawal rate, or SWR, refers to the amount of money that can be withdrawn annually from a retirement fund in the first year of…

Many young earners ask themselves, “What percentage of my salary should I invest monthly? Would 10% suffice, or should it be 20%?” They typically seek a quick and easy way to determine if they’re on the right path and to alleviate any guilt associated with their spending habits. Regrettably, this is one of several flawed…

A Financial Health Check Tool developed by M. Pattabiraman is now available at SEBI’s Investor Education Portal. A prototype was tested in Jan 2023 with members of the Facebook group Asan Ideas for Wealth, and their feedback was implemented. Later, the SEBI Investor Protection Education Fund Advisory Committee gave further feedback, and the tool has…