Financial independence lessons in a “Xerox shop”!

Published: January 30, 2021 at 10:42 am

Last Updated on February 12, 2022

In this article, Venkat describes how an incident in a “Xerox shop” changed his outlook on financial independence and financial literacy.  Venkat, 32, changed his perspective towards personal finance when he came across the idea of FIRE – financial independence and early retirement.

He then invested more than ten hours as a hobby and went on to clear the Level one NISM exam for investment advisors. After achieving financial independence in the next 7-8 years he wants to educate young and old about the importance of money management. Over to Venkat.

I understood how important financial literacy is, in a Xerox Shop! A few months back I went to a xerox shop and gave my Aadhar card for photocopying to an Old gentleman. Since he was around 70+ he was struggling to adjust the brightness.

Suddenly a person in mid-’40s came running into the shop and started thrashing the old man & abusing him and went all of a sudden. I was shocked and asked the old gentleman about that person and how can he behave like this.

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!

    🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥

    This response from the Old Gentleman shook me – He said with tears rolling down his shiny cheeks, “ He is my son and I am a retired accountant from a private company and gave all my final settlement & savings to my only son. Now post getting my money, he made me a labourer in his Xerox shop and always abuses me physically & mentally”.

    This made me think about how Personal Finance Illiteracy is creating such havoc in this society. More than 75% of divorce in India is in some way or other due to personal finance mismanagement. The root cause for this misery was financial dependence.

    Financial Independence: Planning is Paramount

    Even though I did my MBA & working with an organization as a director planning for the growth of the organization, I have seldom thought about my own personal finance growth. That’s when I was fortunate enough to get guidance from vlogs of Pattu Sir, Subra Sir and many more personal finance experts and created my own balance sheet, cash flow, expense tracker & created a goal-based portfolio with a clear investment philosophy for each goal. 

    I have created a customized strategy by separating my two critical long-term goals – financial independence & Retirement. I am very clear that the reason I wanted Financial Independence is to ensure I do something I love without worrying about the income while at the same time my family is not compromised on the quality of life.

    I arrived at a target corpus for Financial Independence that can provide me 25 Times my current annual expense & this will be from the age of 40 to 60 where I will be earning at least 50% of my annual expense (anything more is a bonus which will be redirected to my Retirement kitty). My retirement goal is after 60 where I have planned for a target corpus of 40 times my current annual expense and at this time my only source of income will be passive through my investment corpus.

    I also have other long-term goals like my daughter’s higher education & marriage along with short term goals like doing a part-time PhD, home loan repayment before my financial independence & international vacation every three years.

    I have an asset allocation strategy for each of my goals listed above spanning across all the 4 major asset types like equity, debt, gold & real estate. I have ensured the allocation of Real Estate & Gold does not exceed 20% for any of the goals.

    I am confident that I will be financially independent by 2028 when I turn 40. I got myself certified as an investment advisor by NISM to ensure that I have the necessary skills to be a financial planner. I also have a career plan after FIRE where I would want to be an evangelist of personal finance going to schools & colleges to educate youth on personal finance & financial independence. I firmly believe that the world around us will be a better place if every youth is trained in personal finance & the importance of financial independence !!!!

    FIRE Resources

    Do share this article with your friends using the buttons below.

    🔥Enjoy massive discounts on our courses and robo-advisory tool! 🔥
    Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
    New Tool! => Track your mutual funds and stocks investments with this Google Sheet!
    • Follow us on Google News.
    • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
    • Join our YouTube Community and explore more than 1000 videos!
    • Have a question? Subscribe to our newsletter with this form.
    • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

    Get free money management solutions delivered to your mailbox! Subscribe to get posts via email!

      Explore the site! Search among our 2000+ articles for information and insight!

      About The Author

      Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
      Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
      Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
      Our new book for kids: “Chinchu gets a superpower!” is now available!
      Both boy and girl version covers of Chinchu gets a superpower
      Both boy and girl version covers of Chinchu gets a superpower.
      Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
      Feedback from a young reader after reading Chinchu gets a Superpower (small version)
      Feedback from a young reader after reading Chinchu gets a Superpower!
      Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
      Buy the book: Chinchu gets a superpower for your child!
      How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
      Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
      We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
      About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
      Connect with us on social media
      Our publications

      You Can Be Rich Too with Goal-Based Investing

      You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
      Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

      Your Ultimate Guide to Travel

      Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)