In this edition of “reader story”, K. V. Krishnan lists five simple actions by which he simplified his financial life to focus on building wealth.
About reader stories: In this category, we showcase the money management experiences of readers. Check out some popular articles: (1) What 25 Years of Tracking Expenses Taught Me; (2) How I achieved the dream of an own house & became debt-free by 36. (3) I met an accident the day I got married and learned key money lessons (4) How I turned my life around & charted my own money course (5) I achieved financial independence at 35: My journey and lessons and (6) We lost sleep after using a retirement calculator! This is how we recovered. Explore the full reader story archive. Do contact us, if you have a story or know of a friend’s story that the DIY community would benefit from.
Editor’s note: The following is an email received from Krishnan. It was so lucid and ‘to the point’ that I requested Krishan for having it published as part of a reader story. To preserve the emotions of the author’s journey, reader stories are published in an as-received informal tone.
Dear Pattu Sir, I would like to thank you for all your finance-related ideas, Now my age is 33, I have started my proper investment plan and I have stopped all my useless endowment plans which were started last 2 years back.
I have got good clarity about what is investing and what is insurance. After your videos, I have started my term insurance last one month before with a very low premium. I have started the following financial plan for my future.
1. I have taken a term insurance with minimum premium, but one Crore coverage value for my family protection (my wife and my 3 years old daughter)
2. I have started to save for my emergency fund. Will complete it in another 3 to 4 months.
3. I have stopped high premium endowment plans without any confusion. I know the last 2-year premium is a loss but, I want to save my future 20 years. because I know time is a very important one. This is a bold decision for me!
4. I have started with my mutual fund equity investment plan in PPFAS (30% of my salary), planned for the next 15-20 years. I just expect a 9-10% return. It would be better for my simple life. By God grace and my family support, I am having my own house. My salary is average but decent.
5. I have closed unwanted credit cards and EMIs.
Now, my only focus is on investment and savings for the future. Finally, due to this pandemic, I have the time to watch your videos and set my financial life in order. It has been life-changing. Thanks for all your efforts, now, I feel that life is very simple, financial planning is very simple without any confusion. Thanks and Regards, K. V. Krishnan.
Editor’s note: The above steps may seem simple and even obvious but there is a big difference between knowledge and execution. Swift, decisive action is the first step towards efficient money management. Thank you for sharing Krishnan. Wish you all the best. Godspeed.