₹e-assemble is a video series covering the basics of money management and goal-based investing for absolute beginners. Last week, in step 1 we consider the need to list our Goals, Dreams and Nightmares. In part 2, we will consider the essential foundations for getting rich and staying rich.
When we talk about getting rich or building wealth, we often focus on investments – where, when, how much, how effective etc. While that is important, an unexpected expense can result in redemptions. So before we talk about investing, we need to anticipate the unforeseeable! Account for possible unexpected/unsavoury expenses.
The next four steps are:
- Building an emergency insurance (discussed in this video)
- Getting life insurance
- Health insurance
- Accidence insurance
Once these essentials are in place, we would feel that much more secure and in peace. Debts can be handled better and investing started when possible.
In the video, I list common ways in which emergencies can arise. It is not possible to have a fund large enough to accommodate all of them at the same time. However, it is important to be able to handle at least two of them simultaneously. This means accumulating an emergency fund for life!
When I talk about this, someone in the audience always goes, “but life is uncertain, no? No matter how much we plan, there will always be something that we did not anticipate, so why worry too much?”
Well, only when we can prepare for sudden expenses that can be anticipated, can we be ready (mentally and financially) if our entire wealth becomes an emergency fund!
Please do not get scared of what I am trying to say below. Start small and build your emergency fund gradually. Remember that this would be one of the best investment that you would ever be making!
There were some focussing and sync issues in the youtube video of the first part. Hopefully, things have improved now. The drawings that you see on the left side are my son’s. My entire house is filled with his doodling.
Would you like me to speak on the basics of money management to your co-workers? Then you could write to me at freefincal [at] gmail.com. I do not charge a fee for this and only request that my travel expenses be compensated.
Click this to follow other steps of ₹e-assemble
You Can Be Rich Too with Goal-Based Investing, my first book is now available at a 35% discount for Rs. 258. It comes with nine online calculators. Get it now.
Gamechanger, my second book is now only Rs 149 (25% off). Get it or gift it to a young earner
The ultimate guide to travel by Pranav Surya is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for ₹199 (instant download)
Use this form to ask Questions or reg. the robo template ONLY (For comments/opinions, use the form at the bottom)
And I will respond to them in the next few days. I welcome tough questions. Please do not ask for investment advice. Before asking, please search the site if the issue has already been discussed. Thank you. PLEASE DO NOT POST COMMENTS WITH THIS FORM it is for questions only.
Free Apps for your Android PhoneInstall Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)