₹e-Assemble Step 2: Lay the Foundations to Get Rich

₹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

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You Can Be Rich Too with Goal-Based InvestingYou can be rich 243x300 - ₹e-Assemble Step 2: Lay the Foundations to Get Rich

My first book is now available at a 35% discount for Rs. 258. It comes with nine online calculators.  Get it now .  The Kindle edition is only Rs. 199.

Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want

Cover pink - ₹e-Assemble Step 2: Lay the Foundations to Get Rich
My second book is now only Rs 199 (Kindle Rs. 99) Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This 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)

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12 thoughts on “₹e-Assemble Step 2: Lay the Foundations to Get Rich

  1. Hi Patty, Very Nice. The idea of reassemble is Great. Rather than reading , listening is easy and interesting.

  2. Hello Pattu,
    I always follow your blog and now this video series is just awesome.

    I have a suggestion while you are building this video series – pls consider people who are earning outside India and still wants to manage assets/funds/LIFE within India.

    The reason I ask is, I always find it difficult to fill out input sheets when it asks for income and expenses. It wont be correct to convert foreign currency directly into INR to fill those sheets. Not sure how to manage future financial aspects while earning outside India. Maybe, you will have a better idea to solve this 🙂

    Thanks again for all your efforts.

  3. Summing up all emergency funds components like
    12 months monthly expenses
    50% of Sum assured Medical cover
    Appliances list values
    ( I do not have any EMIs !!!)

    Altogether the amount is equal to my Son Education goal value (at todays cost.)

    Should i map existing MF holdings to an Emergency funds.

    and then start fresh investments for other long term goals.

    1. 🙂 you would need about half that amt. You can start with some amount you can collect and gradually build it.

  4. Regarding Appliances breakage corpus – Should i sum up all the appliances values and keep it as target . or Just very few expensive Appliance values as target.

    Because counting all Appliances values requires huge corpus 🙂

  5. Hello Pattu sir, this is the first time I am commenting on your post, even though I have been a silent occasional reader of your blog. Never expressed my positive and thankful responses to your posts believing that what an ordinary small man can offer to you in return.

    I must say that in this topic, I share your thoughts. I always believe that an Emergency Fund can never be enough. I want you to know that I am awestruck with the way you have covered this topic in such a short video. Explaining everything as to what it is, why it is necessary and how you can go towards creating the same. It gives me insights on how I can make my friends understand about the need and ways to try to prepare ourselves for such situations.

    Also they way you have been carrying out the videos, articles and all other stuff…you are doing so much for people who desire to educate themselves on managing their personal finance. I just cannot thank you enough for all the learnings I have received from your wisdom and hard work. Can’t do anything here other than appreciate your dedication.

  6. Hello,

    Thankyou for using simple language with simple examples its easier for a people like me with less knowledge understand and implement.

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