My plan on managing my personal finances to become wealthy
I am better at spending money than I’m at saving money. Which is a huge problem. But I have a desire to become wealthy. My definition of becoming wealthy is not having signaling goods. Such as having a lot of money in the bank or having a posh car or a big mansion, or having a lot of properties.
My definition of wealth is “Having assets that earn while you sleep”. It is an inspiring quote from naval Ravi Kanth’s podcast episode — “How to get rich (without getting luckily)”
For the next decade, I’m going to do a financial audit on myself. I’m planning to do research on trying to understand how money functions and how to manage it better. The schools and universities I attended betrayed me. They haven’t taught me anything about managing my personal finances.
I want to make better decisions for myself by assessing the risks involved when I make a decision.
Here are some things that I am planning to learn to become wealthy
- I’ll track my spending and keep a record of my budget. I’ll pay attention to my expenses and review them every alternate Saturday.
- I want to pay off the debts that I currently have which is my education loan.
- I want to understand how taxation and inflation work. Analyze their impact on financial portfolios and start to make plans for building a personal wealth portfolio.
- I’ll refine my plan to build my portfolio, by understanding the impact of interest rates on savings and investment products.
- I want to start a side hustle that requires minimal attention that brings me some small recurring income on a monthly basis.
- Start to build emergency funds because we never know when I need some urgent liquid funds. My main thesis around it is not to touch the funds unless I’m facing a critical emergency.
- Start to invest in health insurance plans because in India we do not have a proper healthcare infrastructure. In case of emergency to get better treatment only option that I’m left with is to go to a private hospital and they are freakin expensive. I want to have a health insurance plan that could be of some help to cover off some expenses.
- I want to explore investment opportunities in growth startups, owning real estate, and gold (I’m a big admirer of the precious metal. I don’t know why it feels good).
- Finally, I would plan to keep tracking my credit rating and my net worth.
Disclaimer
The opinions expressed in this post are from my own personal findings and experience. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on the information stated above.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns.
Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
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