Larger Income vs. Larger Savings Rate: Which Matters More in Achieving Financial Freedom?

what should you choose? - Larger Income or Larger Savings Rate

In today’s world, the allure of a bigger salary often dominates conversations around personal wealth and financial independence. After all, who wouldn’t want a few extra zeroes in their monthly income? However, as many financially savvy individuals will attest, there’s another side to the coin. Beneath the glare of flashy income lies a silent, faithful ally to wealth accumulation—the savings rate. Understanding the dynamics between a bigger income and a larger savings rate can seem like deciphering a complex puzzle. Which holds the actual power to unlock the doors to a prosperous future? As we embark on this exploration, we’ll … Read more

What is the Strategy to Withdraw From Mutual Funds?

retirement withdrawl strategies

Mutual funds have found a comfortable home in the portfolios of many Indian investors, thanks to the easy entry through Systematic Investment Plans (SIPs). Yet, while entry is important, a strategic exit is where the real game is played. Several of my readers have asked this question – When should I withdraw from my SIP / Mutual Funds? So, let’s explore the nuances of strategically exiting mutual funds. Starting SIP with Clear Objectives The journey of mutual funds starts with setting clear objectives: Remember, SIPs and mutual funds are instruments that work best when you have clarity about why you’re … Read more

Keeping Up With the Joneses: How to Avoid Falling Into the Trap of Lifestyle Creep

lifestyle creep

Climbing the ladder of success shouldn’t mean spiraling into the trap of lifestyle inflation. As your income grows, it’s tempting to match it with more luxurious living. But are these indulgences clouding your financial health? This article uncovers the deceptive allure of ‘Keeping Up with the Joneses’, revealing powerful strategies to live comfortably today while securing your wealth for tomorrow. Dive in to learn how to balance joy in the present with a prosperous future, mastering your money instead of letting it master you.

Rich vs Wealthy: Key Differences & Achieving True Wealth

Rich vs Wealthy

In the intricate world of personal finance, ‘rich’ and ‘wealthy’ often blur into one synonymous term. However, these seemingly similar words paint vastly different financial scenarios. Today, we embark on a fascinating exploration of these terms, unraveling their unique meanings, and understanding their profound implications on your financial journey. Let’s step into this enlightening discourse, shall we? What Does It Mean to Be Rich? To be ‘rich’ is to have a substantial income or considerable money at your disposal—perhaps you’re a successful surgeon or a top-tier corporate lawyer. This income facilitates a lifestyle where luxury isn’t the exception—it’s the rule. … Read more

Retirement Savings: How to Determine the Right Amount to Retire in India

Money to Retire in India

Are you dreaming of a comfortable and worry-free retirement in India? Planning for your golden years involves many factors, but one of the most crucial is determining the right retirement savings amount. With so many variables at play, it can be challenging to know where to start. That’s where we come in. In this comprehensive guide, we will break down the essential steps and considerations you need to take to ensure you have enough money to retire comfortably in India. From analyzing your current financial situation to estimating future expenses, we’ll provide the tools and insights you need to make … Read more

Unraveling the Rule of 72: A Timeless Guide to Understanding Compound Interest

Rule of 72 Demystified

Have you ever pondered the intricacies of money growth, wondering how long it would take for an investment to double? If so, then the Rule of 72, a simple but powerful tool for financial forecasting, is the key to unlocking these mysteries. This article delves into the concept of the Rule of 72, its applications, and its limitations, aided by practical examples. Understanding the Rule of 72 The Rule of 72 is a shortcut or rule of thumb in finance that estimates the years required to double an investment at a constant annual rate of return. The rule states that … Read more

How Much Money Do I Need to Retire in India (Updated)

Will I have enough money to retire in India? This question makes most people lose their sleep. And, rightfully so, most people are aware that they need to save for retirement. But understanding how much money you would need to retire comfortably takes a lot more effort.  In this post, we will tackle the question of – how to calculate the money required to retire early in India. My father retired from his public sector job after spending 35 years in the same position. He now enjoys his retirement life with a decent pension and healthcare taken care of by … Read more