One of the compulsive habits I have developed over the last few years have been to read Trent Hamm almost everyday.Yes, I have subscribed to his daily dose of life wisdom that lands in my mailbox just as real time as an RSS feed.I must admit that Trent has made an impact on my thought not because he churns out charts and numbers but keeps the core financial wisdom message fairly simple and impactful. He doesn't in anyway asks frugality of you instead a crisp dose of wisdom that helps you recognize needs,wants and desires (Haven't we all read this somewhere?). You will agree with me on the importance of saving for a rainy day if you have invested or followed the economy and the inflation rates in the last 15 years.Never has there been a season of stability or certainty. Even the best of minds are struggling to run governments across the globe. Economists and their acquired skills are falling by the wayside on this path ridden with capitalist ideology,crass greed to acquire value at every possible opportunity. Individuals,households, corporates and governments are spending recklessly on items and services which neither improves growth in the human index nor invests on a long term need that could resolve a problem or a situation. Borrowing and spending has increased manifold in many societies and goods and services and essentials like food,healthcare and shelter needs just got so expensive that everyone irrespective of their earning power is struggling to meet ends and more importantly peg a value as to what would be required for the rest of their lives.
It’s not really that complicated as I discovered and practice to some extent what Trent has recommended. Some of them are my own realisations.
1. Spend less than you earn.
2. If you’re facing a pile of debts, make minimum payments on all of the debts but the one with the highest interest rate, then make the biggest payment you can each month on that high one.
3. Never expect that your “future self” or anyone else will bail you out of your dumb mistakes today and remember that only you can make better choices for yourself.
4. The quickest way to financial recovery is to get a grip on your spending impulses.
5. Life is going to hand you emergencies, so keep at least six months of your earnings in your savings account for those emergencies.
6. Be completely open with your spouse about every single rupee that comes in and every single rupee that you spend.
7. Buy items that will last for a very long time at the best possible price and you’ll rarely be unhappy with them.
8. If your employer offers matching on your pension fund, take as much of it as you can get.-Maybe contribute to a PPF or a VPF
9. When you’re deciding how to invest, remember that past performance does not indicate future returns and focus instead on the fees and expenses.
10. If you have dependents who rely on you, you ought to have life insurance, but ignore any salesperson who tries to sell you anything other than a term policy.
11. Save using a recurring deposit and SIPs - Time tested guaranteed peace of mind
12. Invest in getting life skills for the kids.
13. Contribute a small amount towards charity ( the quantum and choice be yours)
14. Volunteer if possible, community give back is invaluable and teaches many things besides being fun.
15. Travel and appreciate the world. Travel is not expensive when planned properly. Everyone does not stay in Hiltons and Mariotts..
A final “bonus” life and career tip: treat every single person in your life as you would like to be treated, regardless of whether you’re in the workplace or in everyday life.
My own experiences with using a credit card tells me that repay every rupee spent using the card the same evening (implies use the credit card instead of cash) and let the card earn you reward points and nothing else. You will not believe that a year's accumulation of credit card points can actually get you free shopping during the festival season.
If you can handle all of these things, you’re going to be just fine.
It’s not really that complicated as I discovered and practice to some extent what Trent has recommended. Some of them are my own realisations.
1. Spend less than you earn.
2. If you’re facing a pile of debts, make minimum payments on all of the debts but the one with the highest interest rate, then make the biggest payment you can each month on that high one.
3. Never expect that your “future self” or anyone else will bail you out of your dumb mistakes today and remember that only you can make better choices for yourself.
4. The quickest way to financial recovery is to get a grip on your spending impulses.
5. Life is going to hand you emergencies, so keep at least six months of your earnings in your savings account for those emergencies.
6. Be completely open with your spouse about every single rupee that comes in and every single rupee that you spend.
7. Buy items that will last for a very long time at the best possible price and you’ll rarely be unhappy with them.
8. If your employer offers matching on your pension fund, take as much of it as you can get.-Maybe contribute to a PPF or a VPF
9. When you’re deciding how to invest, remember that past performance does not indicate future returns and focus instead on the fees and expenses.
10. If you have dependents who rely on you, you ought to have life insurance, but ignore any salesperson who tries to sell you anything other than a term policy.
11. Save using a recurring deposit and SIPs - Time tested guaranteed peace of mind
12. Invest in getting life skills for the kids.
13. Contribute a small amount towards charity ( the quantum and choice be yours)
14. Volunteer if possible, community give back is invaluable and teaches many things besides being fun.
15. Travel and appreciate the world. Travel is not expensive when planned properly. Everyone does not stay in Hiltons and Mariotts..
A final “bonus” life and career tip: treat every single person in your life as you would like to be treated, regardless of whether you’re in the workplace or in everyday life.
My own experiences with using a credit card tells me that repay every rupee spent using the card the same evening (implies use the credit card instead of cash) and let the card earn you reward points and nothing else. You will not believe that a year's accumulation of credit card points can actually get you free shopping during the festival season.
If you can handle all of these things, you’re going to be just fine.
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