Goals

1. Be frugal, not cheap: Get good value at a low price. Don't fall for marketing or be part of the herd. As Charlie Munger once said, no matter how wonderful something is, it's not worth an infinite price so you need to have a price you're willing to pay for value.
2. Household budget: 30% savings, 20% to 30% expenses, 10% to 20% charity, 30% taxes
  • 30% savings: It's amazing how big that bank balance looks after a few years of saving. Savings should go towards either cash or investment wherever appropriate. Current plan is to have 20% savings in cash as an emergency fund for one year's worth of expenses, 10% in cash for regular savings and the rest 70% in stock investments.
  • 20% to 30% on expenses: Even if household income rises, it is imperative that life style expenses need not and should not increase proportionally. Which explains why some millionaires go broke and do stupid things while some folks, inspite of ever increasing salaries, are always living pay check to pay check.
  • 10% to 20% to charity: Don't be too greedy. God has blessed you to extend a hand to those who are less fortunate. Be liberal
  • 30% taxes: The only thing certain are death and taxes. And in this day and age, even if you can make yourself live longer, you will consequently pay taxes longer.
3. Don't expect anyone to bail you out: Save and invest as if there won't be any social security or Medicare by retirement time. And by the looks of it, I don't think they'll be around when our time comes.
4. No debt ceiling - Avoid debt: Debt is so 2008 financial crisis. Pay all bills on time. Credit card debt is a definite no-no but credit cards are the best financial tools if you know how to use them wisely without paying a single buck on interest or fees.
5. Create your own pension plan: Invest in assets that generate passive income. This can be done in various ways - rental income, owning a business, investing in corporations that distribute profits to share holders etc. 

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