My relation with money

It was always torrid- It took time to realise its importance - to enjoy life you need money, otherwise you could harp on hollow talks about detachment– to let go of materialistic things in life– and embrace spiritualism– you talk about such things only when you do not have enough money in your account. Initially first i used to spend money– and then whatever at month end ( nothing was left) i tried to save– i used to look at amusement at my friends who started saving –from their first pay and very soon they had bought immovable properties– things which bought happiness in later life and not – one night fun. My thoughts were that these talks of saving money were frivolous –there is only one life– enjoy it– we can save later when responsibilities come in– but I was wrong . Everything revolves around money. You can only enjoy your hobbies, your free time - once you stop worrying about your nest. So it was eating, drinking myself silly, splurging on fine dining and fine accessories– at the end of day I was left feeling hollow and unsatisfied–whenever I needed emergency money I always ran short of funds. Start planning early. I did not– by the time I realised the importance of saving money- responsibilities had piled up – for buying a home , car, child education– needed a loan– if I had prudently saved from my initial days of earning -this would not have been the case. During our formative years– it was all debt instruments for us–post office, PPF and bank FD – safe and returns were decent-equity, mutual funds were blasphemy– not to be touched with barge pole as advised by our parents as it was akin to gambling- With no Demat account – everything was physical. If you wanted to invest in the stock market it was a long drawn affair –you had to fill up the form physically– post it and wait. Then the financial tech revolution started– and the financial world changed for better Then the lure of stock market came and initially i burnt my fingers– one tip from the TV , one from the neighbour, one at the evening party and i used to run and buy the stock without any research– initially lot of heartburn followed - lot of losses –and then i started learning from mistakes– there is no overnight potion to make you rich , patience, research, time and prudence, persistence– diversification, there is no shortcut. Try investing a part of your salary – maybe a small part– start in index mutual funds as SIP , don't try to time the market– have an emergency liquid fund for 06 months– and as your income starts to increase – increase your risk and diversification. Keep a long term perspective–3 years. Ans as you mature - keep cash flow assets– real estate, and pick up advanced investing methods– like hedging. etc Treat your credit card like a debit card—assume the money is leaving your bank account when you swipe it. Pay it off entirely every month. If an investment or financial opportunity seems too good to be true, assume that it probably is a fraud– stay away. Remember: There’s no such thing as a free lunch. Be frugal with yourself and generous with others. Create an automated direct deposit for a small amount of money into an investment account every month. Never look at the account. Don't pay any attention to it. At the end of the day it is better sitting and crying in a Merc than in a rickshaw. As fintechs evolved – now we have so many avenues to invest-at the click of a mouse - national to global, equity and debt– saving now is an easy and good habit– all frictions removed. And if you are persistent and have patience, money compounds–and suddenly you find money working for you . The earlier you develop a good relationship with money– the better it is. At the same time– do not hesitate or think twice on spending on good diet, health, books and Self improvement- these investments never go to waste - these investments compound. My only regret is that I did not listen to the wise advice of my elders initially –the saving and spending habits neurons get wired at a very young age– once wired it is very difficult to change. A book i would recommend every youngster to read The richest man in babylon Pay yourself first. This is the most important lesson of the book, and it is one that is often overlooked. When you earn money, set aside a portion of it for yourself before you pay any bills or expenses. This is called "paying yourself first." It is the best way to save money and build wealth. Live within your means. This means spending less money than you earn. It is important to track your income and expenses so that you can see where your money is going. Once you know where your money is going, you can make changes to your spending habits so that you can live within your means. Make your money work for you. Once you have saved some money, you can start to invest it. Investing is a way to make your money grow over time. There are many different types of investments available, so it is important to do your research and choose investments that are right for you. Protect your wealth. Once you have built some wealth, it is important to protect it. This means having a plan in place for unexpected expenses, such as job loss or medical bills. It also means having insurance to protect your assets. Invest in yourself. The best investment you can make is in yourself. Educate yourself and develop your skills so that you can earn more money. Surround yourself with winners. Surround yourself with people who are positive and successful. Be patient. It takes time to build wealth. Don't get discouraged if you don't see results immediately. Just keep following the principles above and you will eventually reach your financial goals. Some specific financial books that are popular among beginners include: 1️⃣ The psychology of money– Morgan Housel • Everything in life compounds • Invest in assets • Always use a margin of safety 2️⃣ I will teach you to be rich– Ramit Sethi • Create great money habits • Spend what is left after saving • Set clear financial goals 3️⃣ The Millionaire Fastlane– MJ Demarco • Control your time • Real wealth is created by solving problems • Have multiple income streams. 4️⃣ Think and Grow Rich– Napolean Hill • Diversify your investments • Surround yourself with smart people • Invest in yourself 5️⃣ Rich Dad, Poor Dad– Robert Y. Kiyosaki • Buy income-generating assets • Financial education is key • Work for money. Then let money work for you 6️⃣ Your money or your life- Vicky Robin • Simplify your life • Focus on achieving financial independence • Track your monthly expenses