Tag Archives: personal finance

2020 Rewind : the good, the bad and the ugly!

Hello Riters, hope you are well, hope you are doing great, & hope we together reach new financial height this year. Thank you for all the support fueling me to write yet another time.

Today, lets discuss what are somethings that 2020 taught us. So lets dive in.

The Good

You might be wondering seriously was there anything Good?, lets not disappoint ourselves yet and follow along.

  • Legendry Investor Warren Buffett once said ‘Be Greedy when Market is Fearful and Be Fearful when Market is Greedy’. Now what do I mean by that is, 2020 gave us all the existing long term stock market investors a chance to buy great companies share at a discounted price, and it gave a golden opportunity for new Investors to put a lump sum, off-course after doing all necessary due diligence for the firm. Also not to forget the new highs that Stock Market reached in 2020 end.
  • Time to slow down and reflect. Yes, 2020 gave us plenty of time to slow down and reflect back on the necessities in our life. When we (Indians) were locked in for couple of months that was an opportunity for us all to slow down and re assess our priorities. Sometimes in this mad rush for fame, money we forget what we truly want, and I suppose for many of us 2020 gave us that golden opportunity to rethink our lives.
  • A respect for healthcare workers. Especially in a developing country like India we often times neglect the importance of health care. 2020 taught us the importance of healthcare, and I am sure it also helped increased Govt. budget allocation towards health care for near future.
  • Time to rejoice with family. Sure lets admit it, it was not all roses when we had to spend time with everyone under the roof, but nevertheless for many of us it led to better understanding and importance of family.
  • Need for luxuries. You might be wondering what? we are talking of luxury, hold on one sec, hear me out. Now not everyone would agree on this point, But 2020 taught some of us the need to have our own little private beach house or a hill side mansion where we can retreat if another such calamity re-appears. Now, this does not mean we should not help fellow beings, in fact one thing that 2020 taught us was what is enough and what should we do for the society as a whole.
  • Another asset class saw some glitter. I am not talking about Gold well that too was pretty volatile, and gave opportunity to many of us to cash in/invest; nevertheless there is one asset class that out performed everything else in 2020, Bitcoin – Cryptocurrency! 2020 saw Bitcoin breaking its records time and again. It was also the year that taught us the need for digital currency and decentralization.
  • Refinance, not to forget with Interest rates at all time low, 2020 gave us an opportunity to refinance our loans, and mortgages.

The Bad

The easy part, I am sure the list can go on & on for many of us here. But let me say it I want to rewind 2020 with more positivity & hence I have already given the positive angle, covering most of the Bad in the Good by flipping the lens, the perspective or whatever you call it. And if you are still with me than hang on, we are going to discuss the most important lesson that 2020 taught us, below.

  • ‘Hey Rahul, Give me some cash man, I am broke, please help’, ‘Sahaab kuch kaam nhi hai, khane ko kuch nhi hora, thodi madad kariye na plz’ (Sir, we don’t have any work, nothing to eat, please help). These were some words I am sure many of us would have heard who would have tried to reach out to their cook, maid or even friends during lockdown. While we were busy living paycheck to paycheck, Pandemic happened! And we were never prepared, never learned the importance of Emergency fund and savings. If there is just one thing I want you to learn from this Pandemic it is the importance of Emergency Cash. Read more about Emergency fund here.
  • ‘I lost my Job, I have consumed all the Stimulus check (applies to United States specifically), Can I borrow some money dad?‘. In Early 2020, when Pandemic knocked our doors, stores were shut down and it was a sight all around the global, with consumer spending at all time low and unemployment all time high, we were left with barely food on our plate. Now most of this was out of our hands, but still there was something we could have done about it, ‘Invest’, Invest, Invest! Yes, you heard correct, Invest and let the asset grows, Invest in yourself and let the most important asset your brain grows, so that when you are out of one opportunity you have something to fall back to. I know it is easier said than done, but things like side hustle and Investment can help us better cope with difficult times. Especially when the future Jobs are changing it becomes even more important to re skill ourselves by teaching ourselves a new skill in demand like video editing, data science etc.

The Ugly

I wish their was a skip button and I could just skip this part of 2020.

  • Death, Desperation and Misery. Yes, lets admit it, It send shivers in our spine when I saw coffins lined up in places like Italy, and people were not even allowed to have the rituals performed for their loved ones. While the worst is over, is behind us, nevertheless we should not forget the importance of life. Money is good but its not the end in itself, we must realize its worth. We must understand the importance of Happiness and why it matters more than the riches & luxuries in our lives. Nor should we forget the importance of donation, charity, philanthropy and the need to uplift the other half, and at times the better half of our society.

Key Takeaways

If you have made it this far or if you have skipped through most of the article, so here I urge you to stop for a minute.

  1. Importance of Emergency Fund. 2020 taught us the importance of having some cash set aside, specifically 3 to 6 months worth of your expenses in a liquid, high yield savings account.
  2. Happiness > Money, while Money is important it is not the end in itself, realizing its place in society and realizing the need to help the poor & needy is a great lesson to take away from 2020 and well on to rest of our lives.
  3. Importance of Personal Finance. Often neglected & hardly taught in schools, Money management, personal financing is important skill to master. Paying heed to your finances, tracking expenses and saving some extra cash will be the good place to start.

With this and without further making this blogpost any long, I wish you loads of Happiness, Health & Wealth in 2021. Happy New Year!

Are we Saving it?

Hello Riters, hope you are having a good time, enjoying yourself and making loads of Money. No? Yes? well regardless, these tips will help you grow your wealth. So lets dive in! (Opinion Alert – most of these below are my personal opinion)

5 Tips to Save your Money

  1. Automate your Savings – yes! you need to Automate this. As they say out of sight is out of mind, every first of month or whenever your Income gets credited Automate a recurring deposit to another account that you can’t / won’t access for your expenses. Even if its just 10% of your Income, over time it can grow to a substantial amount which you can later Invest. Remember Save first spend later.
  2. Don’t Shop when you are hungry – Please avoid running to a mart or your favorite restaurant at the very moment you are hungry. Plan it well before or else your mind will be fogged by that juicy extra Guacamole or that Cheese round the corner.
  3. Get your Caffeine fix at home – You may need to avoid daily Chai Point Tea or that Starbucks Coffee as a recurring soul not so satiating. Instead buy a Coffee Maker (Indians out there just get that pan) and have some mouth watering Dark Roast Ethiopian Coffee, and you can get the cost down from few dollars to few cents (150 Rupees to just 20 rupees).
  4. 30 Day Rule – This one is controversial, good to have, not exactly saver but a thumb rule to save on expensive expenditures. Whenever you want to make a big purchase like that Gucci Scarf , sleep on it not one day but full month, yes, unless its peanuts money for you, wait till that luxury is yours, so when you buy it you know you really need it!
  5. Cut those Credit Cards – Stop those Credit bills from drowning you in debt. Only own the card if you can repay it! Yes, if you can’t pay on time, ditch it! This one really depends if you sure can repay within a month go ahead and avail those extra points and benefits, but if you can’t destroy, burn it to grounds or just put it away from your sight.
credit cards

Thank you for reading, if you are already following Two or more of these tips do let us know how is it going. Keep Learning.

Am I Dumber than She thinks?

Am I? I don’t know (confused), Are you?

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people that they don’t like.”

-Will Rogers

Hello Riters, Welcome to riteFinance, this is your host Ritesh and today lets discuss about-

Five Dumb ways to spend your Money

  1. Gambling, Believe it or not an average American spend $1000 a year on Lottery, with a odd of winning 1 in 14 millions, i.e. you are 20 times more likely to be struck by a lightening (thunder roars in far), and even if you win the Lottery you are more likely to be broke the next year than to be wealthy. Gambling in any form is a total waste of money, with slot machines and equipment designed in favor of Casinos to drill a hole in your Pocket! Here is link to an interesting read on Psychology behind Casino   
  2. Things you buy to impress them! Yes, that Gucci Scarf or the blue Jaguar, all the liabilities you take just to impress the girl or guy next door can drill a deep hole in your pocket and all your future cash flow may flow down that banking stream. So think before next time you go on a Shopping spree, ask yourself can I really afford it?, will this serve a purpose?, is there a way I can be happy without it? Do I really need it or its just a show-off?  (squirm face)  
  3. Things you buy to destroy health, yinkeesss, what did I say?, yes you heard it right, things like drugs, excessive junk snacks to munch on, or too much alcohol. This things not just have a recurring cost due to their addiction capability but also a cost far beyond your imagination, a cost that no money can pay for.
  4. Fees that Bank Charges: Overdraft charge, Bank Account Maintenance charges, your Card fees or that interest they charge you on Credit Card, even the money that’s deducted when you used your xyz card on abc ATM! To top it all, Bank also has a unique advantage of deducting cash directly from your account. So next time you may like to read your bank statement more carefully or maybe make a call & ask your banker. To know more on how to avoid some of these fees, check out the article here by lendup.com.
  5. In-App Purchases; yes, the skin you bought just to show-off in the virtual world or the extra life in your favorite game, even if it is in 50% discount (which is obviously a fake number to put on), may not be worth your Money (and your time). In most cases put away your phone for few minutes or watch an Ad and you will get an auto renewal of life totally free of cost. Also, the more you spend, the more likely it becomes for you to spend again, so it not only have a present but also the future cost attached to it.

Thank you for reading, let us know in comments below if you don’t do any of the above mentioned Dumb Expenses, or if you have one of yours own. Follow for more, #KeepLearning #Money