Tag Archives: wealth

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!

Learn to Grow

Welcome Everybody, this is your host Salrite from riteFinance, today lets learn to learn to grow!

“Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.”

Henry Ford

“Learning is not attained by chance. It must be sought for with ardor and attended with diligence.” 

Abigail Adams

To be successful in any endeavor you need to be able learn new skills and techniques. If you know how to learn and stay motivated, there is nothing that you can’t achieve. The same applies to Financial Literacy. Having the know how of finance, you can grow wealth and be financially free! And with freedom comes happiness, peace and satisfaction.

Learning comes in Audio, Visual and written form.And one of the conventional and yet the best way to learn is Books. Some great leaders, entrepreneurs and investor spend a huge chunk of their time reading, the likes of Bill Gates, Warren Buffet, Jeff Bezos to name a few reads a book a week or more.

There are some great Books to teach yourself Financial Literacy, Below are our top picks-

  1. The Intelligent Investor by Benjamin Graham : This one is also a recommendation from Legendary investor Warren Buffett.
  2. Rich Dad Poor Dad by Robert Kiyosaki & Sharon Lechter : It advocates the importance of financial literacy, financial independence and building wealth through investing in assets.
  3. MONEY – Master the game by Tony Robbins : 7-step blueprint for securing financial freedom.
  4. How to Win Friends and Influence People by Dale Carnegie : This is my personal favorite and a easy read on Leadership that will help you in every aspect of life.
  5. The Millionaire next door by Thomas J. Stanley : This book is a compilation of research done by the two authors in the profiles of ‘millionaires’.

Start with these five, and you won’t regret what you learned.

Another great format to absorb the knowledge is through Audio Books, you can tune into one and keep listening even while you are walking, doing your daily house hold chores, or traveling (Post Covid ;)). By Signing up here you can get two free Audio Books.

Now, time for my best source of learning – Audio Visual – Video Format – Youtube. Some of great channel we recommend for Financial Literacy are: Minority Mindset, Graham Stephan and Andrei Jikh.

Leaning is an Investment in self, in fact a much needed one. To be able to stay at the top of your game, you need to, you must keep learning be it via Youtube, Blog or Books.

Thank you readers, stay happy, stay focused, stay motivated and keep Learning!

The Initial step to Freedom

Everybody wants to be financially free, but a few knows the way and a very few actually puts in the effort.

Welcome to riteFinance – the pathway to Financial Freedom! Today we will discuss how to create wealth.

The very first step to wealth creation is to know your spending aka track your expenses. To track your expenses you can use a simple excel sheet or a more suitable tool like mint. Whatever you choose the process is very simple, you need to list down all your expenses from day 1 of every month to the last day. And you need to do this for at least 3 months to get an average. If this Average is more than 100% of your Income, then you need to either A. Cut down your expenses, or B. Increase your Income, though an Increase is always advisable but cutting down the expenses is the first thing you should do. Remember ‘Live below your means’, buy only what you can afford not what your credit card can afford.

Once we know how much we spend, the next step is to create an Emergency Fund, i.e. set aside 3 to 6 months (6 recommended) of cash reserved, only to be used for Emergency. If you need to know more about the same, we already have blogged regarding the same here.

Now, if you have the above two steps taken. The next question is ‘How to create Wealth?‘. Yes, we haven’t yet discussed that. The above steps won’t help you create wealth, but it will give enough peace to progress towards Financial Freedom.

To begin your journey, you must know how much of the Income is your expenditure (again if your expenditure is more than or equal 100% we urge you to increase income or cut the expenses). Calculate %Expense of Income, for example if your Income is 100 INR
(or for that matter any currency), and your expense is 75 INR than it becomes 75%.

One thumb rule to manage your Finances especially if you are beginner is to follow 75-15-10 rule i.e. Spend 75% of your Income, Invest 15% and Save 10%. Later on as you get better grasp of your finances and is able to cut more on expenses / increase your income then one should progress to 50-30-20 Rule, 50-30-20 rule can also be called as the Ultimate lifetime Money Plan. It simply means one should Spend 50% of the Income, Invest 30% and save the remaining 20%. And in case your expenses are less than 50%, great you can invest the remaining. You can read more on Investing here.

Remember the you need to Invest like crazy to be Wealthy, while if you Spend like crazy you just end up looking Rich. Choice is Yours.

Tip – Donate a small amount from your earnings to a Charity, and you will start feeling Abundance & Positivity surrounds you, fueling in more wealth and adding a sense of purpose to your life. The more you give the more you will be in a position to receive. Give it a try!

Thank you for reading. For more such Financial Tips, do follow us @ritefinance. Together let’s build Wealth. Happy Learning…