Category: General

Personal Finance Rule 5 – Tax Savings is not mandatory

Rule 5 - Tax Savings is not mandatory

This short post warns against excessive focus on investing to simply save taxes. This results in sub-optimal results. This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version What are Tax Savings? While the term tax […]

Personal Finance Rule 4 – Boring is Better

Boring is Better

One of the most complex aspects of personal finance is to choose among the myriad of investment options available. It is easy to mistake a complex, slickly presented product to be a better product. This post puts forward the view that the reverse is often true – a simple, easy to understand product is better.  […]

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Personal Finance Rule 3 – Max out all forms of PF

EPF PF VPF

This short post reiterates the importance of an essential debt component of any portfolio in India – Employee and Public Provident Fund.  This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version. While there are different […]

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Personal Finance Rule 2 – Pay your credit card bills in full

Person with credit card terminal

This short post reiterates the importance of avoiding an extremely harmful behaviour for your financial health – carrying credit card debt.  This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version Very simple rule – Pay […]

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Personal Finance Rule 1 – Save 30% of your income

personal finance rule

This short post describes a possible savings target in India – 30% of post tax income. This is a companion post to the India version of Harold Pollack’s Index Card – Pollack’s Index Card: All the financial advice that you ever need – India version The right Money Equation Many young earners ask the question […]

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Benefits of Compounding – Visualizing the Eighth Wonder

Benefits of Compounding - Visualizing the Eighth Wonder

In popular imagination, Albert Einstein is supposed to have called compound interest as the eighth wonder of the world.  He did not say any such thing. Nevertheless, compounding indeed is very beneficial for your financial health.  This short post provides a few ways to visualize the effect of compounding. First, the formulae Simple interest is […]

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BASICS of Investing – Five steps before you start

BASICS of Investing - Five steps before you start

A lot of people are interested in ‘Investments’  to create assets. An often asked question is how to begin investing. In this short article, we look at a sequence of steps in this process, with an easy to remember acronym – BASICS – Budgeting, Annual Cash Flow, Saving for Emergency, Insurance, Corpus calculation, and Start […]

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Dialing back on mutual fund dividends – A Welcome Development

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Mutual fund dividends have been used in interesting ways in India. It is public knowledge that the dividends in mutual funds are not the same as dividends from stocks. Unlike dividends from stocks, mutual fund dividends are paid out from the fund corpus itself – any dividend then decreases the Net Asset Value of the […]