Oct 16Master Your Finances: Start with a Solid Monthly BudgetA budget is telling your money where to go instead of wondering where it went. : Dave Ramsey A monthly budget is your financial compass, and without it, you’re sailing blind in a sea of expenses. Why It’s Important: A budget ensures that you know exactly where your money goes each month, giving…1 min read1 min read
Feb 12Strategies for Dealing with The Increase in Home Loan Interest RatesHome loan interest rates have risen from 7% in May 2022 to 9.50%, leading to a substantial increase in EMIs. Borrowers have two options: either to go for an increased EMI or keep the EMI the same and increase the loan tenure. Let us see how the two choices impact…4 min read4 min read
Jan 12Behavioural Biases that Plague Investors: Overconfidence BiasDefinition: The overconfidence bias refers to the tendency for people to overestimate their own ability or the accuracy of their own predictions. This bias can lead investors to make overly aggressive or risky decisions, and take on more debt than they can handle. How it Impacts Investors: The overconfidence bias…1 min read1 min read
Jan 11Behavioural Biases that Plague Investors: Sunk Cost FallacyDefinition:The sunk cost fallacy refers to the tendency for people to continue investing in a decision or project because they have already invested resources into it, even if the decision or project is no longer beneficial or profitable. …1 min read1 min read
Jan 10Behavioural Biases which Plague Investors: Availability HeuristicsDefinition: The availability heuristic refers to the tendency to judge the likelihood of an event based on how easily examples come to mind. How it Impacts Investors: Let’s say you are considering investing in a particular industry, and you have heard several negative stories about companies in that industry recently…1 min read1 min read
Jan 9Behavioural Biases Which Plague Investors: Anchoring BiasDefinition: Anchoring refers to the tendency to rely too heavily on the first piece of information encountered (the “anchor”) when making decisions. How it Impacts Investors: Let’s say you are considering buying a stock currently trading at $50 per share. You do some research and find out that the stock…1 min read1 min read
Aug 2, 2022Joys of Compounding Chapter 12: Building Earning Power through a Business Ownership Mind-setAn investor builds earnings power through a business ownership mind-set. Investing in publicly listed businesses is a great way to passively reap most of the major benefits of running one’s own business, without being exposed to the disproportionate risks emanating from the usual vagaries of directly running a business. Stocks…1 min read1 min read
May 4, 2022Joys of Compounding Chapter 10: Living Life according to Inner ScorecardThe only scorecard that counts is your inner scorecard. Don’t live a life based on approval from others. Be authentic — act in accordance with who you are and what you believe in. Let internal principles, not external validation, guide your life. An outer scorecard asks, “What will people think…1 min read1 min read
May 3, 2022Joys of Compounding Chapter 9: Achieving Financial IndependenceThe goal of financial independence is to stop depending on others (bosses, clients, a schedule, a paycheck). Financial independence doesn’t mean you don’t work, just that you don’t need to. The pathway toward financial independence Work hard, get an education, develop a valuable skill Use the work career to save up ten times your yearly…2 min read2 min read
Apr 29, 2022Joys of Compounding Chapter 8: Simplicity is the Ultimate SophisticationSimplicity is the art of thoughtful reduction. Five ascending levels of intellect according to Einstein: “Smart, Intelligent, Brilliant, Genius, Simple.” Three Steps to Simplification Avoid unknowable and unimportant: “There are two questions you ask yourself as you look at the decision you’ll make. (A) Is it knowable? (B) Is it important? If it is…2 min read2 min read
