Wealth book for the Young
In the pipeline is a book for the young. …by young I mean the 23-40 year old. If I am writing it, it obviously is regarding wealth.
Though I will be putting in a couple of chapters on controlling expenditure, how to borrow, it will of course concentrate on CREATING wealth.
Specifically WHAT DO YOU WANT TO SEE IN THAT BOOK?
OF course you need not be in that age group to give in your suggestions…
Suhas
Tackling inflation and various taxes we pay…
SAM
Subra,
1. The young need to get realistic on cost of living and the cost of living a lifestyle clearly.
2. Insurance – life insurance and health insurance
3. Inflation & Saving & investment
4. Most importantly – not to scrimp so much that they forget to enjoy the money they earn!
damodar
how to budget, tax saving , how to manage money, teach kids to manage money, how to be content….
Praj
Thanks for this, Subra.
Can you also cover the concept of IRR. I understand that we can get tons of literature on the net on the same but you can maybe explain it in a lucid manner with some of examples of IRRs for say a PPF or a HDFC Top 200 fund.
Thanks,
Praj
Mansoor
And Please include a CD with simple tools (excel or otherwise) to calculate anything specific you explain in your book. This will help us follow when you say… your expense today is 40k per month and in 25 years with inflation of 8%, it will be around….
Rajesh
Expecting one broad level example applicable to all age groups.
Say.. assuming person salary as 1,00,000 with age 30 years.
Now take fixed expenses and amount available for investment.
Show how different asset classes can provide results after certain years of time, assuming some rate of return/ risks.
If we can discuss in numbers, its encouraging and guiding. Discussing about plans leave the people vague (who are basically from non – financial back ground). So inspire/ motivate.. please put the examples in numbers; so that any body can substitute his age/ salary/ spending/ investment to get his own numbers of retirement/ goal reach.
Vandhana
Dear Sir,
Would like to see a specific actionable plan for 20-30 age group and 30-40 age group so that they can create wealth and maintain it. Also, recommendations on a good financial advisor, good health insurance plans etc – basically vendors who are good and why.
Prakash Natarajan
I am presently reading a book called ” How to worry less about Money” written by John Armstrong. There is a brilliant distinction that he makes about money troubles and money worries. All of us need to address both. Also, we have been “trained” to handle money and not “educated” about it. Would be glad to meet you, gift the book to you and sharing some “Real Estate” Gyan .
sureshvish
Hi Shyam,
First for the entire group you should tell them that they will not live forever and hence they have to plan. At 23 I took my first term insurance and at 35 started both equity and mutual fund investments. I have created wealth enough to be personally satisfied. I am sure with or without my advice you will write a fantastic book. All the best.
ram
i feel 23 to 40 is too late. you should start with 18 to 30 – that is when they first start working and earning money. Better to instill the right values of financial prudence, savings, financial management then itself at the early stages. Admitted they would still be in college upto age 21 or so, but curbing unnecessary expenditure at that stage and learning fiscal prudence is the key.
Varinder
I have following suggestions :
1. Target Age : 20 to 40 as between this age people start earning and spending.
2. Define what is need, what is a necessity and what is luxury in the context of earnings and expenditure.
3. A focus on how to avoid “excess of luxury”, saving and investing like a daily ritual ; it should be like a morning walk or exercise. If done regularly or thrice a week ; there shall be no heart attacks 🙂
3. A focus on home buying : Is it a necessity, a necessary evil or an investment.
4. Planning for kids education and ensuring that it happens in case of some mishap
5. Planning for Medical emergencies for family
6. Life insurance (and Assurance for a tension free life)
And finally you must write something that says “Don’t Greed but Grow”
Adil Mukadam
Subra sir,
I’m sure you have already decided on the asset classes that you’re going to cover in your book.
What I’d like to see is you bust the myths associated with investing in each of these asset classes and make the reader unlearn all the wrong things that he/she has picked up over the years, pretty much the same way you did for us.
Then probably the meaning of wealth, setting realistic goals for your wealth, assessing your risk taking ability, risks associated with different assets and finally how to get where you want.
Regards,
Adil
Kalyani
Good thought.. My two pence thus –
1. Simplify simplify simplify – there us too much information out there on financial freedom / investments / CFPs … The works.. This book needs to cut through the shaff and be relatable and more importantly practical.
2. Anecdotes (from your interactions with hundreds of investors) on things that went well and things that couldn’t be worse would make fir interesting reading . Everybody lives a good story 🙂
3. Ready reckoner (?) kind of chart age-wise what buckets to choose from. How to periodically evaluate them, review, cut the losses if any And move on. Periodic review is the key in z wealth building stage
4. A simplistic view of how BSE or that matter any exchange works. Pitfalls, spotting opportunities, bull n bear phase etc.
5. Debt n equity markets for investment – how are they different
6. Helping the young help their parents to leverage their own asset classes to become financially dependant. Are old age homes a good investment fir the working class ??
7. Real estate for the young, tips to maximise the market without eroding savings
8. Should financial education commence at high school / college levels?? If so, what are the self-taught modes advised ?
Vikas
Subra, Nice idea to write on this subject…!!
Per se, as a reader, I would like to know in simple terms how to make money work for me, from the point of view of a salaried individual and how to make the best for financial security, property, etc..
All this is in the Indian context.. Although most of us would have read tons of material on how complex financial products work in global markets, that information is totally useless when it comes to personal financial planning in the Indian context.. Hence, that focus..
Also, specific sections could be such as:
> If someone has restrictions on investing in certain sectors such as equity, then how should one plan savings & investment excluding that..
> If someone doesn’t really have the funds to invest large ticket to buy a flat or something, then how can one plan to save for it, or still find instruments that can somehow beat or stay close to the actual inflation rate..
Just my two cents.. Cheers!!
Suresh
If it is at all relevant , could we have a few words setting out what is ‘artha’ and its role for a balanced life. Perhaps what we need most is the moral philosophy of wealth- that it can be used as a tool and that it should not become bigger than the individual. The ‘why’ of it..
Vishram Ratnuji Modak
01 March 2013
Respected Subra Sir,
Greetings, at the outset kindly accept my soulful gratitude for sharing your wisdom with us. It’s verily great to see that you are gathering all your observations so earned through decades of hard work and sacrifice in a single cup and sharing the cup with us without any expectations. It’s one of finest virtues and verily rare.
Secondly, in apropos to your new blog entry, wherein you had expressed that you are mulling sanguinely to author a book titled “Wealth Book for Young”, I am verily pleased with it and excited about it. I firmly believe and with certitude, it will be beneficial to all of us both academically & professionally.
Additionally, I hereby take the opportunity to forward my tad views on the same; if feasible do address the same by making it a part of your ensuing aforesaid book.
1. A financial planning strategy for life-long bachelors and spinsters duly factoring in that one fine day they won’t be having any family support in your good old days.
2. A financial planning strategy for widows (young & earning) duly factoring in the averment that the importance so given to them after being a widow is not the same as given before marriage.
3. If feasible, do write a small note on FINANCIAL DHARMA of a son/ daughter towards its loving family including siblings. For I had seen a plethora of articles on making oneself rich but never read any article of taking efforts to make ones family member rich.
4. If feasible, do write a small note on FINANCIAL PRUDENCE (discipline required to metamorphose yours financial dreams into reality).
5. If feasible, do write a small note on the MEDICAL COST risk (sword of Damocles) and financial strategy to mitigate the same to the extent possible
6. If feasible, do write a small note of RISK and its meaning, it should be verily understandable and fathomable even to a school going student. The reason being, the word RISK has been misconstrued and twisted as per circumstances and accordingly its true meaning has been lost in the labyrinth.
7. If feasible, do take some mythological stories germane to financial disciple/ financial indiscipline and the takeaways from them in our current Kalyug.
Kindly do contact for any sort of co-ordination, rest assured it will be acknowledged sanguinely. May the Great God be with you and with yours loving family.
With Respect,
Vishram Modak
Yours obedient student
==========================
sujatha
hope I am not repeating:
In addition to.Understanding risk
Goal setting, allocation & spread
Cash flow insurance, health,
Nps and alternatives
please also comment on
how to reduce your savings bank balance 🙂 …while managing it in better avenues
sujatha
also when to stop an sip
and systematic withdrawal plan
Neha
Hello Subra Sir,
More than happy to give suggestions.
Firstly, I do not mean to be rude in any sense. The views I give are my opinions alone and I could be wrong/right. As the saying goes, you are what you eat, similarly, I feel we alone are responsible for how we spend money. Earnings, Inflation, Taxes are the different factors (usualy loathed factors) we encounter. However, that ‘one’ will somehow always find a suitable and mainly an ethical way to save. That is why he is the ‘one’.
This book could/can/should/might-be-better-to-have all the dos and don’ts of where/when/how/what to invest in, but what I feel more important is that it is very important for the young generation to take the first step and have the genuine courage/need/desire to invest money in markets, even the least profitable items.
I am saying this becuase most kids/recent adults are so scared of the market. A positive view on how it is NOT VERY COMPLICATED to invest should be emphasized upon. If they are not scared, they are overconfident, that is another problem.
Another point is they should be told very specifically that there is no free lunch. If they want to invest, they have to keep themselves updated, they have to be vigilant and they have to be patient. Also, common sense with the ‘gut’ feling should be excersized. Haste and greed do not work here. They will not get a 100% profit the first time they invest, not even the 10th time they invest. Profit will come, but slow and steady. Most youngsters wait till their 30s to invest so that they take time to learn, meet other investros and be okay with the market, but that is not how it should always be. The more people invest, the more they encourage other people to invest and the whole stigma of how scary the capital market is, goes off.
It is also important to note that only investing in gold coins and real estate, although one of the best investments, does not make one a complete and competent investor. Investing in capital markets widens your knowledge about how the economy has a direct relation to the money flowing in the economy and vice versa. It also teaches you the rational and practical part of how money works. If one is too emotional to his money, that is a problem. Making him have second thoughts that if he is aware and invests, it is not so scary at all.
More to come but I have to get back to my project now. I hope I have not offended anyone with my views. If so, I have not meant it in the least.
Thanking you.
Respectful regards,
Neha.