My advice: nothing new

[jtmsavestheday]

I grew up lower middle class. Wealthy in terms of “love from mom”, “friends: we’re all poor to middle class: this meant very little inferiority” and an education( this is the biggest thing).

An aunt helped fund my schooling and even paid my engineering fees( if you are already wealthy, support someone’s education. It’s the best gift)

When I finished engineering I was sitting on 8 lacs debt from dad with no job (due to 2008 recession)
My net worth now: 8 cr
Age: 38 years

My takeaways:
1. Save, save, save: Get to a point where you have money left after your monthly commitments. This is a huge first milestone.

1. Have 6 months emergency fund in a liquid fund. This gives you lot of mental cushion. Put this in an FD and forget that money
2. Start SIP as early as possible and be consistent. This should have a commitment for 5+ years at least. Start with index if you are worried and move to large cap, mid cap and small cap (eg: my large cap has grown around 45% since 2016 while my small cap around 140%). I excited my mutual fund portfolio when I panicked in 2010 and 2014. My biggest regrets!!
3. Hold off on your primary home. Buy something small that doesn’t take you into deep debt. You can think clearly after you have enough money. My first land has appreciated 6X in 13 years and my primary home around 0.25X over 9 years
4. Invest in yourself: health, friends and skills
5. In today’s India, become an entrepreneur: This i high risk high reward

Also enjoy your 20s. You won’t have the same energy and access to friends in 30s and maybe going to get worse in 40s

 

[preachgrl61]

@jtmsavestheday >In today’s India, become an entrepreneur: This i high risk high reward

>Also enjoy your 20s.

mutually exclusive man. I have seen two of my friends going for new start-ups and it's beyond hectic, it's inhuman levels of stress. More power to anyone who's going that extra mile for high reward, but then forget enjoying your 20s and even more if the start-up fails(which is more likely).

 

[aviad]

@preachgrl61 90% startups fail, which is crazy to even think about.

 

[jtmsavestheday]

@aviad Yes that’s why I said high risk high reward. It’s not for everyone and that’s ok too. I for example haven’t been brave enough yet

 

[aviad]

@jtmsavestheday I agree with you

 

[preachgrl61]

@aviad Personally my opinion is that it's even more tiring than upsc prep and even less worth it. But some people are very optimistic, I guess.

 

[jtmsavestheday]

@preachgrl61 On the contrary I know the founder of a unicorn who started his company with his friends. His quote not mine: “It’s fun to have your close friends around in a mission that you love”. Founder is not everyone’s cup of tea. I am not a founder myself.

 

[onetech]

@preachgrl61 Does being an entrepreneur nowadays mean only setting up a start up ?
In our times starting any kind of business big or small made you an entrepreneur.

 

[preachgrl61]

@onetech I doubt OP was talking about setting up a Kirana store at their hometown.

 

[tomaszpl]

@jtmsavestheday Your primary home value has reduced to 25% of it's purchase value? I don't think that's representative of the general real estate market in India. Or I hope that's a typo and you mean 1.25X, in which case it'd make much more sense.

 

[jtmsavestheday]

@tomaszpl You are right. It’s 1.25X.

Why my investment grew while my primary home didn’t?

My primary home had to be in a well grown neighborhood closer to my friends and good for my parents and also was an apartment. Also now I want to move to a better place.

But my investment was in a far off place and an empty land.

All I wanted to say is, primary home cannot be generally investment property but can be counted into your portfolio

 

[tomaszpl]

@jtmsavestheday Can I ask which city you’re settled in

 

[jtmsavestheday]

@tomaszpl Bangalore

 

[chrismarklee]

@jtmsavestheday Good post with zero arrogance or bragging anywhere with decent points.

All the new people with hefty salaries can learn from this, how not to come across as braggarts

 

[jtmsavestheday]

@chrismarklee Thank you for your kind words. I have made a lot of mistakes although I have come all this way. And every mistake was an emotional decision and nothing to do with knowledge.

 

[dhornace]

@jtmsavestheday That's one thing my dad (who grew from poor to rich in his lifetime) always said - never mix money with emotion. Great advice.

 

[outdoorguy]

@jtmsavestheday Wish someone had told me about the 20s thing. I focused too much on career and fulfilling my financial responsibilities, and kinda forgot you’re supposed to live as well.

 

[jtmsavestheday]

@outdoorguy But there is still hope if you are ok to explore. Thanks to social media, you can go to meetups and make some friends. My latest friend I found through office and a tree planting drive.

 

[abidein]

@jtmsavestheday Doesn't seem.legit for some reason

 

[jtmsavestheday]

@abidein The above is my interpretation of path to succeed and not to be confused for a sure shot solution