Thread by @iam_balaji

#Inspiring 🧵 on #personalfinance and how to manage finances - this is a story of my house help @sheroes who has been working in Bombay for the past 20+ years raised two kids.
1 - Created passive income wealth generating assets - 6 small houses - of which she stays in one and 1/

Rents the other 5 - generating rental income ( which is 4 times her monthly outflow of expenses)
2 - How was this created - worked as house-help and invested significant monies in chit funds - when asked isn’t this risky - it was earlier when she was investing in others funds 2/

Now she runs the Chit fund ( BC as she calls it) wherein all participants are of her circle of trust (credit risk managed). She draws the first chit - so makes most returns.
3 - my next q was where is this drawdown invested - immediate response is in known circles @ monthly 3/

Interest of 5% per month - I commented - higher the % higher the risk - what if the guy doesn’t pay the principle - she retorts - she lends only to someone who owns property - and retains property paper as collateral -with a promissory note in writing signed ( mortgage backed) 4/

4 - Earlier drawdowns from chits was drawn to create properties from which she is generating passive income - when monthly payouts towards drawdowns were getting out of hand - she did house help work during the day and worked in TCS as a Janitor - for 2 years 5/

In the night shift to augment earnings
5 - Now passive income in terms of rentals and interest from chit funds are in the range of 5 times monthly expenses.
6 - she is currently working as a house help to keep herself occupied ( we are one of the blessed families) 6/

6- I asked her is all her money invested around in chits etc - or does she also keep any cash in hand. She retains 5 to 6 months either in cash or bank accounts as liquidity (emergency fund).
7- she wants to take an insurance for herself - and I explained the concept of 7/

Term insurance - not LIC, she was fascinated about it
8. Asked her about her dreams -she is passionate about learning to drive an auto rickshaw as she is fascinated with it -that’s her next in her to do.
9-Elder son has just started a job -she ensured that first year earning 8/

Of 1.2L is fully saved and banked for whenever he wants to get married -

Take a bow lady ( told her I am writing about this - not taking her name per her request) So so proud !
@LarissaFernand @VidyaG88 @Sairee
Pls do read and share !!!