Sushma Minakshi Profile picture
Jun 26, 2022 12 tweets 5 min read Read on X
How I learnt Personal Finance by myself?

A Thread🧵
#threadbytradersushma
#personalfinance #financialeducation #weekendreads
I got introduced to Personal Finance by ET Wealth in 2012. It was a special magazine issued by Economic Times on Wednesdays dedicated specially to this topic. It created such an interest in me that I could not wait for the next edition. Image
After a long hiatus I bumped into this marvellous book called "Let’s Talk Money" by @monikahalan in 2019. This book is specially dedicated for Indian investors & a must read on money & finance. It contains some eye-opening facts about insurance products. Image
I have a library of more than 1000 books mostly on trading, investing & finance. From that sea of books my husband suggested few bests of the best reads.

“One up on Wall Street” by Peter Lynch was one of them. This book is just superb for equity investors. Image
Next one on the list was “Safe Strategies for Financial freedom” by Van Tharp.

Financial Freedom in the most objective sense has been explained in this book. U can actually be coached by this book & make your own financial planning. It’s a complete guide towards FF journey. Image
Next came the enlightenment of "Compounding".

My husband has always emphasised the imp of compounding, but I could only understand it better when I myself started doing CI calculations in excel. This proved to be a turning point in my financial education journey.
Till now my education was all theory & now I had some practical things to do. I used to watch Utube videos to help me with excel features. I started having fun doing all the mathematics.
Next big thing was Asset Yogi. Got to know about him on twitter. Watched few videos & knew immediately that it had quality content. His videos r pure information in simple language with no nonsense & idle talks.
I’m still learning as it is an ongoing process. But now I am better educated & well-informed than earlier to take my financial decisions. All thanks to my guide – my husband who persuaded me to this field & encouraged me to read & be well versed.
We learn various subjects throughout our academic life – Science, Arts, Computers etc but nowhere during this journey “Money Management” gets its place.

Personal Finance is such a subject which has to have its place somewhere in our teenage itself.
Developed nations have already started incorporating this subject in their high school curriculum. Hopefully we will also see this subject get its due credit in coming days.
That's all for this thread.

If u liked it, RT the 1st post of this thread for wider audience. Meanwhile follow @tradersushma for more such finance related topics.

Thank U!

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More from @tradersushma

Feb 24, 2023
Complete Financial Plan for a 35-year-old working professional Indian middle-class adult.

Disc : I am not a registered Financial Analyst. This plan is result of my studies & knowledge acquired from various sources.
#threadbytradersushma
#financialplanning
#financialliteracy
Some assumptions ~
🔹Since he has been working for > 5 years, he must have saved enough to cover his emergency needs. (approx. 6 months’ salary equivalent amount in FD)
🔹He must be married & have kids by now.
🔹He must have availed housing loan.
1. STUDY YOUR INCOME & EXPENSES

This is the 1st step in starting your financial journey.

Study your expenses.

Where does your salary gets spend? Enlist them in a table under headings like -

EMI
groceries
eating out
clothing
utility bills
SIPs
policy premiums etc
Read 25 tweets
Feb 20, 2023
Complete Financial plan for a 25-year-old working Indian urban youth.

Disc : I am not a registered Financial Analyst. This plan is result of my studies & knowledge acquired from various sources.
#threadbytradersushma
#financialplanning
#financialliteracy
1. EMERGENCY CORPUS

As soon as u starts earning, start planning to build for an emergency corpus. This may be in the range of your 6-12 months’ salary.

What to do?
Start a recurring deposit in your bank a/c for 20% of your salary.
Eg. If your salary is Rs 25K pm, start an RD of Rs 5K pm for a period of 27 months. It will accumulate around Rs 1.5 lacs (6 months equivalent salary).

Once corpus is built deposit that money in bank FDs & do not touch it apart from emergencies. (Define your emergency needs).
Read 20 tweets
Nov 26, 2022
📖OPTIONS KI PAATHSHAALA📖

Thread on ~

📍 Option Price & its Components 📍

#threadbytradersushma
#OptionsTrading
#StockMarketindia
The price of an options contract is known as the option PREMIUM, which is the amount of money that the buyer of an option pays to the seller for the right, but not the obligation, to exercise the option.

(src:investopedia)
Option Price or Premium comprises of two components:

1. Intrinsic Value &

2. Extrinsic Value or Time Value or Time Premium
Read 20 tweets
Nov 20, 2022
Biases That Affect How You Trade Your System

(curated from "Trade your way to Financial Freedom" by Van Tharp)

1. Gambler’s Fallacy Bias

People assume that the probability goes up for a win after a long losing streak or up for a loss after a long winning streak.
2. Conservative-with-profits-and-risky-with-losses Bias

People want to take profits quickly & give their losses some room. This gives them the illusion of being right, but what they are really doing is cutting their profits short and letting their losses run.
3. My-current-trade-or-investment-must-be-a-winner Bias

This bias may be at the root of all other biases. Yet being right has little to do with making money.
Read 5 tweets
Nov 19, 2022
📖 OPTION TRADING KI PAATHSHAALA 📖

A Thread on

📍 OPEN INTEREST 📍

#threadbytradersushma
#OptionsTrading
#StockMarketindia
OI is the total number of o/s F&O contracts that have not been settled yet.

OI indicates that contracts have been traded but not yet liquidated by an offsetting trade or exercise.
Some pointers ~

♦️ It indicates how many open positions are there in the market.
♦️ It is useful in understanding the liquidity of the market. Bigger the OI more liquid is the market.
♦️ If u add up all long & short positions, it should be 0 always.
Read 17 tweets
Nov 18, 2022
U r a high income earner but unable to escape your corporate shackles in spite of actively working > 20yrs.

WHY?

Lets delve deep & do some introspection.

#threadbytradersushma
#financialfreedom
#booktwt
Here's list of 25 questions u can ask yourself to actually know what went wrong in your financial planning. Answers to these might open doors to financial awakening!

Curated from the book “The Millionaire Next Door" Image
1.Have u ever calculated your NET WORTH?

2.What % of your monthly income do u invest in stocks?

3.Do u live in an upscale neighbourhood with affluent looking neighbours?

4.How often do u go out to upscale diners for eating out?
Read 12 tweets

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