Dad took 22 years to become #FI despite having many expenses & very less salary back then.
I wish to share a few points of his journey.
It's all pure common sense & nothing extra ordinary .
If HE can , WE all can :))
Read on ....
* He saved first , spent balance.
* Invested month after month as @FI_InvestIndia keeps saying.
* Stayed invested through all the scams & bottoms . Invested more whenever he had surplus
* He averaged up & down
* Learnt Finance by doing MFM from JBIMS. Ensured Conviction.
* Never leveraged . Only invested his own money.
* Was conservative .
* Let go of many opportunities & STUCK to what he UNDERSTOOD.
( Held onto HUL & topped up when it did not budge for a decade) -
Result ? A loan free property.
Dad told me about how his just retired friend's 25 year old insisted on liquidating F.D's worth a sizeable amt ( kept for EMERGENCY ) today as the son KNEW he could EARN SO MUCH MORE from markets in JUST a month ! 🤦
A thread on the same for NEWBIES.
2/8 2020 was exceptional !!
A brutal crash followed by an unimaginable run due to liquidity.
NO. IT DOESN'T MAKE YOU TALENTED IF YOU HAVE MADE 50%+ RETURNS THIS YEAR.
Even a GROUNDED AIRLINE scrip is flying. That doesn't make you an expert.
IT JUST MAKES YOU LUCKY! 🤷
3/8 An experienced person with a modest risk appetite would be happy with 12-15% CAGR over a long term.
Most get caught at higher ends. ( Few accept it )
Only a HANDFUL enter at bottom ( Mostly Newbies).
You never know WHEN YOU too might get caught at the higher end!
With Diwali around the corner along with our economy rebounding , only fair that we be bombarded with "PATAKA STOCKS" by EXPERTS from Indore to the enthusiastic newbie who made 30% returns on his portfolio ( of ₹10,000) in 1 week 🙄
So here are my 2 cents gently reminding how much of WEALTH has ACTUALLY been created for the enthusiastic retailers by PATAKA / PENNY / MULTI BAGGER stocks recommended in the past few years .
DISCLAIMER : Being a learner, I am mostly wrong 😇🙏
To each his own .
A small snapshot of a few Penny stocks ( using this word a little liberally here ) that were recommended LEFT , RIGHT AND CENTRE on Social Media & how they are doing currently :))
P.S - These are still recommended to newbies with the recount of their glorious past ! 🤦
1/8 Often hear salaried people complaining about volatility being the reason they stay away from markets .
IMHO I feel #volatility is not risk . It's actually an opportunity to be capitalised upon sensibly .
( T&C being applicable as always*)
A few pointers on the same.
2/8 * Being salaried helps immensely as one gets a fixed sum of money monthly . Less uncertainty of cash inflows aids in better decision making as we don't resort in knee jerk reactions .
* With proper planning one can keep aside money to invest systematically in markets.
3/8 * In the event of a sudden melt down we won't be forced to sell our holdings for want of money for next month's expenses.
* Thereby , we ensure we do not interrupt the process of #compounding . Otherwise, one is forced to sell even good stocks for want of money . 🤷
Consider investing in markets as money locked in ( like in a PPF account) for a few years atleast & THEN decide how much money you CAN AFFORD TO LOCK IN.
Else we may have to sell ( even a good)stock at lower price BECAUSE we need money urgently .
A quickfire thread based on a book I read recently titled " 80/20 YOUR LIFE " .
Disclaimer : This is MY interpretation & the ratio (80/20) is variable..
The essence here is to identify what matters & weed out the inconsequential & thereby manage time accordingly.
The #Pareto principle - 80/20 Rule is pretty well known & discussed in context of work & business productivity.
But it can also be applied practically in our day to day life in all possible aspects to ensure smooth sailing.
How do we do that? 🤔
Pretty simple actually !
Our Top priority goal must be a S.M.A.R.T goal aka :
Time based goal .
Everything is #time based as time saved can be used constructively for other purposes or even wasted happily ! :))