Romil Shah

@theromilshah

Most common financial milestones for adults:

• The 20s and 30s - Debt repayment and household formation,
• The 40s and 50s - Peak earnings and wealth accumulation,
• The 60s - Preparation for retirement and retirement,
• The 70s and above - Transitions and wealth distribution. 

Want to improve your finances and plan for long-term betterment? read the next idea.

Why is it important that you invest?

1. Value of money is decreasing due to inflation,
2. Post-retirement funds if you wouldn't want to work your entire life,
3. Build on your pre-taxable income & reduce your taxes.

• Personal Capital = True Assets - True Liabilities
• Loans? depends on "Good" or "Bad" loans.
• Good loans - Education, Business, Home, etc.
• Bad loans - Credit cards, car loans, etc.
• Your credit score is an important indicator to lenders of your ability to repay loans.
• Maintaining credit score: pay off loans on time, use credit cards carefully.

Savings = Income - Expenditure, i.e. increase your income & decrease your expenditure to increase savings.

Follow budgeting principle:  

• Needs: 50% of Total Income,
• Wants: 30% of Total Income,
• Savings: 20% of Total Income.

Smart ways to save more:

1. Keep your emergency fund in a separate bank account to avoid using it accidentally,
2. Stop/minimize using credit cards,
3. Stop falling for impulsive purchases.

1. What makes you truly happy? (What are you most passionate about? Whose company do you enjoy ?)

2. What are your core values? (Principles that give your life meaning. What ideas, principles, and virtues do you value the most?)

3. How do you handle stress? (Are you calm under pressure? Do you feel anxious?)

4. How is your physical health? (Improved physical health helps you avoid serious illnesses in the future)