MAKE
EPIC
MONEY
ANKUR WARIKOO
Scan this QR code to download your own MS Excel
eep 30%
forcalculator.
the things you love
budget
code to download
MS Excel budget
have to flip this ratio on every
ep it the same, 50:30:20?
your needs don’t increase
nally to your income.
income jumps from ₹20,000 to
in 4 years. Does that mean you’ll
start eating triple the amount of
u used to? Or hop on to 3 autos
1 to reach the same destination?
ur needs don’t just shoot up from
1
o ₹30,000.
s to buy nearly 50–70% of your
on a down payment.
Scan this QR code to view the projections in an Excel
sheet.
. Do the maths.
code to view the
an Excel sheet.
e wrong. I’m not
uy a house.
it when you’re young.
oung:
ffers a higher standard of living
r budget
are very low in India (2–3%).
hly rent is kinder on your wallet.
be able to buy the posh apartment
efinitely rent it!
2
Scan this QR code to see how it works in MS Excel.
code to see how it
xcel.
in hand? Pay off
the money?
s:
ou’re paying:
0%, then consider pre-paying,
se the loan is expensive.
%, consider investing the extra
y in mutual funds. You can
ially earn a better return over a
of time.
he loan is:
more than 75% lapsed, do not
ay. Because in this case, you are
g more of the principal amount
he interest.
3
less than 75% lapsed, consider
Scan this QR code to test each method in MS Excel.
ich one to pick?
code to test each
Excel.
o pay off your
ur loan duration
sk for more time, your monthly
uce.
cash to pay the principal of young
nterest is still high.
expensive loans
nterest loans first, then focus on
.
ditch that hefty 40–50% credit
for a personal loan at 13–16%.
sh your credit card debt.4 Then,
Create a monthly budget sheet. Scan this QR code for
an easy budgeting tool in MS Excel.
!
ate a monthly
dget sheet.
an this QR
e for an easy
dgeting tool in MS
el.
e it to track how much you
nd, save and invest.
rt with at least 20% savings.
your income grows, ramp it up
50%.
y off your loans faster.
y one extra EMI every year.
rease your EMI every year,
, by 10%.
s reduces a 25-year loan to
t 10 years!
5
RESULT:
RESULT:
And then build the saving mindset.
→ Your target should be to save AT LEAST
20% of your salary.
Remember the 50:30:20 budget rule?
50% of your salary on your needs
(essential spends).
30% of your salary on your wants
(desires, because, hey, you have a life!).
20% of your salary on your savings
(and thus investments—for your short-,
medium- and long-term goals).
BUT PEOPLE TELL ME I SHOULD SAVE! | 85
6
over this in detail in the chapter
What IScan
Really
Want Is to Grow My
this QR code to download an MS Excel Budget
Calculator that auto-generates this, based on the goals
you set.
code to download
Budget Calculator
erates this, based
ou set.
7
Scan is
thesimpler
code below
for a you’d
simple way to find your
s exercise
than
‘magic number’ using an Excel sheet.
nk.
an the code below
a simple way
find your ‘magic
mber’ using an
cel sheet.
eck: Are you saving at least
% of your salary?
ot, what are the steps you can
e to increase your savings?
_______________________________
t that money out of your
vings account and invest!
ving is meaningless without
esting wisely.
8
In 3 years, you earn ₹6620!
In 10 years, you’ll have ₹51,875. That’s over
double your investment.
Graph:
In 45 years, you’ll have ₹14.6 lakh.
Without doing anything.
You didn’t put in any more money.
The growth rate remained the same.
BUT you earned interest on your interest.
BUT WHAT I REALLY WANT IS TO GROW MY MONEY | 133
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9
matches it and voila—into the EPF it goes.
- For companies with >20 employees, this
a choice.
EPF is of
mandatory.
Here’s a isn’t
simplified
version
an EPF calculation.
Here’s a simplified version of an EPF calculation:
BUT WHAT I REALLY WANT IS TO GROW MY MONEY | 145
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10
Your 20s
Your 20s
Income
Emergency
fund
Health
insurance
Life
insurance
Max wants
Below
₹3 lakh
3 months
Between
₹3–9 lakh
6 months
Above
₹9 lakh
12 months
For parents For yourself
+ parents
In your 30s 20x of
Or income salary
>₹9 lakh
20%
25%
For yourself
+ parents
25x of
salary
30%
Fixed-return 25%
assets
Equity
75%
investments
NIFTY 50 MF
40%
30%
25%
Mid-cap MF
30%
40%
40%
Small-cap MF
30%
30%
35%
Gold/real
No
estate/others
Credit cards No
Loans
No
20%
15%
75%
80%
5%
5%
FD-backed
FD-backed
Only for
education
or a car
Only for
education
or a car
AND MANAGE MY MONEY WELL | 231
11
Your 30s
Your 30s
Income
Below
₹3 lakh
6 months
Between
₹3–9 lakh
9 months
For yourself
+ spouse +
kids
For your
parents
15x of salary
For yourself For yourself
+ spouse + + spouse +
kids
kids
For your
For your
parents
parents
20x of salary 25x of salary
15%
20%
30%
Fixed-return 30%
assets
Equity
70%
investments
NIFTY 50 MF
25%
20%
75%
75%
70%
60%
50%
Mid-cap MF
25%
30%
35%
Small-cap MF
5%
10%
15%
Emergency
fund
Health
insurance
Life
insurance
Max wants
Gold/real
No
estate/others
Credit cards No
Loans
No
232 | MAKE EPIc MonEY
12
Above
₹9 lakh
12 months
No
5%
FD-backed
credit card
No
FD-backed
credit card
ONLY for
home or
a car
Your 40s
Your 40s
Income
Emergency
fund
Health
insurance
Life
insurance
Max wants
Below
₹3 lakh
9 months
Between
₹3–9 lakh
9 months
Above
₹9 lakh
12 months
For yourself For yourself For yourself
+ spouse + + spouse + For your
parents
kids
kids
For your
For your
parents
parents
15x of salary 20x of salary 25x of salary
10%
15%
25%
Fixed-return 50%
assets
Equity
50%
investments
NIFTY 50 MF
Mid-cap MF
Small-cap MF
Gold/real
No
estate/others
Credit cards No
40%
30%
60%
70%
Loans
80%
20%
0%
No
75%
25%
0%
70%
30%
0%
No
No
No
FD-backed
credit card
ONLY for a
home
No
AND MANAGE MY MONEY WELL | 233
13
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This is what I would do:
I’d play the long-term game, to manage (not
eliminate) higher risk.
The Possibilities
Image copyright BCCL
Here’s an example:
I KnoW I’LL MAKE MIStAKES | 239
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14
es of adulting success.
f your financial well-being.
Scan this code for a complete guide to tax planning for
g money,
so you’re
salaried
peeps. paying taxes.
our work.
e for a complete
ax planning for
s.
e for tax tips for
ins tax
the profit you make when you sell
et (stocks, mutual funds, ETFs) for
s purchase price.
tax kicks in only when you sell.
ught stock for ₹500. Its value is
MonEY
15
e for a complete
Scan this code for tax tips for freelancers.
ax planning
for
s.
e for tax tips for
ins tax
the profit you make when you sell
et (stocks, mutual funds, ETFs) for
s purchase price.
tax kicks in only when you sell.
ught stock for ₹500. Its value is
MonEY
16
12/13/2023 12:54:47 PM
Watching 3 reels on personal finance (or even
making them) does not make us experts.
If we think we knowEffect
everything about money, we
The Dunning–Kruger
most likely do not.
It’s never the experts who say, ‘I know everything.’
It’s always the uninformed who are the most
confident.
292 | MAKE EPIc MonEY
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17