Hi All, how do you manage your money after your sa...
# randoms
stale-nest-71742
09/03/2022, 3:42 PMHi All, how do you manage your money after your salary gets credited? I want to get better on money management. I would like to invest it somewhere. Any guidance is much appreciated
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tall-postman-9284
09/03/2022, 4:01 PMMake a checklist.
1. Rent
2. Card bills if any
3. Utilities, if you don't pay by card
4. House help salaries, maintenance etc
5. Budget for groceries, fuel/other transport
6. Discretionary budget.
7. Whatever is left is savings.
Adapt as necessary.
Keep things simple. Separate account for budgets. Automated decisions for savings. Bonds, liquid funds, index funds.
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gifted-airplane-45450
09/03/2022, 4:27 PMfirst put a % of that into savings (15-20%); then put into MF and equities for investment
the rest is your money to spend
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stale-nest-71742
09/03/2022, 4:27 PMHow do you decide which funds to invest in? Do you have any content or book which I can read to understand my investment?
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tall-postman-9284
09/03/2022, 5:47 PMThere are two ways to invest. One is to study the markets yourself and develop an understanding of the various stocks and funds. Another is to trust in averages and go the passive route. Pick one nifty 50 index, one next 50, one US equity index fund, and a liquid fund. Then set a ratio based on your goals, or to default with do a 60-40/70-30 equity/debt split, split equity to 80-20 india-US, and in india split 85-15 to nifty 50 vs next 50. Every month invest to keep total value close to these ratios.
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tall-postman-9284
09/03/2022, 5:50 PMAll this is on top of an emergency buffer of 12 months living expenses, which shouldn't be counted towards these ratios. Do a fd or a separate index fund for this
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gifted-airplane-45450
09/04/2022, 2:51 AMyou dont start with the funds first but with your goals. define them first (e.g. trip, electronics, retirement etc..) and the expected cost + timeline you need to incur for that. then break it down into how to invest.
The investment is always based on your objectives, risk tolerance, time horizon, availability of funds and age for most factors.
From an investment view, a mutual fund is the simplest way to get the diversity. There are ways to setup a core and satellite portfolios where core is the foundation and requires infrequent readjustment while satellite requires active management.
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gifted-airplane-45450
09/04/2022, 2:54 AMFor core, you could start with a large cap fund but as market asymmetry has reduced, their performance is in line with Nifty 50 index funds. Nifty 50 refers to the top 50 companies in the exchange that are traded the most across multiple sectors.
For satellite, you can get into active funds but they have slightly higher expense due to active management by the fund manager hence, they need more management by design.
The ratio of investment is entirely dependent on your available money and how much you can invest.
Do note that returns are never guaranteed from the market and so it can go up or down depending on market conditions.
Suggest you setup an account in Kuvera or other portals and then complete your KYC to start investing.
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mammoth-soccer-65604
09/04/2022, 11:47 AM@stale-nest-71742 getting experience while investing is better than taking a lot of research beforehand
mammoth-soccer-65604
09/04/2022, 11:47 AMI suggest you just go ahead and start with popular ones to start saving, then generating wealth
and keep learning side by side how to better manage funds
mammoth-soccer-65604
09/04/2022, 11:49 AMi have proper excel sheet on my monthly money management, and all blue backgrounds you see in sheet, I keep changing them based on market, my long-term goals and wealth distribution
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stale-nest-71742
09/04/2022, 12:02 PM@mammoth-soccer-65604 How do you decide on a investment strategy for stock or MF? I feel like if I start investing and make some mistake. I may not learn from it, if i don't have any prior knowledge
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mammoth-soccer-65604
09/04/2022, 12:04 PMEven i didn't had any knowledge
To begin with I started MF.
Then for tax purpose, I started tax saving MF
Then some stocks individually
Now I divide based on market - if market is too down, I am heavy on individual stock which I want to buy
Otherwise I go with equity MF
There are types of MF too, which I learned while investing from youtube and all and started improving
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stale-nest-71742
09/04/2022, 12:54 PMCool👍
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gray-restaurant-50691
09/06/2022, 8:41 AMThe first thing I did was to have two bank accounts:
1. Salary account (including investments)
2. Expenses account
Soon after I get salary, I send out funds to my investments, followed by expenses bank account (based on my monthly estimate). I’ve UPI connected only to expenses account.
This way, I can track the investments from Salary account, expenses from a different bank account, and keep it clean.
Have been doing it for two years now, and I pretty much didn’t spend much after doing this.
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