Indian FIRE Community

Before industrial revolution began, farming was the major occupation of almost entire world. Jobs were less as there was less technological advances. But today in this information age, companies have become bigger and bigger. So big that only 7 countries in the world has GDP value greater than the market cap of Apple Inc. Companies started mass producing and people started to settle in the services industry. And in today's world, advertisements are driving the common man to buy things that he didn't require, with the money he don't own. Government wants people to spend as spending money will keep up the GDP value. Government is the number 1 wealth destroyers. You can see detailed information here . Banks started lending and whole new type of loan is made available called consumer loan. In 2001, bullet cost was around 55,000. If we had bought that, today its value would not be more than 6000 because of depreciation. In the same year, instead of buying the bullet bike, if we

 In the year 2012, I moved to Hyderabad for my graduation. When I was not earning, obviously I was dependent on my dad for my hostel fee, college fee, etc. I survived in Hyderabad excluding hostel fee with 3000 rupees. Of that 3000, 1500 for daily transport to college from hostel, and I would go home twice a week that would cost around 200. Remaining amount would go to eating out and buying books and entertainment purposes(There is a weekly theatre attached to my hostel). This continued for next 3 years and in 2015, I got placed in Infosys. My investment journey is listed here . I noticed that back in 2012, 3000 rupees were enough to meet my expenses but now after started earning 20k-30k per month which is 10x of my 2012 expenses, I still feel that I couldn't find any amount left over at the end of the month. This is all about lifestyle inflation. Your lifestyle will continue to grow as your income grows until you forcefully restrict it to stay at the same level. This will hold tru

You might be wondering what is this article about. Common sense says that we need to earn 100 rupees to spend 100 rupees. This is not the case and banks and government trying their best to hide this from us. Remember, you will not keep everything you earn. This is not as straight forward as it seems. Let us know about this with a tasty example 😉. Imagine we need to buy an Ice cream which is of 100 rupees. Let the gst on that ice cream be 18%. So now the total cost of ice cream is 118 rupees. Let us imagine that we fall under 20% Income tax bracket. So for every 100 rupees you earn you will only keep 80 rupees of it and rest 20% will be deducted as Income tax. 100 rs x 80% = 80 rs Remaining amount = 118 rs - 80 rs = 38 rs For the remaining amount we need to divide by 80 and multiply by 100(because 100 after tax is equivalent to 80) which will result in 47.5 Now add this to initial 100 rs So there it is for you. To spend 100 rs you need to earn 147.5 rs

If I tell you that investing is all about roses and sunshine then I would be lying. This article will tell you how unfair investment world is. Charlie munger, the second man whom I admire most after Warren buffet, once said that to be successful you just don't have to be stupid. They achieved this by sticking to their circle of competence . The advice can be applied to the stock market investing. To be successful in investing, you need to avoid big losses. Risk management is important when you are putting your hard earned money at stake. Let me put what I mean through numbers. Numbers won't lie and this truth has been hidden from most of the retail investors. If you lose 10% of your investment, you need 11% of the returns just to breakeven(no loss, no gain). And this keeps getting worse as the loss percentage increases. For 25% loss in your portfolio, your investments should return 33.33% to breakeven. A 50% drop in your portfolio should provide 100% return to break