Direct equities Vs Mutual funds

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Evolution of Money - Barter system

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As Humans have evolved over time, Money we transact in exchange of goods or service is also evolved. We will see in detail why was there need to go other system. Barter System: Barter System was in use as early as 6000 BC introduced by Mesopotamia and it was improved by Babylonian's. Bartering is trading services or goods with another person when there is no money involved. If you ever traded 'abc' object in return of 'xyz' object, you have bartered. Advantages: You dont need money to barter. you do not have to part with material items. Instead, you can offer a service in exchange for an item It is flexible. Anything can be traded for anything.  Disadvantages: The desired item only has the value in this medium of exchange. For example, you desired to have apple, you will transact only with the person who is willing to exchange apple. Item exchanged is not quantifiable. Example: 10 apples cant be traded for a single sheep/goat. It was long tedious process...
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How much you should earn for every 100 rupees you spend

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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
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How Government policies impact FIRE

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Roland Regan, 40th president of USA once said, "Government Cant solve problems, it subsidizes them". And those subsidies are from our pocket. Taxes: Tax is non involuntary contribution of an individual to an government organisation because he is above average in making money than his peers, so that government can eat most of it via scams and then left over will go to the development of the country. Income tax is the biggest expense for a normal household. Sometimes people get into debt only to pay for the income tax. This shows how important tax planning is for an individual. Warren buffet once gave best way to teach kids about taxation. Give kid an Ice cream and eat 30% of it. This will make kid understand about the biggest burden once he starts earning. There are many taxes in India which are directly taxed and indirectly taxed. Income tax, GST, Education cess, fuel surcharges are a few to be named. Income tax is direct form of tax where the individual has to pa...
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