https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> A THREAD on some insightful thoughts about saving & investing by @RichifyMeClub:

1/13

• Avoid debt
• Avoid over-spending
• Avoid investing on tips
• Avoid timing the market
• Avoid reacting to rumours
• Avoid selling good companies
• Avoid buying what you don& #39;t know
• Avoid behaving badly during tough times

We& #39;ll do really good in the long-term

2/13

With an increase in income, if our 1st preference is to:

• Buy good quality businesses
• Increase monthly SIP amount
• Continue driving the same vehicle
• Buy other fruitful financial or physical assets

We are on our way to become financially independent.

3/13

A few financial mistakes:

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤑" title="Gesicht mit Geld-Mund" aria-label="Emoji: Gesicht mit Geld-Mund"> Falling in debt trap
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧟‍♂️" title="Männlicher Zombie" aria-label="Emoji: Männlicher Zombie"> Avoiding insurance
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👴" title="Älterer Mann" aria-label="Emoji: Älterer Mann"> Not saving enough for retirement
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🚘" title="Entgegenkommendes Auto" aria-label="Emoji: Entgegenkommendes Auto"> Buying more of depreciating assets
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📚" title="Bücher" aria-label="Emoji: Bücher"> Not reading about personal finance
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💸" title="Geld mit Flügeln" aria-label="Emoji: Geld mit Flügeln"> Redeeming stocks or funds frequently
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👥" title="Silhouette von Büsten" aria-label="Emoji: Silhouette von Büsten"> Comparing financial status with others

4/13

Before we start investing, we must ensure that we have:

① Emergency corpus enough to cover 12-months of expenses at least
② A term-insurance worth 10x annual salary
③ A health cover bundled with Accidental Disability & Critical Illness coverage

5/13

How to save money?

① Keep using an old car. It doesn& #39;t make us broke
② Delete shopping & food apps. They lure us to buy more than what we need
③ Don& #39;t bother if your friend is using an iPhone. Be happy with your Android

6/13

Google was built on ONE Thing - Search
Starbucks was built on ONE Thing - Coffee
Berkshire Hathaway was built on ONE Thing - Buying quality at a fair price

Be it Steve Jobs or Bill Gates; Walmart or Amazon; iPhone or Kindle

All have ONE Thing

What& #39;s your ONE Thing?

7/13

To survive Black Swan events like COVID, always have:

① Asset Allocation: Debt + Equity
② Emergency Fund worth 1Y of Expenses
③ Adequate Term & Medical Insurance
④ Stomach to digest drawdowns
⑤ Extra cash to seize opportunities

8/13

To build a passive source of income, we can work on a side-hustle by:

• Spending 6-8 hrs on Sat & Sun
• Cutting down sleep hours by 1-2
• Devoting 1-2 hrs after a day job

Thus, utilize 24-40 hours a week in building something that may become an active source of income.

9/13

While building initial capital to invest:

① Try to live in a self-imposed financial scarcity
② Save at least 20-30% of the income
③ Avoid high-consumption lifestyle
④ Delay the instant gratification process
⑤ Prepare a budget before buying anything

10/13

When I interact with people on Personal Finance, all of them list down their financial goals as:
• Yearly Vacations
• Retirement after 60
• Luxury Vehicle & House
• Child& #39;s Marriage & Education

None of them talk about:
• Zero Debt
• Financial Independence

11/13

Invest systematically
Avoid timing

Choose companies with quality earnings, growth & management.
Not junk.

Chase long-term wealth
Avoid short-term fluctuations

Have a fear of permanent loss of capital.
Not volatility.

Stay invested during the drawdowns
Avoid redemption.

12/13

The Power of Repetition

1-hr of exercise doesn& #39;t reduce our body-fat in a day. If repeated everyday, makes us fitter

1-year of SIP doesn& #39;t build wealth. If repeated for decades, helps us build a fortune.

Over a period of time, not just money, small efforts compound too.

13/13

https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack"> Charlie Munger after divorce lost everything at 30
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🍔" title="Hamburger" aria-label="Emoji: Hamburger"> Ray Kroc started Mc. Donald& #39;s when he was 52
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🥤" title="Becher mit Strohhalm" aria-label="Emoji: Becher mit Strohhalm"> John Pemberton invented Coca-Cola at 55
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🍗" title="Geflügelkeule" aria-label="Emoji: Geflügelkeule"> Colonel Sanders started KFC when he turned 65

It& #39;s never too late to start.
Any time is a good time to begin.

Never give up