Blog of Susmit.

 I grew up in a house where money was something we talked about. This post is about that, and about one book my dad handed me that changed how I think about it. What I learned as a kid My parents taught me financial literacy early, including the difference between assets and liabilities. I didn't know it then, but it gave me a way of thinking about money that I still use. The book One day my dad handed me Rich Dad, Poor Dad by Robert Kiyosaki and suggested I read it. I had no idea how much it would change my view of money. It became a staple of my financial education. What it changed The book showed me a different way to think about money than working for a paycheck. It introduced me to financial independence, the power of assets, and the importance of investing in myself. That changed how I handle my own finances and opened up opportunities I wouldn't have looked at before. My dad's recommendation made a big difference to me. His guidance helped me make informed decisions ...

We should plan our 20s with our 30s in mind. To take that idea further, I put together a blueprint for basic financial independence. For many people it could work as a retirement plan. The number I arrived at is ₹80,64,900.58. That is what you would accumulate by following the plan below for 10 years. Invest ₹25,000 per month in equity, such as index funds and stocks, for the first year. In the second year, invest ₹26,750 per month. The deposit rises 7% each year to offset an assumed 7% annual inflation. Do this for 10 years, assume an average market return of 13%, and the final balance comes to ₹80,64,900.58. At that point you have the amount needed to live off your investments for the rest of your life. Here is how that works. Assume basic expenses of ₹25,000 per month, rising 7% a year to match inflation. From the corpus you could withdraw ₹50,000 per month, or ₹6,00,000 per year, again rising 7% a year to match inflation. If you hold stocks that pay good dividends, you may not need...