PPF (Practical Personal Finance) Series

Dear Reader, If you are reading this, it would be prudent for you to read the previous chapters of this PPF series. That will make this reading more meaningful. Chapter 1: The CA Spectrum!  https://www.blogger.com/blog/post/edit/919490648479878981/2678530483028784714 Chapter 2: Importance of Insurance:  https://www.blogger.com/blog/post/edit/919490648479878981/8462167003907043567  Chapter 3: Risk Profiling:  https://www.blogger.com/blog/post/edit/919490648479878981/2532132870264557490  Once you have read all of the above chapters, it means, you are now ready to invest! You have created the emergency fund and got enough insurance. You also know how much risk you can afford to take. The next step in the personal finance journey is to work on asset allocation. We all know about the proverb that says not to put all our eggs in one basket. That reduces the risk of losing all the eggs if the basket is lost. But it does not tell us about how many (different types of)...

If you are reading this, please make sure that you have read last two chapters of my Practical Personal Finance (PPF) Diaries by visiting the following links: Chapter 1:  https://pathikvariya.blogspot.com/2020/05/ppf-practical-personal-finance-series.html Chapter 2:  https://ppfbypathikvariya.blogspot.com/2020/05/ppf-practical-personal-finance-series_11.html Not taking risk is taking the biggest risk, they say. It is definitely applicable to the personal finance and investment. Because if one does not one's invest hard earned money properly, the value of that money will go down due to inflation. So, as you must have heard, under the basic principle of time value of money, the value of Rs. 0.1 Million today will be less after one year. In other words, its purchasing power will go down. So, one must invest in a way, that one can beat that inflation. But then, risk is inevitable in investment. How sensex wiped out almost five to six years' profits in March 2020 is...

If you are here, it means, you are interested in practical personal finance. No unnecessary theories or jargon, but only, basic practical explanation of basic personal finance principles is what you will find in this series. I request you to read chapter 1 of this series, if you have not already read it. You can read it here:  https://ppfbypathikvariya.blogspot.com/2020/05/ppf-practical-personal-finance-series.html I have always cherished one interview of Wasim Akram ( https://www.indiatoday.in/magazine/interview/story/19990215-sachin-tendulkar-has-a-very-solid-defence-in-test-cricket-wasim-akram-780180-1999-02-15 ). The title talks about why Sachin is a great batsman, it is because, he has a solid defense. One cannot be a great attacking batsman without solid defense (Shahid Afridi). The same is applicable to a military. A strong military is not the only one with strong attacking abilities, it must have equally good defense. Without it, it will become vulnerable to first rou...

COVID19 crisis will prove to be a "litmus taste" of your career, skills, current job security and your future prospects. In one survey, 38% Indians say that they are worried about their jobs (1). According to other article, 100 million and more jobs in India are at risk (2). These are initial estimates, as we don't know how far the things will go from here. Things may not become as bad as expected too. None knows the future. But, one thing is for sure. In these troubling times, those, who had saved the money, those who have the cash, are the real kings! I hope you recall a story of the cricket and ants. There used to be a beautiful garden, in which, a cricket used to live. There was a colony of ants in the same garden. As the beautiful summer was passing by, the cricket would enjoy the delicious food, sing, dance and make merry. The life was just too good to believe. He would take rest in the noon and night. The ants, which were living nearby, meanwhile, would keep collec...