My First Salary Mistakes: What NOT to Do With Your Money! | Ankur Warikoo Hindi
warikoo・16 minutes read
An individual shares their financial journey from initial earnings of ₹1,750, emphasizing the importance of wise financial decisions, saving for investments, and transitioning from desires to needs to build a stable financial foundation. They learned valuable lessons from early mistakes like purchasing a bike on EMI and prioritizing expenses over investments, highlighting the benefits of prioritizing investments for long-term financial growth and stability.
Insights
- The individual's financial journey began with meticulous tracking of expenses and saving a portion of their income despite initial mistakes like unnecessary purchases, leading to a gradual shift towards prioritizing essential expenses, investments, and prudent savings for future financial stability.
- Learning from early errors such as prioritizing expenses over investments and showcasing status through unnecessary purchases, the individual transitioned to a mindset of focusing on wise financial decisions, emphasizing the importance of balancing needs, desires, and investments to build a stable financial foundation and achieve significant growth over time.
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Recent questions
How did the individual's financial journey progress?
The individual started with a monthly income of ₹1,750, meticulously tracking expenses. Despite initial mistakes like purchasing a bike on EMI and overspending on personal indulgences, they managed to save ₹5,500 monthly. After wisely saving for an MBA, they secured a high-paying job, sold unnecessary assets, and invested in a family home. Transitioning from desires to needs, they balanced expenses, investments, and savings, gradually reducing debt and building a stable financial foundation. Their investment portfolio grew significantly over three to four years, emphasizing the importance of wise financial decisions and prioritizing investments over expenses.
What were the key financial lessons learned?
The individual learned crucial lessons from their financial journey, such as the initial mistake of purchasing a bike unnecessarily during their first job to showcase status. This decision highlighted the common error of saving funds without investing them, missing out on potential financial growth. They also realized the importance of prioritizing investments over expenses, shifting towards a mindset that emphasized financial growth and stability through wise investment choices.
How did the individual's financial priorities change over time?
Initially focusing on personal indulgences and unnecessary expenses, the individual transitioned to prioritizing essential needs like household costs, loan repayments, and family travel. As their income increased, they strategically allocated funds towards investments, personal expenses, and family travel, maintaining a prudent savings plan. This shift in priorities allowed them to navigate financial challenges, reduce debt, and build a stable financial foundation for future endeavors.
What was the impact of the individual's MBA on their financial decisions?
The individual's MBA played a significant role in shaping their financial decisions. Prior to pursuing further education, they wisely saved money in anticipation of educational expenses, opting for secure investments over risky ventures. After completing their MBA and securing a high-paying job, they were able to sell unnecessary assets, invest in a family home, and focus on balancing needs, desires, and investments to achieve financial stability.
How did the individual's investment portfolio evolve over time?
The individual's investment portfolio saw significant growth over three to four years, starting with initial investments at 41 and increasing to 10 to 12, then to 24 and 23, and finally nearing 40. Simultaneously, their needs rose from 34 to 68 before stabilizing at a ratio of around %. This progression stemmed from their first salary, highlighting the importance of making wise financial decisions and prioritizing investments for long-term financial growth.
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Summary
00:00
Financial Journey: Balancing Needs, Desires, Investments
- In 2004, the individual's first monthly earnings were ₹1,750, prompting them to meticulously track expenses in an Excel sheet.
- At 24 years old, upon securing a job, they made the initial mistake of purchasing a bike on EMI, despite living close to their workplace.
- A significant portion of their income was spent on personal indulgences, leaving little for essential expenses like food and household costs.
- Monthly expenses included a contribution to family expenses, mobile phone bills, and a substantial amount spent on books due to a passion for reading.
- Despite personal expenses related to dating and entertainment, the individual managed to save ₹5,500 monthly for future investments.
- Prior to pursuing an MBA, they wisely saved money in anticipation of upcoming educational expenses, opting for secure investments over risky ventures.
- After completing their MBA, the individual secured a job with a substantial salary, enabling them to sell unnecessary assets like the bike and invest in a family home.
- With a clearer financial outlook, they transitioned from desires to needs, focusing on essential expenses like household costs, loan repayments, and family travel.
- Over time, as their income increased, the individual strategically allocated funds towards investments, personal expenses, and family travel, while maintaining a prudent savings plan.
- By balancing needs, desires, and investments, the individual managed to navigate financial challenges, gradually reducing debt and building a stable financial foundation for future endeavors.
14:01
"Financial Growth Through Wise Investment Decisions"
- The individual's investment journey saw significant growth over three to four years, with initial investments at 41 increasing to 10 to 12, then to 24 and 23, and finally nearing 40. Simultaneously, their needs rose from 34 to 68 before stabilizing at a ratio of around %. This progression stemmed from their first salary, highlighting the importance of wise financial decisions.
- One crucial lesson learned was the initial mistake of purchasing a bike unnecessarily during their first job, driven by a desire to showcase status. This decision reflected a common error made in youth, where funds were saved without being invested, despite the potential for better financial outcomes through investment in stable mutual funds.
- Another significant mistake was the continued mindset of prioritizing expenses over investments, a pattern that was rectified after a prolonged period. The shift towards an American mindset of prioritizing investments over expenses from one's salary was emphasized, illustrating the potential for greater financial growth and stability through this approach.
