financial wisdom

 💎 *22 Pearls of financial wisdom* 💎

Money is a terrible master but an excellent servant.

*1) Bonds are for storing wealth and equities are for creation of wealth*.

*2) The biggest asset one can have is zero debt*. 

*3) The greatest discipline in personal finance is living below your means*.

*4) As Ben Carlson says, emotions cannot be back tested. That’s why past bear market always looks like opportunities and future ones scary*. 

5) Early financial independence and early retirement are completely different. To me, the former is a blessing and the latter is a curse.

*6) Don’t think how it would have been if you’ve started 10 years ago. Start today and visualise how you would feel 10 years from now*. 

7) The neighbourhood we live determines our life style & spending. Need to be careful in choosing one which matches our goals and personality.

*8) Paying minimum balance regularly on credit card is the maximum sign that you’re getting into debt trap*.

9) Many are long term investors till next bear market. 

*10) Don’t take aggressive bets. Take measured risk. Remember one blunder can push you back by a decade or more in terms of wealth*. 

11) Big money can be made through high savings, wise investing and lots of patience. 

*12) One sign of progress in individual investor’s portfolio is no churn or very less churn*.

13) Trying to get rich fast is a foolproof way to lose what we have.

*14) Losing opportunities is far better than losing money. Don’t invest in fads*. 

15) “Making as much money as quickly as possible” is not an investment strategy. Unfortunately for most of us that is the strategy.

*16) Aggressive strategy cannot be a substitute for high savings. Save high and take moderate risk than saving less and taking high risk*. 

17) The day we realise not losing is as important as winning; we would stop blindly chasing returns. 

*18) Good periods are more than bad periods. By not timing, though we go through bad periods, do not miss even a single good period*. 

19) We’ll stop looking for quick money the moment we consider stocks as businesses and realise that our wealth grows in line with business growth.

*20) There are periods of high returns, low returns, no returns and negative returns. We need to go through all these to get long term returns*.

21) Listening to market forecasts is not only useless but can be very harmful too; if you start acting on them.

*22) The hard truth is only around 3% of our population are in a position to aspire for financial independence. Don’t waste this rare privilege*.