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Money management – Baby steps

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No wonder why money management is vital in this crucial times. However, never forget currency makes our life comfortable but we can never carry anywhere in the end. Be it a Millionaire or a Celebrity or a Doctor or a Soldier or a Politician or a Common man — everyone has to end their story on the same note.

Well, we can’t neglect our survival even and it needs bank balance. All of us maybe I should say most of us to be precisely has no idea how to manage money or how the money works.

We’ve raised as a child to study economics as a subject and score marks rather than understanding it in real life. Likewise, we never learnt how to manage money we earned. All we heard and learnt is to work hard, save money and buy essentials to settle at the age of 40 or something.

Sorry but I am not the one who think in such a way. My call is like who knows whose gonna live till 40. Sounds odd yet I feel I need some financial security and more to live life fulfilling my dreams. But elders suggest and precisely in India once you got graduated, the next moment you’re supposed to get ready for answering these job and settlement in life questions.

Wonder why they don’t think broad or update their mindset accordingly. Now see we got hit by pandemic and a year is gone, anyone expected? What if you don’t live life expecting to enjoy at 40 and work hard for 20 years spending your life time which you live once in your life. 

Remember, a day or a minute is passed it’ll never come back no matter what. It’s our choice how we live up to. 

Foreword apart, as I heard that the market is crashing again and more likely chances towards recession I got nervous about my existence and also how to get the best of this chaos.

I’m aware of 50/30/20 rule and the Quadrants but I don’t have any idea on how to invest and make money work for me. As I said before, saving for a later time isn’t my type. Fortunately, I came across many financial articles from friends and online. Thanks to data personalization by Google and Facebook  

Well, I’ve no clue until now that there’s something called bitcoin and halving of bitcoin. But when I started knowing about cryptocurrency I felt like I can give a try as the markets are all time low and may rise eventually after sometime then I stepped in.

Later, when the crude oil price dropped and Dow jones plunged I started searching about the terms and surprised to find the difference between finance and economics.

My baby steps in Stock market started with Upstox app and pharma sector with zero knowledge. However, once I got to know about the process and the candle stick charts, it is quite interesting to focus more. Honestly, suggestions to follow Darshan Mehta worked so well and I’m really glad that I came across Rachna Ranade channel. I must say I became a huge fan of her lectures, such a gift to beginners.

I advise to google these terms to get some basic knowledge on economics and finance which are really important.

GDP | Inflation | Forex Reserve | BoP

And I learnt to look after the following topics before understanding the company’s performance while investing.

Balance sheet | P&L | Cash flow | Share holding pattern

It is not mandatory to go through the above topics but it is advised to make a good stand in the market.

Although, with the emergence of AI it is really easy to ignore the fundamentals and rely on the technical analysis. Still I’d suggest to go with fundamental analysis first.

Personally, I love to consider the Golden Cross and Death Cross against the volumes. Though one can choose different strategies and apply various scanners to find out the best strategy that work for them — It is still advised to learn much before diving into markets.

As a popular notion among our people is that “Investing in stock markets is a trap”. Strangely, they don’t find the difference between investing and trading. Also, I don’t say that it is a risk-free business but being cautious is necessary every where. Think again if it is such a trap and shitty place, where is the Sensex now. Over the period of years, it has been progressively increasing with fluctuations and corrections.

Markets are volatile every day and it’s risky if you aren’t careful and eager to earn money but if you are going to invest you’ll find the difference. 

“Saving a penny is earning a penny” – A popular quote.

Absolutely True!! But it won’t be fruitful to match your needs when no one cares in this generation. Don’t believe that a government or someone is going to help us, they don’t have time to care nature in the first place. 

Best advice is to begin with the quadrant.

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Jai

Tales from the life of a millennial 🚶
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  1. […] Money Management – Baby steps […]

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