The crisis in the US reminds me a bit of my own personal finances. Till last year, I was managing my money rather badly. I used to\u00a0 to maintain large amounts of money in my savings bank account. My investments were all ad hoc and I was not doing a whole lot of long term planning.<\/p>\n
Last year, I decided to pull up my socks. I drew up an investment plan. I answered a questionnaire to find my risk apetite, used the 100 minus age rule to decide how much I ought to invest in equity and systematically put money into index funds. When the NAV went up I congratulated myself on my choice and when it went down, I decided that I was in there for the long haul. I also forecast my cash flows and moved the funds I needed as buffer into short term debt funds.<\/p>\n
I had three bank accounts that I needed to maintain to pay my home loan, car loan and other recurring ECS mandates. I moved most of my funds into one account and set up reminders to ensure that I would move funds to the others only when needed. This, I decided, was better than keeping too much idle money in multiple accounts, making it difficult to manage. Then one day, the home loan reminder went off, I was in a hurry and I transferred money to the wrong account. The ECS instruction bounced and I was hit with a charge of 500 bucks.<\/p>\n","protected":false},"excerpt":{"rendered":"
The crisis in the US reminds me a bit of my own personal finances. Till last year, I was managing my money rather badly. I used to\u00a0 to maintain large amounts of money in my savings bank account. My investments were all ad hoc and I was not doing a whole lot of long term […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[77,99,101,100],"_links":{"self":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts\/2980"}],"collection":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/comments?post=2980"}],"version-history":[{"count":0,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts\/2980\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/media?parent=2980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/categories?post=2980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/tags?post=2980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}