Avoid Unsecured Debt

No more debt traps

We’ll talk about debt in detail sometime later, but this article couldn’t wait as it outlines the single biggest change you can do to fix your finances. Broadly, any debt (loan) you take on comes in two forms - secured and unsecured. Secured debt means that the loan is backed by some form of collateral. A home mortgage or a car loan are good examples. If you default on the loan, the bank can repossess the asset behind it. [Read More]

Frugality Lenses

A new way of looking at the world

Whenever someone is asked to reduce expenses, they look at what is discretionary versus what isn’t. You’ve got to pay your rent, utilities, mortgages, taxes, school fees and so on. Can’t do much there, so any savings comes out of what’s left. Hobbies. Eating out. Vacations. Basically, all the fun stuff. I’m not here to be a killjoy. If I were, this site would be simpler. I’d much rather give you options. [Read More]

Pay Yourself First

The first good habit

Once you have a better handle on your expenses, you can focus on improving or optimizing them. Today though, we’ll look at a different principle altogether that can significantly help boost your savings. If you’re struggling to save, where the days roll by and there’s little left at the end of the month, then this can help. The principle of paying yourself first is very simple. Whenever you receive your paycheck, the first things you should ‘spend’ it on are your investments or savings or reducing your debt. [Read More]

Track what you spend

Focus on your expenses

In the last article, I wrote about how most people have a very poor idea of how much they spend. This is the biggest reason why they cannot optimize their spending or savings. People often underestimate how much they spend on items they could replace or cut out. Equally, they have little idea on how much they have spent on unexpected costs, which are better managed when tracked over a period of time and amortized. [Read More]

A Framework for Understanding Money

Expenses and Income

If you’ve dieted, you know the drill. Weight gain or loss = Calories In - Calories out Calories in = Food you eat Calories out = Your basal metabolism + exercise. This simplistic(and somewhat flawed) framework is a good guide to money as well. Savings = Income - Expenditure Income = Money earned from your primary job + money from any side hustles + realized gain from investments Expenditure = Your living expenses + tax money + your discretionary expenses(hobbies, vacations, charity) + the unexpected stuff life throws at you (medical expenses, home or car maintenance and the like) This looks all self-evident. [Read More]

The Way of the Lazy Person

What this blog is all about

Money drives our life. It ties us to jobs we don’t like, makes us trade health for security, and leaves us feeling like we’re always a step or two or three behind. It’s no surprise that it’s the number one concern for most people on the planet, no matter what stage of life they’re in. The pity of it all is that most people focus on earning money through a primary vocation - be it a job or a business. [Read More]