A BEGINNER'S GUIDE TO FINANCIAL INDEPENDENCE :

After a huge success of my series on  FAQs on Indian Banking to understand it better..
I got so many words of appreciation.

On public demand from today, I started a New series on
A BEGINNER'S GUIDE TO FINANCIAL INDEPENDENCE

In this new series I want to draw your kind attention towards the
FINANCIAL INDEPENDENCE in some small step by step rules,
following one can get benefited in his life.

RULE NO 1 : SAVE SAVE SAVE

Whenever I met people during my Financial Planning Classes, They always say being a middle class family expanses are so high that they have no money to save. Do you ever think why this happens? Because we all follow a simple rules of savings since our forefathers.

Income – Expanses = SAVINGS

means we used to expanse first and then want to save the rest which is always ZERO.

We have to just reorganize this simple formula  to 

Income – SAVINGS = Expanses 
and the see the magic.

You have to save at least 30% of your net income and then expanse the rest.

The best way to achieve this target is to Save at least 10% of your net take home pay during the first year of your career, 15% in the second year, and so on to increase it to 30% in five years. Saving more is always good, but 30% is a number you must certainly target.