- Start early
- Be disciplined and
- Stay put
- Today, identify a time-slot when you will actually sit and start your basic planning process.
- At the outset, jot down ALL your sources of regular income
- Similarly, identify ALL your regular expenses that are completely unavoidable (Like Rent, Taxes, Electricity bills, Monthly groceries, etc.)
- Identify a percentage of your regular income which SHALL be saved each month. In the initial years of your career, when financial commitments are typically lower, the percentage can be much higher than, say, when you’re married, have a couple of kids and a couple of loans.
- Convert this percentage into a nice, round figure, say, to the nearest thousand or nearest hundred.
- Each month, shift this amount AUTOMATICALLY to a separate bank account which will be a “One-way bank account” – This bank account will NEVER be used for routine withdrawals for regular expenses