Hello community,
I wanted to know how you guys manage your money? Like those with 10+ years of experience having more than 20 30 lakhs, what do you do with that money? Do you invest, put the money in the bank. And how do you feel safe about it.
Recently, one of my neighbors' bank accounts got freezed out of nowhere, thus the ask.
Would love to know about how you guys handle big chunks of money.
How much money do you have? 🤔 By 20-30L, do you mean total networth or only bank savings?
I mean bank savings from income
Still not clear why would you feel unsafe about bank account.
Let's say you make X, and you spend Y. What do you do with the X-Y amount?
At what stage of life and career are you at?
Age 25, SDE2
You talked about being safe but you are essentially losing money to inflation if you keep money in plain savings account.
If you want to feel good, then instead of bank balance, you can check your portfolio and feel good.
For motivation, if you have invested before covid or during covid, it would have become 3-4 times now.
It depends on your situation, it’s always good to have some level of liquidity in form of cold hard cash in the bank.
It’s absolutely paramount to have 6 months expenses though. You can also put in a FD if you so wish. Beyond that, how much you want to put in the market/real estate/savings account is a personal decision. Mathematically it makes sense to have the rest in equity if you are young and don’t know what you are doing with real estate.
Index funds are probably the most fool proof way of investing we have, you can ofc do other things if that’s something you have great understanding of.
Thank you
I did lot of FD initially. Then started equities after understanding it. Then moved 1-2 lakhs monthly to mutual funds from fresh savings and sometimes from FD. then redeemed all FD and some equity for apartment purchase. Home loan is there but kept equivalent in equity.