Engineer's Finance

I had a very bad habit of not caring much about my money. I used to spend money but never bothered to keep a track of it. I used to withdraw money from ATM and then spend it without much thought. Whenever I used to spend money, my only intension was to satisfy myself. I never bothered about the worth of the product that I purchased nor did I bother about the value of money. I know it is child like behavior, but I could not tell myself how to stop doing it.

One day I thought, I should keep track of my expenses. (Just out of blue). I know it is weird but I did that one month. I started noting down each and every rupee that I spent. Whenever I made big purchases, I made sure that I do it using the credit card only and started collecting those bills as well. I had written down about 12 pages of my expenditure for a month. It was a nightmare figuring out what I spent on and how much on each of them. It was one hell of a job. Continue reading →

I was asked a question regarding is it worth to buy insurance products coupled with the investment option. My answer was and is “NO”. I don’t like the idea of combining products. I prefer either to have insurance or investment and not both. I was thinking over this for a long time and here is my analysis towards it.

Insurance is a tool to leverage your risk and investment is a method of making your money work hard for you and it is risky you all know that. Now combining both the products means you are actually leveraging your risk by putting your money at risk. How can that happen? Does it make any sense? Most of them think it makes sense but according to me it is not a good option at all. Continue reading →

I accidently hit upon this article and it was simply superb. Read it.

http://www.vanityfair.com/culture/features/2006/05/grafter200605?currentPage=all

In this article you will find that an average salesperson who sells peelers makes huge amount of money that he lives in one of the posh apartments in Park Avenue. I always wanted to build a house in Park Avenue in Monopoly game since it gave me the highest rent. I can imagine if one lives in a 3 bedroom apartment in Park Avenue how much money he should be making. Continue reading →