All about Wealth Creation, Wealth Protection. Creating your Path to Prosperity!!

40,000 times in 100 years is 11.3% A bungalow in Nepean Sea Road, South Mumbai was bought for around Rs.1 lakh in 1917. It is now going to be sold for Rs.400 crores. The value of the bungalow has multiplied by whopping forty thousand times in 100 years. Real estate is always discussed in terms of how many times it has multiplied. Rarely anyone in that industry calculates XIRR or annualised returns. 40,000 times in 100 years when expressed in terms of XIRR is 11.3%. Not a bad return at all. But nowhere as glamorous as saying 40,000 times. Many tell me something like that the property they bought 25 years ago has multiplied by 10 times. Sounds fantastic. But the annualised return works out to 9.6%. When I say Birla Sun life Tax Relief’96 has provided around 26% returns in last 20 years, it doesn’t sound much sexy. When I rephrase that the fund has multiplied wealth by 100 times in 20 years, it suddenly looks very attractive. Generally, finance people always talk in terms of annualised re...

  Financial planning involves various aspects of managing and optimizing your finances to achieve your goals and secure your financial future. While the specific levels or steps may vary depending on individual circumstances, here are the common levels of financial planning: Setting financial goals: Identify your short-term and long-term financial objectives, such as saving for retirement, buying a house, or starting a business. Budgeting: Create a detailed plan for managing your income and expenses. This involves tracking your spending, categorizing expenses, and finding ways to save and reduce unnecessary costs. Emergency fund: Set aside money in a separate account to cover unexpected expenses or financial emergencies, typically equivalent to 3-6 months of living expenses. Insurance planning : Assess your insurance needs, including health insurance, life insurance, disability insurance, and property insurance. Determine the appropriate coverage to protect yourself and ...