Personal Finance 101 Notes

• Active Income: You get the money for spending your time.
• Passive Income: You get the money for lending your savings for a period of time.

Key Equation

Income (100%) - Investments(30-40%) - Savings(20-30%) = Expenses(30-50%)

Assets and Liabilities

• Keep your liabilities as low as possible
• Keep your assets as high as possible

Assets

• Real Estate - high value - low risk
• Gold - high value - high risk
• Digital Gold - high value - high risk
• On-paper Assets

On-paper Assets

• Systematic Investment Plans
• Government Bonds
• Fixed Deposits
• Bank bonds
• Shares/Stocks