Building a necessity based decision framework for personal finance
Estimate the balance between loans, income, saving and investment based on 3-5 year horizon.
Differentiate between the noise and information in financial advice and advertisments reaching them.
A foundation to build concrete Plan A and Plan B for next five years without relying on any ponzy schemes.
A solid decision framework to identify the need for an expert and reaching out to them after thorough research and specific questions.
We keep hearing about financial terms all the time in the news, in conversations, and in almost every kind of media that reaches us. But most of the time we just filter out that information as noise due to the tiresome jargon. What if you just spend a couple of hours and get a basic framework to start making sense of that noise?
The main objective of this course is to create awareness about the bigger picture of the finance ecosystem. The massive diversity in regulations across countries and the financial goals of individuals makes it impossible to come up with one solution that will work for all. Hence, understanding the basics can provide a solid monetary decision-making framework for the rest of your life.
As someone who has been on the quest to identify the relevant aspect of this financial universe as a common man in an emerging economy. I would like to share a fundamentals crash course that should enable you to ask questions that are relevant to your future and align with the economy you stay in!
My experiences are drawn from survivor skills honed by 3 recessions across 2 countries (US and India). More about those at the end of the course. Trust you will find the content helpful in kick-starting your journey towards financial independence in a matter of hours.
Overview
- Section 1: Introduction to the big picture and necessity for this awareness
- Section 2: An elementary definition based overview of major financial entities that dictate our lives.
- Section 3: A bird’s eye view of the entire ecosystem from a common man’s perspective.
- Section 4: A closer look at banks as financial institutions. Their basic models and incentives.
- Section 5: A walk-through of different kinds of loans. The basic awareness of the structure of loans will be emphasized.
- Section 6: Introduction to “markets” or ecosystem of equities and surprising ways they make their way into our lives.
- Section 7: Discussion about some other instruments that are not discussed a lot in the context of Personal finance but are vital to a holistic understanding.
- Section 8: A discussion dedicated to the hidden costs that influence growth. Insurance, taxes, management fees.
- Section 9: A common man’s perspective towards the trinity of Income, Investment, and saving. Also a discussion about gig-economy and index funds in the context of income and investment.
- Section 10: Closing remarks with personal experiences and food for thought.
Key Takeaways:
✅ As a student, a framework to understand the financial factor that will allow shaping your career.
✅ As an early-stage professional, a sound argument to start building moats to increase risk-taking capacity to pursue dreams.
✅ As a sole breadwinner, a set of tools one could use to amplify their capacity without burning out.
✅ For all, personal finance is a duty, not a choice.
✅ Ability to ask relevant questions at your stage of life based on your current responsibilities.
What course doesn’t offer?
❌ Specific advice or product promotion of any kind.
❌ Foolproof solution to any kind of personal finance-related problems.
❌ Stock or trading-related advice.
