sahari blog

  In my previous article, I mentioned that consistently saving just 20% of your income can make you wealthy over time. However, it's not just about saving— where you put that money matters. Savings generally fall into two broad categories: Depreciating Assets Appreciating Assets Let’s break this down. 1. Depreciating Assets – These Won’t Make You Rich Depreciating assets are things that lose value over time . They may satisfy your ego or offer short-term comfort, but they do not contribute to long-term wealth creation. A common example is buying a car . I’ve seen many families make this mistake—buying a car not out of necessity, but to keep up appearances, often without understanding the financial impact. While owning a car might offer convenience and social satisfaction, it can actually make you poorer in the long run, especially if it's not used wisely. Consider the hidden costs: EMI (loan repayment) Annual insurance premiums Regular maintenance and ...

  Every individual has their own unique lifestyle and preferences. However, some middle-class individuals often try to imitate the lifestyle of the wealthy — wearing top-brand clothes, expensive shoes, designer sunglasses, luxury watches, driving high-end vehicles, and frequently dining at premium restaurants. While there's nothing wrong with aspiring for a better life, it’s important to understand the difference between needs and wants , and to manage expenses within one's financial limits. The 50-30-20 Rule of Budgeting A disciplined approach to managing personal finances begins with a balanced budget . A widely recommended method is the 50-30-20 rule , which divides your net monthly salary into three categories: 1. 50% — Essentials (Needs) This portion of your income should be allocated to basic necessities such as: Food Clothing Accommodation (rent or home loan EMI) Basic transportation Utilities You should aim to keep your monthly essenti...

  A simple and disciplined financial plan can make anyone financially successful — even government employees like us. With the right habits and consistent planning from an early age, we can live a life free from financial stress and burdens. The first and most important step is to follow the 50:30:20 rule , which is widely recommended by financial experts. Here's how it works: ·          50% of your income should be allocated to needs and essential wants — things like groceries, utilities, transport, and some entertainment. ·          30% should go toward financial commitments , such as housing, credit card bills, and vehicle loans . ·          The remaining 20% must be set aside for savings . If you follow this rule from the moment you receive your very first salary, you set yourself on a path toward early financial freedom . In my view, saving 20...

  In my previous article, I mentioned that the prime duty of parents is to provide a good education for their children and to earn for their well-being, education, and other life comforts. Among these responsibilities, financial matters play a crucial role in guiding children towards financial independence. Saving money is, in essence, another form of earning. Kautilya, in his book Arthashastra , advised that children should be treated with discipline up to the age of 18—almost like servants—in the sense that they should not be indulged with excessive luxuries, nor should they be overburdened with responsibilities. After the age of 18, however, they should be treated as friends. His perspective emphasizes the importance of discipline during formative years, which lays the foundation for a better future. Therefore, from an early age, children should be taught about financial matters and given age-appropriate responsibilities. This will help them grow into responsible, independen...

  As parents, we often prioritize two main things: our children's education and earning money to support it. These days, education—especially in premier institutions like IITs and IIMs—has become a very expensive affair. It can strain even a well-planned financial life. When it comes to our children’s education, we must have a long-term vision. Studying at a top-tier technical institution is not the only path to success. Whether our children pursue technical or non-technical fields, what truly matters is that they excel in what they choose. Today, education is increasingly driven by the child's interests, not just the parent's expectations. Imposing our ambitions on them can sometimes suppress their creativity and turn them away from their true passions—and from us. I say this from personal experience. I made several mistakes regarding my daughter’s education. I had a singular goal in mind: IIT. I enrolled her in top coaching institutes like FIITJEE and Maharshi Vidya Mandi...

  In my childhood days, we were always very happy during the  Vinayaka Chaturthi  festival. We would go to the mango trees and collect leaves to make  thoranam  (a decorative garland) for the house. My mother would wake up early in the morning and start preparing the  Nivedyam  (offerings) for the God. My father and siblings would take care of the festival preparations—cleaning, decorating, shopping for essentials, and getting the  Ganesha idol  ready for the  pooja . As I grew older, I became curious and asked my father about the significance of the festival. I even wondered if the God would really come to our house. After the  pooja  began, my father explained the meaning behind the mantras we were chanting during the ritual. The essence of the festival is like inviting a guest into our home. In ancient times, guests were considered as God. Welcoming a guest and then sending them off properly was a significant challenge, and ...

  I, too, am one of the three, having started my career alongside Mr. Rao and Mr. Ram. My journey began in 1988 when I started working in Hyderabad. Back then, I led a simple, modest life, cooking my own meals and focusing on the essentials. During my tenure at Engine Valves Ltd, I contributed ₹50,000 to my father for house construction, foregoing my share in the property and giving it to my brother. In 1991, I bought a 2400-square-foot plot of land in Anantapur for ₹12,000, which is now worth nearly ₹60 lakhs. In 1996, I moved to ICF, withdrawing my PF from the previous company. With that, I bought 1800 square feet of land in Egattur (near Tiruvallur) for ₹20,000, which is now valued at ₹10 lakhs. I have always believed in empowering women, and this belief guided my approach to family life. After marriage, I encouraged my wife to pursue a government job. My concept was simple—one child, one government job. In October 2000, my first daughter was born, and soon after, my wife secure...