Record Your Expenses

In my previous posts, you have seen my monthly and annual budgets. Now it is time I explained how I actually track and record my expenses, so I know how I am performing compared to the budgeted numbers. Most of our expenses are paid through debit cards. But in some cases, the vendor does not accept a card, in which case we use cash. We use two debit cards to make payments. Both cards are setup to send an email to me when any amount is debited from the bank. We make online payments or money transfers via NetBanking or … Continue reading “Record Your Expenses”

My Annual Expenses Explained

In my last post, I went over my monthly expenses. In this post I will go over my annual expenses so you too can plan your annual expenses along those lines. For the year 2018, I budgeted an annual expense of Rs. 3,60,000. That comes out to Rs. 30,000 per month. Annual expenses are those expenses that occur less frequently than a year. So things like property tax, buying a car, painting your house etc will come under annual expenses. My annual expenses planning is shown below. The first column is the list of expense types. The second column is … Continue reading “My Annual Expenses Explained”

My Monthly Expenses Explained

In one of my previous posts, I briefly mentioned that I planned my monthly expenses to be around Rs. 50,000 per month. In this post, I want to explain a bit more on how I arrived at those numbers. May be it will help you figure out your own expenses in your retirement. Before nearing retirement I never kept a meticulous record of my expenses, but I was keeping track of where they are going in general. But come 2017 (a year before my retirement), I finally decided to sit and write down what I thought my expenses ought to … Continue reading “My Monthly Expenses Explained”

My Daily Routine

Ever since I retired, lots of people have been asking about my daily routine. So I though I should probably write about it and help the folks 🙂 and this is that post. Before I get started, you have to remember a few things about my reasons for retirement. First, I did not retire to do a startup and run like crazy. That is not to say that I am playing video games and watching TV all day either. I found my Nirvana by doing just enough and not too much. I have a lot of free time and my … Continue reading “My Daily Routine”

Year In Review – 2018 Expenses

Continuing the “year in review” series, this time lets go over my expenses last year. Did they go according to plan? Did I over estimate or under estimate? I think I need to write another post to show how I planned my expenses. But for this post, I will just go over them briefly and how they panned out over the course of last year. To start with, I have two types of expenses — the monthly expenses and the annual expenses. Any expense that occurs every month or more frequently than a year are clubbed into the monthly expenses. … Continue reading “Year In Review – 2018 Expenses”

Year In Review – 2018 Returns

At the end of every year, I take stock of my investments, expenses and net worth to keep a tab on how I am performing with respect to my goals. This is also the time to rejig things if they are not going according to plan. So in this post, I wanted to go over my portfolio returns for 2018 and share any learning. Portfolio vs Index Lets start with how my portfolio performed, compared to Nifty 50, multi-caps, mid-caps and small-caps last year (Jan 1, 2018 to Dec 31, 2018). Almost all indices have given poor returns. The only … Continue reading “Year In Review – 2018 Returns”

Year In Review – 2018

A happy new year to you! The year 2018 has been exceptionally exciting for me. The last such eventful year has been 2002 when I took a flight for the first time in my life to a country half way around the globe, to pursue my Master’s degree. Back in 2002, there were a lot of new things that I have never experienced before — the culture shock, self reliance, clean roads, every shop, house and office having air condition, tons of cars and almost no people on roads, huge university campus, and much much more. Every day was like … Continue reading “Year In Review – 2018”

Health Insurance

Like life insurance, everyone needs a health insurance too. It is especially important to start one when you are young, so you can lock into lower premiums. However unlike life insurance, health insurance is useful both pre and post retirement. If you have not yet retired, the risk of not having a health insurance is that, in case of an emergency, your investments and savings will take a hit and will delay your retirement. If you are already retired, your corpus will take a substantial hit and will reduce your income stream. There are a lot of factors to consider … Continue reading “Health Insurance”

The 70:30 Asset Allocation

In my previous post, I talked about about allocating 70% to equity and 30% to fixed income and just keep that ratio irrespective of which stage you are in your life. But does it really work? Lets work out some examples to see how it might work under various conditions.   Pre-retirement While you are still not retired, you have income coming in and you are investing. It does not matter what markets are doing, your job is to just invest in such a way that you maintain the 70:30 split.   The way it would work is that every month … Continue reading “The 70:30 Asset Allocation”

How It Ended

And then it happened on June 29, 2018. I was 37 and I retired.   After having worked at a multinational corporation for 11 years as a software engineer, I decided to call it quits. And that is how it ended and I broke free from the shackles of hedonistic treadmill. Somehow, the few months leading up to my early retirement were calm and relaxed. I would have thought that taking such a bold step would make me anxious and restless. I think the thought of leading a simple life trumped all inhibitions.   A few days before my last working … Continue reading “How It Ended”