Honey, It’s About Money (Cash In-1)


Reema (age 22), earned her degree in marketing at the first go. All set well, she started his first job with a salary of Rs.15,000 per month. She lives in Mumbai with her parents and is the only child, with no other responsibilities on her shoulders. At the end of the month after spending on a lavish lifestyle, she found a surplus of Rs.5000 from her salary.

Not knowing what to do with it she spent it on partying and shopping with her friends. Though she knows she can save money, she has no idea how on how to go on about it.

If you too are like Reema and don’t know how to start saving and investing your money, our education series  “Honey It’s About Money” is for you.

Knowing about money is to know how to realise your dreams and get accustomed with how to get financial freedom. In this series, you will know about your ways of earning, investments like shares, mutual funds, commodities, insurance products etc.

Before dwelling on savings and investments, let’s know about the fundamentals of money.

There are four main pillars of money :

  1. Earning
  2. Spending
  3. Savings
  4. Investing

If you want to be rich and wealthy, knowing the four pillars of money is the first step.

It helps you choose the type of income, the style of spending, ability to save and the confidence to make the right decisions.

Start with earning :

“Earning” is income which can be passive income or active income. Active income is the one which is generated by putting your time and energy to earn it. So if you don’t work there will be no income. Income is money received through investment or work on a regular basis. There are years when you work and you earn, the income earned during that time is known as an active income. The times when you don’t work and still earn i.e through investments.

Passive income is very important as it can generate extra income and can be earned even after retirement which will help to improve the standard of living. Setting up a stream of passive income is the most effective way to generate wealth and move on to a high standard of living.

One can generate passive income from investing in real estate and earning rent, dividend income from equity shares, interest on deposits etc.

Can you start a day by saying,

“Today I don’t need to work and still be able to generate income”

From your flow of income, find out if there is a way to generate passive income.

Start building a portfolio of assets that generate passive income.

Ultimately it does not matter how much money you make, what matters is how much money you are saving and how long can you survive on that money.

In the next article, I will share about the second pillar of money.

Meanwhile, stay tuned with your money.



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