

On my 18th birthday, I had two goals. One, take delivery of my two-wheeler and two open my bank account. By the end of the day, I accomplished both tasks and celebrated my birthday. Unknowingly I had begun my journey into personal finance and tracking my expenses.
I started getting pocket money in the beginning of 11th grade. It was more like asking my parent for money when I ran out. There was very less accountability and no budget. I did not track my expenses at all.
I tried to maintain a budget and an account, but I never felt like putting in the effort.
At the end of the month, I sum up all of my expenses using pivot tables in excel. I would organise my expenses to different categories (personal, entertainment, travel, etc) and subcategory (restaurants, movies, maintenance, etc).
“Do not save what is left after spending; instead spend what is left after saving.” - Warren Buffett
The importances of a budget cannot be understated. Early on I made the mistake of looking at my budget as a limitation on my expenses. Instead, my budget acts as a guide for all the expenses. I can go out for dinners, go for movies and do everything that a teen does.
Ever since I got my debit card, making impulse purchases was as simple as swiping my card or entering an OTP. It took me a while to get over this habit.
During 11th and 12th going out with friends to watch a movie, eating out or taking Uber’s was a weekly occurrence. After a while, I started looking for cheaper ways to get the same experience. Going out with friends to cafe’s turned into buying coffee beans and making coffee at home. Taking Uber’s turned into cycling and driving my two-wheeler. Coffee and riding have become hobbies. I invest the money that I have saved.
In the past 18 months I have done more research, listening to audio books on various topics, watched videos on money and monitored the markets. I have been doing so to find work a financial theory that works for me. What has really helped me is to let logic guide me, rather than my emotions.
Financial Independence and Retire Early is an aggressive saving strategy. Rather than saving 10% to 15%. FIRE recommends saving 50% to 70% of your annual income. By saving and investing, one can become financially independent within 8 to 10 years. 8 to 10 years is a lot of time, as a 19 year old, I could become financially independent by 30 or 32.
I am not sure what step three will be. What I know is that mastering step one and step two will help me build a firm foundation.
Greetings, I am a 19-year-old nerd, geek and gamer. I am love science and technology. I like to keep myself updated with the latest trends. My hobbies include space, coffee, food and cycling.
rohini.mistari
Posted at 09:47h, 23 JulyWow!! Its really fabulous