Welcome back! Join me on this journey to improving our financial IQ and sharing what we know. Updates at RSS feed or Email. And spread the word please Thank You!
This post is about a simple solution to setup your investments. I call it “The 88% Solution”
Why 88%? Because my hunch says, it works for 88% people. It works 88% of the time!
I have met a lot of young people, who have just started having their own income, get phased out by the in-numerous financial products, persistent financial advisors and the jargon. And all these complexities paralyzes them and prevents them from getting started.
This 88% solution will help young people get started and be 88% right about their investment decisions. That, to me, is a fair start. Along the way, you can customize the solution and make it 100% right for yourself.
I will cover this post in three parts: 1. The Background. 2. The Thought Process and 3. The 88% Solution.
The Background:
During my 20 years of work experience & 4 years of blogging, I have always mulled over doing things in a better way. Be it, work or the topic of my blog, i.e. personal finance.
I took to blogging to learn more about managing money. And to find a simple solution to a complex issue of managing money. I knew about information asymmetry in the industry. I have learnt more about the psychology of money management. I have read up on budgeting tools, personal finance software and learnt more about rupee cost averaging and the magic of compounding. I have researched Mutual Funds, Stocks and thought up the important factors that should go into deciding a product.
In the process, I have also developed my own “Iceberg Theory of Money Management” where I believe that knowledge about money is not enough. You also need to develop skills and attitude towards managing your money.
I also get a lot of emails from you asking me how to get started with investing. I do point out a few things in my reply. But I have been figuring out a detailed reply that might be more useful to you. And this post is that attempt.
There’s a maze of thousands of financial products, advisors, advertisements. The 88% solution will get you started with 5 simple products which nobody bothers to push. Because it has no commissions attached.
Welcome to “The 88% Solution”
Why not 100%? It won’t work for day traders; “get rich quickly” approach guys. Some people will get put off because it doesn’t entail any commission to your friendly advisor/agent.
Now, I know this is beginning to be a daunting thing for a layman who just wants to get started with managing his/her money. The good news is that you can set up your money management in a matter of few hours. And be done with this hassle thing called “personal finance”
Please bear with me and stay tuned for Part 2 (The thought process behind the solution) and Part 3 (The 88% solution)
About Ranjan
He edits Personal Finance Online Resources, delivers Financial Awareness Workshops and has built a desktop RupeeManager.
Email: ranjan@ranjanvarma.com or Call on +919867755615
Interesting. Look fwd to part 2 & 3.
@Rajesh Thnaks. Stay tuned!
Pingback: The 88% Solution To All Your Investing Problems (Part 2) » Ranjan Varma's Blog
Pingback: What Is The 88% Solution?