Friday, January 31, 2014

JaGo Investor by Manish Chauhan

Yesterday, I completed reading "16 personal finance principles every investor should know" (formerly called as Jago Investor) written by Manish Chauhan. 

Manish Chauhan has become authority in personal finance field. His blog Jago Investor is full of informative articles. Moreover, he also has separate page for Forum. This page exclusively deals with the doubts that general people have. Manish and Ashal helps each and everyone and with a personal touch. Just visit his blog and see how people are full of praise for Manish.

Coming to the book. It starts with a wonderful story. The story is like a person who goes to heaven and becomes white face when God showed him what he was entitled to get and what he perceived.

Manish Chouhan


Below are the chapters and the points which comprises of the book.

Burning the jungle: This chapter describes how procrastination of investment is killer. For a particular goal, what could have been x amount of investment today becomes 2x or even 3x few years down the lane. The factor 2x or 3x depends upon the inflation and ROI expected from the investment. If one starts early, compounding comes to our aid. This leads to the age old saying: Time in market is more important than the timing the market. This highlights on how we can cut down on unnecessary expenses and start investing that money, today, now...

Protecting the garden: The title of this chapter is based on some story. The important take away from the story and the title is we must protect our loved ones from the financial distress in our absence. It also demonstrates how term insurance is the real insurance.

Goal Setting: It shows the importance of line: Unless you know which port you are sailing, no wind is favorable.... It shows how one must select a product bases on his/her goal. Without goal setting, no financial product can be used to its fullest capacity.

Busting myths: It deals with the common myths that people have about money or to be precise about their financial life. Common man (no gender bias) always thinks that equity is risky, debt products are safe, FD has government sovereignity and our money is safe, inflation is for rich to worry, rich people need financial planning, i will start investing when i have 1 lakh, etc, etc...
It also highlights how one’s portfolio should be changed i.e. re-balanced as per one’s age and milestone in life.

Change your relationship with money: It highlights how we ourselves must take charge of our financial things. FP, CFA, advisor, online blogs are all here to help us. However, unless we be proactive in reaching out to them, we are leaving everything to chance.

Simplifying financial life: Manish has highlighted what simplification of portfolio means, what is diversification, what is over-diversification with apt examples.

Seventh chapter tells wonderful 10 things to do, to make our financial life simple and awesome. These 10 things are very efficient and very important.
Saving 10% of salary, avoiding careless spending, avoid instant gratification and focus on budget and real returns are some of those points. He has aptly described each point to make our financial life wonderful.

Overall the book is must read for a person who is starting his career. It can help him create wonders. However, the ground is not lost for the people who are in 30s and 40s. They can read this book and implement the take away. If not, it will certainly help them stay away from toxic products. The examples are used with simple mathematics and images. This simplicity has always been a hallmark of Manish and his team.

Note: I am in no way connected to Manish. This is just for information. However, since I liked the book, I thought of sharing it with you guys. Visit his blog and it can turn your financial life from good to better.


6 comments:

  1. It inspired me to consider reading his book

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  2. This is really a good book... however, after reading the book you have to implement the learned things.... as nike says 'just do it'....
    Read it, implement few things and let me know :)

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  3. Just a small suggestion, please add link of JI forum in the word Forum above.

    Thanks

    Ashal

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  4. Great article, no bakwaas, no high funda, just to the point ... excellent

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    1. Good to hear that from Kinjal himself :)

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