How To Get Started?

"Action is the foundational key to all success."

Pablo Picasso

Before you begin this journey of being financially independent, make sure you complete the following 6 steps and have all the requisite data available with you handy, which you might require during learning

Step 1 - Identify Your Income

Income is the net amount an individual receives from all sources combined, calculated over a specific period such as per month/quarter/year.

Step 2 - Identify Your Expenses

Expense is the cost incurred by an individual for maintaining a day-to-day living. Examples of expenses include but are not limited to - rent, electricity bills, buying groceries, Fuel expenses, etc.

Step 3 - Prepare Surplus Income Table

A workbook with a draft table, as shown below, is available for download from here. Do note that this is just a reference table that can be edited based on individual requirements. It can be made with traditional and paper as well if that is comfortable. The aim here is to identify all expenses and income on a single sheet that will help you to identify net surplus you make per month/quarter/year. Readers are requested to fill up this sheet and keep it handy for further learning

DOWNLOAD SAMPLE WORKSHEET

Step 4 - Identify Your Assets

An asset is something that has a certain economic value. It is owned by an individual and is not borrowed. Assets can be tangible, such as real estate or Gold, or intangible, such as patents or trademarks. Assets can also be classified as current assets, which can be easily converted to cash, or fixed assets, which are long-term investments. Assets can be used to secure loans and can also be used to generate income.

Step 5 - Identify Your Liability

Liability is the financial obligation of an individual towards a debt or other expense, that has to be paid on a fixed periodic basis such as monthly/quarterly/annually such as home loan, car loan etc.

Step 6 - Prepare Net Worth Table

A workbook with a draft table is available for download from here. Do note that this is just a reference table that can be edited based on individual requirements. The aim here is to identify all assets and liabilities on a single sheet that will help you to identify your net worth. Readers are requested to fill up this sheet and keep it handy for further learning

DOWNLOAD SAMPLE WORKSHEET