Simple math that makes most sense


The back story

My 2-year-old almost every day stops over at the ‘Turtle Aunty Home’. After play time, he asks to make a pit stop on a floor below ours where this aunty has a pet turtle. He loves to watch the reptile respond to sounds, eat its given food and take its head out when it wants.

Yesterday, we reached her door. Even before we could ring the bell, ‘Turtle Aunty’ opened it to let a few children out of her home. Kids with heavy back packs and very solemn countenance made way into the lift. Aunty welcomed us in and while my son enjoyed his turtle time, the two of us got chatting. I learnt that it was a math tuition class called almost as an emergency since the next day was exam day. The class will assemble again next day to analyze the questions in the paper. I was impressed with her dedication. More chatting ensued as aunty went on to talk about her love for math.

The story of passion

She said she had always topped math exams in her school and made sure her daughters continued the winning streak. There were trophies of various sizes decorating her living room. As a child, she enjoyed the tag of a ‘bright student’ by family and friends. After her marriage too, her in-laws were won over in no time as they got to know about her fluency with the subject.

I heard her tale of passion and in my awe, asked her how she calculates her finances like budgeting and investing. Who else than a math whiz could excel in it. Suddenly, Aunty drew a blank. For a second, I thought I asked a wrong question. After a moment, she said that money management is done by her husband. He allocates monthly expenses to her which is the only part she manages.

Sigh! The tale of passion was now a tale of disbelief. “Never mind”, I thought and asked her for a glass of water. Such a capable lady deserves to do much more. And I couldn’t let the opportunity pass, to tell her that. Yes, it was time to introduce her to the real math – the 50-30-20 math.

The Real Math

We all broadly know what we want money to do for us. We just have to spell it out in what is called as short-term and long-term goals. These goals have to be achieved with some bit of planning. You have to do budgeting smartly to your monthly income post taxes.

50% of Your income – Essentials

To begin abiding by this rule, set aside no more than half of your income for the absolute necessities in your life. In general, these expenses would include housing, food, transportation costs and utility bills.

30% of your income – Discretionary

This is the category that can bring the difference. It’s the part you spend on your lifestyle and therefore the more you keep this in check, the better you can channel towards goal achievements and future.

20% of your income – Savings

This part should be non-negotiable. You have to allocate this amount to savings & investments after taking care of your loans and other debts. This is the part that makes your net worth / corpus / portfolio and will take care of goals.
While documenting my experience yesterday, I found this very simple representation of the rule.


Aunty grasped everything in no time and had a few doubts to ask. I was extremely happy she took keen interest. Little man however, had his fill of the turtle and asked to be taken home. Aunty and I promised each other to continue our discussion later.

Now its me who can’t wait to make a pit stop at the ‘Turtle Aunty Home’.

You’ve got the Power!

With a copy of Roald Dahl, I sit pondering when will the time come to introduce my toddler son to it? In no time, my thoughts meandered…

I attended an amazing interactive session last week for moms. It was about how to become moneywise. In an open chat, moms asked their money doubts – what are different investment avenues, what is more rewarding between bonds and stocks, how not to fall prey to mis-selling, what is more rewarding between bonds & stocks, how much do they need to secure children’s future so on and so forth. The questions kept darting at our lovely speaker Srishti as she gave balanced responses to them.

For me, what stood out was Srishti’s opening talk about how momeys should not be afraid to invest themselves. As a case in point, she narrated how her friend acted on her advice and decided to make some prudent investments. She at first egged on her husband to do it. The busy husband agreed, although could not prioritize investing over a hundred other things. Finally, one afternoon the friend ventured and made her maiden investment online. I heard this and gushed with cheer in my head, almost imagining a victory speech by the friend.

Bet it wouldn’t have been easy for her. Humongous clouds of doubt, questions about the choice of investment, fear of losing the money, inexperience, chances of husband’s disagreement to worries about submitting personal documents – the friend would have battled multiple aspersions. What she did was commendable and a learning for all of us – All of us have the power to accomplish if we have the will (of investing :))


Yes we really do!

My second point is ‘Be the Change’. Since we carry so much power, we should use it to be the change. Often future planning and money matters take a backseat with so much going on per day basis. We, as a family put aside money without assessing requirements or following any system.

Momeys can take a step and influence the entire family. We manage the budgets of our homes without even flinching. So, if we consciously try to make financial planning and investing a routine, we will definitely meet with success. Our resolve to invest will be a huge help to husbands who have to bear the burden of saving / investing adequately for present & future and extended future – retirement.

A bright way to look at it is that with a thrust on investing we will also lay a very strong foundation for our children – they will not just benefit from our investments but also develop a keen eye for pay-offs.

Tch tch! Back to The best of Roald Dahl 🙂

The Corporate Mom

Hello Moms! This is our part 2 in the Millennial Mom series. I am sure you recall our first one was The Media Mom.

To get started, I remember a discussion that dates back in time when I was a salaried employee. I was discussing my tax plan or rather the lack of it with another female colleague. I thought I was in pits as far as my investments were concerned, but to my utter surprise, my friend said that she has never made a single investment on her own. “There is something done by her husband on CA’s advice”, were her words. At that point, we were joined by another team mate and a senior, and the all women’s team shared their investments. A 5 year FD and real estate respectively were spoken of as their investments. But when asked, why these instruments, for what time horizon, what would be their future money requirements be like, these questions drew a blank. 

Now, Moms let me profile these women. Working millennial moms, married to high pressure jobs, over worked most of the times, all very well paid. Academically, management degree holders, fitness lovers, keen readers, well turned out, well travelled, conscious eaters and aware parents. Wouldn’t you expect them to be on top of their finances? But here’s the truth, they may have been HNIs along with their spouses but they were clueless about wealth creation.
Just like my colleagues, there are many millennial moms who have high disposable incomes but lack of awareness, interest and time add up to their financial ignorance. 
So there! We are sharing investments that the uninitiated can consider. These are overall recommendations which can aid in wealth generation and tax planning. However we do encourage our Corporate Mom to take help of a professional financial planner.

Emergency Fund: This is a critical element that we all must pay heed to. All the planning may go for a toss if we don’t keep an accessible emergency fund. Keeping all the money invested with a long term view may not be the best idea since exigencies can come down as a hard reality.

You should consider your 3 to 6 months expenses in emergency fund. If you are savvy about growing your money, then you can park the emergency funds in short term debt funds.

ELSS Funds: Equity Linked savings schemes are an ideal tax saving tool which can give better returns than traditional tax saving schemes. These are essentially tax saving mutual funds that come with a 3 year lock-in.

PPF: For those who are risk averse can invest in PPF for its tax efficiency but declining interest rates are definitely playing dampener on the returns. Plus a 15 year lock-in is a long enough horizon to get above-moderate returns from market linked products.

Mutual Funds: The equity markets have been climbing charts for the last few years. MFs have also been doing well therefore. Since MFs are professionally managed by a team of experts, they can be the best vehicle for working people. You don’t have to monitor market movements everyday basis. 

New investors with a long term horizon should start with large cap funds or balanced funds. 

The most preferred way for the salaried is Systematic Investment Plan better known as SIP. We will speak about it in detail in a following post.

Term Insurance: An important part of financial literacy is life cover. However due to misspelling and ignorance, it is not emphasized enough. Term Insurance is the protection that all income generators should take to cover for their lives in case of any uncertainties. It is a must for the Corporate Mom who makes a crucial contribution to household income.

In addition to above, working moms can also invest a small portion in Gold ETFs or if keen, then dabble in Equities with a long term view.

In the end, all we can say is investments don’t take as much time as we think. Moms and all women should consciously take steps towards investing. Remember Earning for Spending is not the deal, Earning for Growing is.

Successful habits of a Money Managing Mom


Money knows no short cuts. It takes an effort if not an army 😊 to accumulate the riches we so desire. Momey-hood is a tough role but no one can do better justice than us at being good money-managers. Here are our absolute best habits for Moms to excel with money.

  1. Ledger of expenses: An account of household expenses keeps the overheads under check. It also motivates to save more by keeping an eye on outflows.
  2. Due-dates: A calendar for all payment due-dates keeps you prepared for any big expenses that can knock down liquidity such as: School fee, Insurance premium, SIPs, Loan EMI, House help salaries, Credit card payment and the like
  3. Saving first rule: A good part of (minimum 30%) monthly income should be first and foremost kept for savings / investments as a rule. The balance should be used up for family’s expenses.
  4. Create separate funds: To fund your wish lists, create small pools such as travel fund, festive shopping fund. This will ensure you plan your recreational expenses and not do them on impulse. You can exhaust these funds and start all over again for your next goal.