Finance: Budgeting 101.

Ankit Rath

In this era, proper financial knowledge is quite necesary. We still have a lot to learn about budgeting and investing. It could do wonders for our bank accounts if we could master this concept of budgeting only. The 50-30-20 rule is one of many budget rules we have seen. Let's not get caught up in some rules and stick to the basics. It's true that rules are necessary for every task we perform, but budgeting is simply about being able to save as much money as possible. It doesn't matter how much money you have. It is important for us to understand how money works.

Saving money today will determine our purchasing power tomorrow. Our wealth should determine how many days we can survive without working. For example, if my monthly expenditure is $1000 and every month I receive an interest of $1000 from one of my investments, then I will consider myself a wealthy person. Personal finance is a topic that should be taught in schools, at least the basics of managing money, then imagine the wonders it can do.

Here are some of my book recommendations for personal finance and investing:

• The Psychology of money by Morgan Housel.
• Rich dad and poor dad by Robert Kiyosaki.
• The intelligent investor by Benjamin Graham.