- These 10 challenges suggested by Ankur Warikoo focus on building a disciplined financial life and long-term planning.
- He emphasizes tracking all your expenses, reducing debt, and automating savings.
- Each challenge will encourage you to be proactive and strategic with your finance.
Table of Contents
Challenge 1: Expense Tracking
– Track all expenses meticulously for better awareness.
– Understand where your every penny goes.
Challenge 2: No Spend on Wants
– Eliminate non-essential spending for two months.
– Buy only essential items and avoid buying gadgets, clothes, or other unnecessary items.
Challenge 3: Investment Acceleration
– Increase investments by 10% every week.
– For example, if you invest ₹6000 a month, increase that incrementally each week.
Challenge 4: Debt Reduction
– Create a plan to pay off high interest debts.
Challenge 5: Start Investing
– Start an investment journey with an index fund like Nifty 50.
– Set up a long-term SIP (Systematic Investment Plan).
– This is highlighted as a low-cost method for long-term wealth building.
Challenge 6: Financial Ratios
– Evaluate your personal finance KPIs by comparing income growth and expenses (more on this here).
Challenge 7: Automated Investments
– Open a separate bank account only for savings.
– Set up an automated transfer to this account on your salaray receiving date.
Challenge 8: Diversification
– Explore investing in new asset classes to diversify your portfolio and decrease risk.
Challenge 9: Declutter your Space
– Assess your belongings to get rid of the unnecessary clutter.
– consider selling or donating items that are no longer in use.
Challenge 10: Retirement Planning
– Calculate the required amount for a comfortable retirement
– For this to achiev, derive an amount to be invested monthly from now on.
Action Items
- Calculate your Personal KPIs as suggested in Challenge 6.
- Set up a Mutual Fund (index) SIP for at least 20% of your monthly income.
- Go on “No-Spending” towards your wants, for the next 2 months.